Indian Gaming Regulatory Act
Encyclopedia
The Indian Gaming Regulatory Act is a 1988 United States federal law that establishes the jurisdiction
al framework that governs Indian gaming. There was no federal gaming structure before this act. The stated purposes of the act include providing a legislative basis for the operation/regulation of Indian gaming, protecting gaming as a means of generating revenue for the tribes, encouraging economic development of these tribes, and protecting the enterprises from negative influences (such as organized crime). The law established the National Indian Gaming Commission
and gave it a regulatory mandate. The law also delegated new authority to the U.S. Department of the Interior and created new federal offenses, giving the U.S. Department of Justice authority to prosecute them.
The law has been the source of extensive controversy and litigation. One of the key questions is whether the National Indian Gaming Commission and Department of Interior can be effective in regulating tribal economic decisions related to Indian gaming. Some in Congress are in favor of greater regulation, while a prominent professor in the field is skeptical that such regulation is effective. Many of the controversies have produced litigation, some of it reaching the U.S. Supreme Court.
, the Supreme Court made a ruling that sowed the legal seeds that would eventually give rise to the Indian gaming industry. In an opinion written by Justice William J. Brennan, Jr.
, the Supreme Court highlighted tribal independence from state regulatory authority. Since regulatory authority is the primary legal mechanism for regulating some forms of gambling, this case would prove relevant to the impending controversy of Indian gaming.
Gambling
is a part of many traditional Indian cultures (as well as the larger US society.) Tribal games include dice and shell activities, archery competitions, races, and so on. The use of gaming to generate profit did not begin until the late 1970s and early 1980s within Indian communities. Several tribes, especially in California and Florida, opened bingo parlors as a way to earn revenue. Their actions were related to the search for new sources of revenue, given the emphasis the Ronald Reagan
administration placed on economic self-sufficiency for the tribes.
While bingo was legal in California
and Florida
, those states had stringent regulations. Operating on the history of tribal sovereignty, some tribes did not comply with these laws. High-stakes Indian bingo operations soon arose in California, Florida, New York
and Wisconsin
. The industry grew rapidly. State governments began contending that revenues from their own gaming operations dropped as Native American operations increased the potential stakes.
Discussions about codifying Indian gaming began in 1983. In 1987, the U.S. Supreme Court ruled in California v Cabazon Band of Mission Indians that as sovereign political entities, tribes could operate facilities free of state regulation. The court also recognized that gaming could be used to encourage tribal self-sufficiency and economic development. This court case can be seen as a victory for the tribes. As the growth in Indian gaming continued in the 1980s (grossing over $110 million in 1988), though, tensions increased.
States began lobbying the federal government to allow states to regulate Indian gaming. States argued that their regulation was needed to stop infiltration by organized crime. Furthermore, states wanted to be able to tax revenues gained by Indian gaming. Tribes fought the states in an effort both to maintain tribal sovereignty and to protect Indian gaming revenues to support economic development. Congress responded with the set of compromises which evolved into the Indian Gaming Regulatory Act
The primary legislators involved in drafting the Act were Senator Daniel Inouye
of Hawaii, Representative and then (as of 1987) Senator John McCain
of Arizona, and Representative Mo Udall
of Arizona. As S.555, the bill passed the United States Senate
on September 15, 1988. The House then passed the bill on September 27. President Ronald Reagan
signed it into law on October 17, 1988.
Some aspects of the law were later clarified through court cases. Whether revenue from the Indian casinos was subject to other governmental taxation was determined in Chickasaw Nation v. United States
. And, in 2009 the Supreme Court ruled in Carcieri v. Salazar
that the Department of the Interior could not grant land into trust to tribes recognized after 1934.
