NIGC Drops Two Proposed Class II Regulations

Last October, The National Indian Gaming Commission, more specifically, Chairman Phil Hogen announced that there would be new Class II regulations implemented in order to establish a ''bright line'' between the bingo based Class II machines and the Class III Vegas style slots.

See Post of May 14

The NIGC’s expert, along with the gaming tribes analysis predicted these new regulations would cost Indian country somewhere between $1.2 billion and $4 billion of lost revenue annually. The regulations would essentially turn most games classified as Class II into Class III games which would require the tribes to obtain a new compact with the state.

Late last week, Hogen announced that the agency would drop two of these controversial proposed regulations.

Speaking at the 21st annual Oklahoma Sovereignty Symposium, Hogen told a packed room of tribal gambling officials, attorneys and tribal members that the commission will consider only technical standards and minimum internal control standards for Class II gambling, eliminating the controversial proposals to create a system for game classification as well as modify the definition of facsimiles of any game of chance.

With newer technology, the speed at which electronic bingo is played has greatly increased, making it much like playing casino slot machines, the National Indian Gaming Commission wrote in its proposed rules.

With minimum player interaction and competition and "distortions" in the way bingo is played, the commission stated, such games would be considered Class III.

The commission is having an economic impact study conducted on each of the four originally proposed regulations, Hogen said, and the findings likely will be available in July.

Hogen's decision to drop the two proposed rules will have an impact on tribal negotiations with the commission, which, to this point, have been heated and possibly were headed toward litigation.

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