Yesterday the National Indian Gaming Commission (NIGC) announced that it was withdrawing the Class II Classifications and Definitions section of pending regulations and is to consider only implementing Class II Technical Standards and Minimum Internal Control Standards. This has been welcomed by the National Indian Gaming Association (NIGA), particularly as the NIGC will not now modify the definition of ‘facsimiles of any games of chance.’

Tribal leaders had fought for the proposed change to be removed until meaningful government-to-government consultation had taken place. Under the original NIGC proposal the facsimile definition would have classified all electronic versions of Class II games as Class III. An NIGC study has shown that tribal governments would lose around US$1.2 billion annually if such a change were to be implemented, as well as incur compliance costs of up to US$347.9 million.

Many smaller Class II operations, in states such as Montana, Alabama, and North and South Dakota, would have faced severe challenges in complying with the regulations. Additional economic losses would have resulted from the thousands of lost jobs and wages; investment losses; transition costs; reduced spending in local economies, and other direct and indirect negative economic impacts.

Chairman Ernie Stevens of NIGA cited Tribal leaders’ hard work in opposing these regulations: “Our thanks goes out to Tribal government leaders and Tribal gaming commissioners for their hard work in staying active and engaged with the NIGC and requesting consultation with Tribes prior to the development of such sweeping regulations.”

Stevens added that NIGA and Indian Country will work with the NIGC on the remaining sections of the Class II regulations. “Working together with Indian Country, there is an opportunity to develop acceptable Class II MICS and Classification Standards that the Tribes and industry can implement without severe economic hardship.” The (E-06.06.08)

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