, pull tabs, punch board, tip jars, instant bingo, and other games similar to bingo. Class II gaming also includes non-banked card games, that is, games that are played exclusively against other players rather than against the house or a player acting as a bank. The Act specifically excludes slot machines or electronic facsimiles of any game of chance from the definition of class II games. Tribes retain their authority to conduct, license, and regulate class II gaming so long as the state in which the Tribe is located permits such gaming for any purpose and the Tribal government adopts a gaming ordinance approved by the National Indian Gaming Commission (NIGC). Tribal governments are responsible for regulating class II gaming with Commission oversight. Only Hawaii and Utah continue to prohibit all types of gaming.
s, such as slot machines, blackjack
, craps
, and roulette
, clearly fall in the class III category, as well as wagering games and electronic facsimiles of any game of chance. Generally, class III is often referred to a casino-style gaming. As a compromise, the Act restricts Tribal authority to conduct class III gaming.
Before a Tribe may lawfully conduct class III gaming, the following conditions must be met:
The regulatory scheme for class III gaming is more complex than a casual reading of the statute might suggest. Although Congress clearly intended regulatory issues to be addressed in Tribal-State compacts
, it left a number of key functions in federal hands, including approval authority over compacts, management contracts, and Tribal gaming ordinances. Congress also vested the Commission with broad authority to issue regulations in furtherance of the purposes of the Act. Accordingly, the Commission plays a key role in the regulation of class II and III gaming.
(FBI) with federal criminal jurisdiction over acts directly related to Indian gaming establishments, including those located on reservations under state criminal jurisdiction. Since the inception of IGRA, the FBI has devoted limited investigative resources to Indian gaming violations.
The Indian gaming industry has grown from one that produced nearly $100 million in total revenues in its first year, to one that exceeds $22 billion annually. This total exceeds the combined gaming revenues of Las Vegas
and Atlantic City
. This growth, coupled with confusing jurisdictions and limited regulatory resources, has generated great concern over the potential for large-scale criminal activity and influence in the Indian gaming industry. Recent allegations of large-scale fraud and corruption have led to extensive media scrutiny and inquiries from Congressional leaders as to the FBI's response to these allegations.
(NIGC), indicate there are approximately 360 Indian gaming establishments in the United States. These casino
s are operated by approximately 220 federally recognized tribes, and they offer Class I, Class II and Class III gaming opportunities. The revenues generated in these establishments can be substantial.
Tribal casinos located in the eastern United States generated roughly $3.8 billion in FY02. Those located in the Central United States recorded gross revenues of approximately $5.9 billion, while those located in the Western United States generated close to $4.8 billion. Most of the revenues generated in the Indian gaming industry are from Indian casinos located in, or near, large metropolitan areas. Currently, 12% of Indian gaming establishments generate 65% of Indian gaming revenues. Indian gaming operations located in the populous areas of the West Coast (primarily California) represent the fastest growing sector of the Indian gaming industry.
There are 565 federally recognized tribes in the United States. While not all tribes will seek to establish tribal gaming establishments, it is likely that more may do so. Additionally, many of the non-federally recognized tribes are seeking federal recognition to gain access to Indian gaming opportunities and other benefits of the federal relationship.
NIGC's headquarters is located in Washington, D.C.
It is managed by a chairman, appointed by the President of the United States
, and has five regional divisions. NIGC Regional Headquarters are located in Portland
, Oregon; Sacramento
, California; Phoenix
, Arizona; St. Paul, Minnesota; and Tulsa
, Oklahoma. NIGC auditors and investigators ensure that Indian gaming establishments are complying with the minimum gaming standards outlined in IGRA. To accomplish this, NIGC auditors conduct yearly audits of gaming records maintained by Indian gaming establishments and, when appropriate, investigate regulatory matters. The NIGC has a major responsibility in the growing Indian gaming industry. Based on its congressional mandate, it is dependent on the FBI and/or other federal agencies to investigate allegations of criminal activity in Indian gaming establishments.
