Delaware Nation Sues Hinton Over Treats to Cut Services to Casino

In its lawsuit, the Delaware Nation claims that the city’s threat to cut off utility services to its casino over a tax dispute violates tribal sovereignty and contradicts previous agreements from 2012 and 2018.

Delaware Nation Files Lawsuit Against Hinton

Casino Oklahoma, operated by the tribe’s business entity Lenape Oklahoma LLC, is located on federal trust land within the boundaries of the town.

However, Hinton officials argue that the tribe is required to pay local taxes to the city. In the lawsuit, the Delaware Nation contends that because the casino sits on trust land, municipal ordinances do not apply, making the city’s threats legally unfounded. 

In its lawsuit, Delaware Nation is seeking a restraining order and preliminary injunction against the city, accusing it of violating the Nation’s sovereign rights and threatening the casino’s operations.

The tribe also notes that in 2012, it reached an agreement with the municipality to provide a payment in lieu of taxes.

In 2018, the Delaware Nation and the town of Hinton signed a second Memorandum of Understanding  (MOU) aimed at fostering positive relations between the two parties. As part of this agreement, the Nation voluntarily agreed to make certain payments in lieu of taxes to the town.

The Delaware Nation fulfilled all payment obligations outlined in the 2018 MOU. It should be noted that the agreement did not require any additional charges for water and sewer utility services beyond the standard rates applied to other local businesses. According to the MOU, the Hinton Public Works Authority (HPWA) provides water and sewer services to Casino Oklahoma on the same terms and conditions as those offered to similarly situated businesses.

In 2024, Hinton stated it would continue providing water and sewage services to the casino while conducting a further review. However, in June, the tribe received a letter from the Hinton Public Works Authority Board of Trustees warning that water services would be disconnected on August 1 unless the tribe agreed to pay city taxes.

Oklahoma and the Tribal Nations Have a Complex Relationship

Over the years, the First Nations have been crucial to the gambling sector in Oklahoma. The state received $208 million in exclusivity fees from tribal gaming agreements that grant Native nations the exclusive right to operate certain types of gaming within the state, which marks a 36% increase since 2019.

According to a recent study, tribal casinos poured over $23 billion into Oklahoma’s economy, which represents a massive jump compared to previous years.

However, the state and tribal nations have not always agreed on various topics regarding the gambling industry. For example, recently, the Oklahoma attorney general rejected the United Keetoowah Band’s gaming compact.

This was a revenue-sharing and regulatory agreement that allowed federally recognized tribes to operate slot machines and live dealer table games on their sovereign lands. However, the AG’s recent decision puts a spanner in the works of the project for now.