The Indian Gaming Regulatory Act (IGRA) came into being in 1988, well before tribal gaming became the huge industry in the United States that it is today. Last year revenues were in the region of $19 billion and the cash-intensive nature of the business is prompting some to question the regulatory safeguards and industry transparency. Others argue that IGRA works fine and provides more tribal casino industry oversight than is found in commercial casinos elsewhere in the country. Today a US Senate Committee will hear from two tribal leaders from Arizona who say not only that Congress does not need to change IGRA but also that Arizona is a model for gambling oversight.

The National Indian Gaming Commission (NIGC) is an independent federal regulatory agency headquartered in Washington, DC. It has regional offices in Oregon, California, Arizona, Minnesota and Oklahoma and is charged with regulating gaming activities on Indian lands. The Commission has powers to conduct audits, review and approve tribal gaming ordinances, conduct investigations and issue closure orders. Its stated purpose is to shield tribes from organized crime, and to ensure that the Indian tribes are the primary beneficiaries of gaming revenue and that gaming is conducted fairly and honestly by operators and players.

There is now some concern over the level of funding for the Commission and legislation has been introduced that seeks to raise tribal fees allocated to it. Tribes in Arizona already fund tribal, state and federal oversight of gaming to the tune of $35 million and any increase would, according to the tribal leaders, mean less for the social and economic needs of the tribes. They maintain that there is already a stable and working regulatory structure in place. Others disagree and say that tribal gaming is severely under-regulated and that the present cap on tribal funding of the NIGC should be removed.

The Senate Committee on Indian Affairs on the Regulation of Indian Gaming will hear from representatives of tribes in California, Washington, South Dakota, New York and Minnesota, as well as the two from Arizona, in its meeting scheduled for 28 June. The NIGC chairman has expressed fears that a major scandal could arise from the cash-intensive Indian gaming business and therefore argues for updating IGRA, but any changes will doubtless be fiercely challenged by the tribal representatives.

The state of Arizona has the third largest Indian casino industry, with revenues of around $1.5 billion annually. The money supports social and economic needs of Arizona’s tribes, and millions of dollars are paid to state and local governments. (E-06.28.05)

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