Unit, LCN/Organized Crime
Unit, Asian Organized Crime Unit, Public Corruption/Government Fraud Unit, Cryptographic Racketeering Analysis Unit, and Indian Country Special Jurisdiction Unit) and other federal agencies, which include Department of Interior Office of Inspector General (DOI-OIG), NIGC, Internal Revenue Service
Tribal Government Section (IRS-TGS), Department of Treasure Financial Crimes Enforcement Network (FINCEN), Department of Justice (DOJ), Office of Foreign Assets Control (OFAC), US Department of the Treasury, and Bureau of Indian Affairs Office of Law Enforcement Services (BIA-OLES). The IGWG meets monthly to review Indian gaming cases deemed to have a significant impact on the Indian gaming industry. As a result of these meetings, several investigations have been initiated. The IGWG through its member agencies has provided financial resources, travel funds, liaison assistance, personnel resources, coordination assistance and consultation.
The IGWG works as follows:
To properly detect the presence of illegal activity in the Indian gaming industry law enforcement offices with jurisdiction in Indian gaming violations should:
The Indian Trust Lands Reform Act was introduced in 1995 and 1997, marking an attempt to deny the Secretary of Interior the power to take additional lands in trust for Native American tribes if it were for "commercial" purposes (such as gaming). Several Congressional members have expressed concern about the lack of regulation related to revenue sharing from funds generated by gaming. It is important to note that the regulations and methods of Indian gaming are still evolving and changing.
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...
al framework that governs Indian gaming. There was no federal gaming structure before this act. The stated purposes of the act include providing a legislative basis for the operation/regulation of Indian gaming, protecting gaming as a means of generating revenue for the tribes, encouraging economic development of these tribes, and protecting the enterprises from negative influences (such as organized crime). The law established the National Indian Gaming Commission
National Indian Gaming Commission
The National Indian Gaming Commission is an independent federal regulatory agency within the Department of the Interior. Congress established this agency through the Indian Gaming Regulatory Act in 1988. The agency has the duty to "promulgate such regulations and guidelines as it deems...
and gave it a regulatory mandate. The law also delegated new authority to the U.S. Department of the Interior and created new federal offenses, giving the U.S. Department of Justice authority to prosecute them.
The law has been the source of extensive controversy and litigation. One of the key questions is whether the National Indian Gaming Commission and Department of Interior can be effective in regulating tribal economic decisions related to Indian gaming. Some in Congress are in favor of greater regulation, while a prominent professor in the field is skeptical that such regulation is effective. Many of the controversies have produced litigation, some of it reaching the U.S. Supreme Court.
History
In 1976, in a case called Bryan v. Itasca CountyBryan v. Itasca County
Bryan v. Itasca County, 426 U.S. 373 , was a case in which the Supreme Court of the United States held that a state did not have the right to assess a tax on the property of a Native American living on tribal land absent a specific Congressional grant of authority to do so.A county in Minnesota...
, the Supreme Court made a ruling that sowed the legal seeds that would eventually give rise to the Indian gaming industry. In an opinion written by Justice William J. Brennan, Jr.
William J. Brennan, Jr.
William Joseph Brennan, Jr. was an American jurist who served as an Associate Justice of the United States Supreme Court from 1956 to 1990...
, the Supreme Court highlighted tribal independence from state regulatory authority. Since regulatory authority is the primary legal mechanism for regulating some forms of gambling, this case would prove relevant to the impending controversy of Indian gaming.
Gambling
Gambling
Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods...
is a part of many traditional Indian cultures (as well as the larger US society.) Tribal games include dice and shell activities, archery competitions, races, and so on. The use of gaming to generate profit did not begin until the late 1970s and early 1980s within Indian communities. Several tribes, especially in California and Florida, opened bingo parlors as a way to earn revenue. Their actions were related to the search for new sources of revenue, given the emphasis the Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
administration placed on economic self-sufficiency for the tribes.
