2nd Circuit rules in gaming agreement dispute

Friday, June 9, 2006  

A 2nd Circuit Court of Appeals on Thursday affirmed the authority of the National Indian Gaming Commission to review casino management contracts and other contracts related to tribal casinos.

In a unanimous decision, the court said the Indian Gaming Regulatory Act gives the NIGC the power to review "gaming management agreements and contracts collateral to such agreements." Collateral is defined as any agreement that is related "directly or indirectly" to the management of the casino, according to federal regulations.

Citing changes in business practices, NIGC been taking a broad look at gaming and gaming-related contracts. Tribes are signing deals that appear to give non-Indian companies a major stake in casinos, according to NIGC officials.

Sen. John McCain (R-Arizona) is sponsoring amendments to IGRA that would expand the agency's authority, although tribal and NIGC officials say the current provisions may go too far. The bill would require NIGC to consult with tribes prior to developing any new rules.

The case is U.S. v. President R.C..