Update - Class II Rule Changes

Back in March of this year I posted on the subject of Class II vs. Class III gaming and how new rules were possibly in the works to clarify the difference – a possibility that caused uproar in Indian Country where it was believed that the new rules would cause a $1.5 billion negative impact on gaming tribes.

Turns out the opportunity for the rule change came about because an Alaskan tribe, the Metlakatla Indian Community, had appealed a decision by National Indian Gaming Commission chairman Philip Hogen who claimed that "one-touch" electronic bingo machines were electronic facsimiles of a game of chance which made them almost the same as Class III slots.

The tribe was seeking to install a relatively small amount of the Class II’s

Hogen used this appeal, gaming tribes contend, to change existing Class II standards without going through the regulatory process and was possibly trying to steer the matter into the courts under favorable NIGC terms.

Becuase the Metlakatla have withdrawn their appeal, the NIGC will not be able to take any final action on the matter. The tribes believe they have dodged a bullet as this should avoid, for now, any precedent it might have set had it gone to court.

Seems the Metlakatla were approached by the Oklahoma Indian Gaming Association to consider the affect their appeal may have had on the other gaming tribes and in retrospect the Metlakatla pulled their petition to appeal.

''It appears a judicial test of this important dividing line will be put off at this time,'' Hogen stated in an Aug. 20 NIGC release. ''I continue to feel that the Indian gaming industry will be better served if needed clarity can be brought to this matter. If there was concern that the view stated in my disapproval of this measure would be sustained in federal court review, I think such concern was well-placed.''

The National Indian Gaming Commission, however, is still expected to move ahead with other proposed gambling regulations.


Source:
http://www.indiancountry.com/content.cfm?id=1096418046