While bingo was legal in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
and Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, those states had stringent regulations. Operating on the history of tribal sovereignty, some tribes did not comply with these laws. High-stakes Indian bingo operations soon arose in California, Florida, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
and Wisconsin
Wisconsin
Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
. The industry grew rapidly. State governments began contending that revenues from their own gaming operations dropped as Native American operations increased the potential stakes.
Discussions about codifying Indian gaming began in 1983. In 1987, the U.S. Supreme Court ruled in California v Cabazon Band of Mission Indians that as sovereign political entities, tribes could operate facilities free of state regulation. The court also recognized that gaming could be used to encourage tribal self-sufficiency and economic development. This court case can be seen as a victory for the tribes. As the growth in Indian gaming continued in the 1980s (grossing over $110 million in 1988), though, tensions increased.
States began lobbying the federal government to allow states to regulate Indian gaming. States argued that their regulation was needed to stop infiltration by organized crime. Furthermore, states wanted to be able to tax revenues gained by Indian gaming. Tribes fought the states in an effort both to maintain tribal sovereignty and to protect Indian gaming revenues to support economic development. Congress responded with the set of compromises which evolved into the Indian Gaming Regulatory Act
The primary legislators involved in drafting the Act were Senator Daniel Inouye
Daniel Inouye
Daniel Ken "Dan" Inouye is the senior United States Senator from Hawaii, a member of the Democratic Party, and the President pro tempore of the United States Senate making him the highest-ranking Asian American politician in American history. Inouye is the chairman of the United States Senate...
of Hawaii, Representative and then (as of 1987) Senator John McCain
John McCain
John Sidney McCain III is the senior United States Senator from Arizona. He was the Republican nominee for president in the 2008 United States election....
of Arizona, and Representative Mo Udall
Mo Udall
Morris King "Mo" Udall was an American politician who served as a U.S. Representative from Arizona from May 2, 1961 to May 4, 1991...
of Arizona. As S.555, the bill passed the United States Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
on September 15, 1988. The House then passed the bill on September 27. President Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
signed it into law on October 17, 1988.
Some aspects of the law were later clarified through court cases. Whether revenue from the Indian casinos was subject to other governmental taxation was determined in Chickasaw Nation v. United States
Chickasaw Nation v. United States
Chickasaw Nation v. United States, 534 U.S. 84 , was a case in which the Supreme Court of the United States held that Indian tribes were liable for taxes on gambling operations under .-Background:...
. And, in 2009 the Supreme Court ruled in Carcieri v. Salazar
Carcieri v. Salazar
Carcieri v. Salazar, No. 07-526 , was a recent case in which the Supreme Court of the United States held that the term "now under Federal jurisdiction" referred only to tribes that were federally recognized when the Indian Reorganization Act became law, and the federal government could not take...
that the Department of the Interior could not grant land into trust to tribes recognized after 1934.
Three classes
The Act establishes three classes of games with a different regulatory scheme for each:Class I
Class I gaming is defined as traditional Indian gaming and social gaming for minimal prizes. Regulatory authority over class I gaming is vested exclusively in tribal governments and is not subject to IGRA's requirements.Class II
Class II gaming is defined as the game of chance commonly known as bingo (whether or not electronic, computer, or other technological aids are used in connection therewith) and if played in the same location as the bingoBingo (US)
Bingo is a game of chance played with randomly drawn numbers which players match against numbers that have been pre-printed on 5x5 matrices. The matrices may be printed on paper, card stock or electronically represented and are referred to as cards. Many versions conclude the game when the first...
, pull tabs, punch board, tip jars, instant bingo, and other games similar to bingo. Class II gaming also includes non-banked card games, that is, games that are played exclusively against other players rather than against the house or a player acting as a bank. The Act specifically excludes slot machines or electronic facsimiles of any game of chance from the definition of class II games. Tribes retain their authority to conduct, license, and regulate class II gaming so long as the state in which the Tribe is located permits such gaming for any purpose and the Tribal government adopts a gaming ordinance approved by the National Indian Gaming Commission (NIGC). Tribal governments are responsible for regulating class II gaming with Commission oversight. Only Hawaii and Utah continue to prohibit all types of gaming.
