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The Facts About the Indian Gaming Regulatory Act (IGRA)

• The Indian Gaming Regulatory Act (IGRA) was signed into law by President Reagan on October 17, 1988, and generally seeks to answer when and what types of gaming may be conducted on Indian land.
  
  
• The U.S. Supreme Court provided the impetus for the passage of IGRA in 1987 by ruling that tribes had inherent powers to regulate gaming on their own land. The court also held that states have no power to interfere with any form of Indian gaming unless all such gaming was criminally prohibited in the state.
  
  
• IGRA was established on the premise that Indian tribes are sovereign nations that have the right to self-governance, including significant authority over gaming on their lands.
  
  
• Congress passed IGRA for the following stated purposes:
  1. To permit Indian gaming as a way of promoting economic development, self-sufficiency, and strong tribal government.
  2. To prevent the infiltration of organized crime and other corrupting influences into Indian gaming operations.
  3. To establish federal regulatory standards for Indian gaming.
     
     
• Congress divided gaming on Indian lands into three categories:

• Class I gaming consists of "social games solely for prizes of minimal value or traditional forms of Indian gaming engaged in by individuals as a part of or in connection with tribal ceremonies or celebrations." Tribes have exclusive authority to regulate Class I gaming.
• Class II gaming includes bingo and (if played at the same location) pull tabs, lotteries, punchboard and other games similar to bingo, as long as the gaming takes place in a state that does not criminally prohibit it as a matter of the state’s public policy. Class II gaming - primarily regulated by tribes - is subject to the general oversight of the National Indian Gaming Commission.
• Class III gaming is defined as "all forms of gaming that are not Class I or Class II gaming." Class III gaming can be conducted by tribes in states where the gaming activity in question is not criminally prohibited in the state and is subject to terms and conditions negotiated in state/tribal compacts. Under IGRA, states are required to negotiate in good faith when entering into such compacts.

• IGRA established a procedure for tribes and states to follow in negotiating compacts on how gaming would be regulated on Indian lands. Pursuant to IGRA, the Mille Lacs Band of Ojibwe negotiated two compacts with the state of Minnesota governing Class III blackjack and video games of chance. The Mille Lacs Band and other tribes agreed not to pursue compacts on other casino games and betting so long as the state did not liberalize its gaming laws.
  
  
• The compacts in Minnesota allow the state to perform background investigations of gaming employees and inspections of gaming facilities. To help the state carry out its compact duties, the tribes promised to collectively contribute $150,000 per year.
  
  
• The Mille Lacs Band opened two casinos - Grand Casino Hinckley and Grand Casino Mille Lacs - in full compliance with IGRA and the compacts.
  
  
• The compacts can be renegotiated upon mutual consent of both parties, but they cannot be unilaterally terminated by either party. They are meant to provide consistency and stability for the tribes and the state in determining future gaming policy.
  
  
• Casinos represent the first real economic development tool Indians have had in four centuries. With the revenues from casinos, Indians are improving life for themselves, their children, and their neighbors.