At this week’s session of the Senate Indian Affairs Committee its chairman, John McCain of Arizona, declared that it was time to abolish the National Indian Gaming Commission (NIGC) or to give it more powers to act. Last month a federal court decided that the Commission did not have the authority to issue rules for slot machines or table games operated by the Colorado River Indian Tribes in Arizona, a decision that could have far reaching results on the ability of the Commission to regulate tribal gaming around the United States. The decision in the case, Colorado River Indian Tribes v. National Indian Gaming Commission, reinforces the distinct regulatory roles given to tribal, state and federal regulators, and prevents the federal agency from exercising authority that Congress gave to the tribes and states.

In July this year the Commission published its revisions to Minimum Internal Control Standards (MICS) that were first developed in 1999 in response to the perceived inherent risks of gaming enterprises and the resulting need for effective internal controls. Periodic adjustments and revisions are made to take account of technological developments in the gaming industry. Senator McCain is seeking to introduce a bill to Congress that, if passed, he says would clarify the role of the NIGC and increase its enforcement powers.

The National Indian Gaming Association (NIGA) is not sure that such a bill is necessary, as the court ruling made in August could be overturned on appeal. Mark Van Norman, executive director of NIGA, prefers an approach to tribal governments in order to work out a way to implement the rules rather than a new Congressional law being sought. NIGA and the National Congress of American Indians have created internal control regulations for tribes, based on those in Nevada and Atlantic City.

The Colorado River Indian Tribes' Tribal Chairman, Daniel Eddy, Jr. has stated, “Indian gaming is heavily regulated, and rightfully so. The Indian Gaming Regulatory Act gave to each of the tribal, federal, and state governments its own layer of regulation of tribal gaming. The NIGC's attempt to impose mandatory internal control standards on Class III gaming damaged the balance created by Congress.

As with any business, excessive and redundant regulation by the federal government can be expensive and confusing. We have never denied that internal control standards are essential to the integrity of our gaming. They are, and we adopted our own years before the NIGC required it. We have only argued that Congress gave the authority to impose such standards on Class III gaming to the tribes and the states, not to the NIGC. It's wrong for any federal agency to exceed its authority and regulate activity in ways that are contrary to the law.” (E-09.23.05)

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