Class III
The definition of class III gaming is broad. It includes all forms of gaming that are neither class I nor II. Games commonly played at casinoCasino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
s, such as slot machines, blackjack
Blackjack
Blackjack, also known as Twenty-one or Vingt-et-un , is the most widely played casino banking game in the world...
, craps
Craps
Craps is a dice game in which players place wagers on the outcome of the roll, or a series of rolls, of a pair of dice. Players may wager money against each other or a bank...
, and roulette
Roulette
Roulette is a casino game named after a French diminutive for little wheel. In the game, players may choose to place bets on either a single number or a range of numbers, the colors red or black, or whether the number is odd or even....
, clearly fall in the class III category, as well as wagering games and electronic facsimiles of any game of chance. Generally, class III is often referred to a casino-style gaming. As a compromise, the Act restricts Tribal authority to conduct class III gaming.
Before a Tribe may lawfully conduct class III gaming, the following conditions must be met:
- The Particular form of class III gaming that the Tribe wants to conduct must be permitted in the state in which the tribe is located.
- The Tribe and the state must have negotiated a compact that has been approved by the Secretary of the Interior, or the Secretary must have approved regulatory procedures.
- The Tribe must have adopted a Tribal gaming ordinance that has been approved by the Chairman of the Commission.
The regulatory scheme for class III gaming is more complex than a casual reading of the statute might suggest. Although Congress clearly intended regulatory issues to be addressed in Tribal-State compacts
Tribal-state compacts
Tribal-State Compacts are declared necessary for any Class III gaming on reservations under the Indian Gaming Regulatory Act of 1988 . They were designed to allow tribal and state governments to come to a "business" agreement...
, it left a number of key functions in federal hands, including approval authority over compacts, management contracts, and Tribal gaming ordinances. Congress also vested the Commission with broad authority to issue regulations in furtherance of the purposes of the Act. Accordingly, the Commission plays a key role in the regulation of class II and III gaming.
FBI jurisdiction
The Act provides the Federal Bureau of InvestigationFederal Bureau of Investigation
The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency . The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime...
(FBI) with federal criminal jurisdiction over acts directly related to Indian gaming establishments, including those located on reservations under state criminal jurisdiction. Since the inception of IGRA, the FBI has devoted limited investigative resources to Indian gaming violations.
The Indian gaming industry has grown from one that produced nearly $100 million in total revenues in its first year, to one that exceeds $22 billion annually. This total exceeds the combined gaming revenues of Las Vegas
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
and Atlantic City
Atlantic City, New Jersey
Atlantic City is a city in Atlantic County, New Jersey, United States, and a nationally renowned resort city for gambling, shopping and fine dining. The city also served as the inspiration for the American version of the board game Monopoly. Atlantic City is located on Absecon Island on the coast...
. This growth, coupled with confusing jurisdictions and limited regulatory resources, has generated great concern over the potential for large-scale criminal activity and influence in the Indian gaming industry. Recent allegations of large-scale fraud and corruption have led to extensive media scrutiny and inquiries from Congressional leaders as to the FBI's response to these allegations.
The industry
The most recent Indian gaming statistics, provided by the National Indian Gaming CommissionNational Indian Gaming Commission
The National Indian Gaming Commission is an independent federal regulatory agency within the Department of the Interior. Congress established this agency through the Indian Gaming Regulatory Act in 1988. The agency has the duty to "promulgate such regulations and guidelines as it deems...
(NIGC), indicate there are approximately 360 Indian gaming establishments in the United States. These casino
Casino
In modern English, a casino is a facility which houses and accommodates certain types of gambling activities. Casinos are most commonly built near or combined with hotels, restaurants, retail shopping, cruise ships or other tourist attractions...
s are operated by approximately 220 federally recognized tribes, and they offer Class I, Class II and Class III gaming opportunities. The revenues generated in these establishments can be substantial.
