FROM THE ARCHIVE
NIGC takes a gamble on new regulations
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THURSDAY, JULY 26, 2001

Indian gaming leaders on Wednesday lent their overwhelming support to recently proposed rules that will relax the definition of certain gaming devices whose legality has resulted in bitter disputes between federal regulators and tribes.

At an oversight hearing before the Senate Indian Affairs Committee, representatives of several gaming groups championed the rules as resolving uncertainties in the enforcement of federal law. Tracy Burris, chairman of the Oklahoma Indian Gaming Association, said tribes "have spent thousands of dollars in litigation" fighting the government on the issue, noting that the rules are of particular importance to tribes in his state.

The National Indian Gaming Association, which represents more than 160 tribes throughout the country, also rallied behind the proposed regulations. Chairman Ernie Stevens said they are "a proper first step that would help clarify and stabilizing this area of gaming law."

Montie Deer, however, chairman of the National Indian Gaming Commission, has objected to the changes. Yesterday, he offered a brief, yet cryptic explanation of his opposition, which boiled down to a desire to hold onto his duties as chief enforcer of a $10 billion, and growing, industry.

"It behooves us to leave [these regulations] alone," said Deer.

But Deer has been overruled by his two commissioners -- Liz Homer and Teresa Poust. Last month, they decided to go forward with a proposal which directly benefits tribes in states, including Oklahoma, where the games might otherwise be considered illegal.

At issue are a set of games the NIGC has typically defined as Class III. Under federal law, tribes cannot operate Class III games, like financially lucrative slot machines, without a tribal-state compact.

To enforce the law, the government in a number of states has seized or otherwise declared illegal certain machines. The government has also fought attempts by tribes to have certain games classified as Class II.

In Oklahoma, for example, the government fought an attempt by the Cheyenne and Arapaho Tribes to operate the "Lucky Tab II" game. In California, the government seized "MegaMania" machines being run by the Cahto Tribe.

The government pursued the cases but eventually lost. The courts ruled that the games in question were considered to be technologically-advanced forms of bingo, allowing tribes to operate without a tribal-state compact.

According to the NIGC, the new rules would simply make their efforts more consistent with what courts have said. But the NIGC denies they will open up the floodgates to Class III games.

"The proposed language would not authorize any tribe to conduct Class III gaming without a valid tribal-state compact," said spokesperson Anna Briatico. "The proposed amendment would simply align the commission's definitional regulations with federal case law."

Senators Daniel Inouye (D-Hawaii) and Ben Nighthorse Campbell (R-Colo.), chairman and vice-chairman of the Indian Affairs Committee, said yesterday they were still digesting the new rules. Proposed last month, the comment period closed on Monday.

Relevant Links:
Classification Opinions, NIGC - http://www.nigc.gov/opinion.htm
Senate Indian Affairs Committee - http://indian.senate.gov
National Indian Gaming Commission - http://www.nigc.gov
National Indian Gaming Association - http://www.indiangaming.org