NIGA 2018 Annual Report

Class II Gaming Subcommittee NIGA’s Class II Gaming Subcommittee has accomplished some outstanding work this year. They were able to track and monitor the National Indian Gaming Commission’s (NIGC) Consultation Process regarding Class II Gaming Systems and other related regulatory issues. The Subcommittee kept our Member Tribes abreast of the issues, provided an analysis of the impacts, and recommended comments, input and participation throughout this year long process. As a result of this work, on December 27, 2017, the NIGC published a final rule eliminating the sunset provision requiring Tribes to remove “non-compliant” Class II gaming systems manufactured before November 10, 2008 (2008 Systems) from the gaming floor. 2008 Systems are now subject to annual review and testing. The NIGC’s issuance of this final rule concludes a multi-year process in a way that ensures the integrity and security of Class II gaming while not disrupting the significant economic benefits Tribes receive from these 2008 Systems. The effective date of the amended regulation is January 26, 2018. The new rule transforms the treatment of 2008 Systems from being treated as an exception to compliant gaming systems, to being treated as an alternative set of gaming system. This new process requires Tribal Gaming Regulatory Agencies (TGRAs) to annually review and assess each 2008 System operating within its jurisdiction for compliance with the minimum technical standards. The new provision requires TGRAs to not only identify specific Class II gaming systems not conforming to these standards, but to also enumerate all components of each system that functionally prevent compliance with NIGC regulations. According to the NIGC, this will aid TGRAs in determining whether the modification will maintain the system’s compliance or advance the system’s compliance with the standards for newer systems. This is a great example of our industry working with Administrative officials to reach solutions that safeguard the integrity of Indian gaming systems and protect both the gaming public and the gaming operation. The NIGC recently announced a new round of consultations on new regulatory issues and our Gaming Sub- Committee will continue to monitor those discussions as well as promote the many benefits that Class II gaming brings to Tribal Government Gaming. Sports Betting Working Group & Emerging Gaming Opportunities Enacted in 1992, the Professional and Amateur Sports Protection Act (PASPA) prohibits tribal and state governments from enacting laws or entering into compacts to legalize sports betting. On December 4, 2017, the U.S. Supreme Court heard oral arguments in a challenge to the constitutionality of that law. A decision is expected any day. With the potential to lift the federal ban against sports betting in the United States, NIGA established its Sports Betting Working Group, which has gathered information, researched and identified possible impacts on brick and mortar Indian Gaming operations, as well as other related issues in this critical discussion.


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