Hogen promotes successes of Indian gaming

FROM THE ARCHIVE

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THURSDAY, SEPTEMBER 26, 2002

President Bush's nominee to be the chief regulator of the $12.7 billion and growing Indian gaming industry drew bipartisan support at his confirmation hearing on Wednesday.

Appearing before the Senate Indian Affairs Committee, Phil Hogen promised to work closely with tribal governments if he is confirmed as chairman of the National Indian Gaming Commission. "I know it's folly to try to impose rules on Indian nations without first seeking their view," he said.

Hogen also said that Indian Gaming Regulatory Act (IGRA), the federal law that paved the way for the growth of the industry, has largely met its goals. Economic conditions on reservations have improved since 1988, he noted, referring specifically to the creation of jobs and other benefits.

But he added: "It certainly hasn't solved all the economic problems on all the reservations."

With respect to organized crime, Hogen said tribes have been able to protect their operations. "But we've always got to be vigilant," he told the committee. "We can't let down our guard in that regard."

The successes don't mean Hogen's job will be easy, though. During the hearing, he touched on a number of controversial areas, including budget, the role of the commission and casino game classification.

"The growth of the industry has been greater than the expansion of the commission's ability to provide the oversight they are required to do," he said.

Hogen, who previously served on the NIGC during the Clinton administration, said some areas of Indian Country are underserved. He supported opening new enforcement and oversight offices in southern California and the Great Plains to join the five existing.

The NIGC's role is limited, he said, although some tribes would disagree with that assessment. During Hogen's first tenure, a number of sweeping regulations affecting the daily operation of casinos were implemented.

"The industry will be better served if there is adequate, not too much, federal oversight," he testified.

The commission's proposed fiscal year 2003 budget is $9.9 million, most of which is drawn from fees imposed on tribes with casinos. Hogen said he'd support a new payment structure to allow the NIGC to do its job.

"Everybody needs to pay their fair share," he told the committee.

Hogen said that technological advances in casino games have outpaced the law. New machines have blurred the line between Class II, or bingo and bingo-like games, and Class III, which includes slot machines, card games and all other offerings, he acknowledged.

"I think there has to be constant study" of casino games and the NIGC's classification rules, he noted. "Courts are probably going to provide some of the ultimate answers."

Referring to tensions affecting states and local governments, Hogen said tribes "will be well served if they sit down with those communities" and discuss casino-related issues. "But tribal sovereignty is tribal sovereignty," he added. "That needs to be borne in mind."

"I see you've come down very firmly in the middle," said Sen. Ben Nighthorse Campbell (R-Colo.), vice-chairman of the panel, in response.

Sen. Daniel Inouye (D-Hawaii), the committee chairman, said Hogen's nomination would likely be approved October 1. The full Senate would then vote on the appointment.

Hogen hails from South Dakota and drew praise from the state's Congressional delegation. "I know he will do an extraordinary job as chairman," said Sen. Tim Johnson (D-S.D.), a committee member. Rep. John Thune (R-S.D.) also added his support.

Hogen is currently a solicitor in charge of Indian affairs within the Department of Interior. If confirmed to head the NIGC, he would be joined by two new commissioners, Chuck Choney and Nelson W. Westrin. A comment period on the two appointees, who were picked by Secretary Gale Norton, ends October 4.

Relevant Links:
National Indian Gaming Commission - http://www.nigc.gov