Delaware Nation Sues Hinton Over Casino Utility Cutoff Threat

HINTON, OK — The Delaware Nation has initiated legal action against the City of Hinton, accusing city officials of violating tribal sovereignty after threats were made to cut off water and sewer services to the tribe’s Casino Oklahoma due to a dispute over local taxes. The tribe’s lawsuit, filed in federal court, requests a temporary restraining order and preliminary injunction to block any interruption of utility services, which it says would severely impact casino operations.

 

• The Delaware Nation has sued the City of Hinton for threatening to cut off water and sewer services to Casino Oklahoma, citing violations of tribal sovereignty and prior agreements.

• The casino operates on federal trust land, which the tribe argues exempts it from local taxes and municipal ordinances under longstanding federal protections.

• Past agreements in 2012 and 2018 outlined voluntary payments in lieu of taxes and guaranteed utility services under the same terms as other local businesses—terms the tribe says it has fully honored.

 

The controversy centers on Casino Oklahoma, operated by Lenape Oklahoma LLC, a business entity owned by the Delaware Nation. The casino is situated on federally held trust land, a status that the tribe asserts exempts it from municipal taxation and regulatory ordinances. According to the tribe’s legal complaint, the city’s move to threaten utility disconnection lacks legal basis and disregards agreements made between the Nation and the city in 2012 and 2018, which recognized the tribe’s sovereignty and established terms for voluntary payments.

The Delaware Nation highlights that the 2018 Memorandum of Understanding (MOU) between the tribe and Hinton explicitly states that the Hinton Public Works Authority (HPWA) would supply water and sewer services to the casino under the same terms offered to other local businesses. The tribe asserts it has fully complied with all payment obligations outlined in that agreement and that no additional charges for utilities were ever agreed upon. Despite this, the tribe received a June letter from the HPWA Board warning that water services would be cut off on August 1 if the tribe did not agree to pay city taxes, a demand the Delaware Nation considers both coercive and unlawful.

 

Broader Context

This lawsuit reflects ongoing complexities in the relationship between Oklahoma’s tribal nations and state or local governments regarding jurisdiction, taxation, and regulation of tribal gaming operations. Tribal casinos have become major economic drivers in Oklahoma, contributing over $23 billion to the state’s economy in recent years. Additionally, the state benefits significantly from exclusivity agreements, having collected over $208 million in fees in 2024, marking a 36% increase since 2019.

 

The City of Hinton’s threat to cut off essential utility services not only jeopardizes our casino’s operations but fundamentally violates our sovereign rights and the agreements established to respect our tribal lands.

 

The Future

Nevertheless, disagreements remain frequent. For instance, the recent rejection by the Oklahoma attorney general of a gaming compact with the United Keetoowah Band illustrates continuing disputes over revenue-sharing and regulatory authority on tribal lands. For the Delaware Nation, this lawsuit is about safeguarding not only its economic interests but also the principle that tribal sovereignty protects federally held trust lands from municipal tax enforcement or service cutoffs.

The City of Hinton has not yet issued an official response to the lawsuit. A court hearing on the tribe’s request for a preliminary injunction is expected in the near future and may have broader implications for tribal relations and local governance in Oklahoma.