Casino Oklahoma Sues Town Over Threat to Cut Water

• Tribe sues town over utility shutdown targeting sovereign land
• Delaware Nation claims illegal tax coercion on trust land
• Lawsuit seeks injunction, cites violation of federal protections

A federally recognized tribal nation in Oklahoma is asking a federal judge to stop a small town from cutting off water and sewer services to its casino, which it claims is a “thinly veiled attempt” to force illegal taxation on sovereign land.

The Delaware Nation owns Casino Oklahoma, which sits on a 20-acre parcel held in trust by the federal government for the tribe just north of the small town of Hinton.

In a complaint filed July 22 in the U.S. District Court for the Western District of Oklahoma, the Nation accuses the town and its public works authority of threatening to pull the plug on utility services to the casino.

“The Town of Hinton will discontinue all municipal services, including water and sewer services, to the Casino Oklahoma property at 12:00 a.m. on August 1, 2025,” the town’s Board of Trustees stated in a letter dated June 10, 2025, which was included as evidence in the suit.

Sovereignty Issue

In the U.S., tribal governments view state and local tax exemptions as a non-negotiable and a core part of what makes them sovereign nations.

Under federal law, lands held in trust for Indian tribes are explicitly exempt from such taxes. The Indian Gaming Regulatory Act also prohibits states and localities from imposing fees or charges on tribes operating Class III gaming facilities.

Defendants’ threat to terminate utility services constitutes an illegal attempt to obtain tax revenue, which federal law prohibits them from imposing on the Trust Parcel,” the Nation argues in the complaint.

“The threatened shutoff is not about unpaid bills,” the complaint asserts. “The Nation has paid all utility service fees and continues to do so in good faith.”

Closure Threat

The Nation says it could be forced to close the casino if the town delivers on its threat, which it claims would cause substantial harm to tribal citizens and the town itself.

Hinton’s own utility policies prohibit service extensions outside town limits, but the tribe notes that Hinton has acknowledged multiple times in legal documents, agreements, and maps that the casino is within the town’s boundaries.

As of press time, officials with the Town of Hinton and the Hinton Public Works Authority had not issued public statements regarding the pending litigation.