Regulatory Oversight Argument - State and Gaming Tribes Might Compromise

First one quick note...President Obama is sending out invitations to all 564 federally recognized tribes in the U.S. to attend a White House Tribal Nations Conference on November 5th. The president says he wants to hear directly from them about how his administration can meet their needs and help make their lives better, noting higher crime rates and poorer health among the tribes than the rest of the American population.

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The State and California’s gaming tribes are getting close to an agreement in the long running fight over safeguards in the states tribal-casino industry.

In 2006 a federal court decided that the National Indian Gaming Commission, which in the past had enforced guidelines on the tribes covering everything from cash handling and counting, audits, surveillance and the games to standards of how often decks of cards should be changed, did not have the authority to regulate the casinos.

This became a big issue for Assembly Democrats during the long deadlock back in 2007 in which they refused to ratify the amended compacts for five big Southern California gaming tribes, so the state decided that they would use the California Gambling Control Commission to regulate the casinos in the absence of federal oversight.

The tribes argued that, just as the NIGC didn’t have the authority to enforce regulations, neither did the state. They also noted that they take it upon themselves and spend millions to ensure that the old NIGC regulations are enforced.

As posted last September it appeared the issue was headed for court.

Seems a break through might be on the horizon. A couple weeks ago the California Gambling Control Commission approved new “compromise” regulations, of which tribal members helped craft. Later this year, an association of tribal leaders and state officials are planning to meet and go over the regulations where a vote could come in early 2010.

At the heart of the compromise is who will enforce the rules. Under the new proposal, the state would consider the tribes in compliance if they meet or exceed the old standards set by the National Indian Gaming Commission. This would be verified by the state through an audit.

The compromise also includes a provision where tribes can reduce state involvement by allowing the National Indian Gaming Commission oversight of their casinos. About a dozen tribes have already done that.

Jerry Levine, an attorney for the Pechanga Band of Luiseño Indians, said "The expectation is it will be approved."

But there are still tribes who believe any regulation by the state is illegal and going to court is still a possibility. "I know that a number of tribes still have concerns," said Scott Crowell, the Washington attorney for the Rincon Band of Luiseño Mission Indians in northern San Diego County.