National Indian Gaming Commission

Enforcing the Indian Gaming Regulatory Act – The Role of the National Indian ...

Oversight Hearing of the Senate Committee on Indian Affairs

Aloha and welcome to the Committee’s oversight hearing on “Enforcing the Indian Gaming Regulatory Act – The Role of the National Indian Gaming Commission and Tribes as Regulators.”

When the Indian Gaming Regulatory Act was passed by Congress in 1988, Indian gaming was a $100 million dollar industry.  Today, it is a $26 billion dollar industry and there are 236 tribes — operating 422 gaming facilities — in 28 states.  It is important that such a growth industry is well regulated for tribal governments, patrons, and the beneficiaries of gaming revenues – the tribal members. Tribes, as the primary beneficiaries of Indian gaming, have the greatest interest in making sure their operations are well run.   Tribal governments use these gaming revenues to fund essential government services such as education, health care, cultural programs, and tribal infrastructure. But the Indian Gaming Regulatory Act also created a role for states and the federal government – thereby setting up a three-tiered regulatory scheme for Indian gaming.

Today, there are approximately 2,800 regulators at the tribal level, 500 at the state level, and 100 at the National Indian Gaming Commission.  Tribal governments spend approximately $250 million dollars each year to fund their gaming commissions.  The National Indian Gaming Commission is funded at $16 million dollars annually.

At today’s hearing we will hear from Tracie Stevens, the Chair of the National Indian Gaming Commission.  We are looking forward to learning about her first year in office, the Commission’s activities during the past year, and their plans going forward.  We will also hear from regulators and tribal gaming organizations who are on the ground every day protecting the integrity of Indian gaming. 

I would like to remind our witnesses that they have five minutes to present their oral testimony, but their full written testimony will be entered into the record.  The hearing record will also remain open for two weeks, so any other interested parties are welcome to submit written testimony for the record.

The Committee, like the NIGC and tribal regulators, takes its oversight role over Indian gaming very seriously.  Indian gaming has proven to be the single-most effective economic development tool that tribes can participate in to provide critical programs and services for their tribal members.

Indian Gaming Revenues Stayed Steady In 2010 | Patrick Henry Press ...

Indian gaming remained strong and steady in 2010, providing a bright spot in a U.S. economy that continued to slide into a deeper slump.

The Indian gaming industry generated gross revenues of $26.5 billion in 2010, holding the line with revenues a year earlier, according to the National Indian Gaming Commission . The commission had reported 2009 gaming revenues of $26.5 billion.  The commission released its annual 2010 Gross Gaming Revenue report released July 18 at a public meeting at the Chickasaw Nation Riverwind Casino in Norman, Oklahoma.

“In this challenging economic climate, tribal gaming remains a stable and reliable tribal economic enterprise that generates jobs and revenues for the betterment of Indian communities,” said Tracie Stevens, National Indian Gaming Commission (NIGC) chairwoman.

The NIGC is an independent federal agency that regulates gaming on Indian lands ”for the purpose of shielding Indian tribes from organized crime and other corrupting influences; to ensure that Indian tribes are the primary beneficiaries of gaming revenue; and to assure that gaming is conducted fairly and honestly by both operators and players,” according to it website. The commission conducts investigations; undertakes enforcement actions, including the issuance of notices of violation, assesses civil fines, issues closure orders; conducts background investigations; conducts audits; and reviews and approves tribal gaming ordinances.

NIGC’s Gross Gaming Revenue (GGR) for 2010 is based on 422 independently audited financial statements submitted by 236 gaming tribes. A table provided with the report shows a steady increase in Indian gaming revenues from $12.8 billion in 2001 to a high of $26.7 billion in 2008. Then in 2009, after the 2008 collapse of many large financial institutions, a downturn in the stock market, a massive government bailout of some of the largest banks, tight credit and soaring interest rates, Indian gaming had its first decline in revenues since the Indian Gaming Regulatory Act dropping 1 percent to $26.5 billion, according to the commission.

The largest number of casino operations – 88 of them – generated gross revenues of $10 million to $25 million. The next highest number of gaming operations – 74 – each generated under $3 million. In descending order, 72 operations generated $3-$10 million; 61 generated $25-$50 million; 53 generated $50-$100 million; 53 generated $200-$250 million; and only 21 Indian casinos earned $250 million and over. Overall, 55 percent of Indian gaming operations reported gaming revenues of less than $25 million, and of these operations, around 62 percent made less than $10 million.

National Indian Gaming Commission

The National Indian Gaming Commission

The National Indian Gaming Commission, hearing before the Committee on Indian Affairs, United States Senate, One Hundred Tenth Congress, second session, April 17, 2008

Implementation of the Indian Gaming Regulatory Act, Survey Report and Audit Report

Code of Federal Regulations, Title 25, Indians, Pt. 300-End, Revised as of April 1, 2010