
Tribal Slot Machines Changing
The National Indian
Gaming Commission has announced that they are planning on changing the
definition of the Class II slot machines. It is illegal for tribes to
run Class III slot machines – the Vegas style of gambling – unless
they are offered elsewhere in the state. If the tribe signs a slot
machine compact with the state that it is located in, the state will
most often receive some sort of slot revenue. If the state does not
sign the compact and the Department of the Interior steps in, then the
state will most likely not receive any slot machine revenue at all.
Class II slot
machines are essentially bingo machines, and are currently the only
legal slot machine that they can offer. However, the commission is
looking to change that. The U.S. Justice Department has lost several
court cases lately in which government lawyers argued that Class II
machines are really the same as Class III slot machines. The
regulatory changes are due to an ongoing battle between the states and
the tribes, where the states are looking for more control over the
tribes and their slot machines, and the tribes are looking to stay
independent of the states.
If the commission
manages to outlaw Class II slot machines, virtually every slot machine
that is on the floor in a state that does not allow Class III slot
machines would be illegal. This would mean a huge blow to the slot
machine revenue that the tribes currently take in. The tribes count on
those slot machines to support themselves in form of revenue and
jobs.
Some states have
embraced the tribal slot machine industry, and others are still
fighting it. A good example of the states learning to work with the
tribes and their slot machines is the State of California. When
Governor Schwarzenegger came in he planned on controlling the tribes
and their slot machines. He soon learned that tribal sovereignty
combined with federal law will trump any hand the state has. He has
now learned to get along with the tribes; and recently signed several
compacts with various tribes to significantly increase the number of
slot machines that they are allowed.
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