NIGC proposed regulations during holiday break

Wednesday, January 7, 2009  

The National Indian Gaming Commission isn't letting the end of the Bush administration stop its regulatory initiatives.

Over the holiday break, the agency that oversees the $27 billion tribal casino industry proposed updates to several existing regulations. Comments are being accepted until February 5, after president-elect Barack Obama takes office.

The proposed changes cover five major areas: definitions; annual fees; content of management contracts; background checks of management and key employees; and monitoring and investigating. The notice that was published in the Federal Register on December 22, 2008, indicates tribes objected to some of the amendments as burdensome.

"The changes in this proposed rule are minor but provide incremental improvements to existing regulations.," the notice states.

One significant amendment affects the power of the NIGC to close a tribal casino. The proposed rule adds a "substantial violation" to cover facilities that are not operating on "Indian lands," as that term is defined by the Indian Gaming Regulatory Act.

The new amendment appears to link "Indian lands" not only to the section of IGRA where the term is defined but to other sections of the law that aren't immediately associated with the definition. This change could be perceived as allowing the NIGC to close a casino that is operating under a Class III gaming compact that was invalidated at the state or tribal level after being federally approved, a situation that has occurred recently in Florida, California and New York.