WASHINGTON -- Tribal officials complained to a
Senate panel Wednesday that an expanded federal Indian gaming
commission is overstepping its regulatory authority.
Sen. Ben Nighthorse Campbell, R-Colo., the
chairman of the Senate Indian Affairs Committee seemed
sympathetic to the complaints.
"Here in Congress, we have what we call the
law of unintended consequences," Campbell said. "I can tell
you right now that we intended for the (National Indian
Gaming) Commission to help in training, oversight and
regulation, but we never intended it to be used as a punitive
mechanism."
In 1997, Congress allowed the regulatory
commission to increase total assessments on tribal gaming
operations, including casinos, from $3 million to $8 million
per year.
The fee hike enabled the commission to more
than double its staff from about 30 to 77, and paid for the
opening of five regional offices outside its headquarters in
Washington, D.C.
"This is, no doubt, a far cry from just two
years ago when, as you know, the (commission) had a handful of
investigators `working out of their cars,'" said Monte Deer,
the chairman of the National Indian Gaming Commission.
Deer told the Senate panel the expansion was
necessary to regulate a rapidly growing tribal gaming
industry. From $500 million in gross revenue in 1988, Indian
gaming operations have increased their annual gross take to
$9.6 billion, Deer said.
But the commission's ruling that the Siletz
Tribe of Oregon violated federal law by "comping" its gaming
customers drew a bitter protest from tribal chairwoman Delores
Pigsley. Comping is a gaming practice of providing free meals
and entertainment for customers.
"This is an unacceptable assertion of power by
the commission and, if not challenged, would lead to the
business management of tribal gaming enterprises by commission
regulation," Pigsley said.
Rick Hill, chairman of the National Indian
Gaming Association, also said he was uncomfortable with the
commission's expansion.
Gaming tribes paid for the commission's
expansion through assessments and continue to submit financial
audits to the commission, Hill said. He said tribes should be
allowed to see the commission's audits but aren't.
"Specifically, our member Indian nations
sought some insight regarding the (commission's) recent
actions and its plans to implement the new resources at its
disposal," Hill said. "To date, no satisfactory explanation
has been given."
Deer chose not to respond to the charges
during the hearing but said afterward, "The truth will come
out."
Tracy Burris, chairman of the Oklahoma Indian
Gaming Association, urged the committee to clarify that
electronic bingo does not qualify as casino gambling. Since
Oklahoma tribes have not yet negotiated a gaming compact with
the governor, they are not allowed to operate casinos.
While the commission has agreed that
electronic bingo is not casino gambling, the Department of
Justice has not, Burris said. This has required the tribe to
spend millions in legal fees, he said.
"We respectfully request that the committee
pass legislation to resolve this issue or direct the
(commission) to enter into a rulemaking process to bring
greater clarity," Burris said.
(Las Vegas Review Journal)