Tribal casinos located in the eastern United States generated roughly $3.8 billion in FY02. Those located in the Central United States recorded gross revenues of approximately $5.9 billion, while those located in the Western United States generated close to $4.8 billion. Most of the revenues generated in the Indian gaming industry are from Indian casinos located in, or near, large metropolitan areas. Currently, 12% of Indian gaming establishments generate 65% of Indian gaming revenues. Indian gaming operations located in the populous areas of the West Coast (primarily California) represent the fastest growing sector of the Indian gaming industry.
There are 565 federally recognized tribes in the United States. While not all tribes will seek to establish tribal gaming establishments, it is likely that more may do so. Additionally, many of the non-federally recognized tribes are seeking federal recognition to gain access to Indian gaming opportunities and other benefits of the federal relationship.
Regulations
The Act's purpose is to provide a statutory basis for the operation of gaming by tribes to promote tribal economic development, self sufficiency, and strong tribal governments. IGRA provides a basis for the regulation of Indian gaming adequate to: shield it from organized crime and corrupting influences; ensure that the tribe is the primary beneficiary of gaming revenues; and ensure Indian gaming operations are fair and honest for the operator and the players. IGRA also establishes an independent federal regulatory authority for gaming on Indian lands, federal standards for gaming on Indian lands, and the creation of the NIGC.NIGC's headquarters is located in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
It is managed by a chairman, appointed by the President of the United States
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
, and has five regional divisions. NIGC Regional Headquarters are located in Portland
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
, Oregon; Sacramento
Sacramento, California
Sacramento is the capital city of the U.S. state of California and the county seat of Sacramento County. It is located at the confluence of the Sacramento River and the American River in the northern portion of California's expansive Central Valley. With a population of 466,488 at the 2010 census,...
, California; Phoenix
Phoenix, Arizona
Phoenix is the capital, and largest city, of the U.S. state of Arizona, as well as the sixth most populated city in the United States. Phoenix is home to 1,445,632 people according to the official 2010 U.S. Census Bureau data...
, Arizona; St. Paul, Minnesota; and Tulsa
Tulsa, Oklahoma
Tulsa is the second-largest city in the state of Oklahoma and 46th-largest city in the United States. With a population of 391,906 as of the 2010 census, it is the principal municipality of the Tulsa Metropolitan Area, a region with 937,478 residents in the MSA and 988,454 in the CSA. Tulsa's...
, Oklahoma. NIGC auditors and investigators ensure that Indian gaming establishments are complying with the minimum gaming standards outlined in IGRA. To accomplish this, NIGC auditors conduct yearly audits of gaming records maintained by Indian gaming establishments and, when appropriate, investigate regulatory matters. The NIGC has a major responsibility in the growing Indian gaming industry. Based on its congressional mandate, it is dependent on the FBI and/or other federal agencies to investigate allegations of criminal activity in Indian gaming establishments.
The National Indian Gaming Association
The National Indian Gaming Association (NIGA) is a non-profit organization founded in 1985 of 184 Indian Nations, with additional nonvoting associate members. The purpose of the NIGA is "to protect and preserve the general welfare of tribes striving for self-sufficiency through gaming enterprises in Indian country," and to "maintain and protect Indian sovereign governmental authority in Indian Country." The NIGA seeks to advance the lives of Indian people economically, socially, and politically. The NIGA's office building is located in Washington, D.C. The NIGA headquarters building was purchased by a tribal collective. It is the first structure to be owned by Native Americans in Washington, D.C.The Indian Gaming Working Group (IGWG)
In February 2003, in an effort to identify and direct resources to Indian gaming matters, the FBI and NIGC created the IGWG. The IGWG's purpose is to identify resources needed to address the most pressing criminal violations in the area of Indian gaming. This group consists of representatives from a variety of FBI subprograms (i.e. Economic Crimes Unit, Money LaunderingMoney laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
Unit, LCN/Organized Crime
Organized crime
Organized crime or criminal organizations are transnational, national, or local groupings of highly centralized enterprises run by criminals for the purpose of engaging in illegal activity, most commonly for monetary profit. Some criminal organizations, such as terrorist organizations, are...
