It has been within only the past two decades that the United States has attempted to regulate the Indian gambling industry and protect the rights of both Indian tribes and states.
The U.S. Congress passed the Indian Gaming Regulatory Act (IGRA) in 1988 only after the U.S. Supreme Court ruled in favor of the Cabazon Band of Mission Indians in a 1987 case between the state of California and the Cabazons.
The case was filed after California and Riverside County sought to apply their laws and ordinances governing the operation of bingo games to the Cabazons, who were operating bingo and poker games on their reservations and opening them to the public. The Supreme Court ruled that states did not have regulatory control over Indian gambling because Congress had not “expressly consented” that “state laws may be applied to tribal Indians on their reservations.” As a result, states pushed Congress to pass IGRA to give them some control and rights in regard to gambling on Indian reservations.
The act divides Indian gambling into three categories. Class I Indian gambling consists of traditional and social games with insignificant prizes. This type of gambling is free of state regulation and limited to tribal jurisdiction.
Class II Indian gambling involves bingo and bingo-type games. Slot machines are excluded from this class. It is allowed only if this type of gambling is permitted in the state for any purpose and the tribal government adopts a gambling ordinance that has been approved by the National Indian Gaming Commission (NIGC).
Class III Indian gambling encompasses any game that is not allowed in Class I or II and is often referred to as casino-style gambling. This includes slot machines, poker and blackjack. But like Class II gambling, this type of gambling is allowed only if it is legal in the state and is authorized by a resolution approved by the NIGC. In addition, the state and tribe must come to an agreement on how the Class III gambling will be conducted. IGRA specifies that a state must attempt to negotiate in good faith if a tribe approaches it about negotiating conditions for Class III gambling. Otherwise the tribe can sue the state and ask the federal court to mediate. If the state refuses to cooperate, then the U.S. secretary of the interior has the right to establish the Class III gambling operations.
The act also states that the revenue from Indian gambling is restricted to fund tribal government, provide for the tribe’s welfare, promote economic development within the tribe, fund charitable organizations and fund operations of local government agencies.
The U.S. Department of the Interior’s Bureau of Indian Affairs has the authority to investigate and prosecute violations of IGRA. Since the act’s passage, neither party has been completely satisfied. Indian tribes want less state restrictions, and states want more control over Indian gambling. (TAB)
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