Legislation | Regulation

Senate committee takes a look at regulation of tribal gaming

Thursday, July 23, 2015

National Indian Gaming Commission Chairman Jonodev Chaudhuri testifies before a hearing of the Senate Indian Affairs Committee on July 22, 2015. Sen. John McCain (R-Arizona) is seated at the dais. Photo by Andrew Bahl for Indianz.Com

New NIGC leader defends work as sole official at regulatory body
By Andrew Bahl
Indianz.Com Staff Writer

A large crowd greeted the Senate Indian Affairs Committee for its first look into the $28 billion tribal gaming industry during the 114th Congress on Wednesday.

Sen. John Barrasso (R-Wyoming) , the chairman of the committee, said he was concerned about a recent Government Accountability Office report that questioned the effectiveness of the National Indian Gaming Commission. Under the Obama administration, the agency has encouraged more assistance rather than taking enforcement against tribes that may be in violation of the Indian Gaming Regulatory Act.

“The report states that the NIGC is not effectively promoting voluntary compliance with federal guidelines related to gaming regulatory standards,” Barrasso said. “Furthermore, the report indicates that the current performance measures for training and technical assistance are not outcome-oriented."

"With so much at stake, we need to fully ensure that the integrity of Indian gaming remains strong for future generation," Barrasso said.

Jonodev Chaudhuri took control of the NIGC in May, after the agency went without an official leader for 18 months. He defended his work in his first appearance on Capitol Hill as chairman.

Indianz.Com SoundCloud: Senate Indian Affairs Committee Oversight Hearing on "Safeguarding the Integrity of Indian Gaming"

“The NIGC was pleased the GAO report highlighted many of the success stories in Indian gaming, including the manifold ways tribes have used gaming revenue to safeguard their peoples’ futures and pursue self-determination,” Chaudhuri told the committee. “I believe all of the NIGC’s responses to the issues raised by the GAO will only enhance the regulation of the industry.”

But Chaudhuri, who first joined the agency in September 2013, is essentially going at it on his own for now. Daniel Little, an associate commissioner, left his post in late May, leaving the chairman as the lone official at the NIGC.

Chaudhuri acknowledged that the lack of additional members could hinder some of the agency's efforts, such as issuing regulations and setting fee rates. Tribes might not be able to receive decisions affecting their facilities either.

“The optimum and best scenario is to have a full commission. IGRA contemplates a full commission," Chaudhuri testified. "Having a least a quorum of commissioners -- at least two -- is necessary to do certain, specific things."

But Chaudhuri insisted that he will be able to move forward even though Interior Secretary Sally Jewell has not appointed anyone else to serve an the NIGC. The agency has operated with just two members for most of the Obama administration without major issues.

“I’m committed to working with whoever gets appointed," Chaudhuri said. "Day-to-day, there's not a hiccup with maintaining our direction."

National Indian Gaming Association Chairman Ernie Stevens, left, with Rep. Frank Pallone (D-New Jersey) at NIGA's legislative summit on July 21, 2015. Photo from Twitter

But Ernie Stevens, the chairman of the National Indian Gaming Association, didn't agree with that assessment. When asked whether the lack of a quorum hurts tribes, he simply stated: "I think it does."

"I think we continue to advocate that those positions are filled," Stevens added.

Stevens was quick to note that tribes serve as the primary regulators of their gaming facilities. In addition to working with states and local governments under Class III gaming compacts, he said tribes spend millions of dollars to safeguard the integrity of their establishments.

"We have to look out for our shop and our operations," said Stevens, who described tribal gaming as the “Native American success story."

“It has helped replenish our homeland and provide for the future of our community and it has helped us preserve our culture,” Stevens told the committee. “Indian gaming is tribal self determination and tribal leaders know these benefits wouldn’t exist without a strong regulation system."

"I challenge anyone to find a better regulatory system worldwide," Stevens said.

The Tulalip Tribes own and operate the Tulalip Resort Casino in Tulalip, Washington. Photo from Facebook

David Trujillo, the director of the Washington State Gambling Commission, said the relationship between tribes has evolved over the years. He believes the current system in his state offers a strong regulatory environment.

“Class III gaming in Washington is a partnership," Trujillo said. "The state and tribes together do a great job and if our state is reflective of other state agencies then I would say integrity is high."

Jamie Hummingbird, the chairman of the National Tribal Gaming Commissioners/Regulators Association, said his organization remains committed to ensuring tribal self-compliance with gaming regulations. Failing to do so would jeopardize health, education, social service and other programs funded by casino revenues, he said.

“Tribes and the regulators they trust have the greatest stake in ensuring the integrity of Indian gaming,” Hummingbird said. “As daunting as it is to appear before a Senate committee, it pales in comparison to facing our elders who need the revenue to fund their health programs or our youth who need schools.”

Sen. Heidi Heitkamp (D-North Dakota) emphasized the importance of tribal sovereignty being included in the conversation about gaming. She made a similar point during NIGA's legislative summit a day earlier.

“A lot of people think that it’s a gift that Congress gave to tribes," Heitkamp said of tribal gaming.

"When we talk about Indian gaming we need to put it in that context,” Heitkamp said. “We have to start in a government-to-government relationship.”

At the same time, Heitkamp said tribes must maintain the integrity of their operations. “There also has to be assurances to the public that when they walk in a casino … that it's safe,” she said.

Ongoing construction on the West Valley Resort in Glendale, Arizona. Photo from Facebook

Sen. John McCain (R-Arizona) clashed with Chaudhuri during the hearing with a thinly veiled reference to a dispute between over a casino under construction in a Phoenix suburb. He's sponsoring S.152, the Keep the Promise Act, to prevent the Tohono O'odham Nation from using its trust land for the West Valley Resort.

“As one of the two authors of the Indian Gaming Regulatory Act I find it amusing when people tell me what the intent of Congress was,” McCain said. “The intent of the law was not to parachute into metropolitan areas without the agreement of local authorities or citizens."

"What we have in Glendale is a very dangerous situation and it certainly wasn’t the intent to see the situation that has evolved there," McCain said, referring to the casino in the Phoenix suburb. "I believe it is wrong.”

The hearing drew more than 100 attendees, many of whom were in Washington, D.C., for NIGA's legislative summit. It was held a in a larger room to accommodate the bigger turnout.

Committee Notice:
Oversight Hearing on "Safeguarding the Integrity of Indian Gaming" (July 22, 2015)

Government Accountability Office Report:
Regulation and Oversight by the Federal Government, States, and Tribes (June 3, 2015