McCain: More Laws Needed on Tribal Casinos
By ERICA WERNER, Associated Press Writer
WASHINGTON - John McCain, chairman of the Senate's Indian Affairs
Committee, said Wednesday he will seek tougher regulations for the
booming tribal gambling industry, which far outpaced Nevada's as it
took in $18.5 billion last year.
McCain, R-Ariz., faced opposition from tribal leaders at a hearing
where he called for changes including more money for oversight and
new rules to keep tribes from passing off slot machines as less-
regulated bingo devices.
But he said it was high time to review the federal Indian Gaming
Regulatory Act. The law regulating tribal casinos has not been
amended since its passage in 1988 helped turn Indian gambling into a
huge industry with more than 400 casinos in 28 states.
"I don't want this hearing to be viewed as some attack on Indian
gaming," McCain said. "It's not. Indian gaming is here to stay. The
question is, do we protect the patrons of Indian gaming to the
fullest extent consistent with our responsibilities, and I think we
have clearly identified some areas that need to be addressed."
The National Indian Gaming Commission, the federal agency that
oversees the nation's 400-plus tribal casinos, had a 2004 budget of
about $10.5 million and employs 78 people, according to testimony
Wednesday from its chairman, Phil Hogen.
By comparison, Nevada's Gaming Control Board had a 2004 budget of
$36.4 million and 439 employees to oversee about 360 casinos.
"I don't believe that the NIGC has enough funds. I don't believe it.
Because I look at the comparable regulation of gaming in Nevada,"
McCain said. Major Nevada resorts took in $9.88 billion in gambling
revenue in the 2004 fiscal year.
Tribal officials objected to changing the Indian Gaming Regulatory
Act, arguing that in combination with state and federal oversight,
the regulatory agencies that tribes themselves have in place offer
more than sufficient oversight.
"We are a little bit frustrated that we continually hear how tribal
gaming is insufficiently regulated," said Norman DesRosiers, chief
administrator of the tribal gambling agency for the Viejas Band of
Kumeyaay Indians in San Diego County. "There are enforcement
mechanisms in place, and I don't think more legislation is
necessarily the answer."
But McCain said new laws or rules are needed to clarify the
distinction between bingo machines which don't require state
approval as long as bingo is allowed in the state and slot
machines, which do require state approval. Technological advances
have blurred the distinction between the machines, several witnesses
said.
McCain also said stricter rules are needed for non-tribal companies
that sign on with tribes to help them develop and manage casinos,
thereby reaping huge profits from an industry Congress intended to
help Indians.
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