Tuesday, April 21, 2009

Class II vs. Class III Revisited – Hogen Still Wants Clarification

Philip Hogen, chairman of the National Indian Gaming Commission, wants Congress to take another look at drawing a distinct line in defining the difference between Nevada style class III slot machines and class II bingo machines.

The issue (non-issue?) came up again when Hogan noted that most of the bingo machines at the Wind Creek Casino and Hotel in Atmore, Alabama are the type that would be subject to federal sanctions and legal action. He isn’t planning on taking any action though because of the lack of clarity in the law.

Poarch Band of Creek Indians, which runs Wind Creek, believe that their class II machines are in compliance with the current rules. Jay Dorris, president and chief executive officer of Poarch Creek Indian Gaming said, "I think that determinations made by the full NIGC in the past have been overturned and found to be wrong. It may very well get decided ultimately in the federal courts.”

To me this issue seems so trivial and what Hogen wants seems to be just a cosmetic change that would force tribes with class II machines to jump through a meaningless hoop. Right now, the types of bingo machines that Hogen says are too close to class III require the player to only punch one button to play the game… a one-touch game. Hogen thinks that these machines should require the player to touch the machine at least two times and that would really clarify the difference between class II and III machines.

No matter that the class II machines, whether you touch them once, twice or twenty times plays bingo where players are playing against other players, and that the class III machines, whether you touch them once, twice or twenty times are Nevada style slot games where players are playing against the house.

It’s about what the game is…not how you play it. And forcing the tribes to make this one little cosmetic change is just ludicrous and would incur unnecessary costs to the tribes at a time when the industry is on a down turn due to the overall struggling economy.

Last June, Hogen ruled that one-touch electronic bingo machines sought by a tribe in Alaska were Class III games, and he rejected that tribe's request to install them. Hogen was hoping that the tribe would challenge his decision and force a showdown in court that would settle it for once and for all. But the tribe backed down due to heavy pressure from the majority of the Indian gaming community. They were afraid they would lose and then they would all have to jump through this meaningless, expensive hoop.

Simple solution here folks. Put a little “Bingo” sign on the top of all the bingo machines. Easy to do and there would be no doubt that the players playing those machines were playing class II bingo and not the slots no matter how many times they had to touch the machine to play.

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