NIGC Extends Comment Period on New Regs to March

From Indianz:

NIGC extends comment period on Class II initiatives

Tribes have until March 9 to comment on the four controversial Class II initiatives proposed by the National Indian Gaming Commission. In notices published today in the Federal Register, the NIGC extended the comment period on the following: classification standards for bingo, pull tabs and similar games; a definition of electronic Class II games; minimum internal control standards for Class II games and technical standards for Class II games. The NIGC says the rules will clarify the difference between Class II games like bingo and Class III games like slot machines. Technological advances have blurred the lines. “Class II gaming has been the bedrock of Indian gaming and continues to play a vital role in the expanding industry. In order to preserve and respect the importance of Class II gaming, we are moving forward keeping all comments in mind and will act in a way to distinguish Class II gaming from Class III gaming,” NIGC Chairman Phil Hogen said.

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New Proposal to Require NIGC License for Tribal Gaming Facilities

The National Indian Gaming Commission issued a draft, proposed set of regulations that would require each tribal gaming facility operator to request a license from the Commission or else be subject to shutdown. H/T Indianz.com.

The regs require tribal gaming operators to submit a showing to NIGC that the proposed facility would be compliant with applicable public safety and environmental laws — and to identify the laws that are applicable. On first glance, the question of whether some local or state laws are applicable to tribal gaming facilities is an open question in many, if not most, areas. Tribes may not want to concede that some of these laws might apply. Moreover, there are no standards as to how the NIGC would consider these submissions to be in compliance with the regs (perhaps not a big deal), so if the NIGC thinks some laws apply that the tribes doesn’t, the NIGC could hold up a license on this question. And will there be different standards for renewal applications as opposed to original applications? And that begs the question of how long the NIGC will take to review the applications — a month, a year? Can the regs be enforced against the agency (obviously, I’m not an administrative law scholar, so this might be answered by the APA)?

And, finally, to me the biggest question — does the NIGC have the authority to license tribal gaming facilities at all? There’s nothing in the Indian Gaming Regulatory Act that explicitly authorizes the Commission to license tribal gaming facilities. And then there’s that ongoing litigation that the NIGC is losing — Colorado River Indian Tribes v. NIGC [DC Cir opinion] — holding that the NIGC had no authority to issue minimum internal control standards. If the NIGC can’t issue MICS, then how are they going to require these licenses?

Sounds like a lot more litigation if these regs are promulgated, in whatever form.