NIGC Extends Public Comment Period for Proposed Class II Technical Regulations

Washington DC, December 14, 2006 — The National Indian Gaming Commission (NIGC) announces an extension of the public comment period for proposed Class II technical regulations. Official notice will be published in the Federal Register next week. The comment period will be extended to run through January 31, 2007.

The proposed rule would add a new part to the Commission’s regulations establishing technical standards for Class II games – bingo, lotto, other games similar to bingo, pull tabs, or “instant bingo” – that are played primarily through “electronic, computer, or other technologic aids.” The proposed rule would also establish a process for assuring the integrity of such games and aids before their placement in a Class II tribal gaming operation. No such standards currently exist. The Commission has proposed this action in order to assist tribal gaming regulatory authorities and operators in ensuring the integrity and security of Class II games and gaming revenue.

“The comments received at the Tribal Advisory Committee meeting last week in Washington, DC and follow up comments we have received have given us good reason to extend the comment period for the technical regulations” said NIGC Chairman Phil Hogen. Hogen continued “We believe that our goals of assuring integrity in the industry and protecting tribal assets in a secure technological environment can be met through this set of regulations.”

The comment period for proposed Class II classification standards and Class II definitions will end tomorrow December 15, 2006.

The NIGC is an independent regulatory agency established within the Department of the Interior pursuant to the Indian Gaming Regulatory Act of 1988.

There are many enemies of Tribal gaming. The National Indian Gaming Commission is considering changing regulations that govern Class II games, to make them less profitable. This will have a strongly negative effect on the revenues of many tribes.

Class II is bingo based gaming, or centrally determinant systems. Although the screen of the video slot often looks like a reel slot, the math behind it is based on bingo: a pool of players compete for a common prize pool. Bingo is less strictly regulated than Class III, or reel slots like you might see in Vegas are. Tribes don't have to get permission from the state to run Class II games. They do have to get permission to run Class III games.

The NIGC is trying to make Class II games more bingo like, which means they will play slower and be less attractive to players. This is probably part of a larger campaign by enemies of Tribal gaming in congress, like John McCain, to limit the revenues tribal gaming generates, to increase the government's share of this money, and to limit the growth of Tribal gaming. This is a bad thing.

The economic advantages that Tribal sovereignty has made possible since the Indian Gaming Regulatory Act of 1988 have helped create a cultural revival among Native Americans. Populations are up for the first time since the European invasion. Tribes are thriving. This is a good thing. And despite the media-inspired stereotype of per capita payments for American Indians, the vast majority of Indian casino revenue goes to provide government services.

Hopefully this extended public comment period will result in the NIGC backing off a bit. They should leave Class II alone.

Class II Technical Regulation Revisions Public Comment Period Extended :: NIGC Press Release