Oklahoma authorizes real-money online casino for local tribes

In 2012, Oklahoma’s Cheyenne and Arapaho Tribes aimed to enter the $30 billion international online gaming market with an online platform. This ambitious project, backed by a Class 3 gambling license and a state compact signed by Governor Mary Fallin, sought to offer real-money online gaming to international players. However, the initiative faced significant challenges and ultimately did not launch, leaving the platform inactive today.

The Vision and Legal Framework

The Cheyenne and Arapaho Tribes, federally recognized and exempt from the 1961 Wire Act and the 2006 Unlawful Internet Gambling Enforcement Act, negotiated a compact with Oklahoma in 2013 to operate their gaming platform internationally, excluding U.S. players. The agreement promised a 20% revenue share for the state and was designed to comply with international gaming standards and jurisdictional requirements. The tribes partnered with a company to develop the platform, investing $9.4 million. Unfortunately, the project stalled due to the partner’s failure to deliver a functional site, leading to legal disputes and financial losses.

Challenges and Project Collapse

Despite initial optimism, the platform never progressed beyond a prototype. The partnership unraveled amid allegations of fraud and mismanagement. By 2014, the tribes ceased pursuing the project and sought to recover their investment through legal action, which was unsuccessful due to contractual terms. No international gaming licenses were secured, marking a significant setback for the tribes’ aspirations in the global online gaming market.

Impact on Oklahoma and Other Tribes

The failure of the initiative was a missed opportunity for both the Cheyenne and Arapaho Tribes and Oklahoma, which anticipated economic benefits from the revenue share. The tribes aimed to set a precedent for other Native American tribes to enter international gaming markets, but the project’s collapse highlighted the risks of unproven partnerships. Similar ventures by other tribes also struggled, reflecting broader challenges in the industry.

Lessons for the Future

The saga underscores the challenges of entering the competitive global online gaming industry. Regulatory complexities, reliable partnerships, and robust technology are critical for success. While the Cheyenne and Arapaho Tribes’ vision was innovative, the lack of a viable platform and trustworthy collaborators halted progress. Other tribes considering similar ventures can learn from this experience, prioritizing due diligence and established operators to navigate international markets effectively.

Current Status

As of May 31, 2025, the platform remains inactive, with no plans announced for revival. The global online gaming market continues to grow, projected to reach $11.4 billion by 2030, but the Cheyenne and Arapaho Tribes have shifted focus to other initiatives.