If you read this column with any regularity, you know I believe that Indian Gaming is, without a doubt, the Native American success story. As such, tribal governments are keenly aware of the need to protect the integrity and honesty of their Tribal Gaming facilities. For many of us, gaming revenues represent the majority of our governmental operating budgets, which provide critical infrastructure and vital services to our people. Tribal leaders are not willing to risk these precious resources for something as basic as solid regulation.
We base our regulation standards on the Indian Gaming Regulatory Act (IGRA), but, over the years, IGRA has been challenged by many. Most recently, it has been challenged by the National Indian Gaming Commission (NIGC). However, on Oct. 20, 2006, the D.C. Federal Court of Appeals upheld a lower court’s decision in Colorado River Indian Tribes v. NIGC (CRIT) that IGRA does not grant NIGC the authority to impose the Minimum Internal Control Standards (MICS) on Class III Indian Gaming. IGRA reserves this area of regulation for state and tribal governments.
Since then, NIGC has sought to overturn the CRIT decision, which is now being referred to as “The CRIT Fix.” It should really be referred to as “The NIGC Fix,” as there is nothing to fix. Indian Country stands united in the opinion that the NIGC’s push to “fix” CRIT is simply a push for more control and power over our industry. It is a push that will only result in endless layers of bureaucracy.
To properly regulate this industry, tribal governments fund a strong, three-tiered system that includes regulation at the tribal, state and federal levels. As a result of this multi-tiered approach, Indian Gaming is subject to more stringent regulation and security controls than any other type of gaming in the United States. The manpower alone required to operate this system is impressive. With roughly 3,400 people involved in the three regulatory levels (federal, state and tribal), tribes have far more personnel regulating their casinos than Nevada and New Jersey combined.
Tribal governments, gaming operators and Native American organizations alike are proud of, and confident in, the system that monitors Indian Gaming. We feel strongly that what we have in place not only works, but also works exceedingly well. And the American public agrees.
In fact, according to a national poll conducted by Fairbanks, Maslin, Maullin & Associates in March 2007, when informed about IGRA, 79 percent of American voters believed that it provides enough or more than enough regulation of Indian Gaming. Only 10 percent believed more regulation is necessary.
And good regulation doesn’t come cheap. According to the National Indian Gaming Association’s (NIGA) 2006 Economic Impact Report, last year, tribal governments spent a total of $337 million to regulate their industry (which provided over 670,000 jobs nationwide). Of that $337 million:
• Tribal governments spent $255 million to fund regulation of their gaming facilities.
• Tribal governments spent $70 million to fund state regulation of Indian Gaming.
• Tribal governments paid NIGC $12 million to provide federal oversight for Indian Gaming and tribal fee assessments. This amount will likely increase to $15 million in 2007.
Unlike commercial and state-operated gaming, Indian Gaming is subject to extensive federal oversight. To protect our operations, tribes work with the Federal Bureau of Investigation, the Financial Crime Enforcement Network, the Internal Revenue Service and the Bureau of Indian Affairs, in addition to NIGC. As a result of this comprehensive web of regulation, it is extremely difficult for the system to be infiltrated. And, although the success of the Indian Gaming industry may make it a desirable target for organized crime groups, officials say they have not found sufficient evidence to conclude that organized crime efforts have infiltrated the industry.
Because the most important goal of our industry is safety, we successfully confront a variety of challenges on an everyday basis. Beyond the 3,400 federal, state and tribal regulators who work to safeguard Indian Gaming, tribes also invest heavily in high-tech surveillance equipment and utilize state-of-the-art electronic equipment and machines to ensure the highest reliability of gaming.
However, despite our efforts to provide honest, safe and secure gaming operations, regulation of Indian Gaming continues to be a challenge for Indian Country, as it is a targeted source of contention, legislative battles and ongoing law suits.
As NIGA and other Indian organizations work to manage the regulation issues we face, I am compelled to recognize and thank the thousands of dedicated officials, commissions and tribal groups that work diligently to keep our industry safe and successful. Tribal governments have been responsible and smart about the growth of our industry, and much of that lies in the success of our own watchful eyes and ears.
Ernie Stevens Jr. is the Chair of the National Indian Gaming Association and a member of the Oneida Tribe of Indians of Wisconsin. He can be reached at (202) 546-7711.
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