Wonkblog: Tribal Internet Gaming Alliance gets off the ground

Most tribes, however, don't need federal or state approval to start offering "Class II" games -- mostly bingo and poker -- as long as the players are located within their reservations, with a perfunctory sign-off from the National Indian Gaming Commission. Even without the high-dollar, low-skill games like blackjack and roulette, Class II gaming can be quite profitable, and an online offering would serve as an additional selling point for a small casino or other tourist attraction.

So Nelson came up with an idea: If enough small tribes could bind together to set up a common platform, they could achieve the scale necessary to attract a critical mass of gamers, and a commission with representatives from each tribe would divvy up the profits while pushing for broader legalization. A few months ago, he presented the idea to Wisconsin's Lac du Flambeau Lake Superior Band of Chippewa Indians, who were already developing their own gaming site.

"Some of the older guys on the council, they see the word treaty, and they're a little hesitant," said Jerome "Brooks" Big John, a member of the tribal council. But Nelson explained that it wouldn't confine their business operations, and that acting as a unit would just help them advocate for expansion of off-reservation gaming in the rest of the state. It worked: The tribe ratified the treaty on Oct. 17. "I think that knocking on doors together, we'll be able to accomplish more," Big John said.

It's more than just solidarity, though. Lac Du Flambeau's free-play site has been up and running since September. Even though its 3,500 members don't pay anything, the tribe can use it to run promotions for its terrestrial casino, until it decides to "flip the switch" and allow real money to be exchanged. If other tribes sign the treaty, they could share data on gamblers who've come through their systems, which dramatically expands their reach.