Unit, Asian Organized Crime Unit, Public Corruption/Government Fraud Unit, Cryptographic Racketeering Analysis Unit, and Indian Country Special Jurisdiction Unit) and other federal agencies, which include Department of Interior Office of Inspector General (DOI-OIG), NIGC, Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
Tribal Government Section (IRS-TGS), Department of Treasure Financial Crimes Enforcement Network (FINCEN), Department of Justice (DOJ), Office of Foreign Assets Control (OFAC), US Department of the Treasury, and Bureau of Indian Affairs Office of Law Enforcement Services (BIA-OLES). The IGWG meets monthly to review Indian gaming cases deemed to have a significant impact on the Indian gaming industry. As a result of these meetings, several investigations have been initiated. The IGWG through its member agencies has provided financial resources, travel funds, liaison assistance, personnel resources, coordination assistance and consultation.
The IGWG works as follows:
- If suspected criminal activities are taking place in the Indian gaming industry and the interested office/agency does not have adequate resources to investigate this matter, the office/agency contacts the Indian Country Special Jurisdiction Unit, FBIHQ, at 202-324-3666. This contact may come from the FBI or an outside source or agency.
- A small group of IGWG members will convene to determine if the alleged criminal violation is a matter of "national importance" in its effect(s) on the Indian gaming industry. If so, the IGWG will invite representatives from the affected FBI division, other federal agencies (if appropriate), the affected United States Attorney's office, and IGWG member agencies to meet and further review the case.
- During this review, the agency eliciting the support of the IGWG will make a case presentation. Following a full review, the IGWG will assist the requesting office/agency to identify and obtain resources to assist in the investigation.
- Throughout the investigation, the IGWG will assist by providing "experts" to assist in the investigation; allocating special funding (i.e., facilitating TDY travel, Title III support, special forensic examination, etc.); conducting liaison with other federal agencies; facilitating the establishment of Indian gaming task forces, and/or providing consultation.
To properly detect the presence of illegal activity in the Indian gaming industry law enforcement offices with jurisdiction in Indian gaming violations should:
- Identify the Indian gaming establishments in their territory.
- Establish appropriate liaison with Tribal Gaming Commission (TGC) members, State Gaming Commission Representatives, State Gaming Regulatory Agency Representatives, and Casino Security PersonnelCasino securityCasino security refers to the measures that are taken at casinos to protect the establishment's money and property and the patrons. The security protects the casino and its customers from violent crime, theft, and other inappropriate behavior....
. - Establish liaison with representatives from the NIGC and regional Indian gaming intelligence committees. Both will provide valuable information on scams, allegations of criminal wrongdoing, and other patterns of illegal activity.
- Make proactive attempts during crime surveys to identify criminal activity in Indian gaming establishments.
- Send investigators and financial analysts to training which provides them with the knowledge and skills they need to effectively investigate criminal activity in Indian gaming establishments.
Proposed changes to IGRA
The IGRA has proven to be a major focus of the controversy surrounding Indian gambling. Since its passage a variety of changes and proposals have been considered, and changes are still being considered. Congress has discussed proposals to impose a moratorium on any new tribal-state compacts or on new Indian gaming operations.The Indian Trust Lands Reform Act was introduced in 1995 and 1997, marking an attempt to deny the Secretary of Interior the power to take additional lands in trust for Native American tribes if it were for "commercial" purposes (such as gaming). Several Congressional members have expressed concern about the lack of regulation related to revenue sharing from funds generated by gaming. It is important to note that the regulations and methods of Indian gaming are still evolving and changing.