Online gambling

Everyone is aware of the strict guidelines and operating procedures to which state-regulated casinos are held. But who sets the standards and controls for Native American properties?

 

Casinos such as Four Winds Casino Resort in New Buffalo, Mich., are operated by Native American tribes (in the case of Four Winds, the Pokagon Band of Potawatomi Indians) which are sovereign nations.

 

As such, the state of Michigan and the Michigan Gaming Control Board have no regulatory authority over Four Winds or the other Native American casino destinations operating in Michigan.

 

The same holds true for other Native American casino states in the Midwest and elsewhere around the country. Written agreements known as tribal-state gaming compacts are drawn. They are signed by the tribal nations and the governments of the states in which they are developed. These agreements differ slightly from state to state.

 

Being free from state regulations doesn't mean tribal casinos can do as they please. They are regulated by the National Indian Gaming Commission (NIGC) in conjunction with the government of the particular tribal community which operates the casino.

 

The NIGC is a United States federal regulatory agency that was established in 1988 after passage of the Indian Gaming Regulatory Act.

 

After passage of the Indian Gaming Regulatory Act, the Indian gaming industry's revenues grew from $200 million in 1988 to $26 billion in 2007.

 

The Michigan Gaming Control Board does have limited oversight responsibility in regard to Four Winds, including "examining electronic games of chance (slot machines, video poker, etc.) to assure that the devices are operating in accordance with the terms of the compact."

 

The NIGC also plays a major role in assuring gaming at tribal casinos is conducted fairly and honestly. It holds operators responsible for verifying that the "hold" (casino win) percentages on slot machines are within the performance standards set by manufacturers.

 

Tribal casinos are not required to report slot payback percentages for publication in the monthly revenue reports filed by gaming commissions in which state-regulated casinos operate.

 

Michigan requires Four Winds and other tribal casinos under its jurisdiction to pay the state and local municipalities a percentage of adjusted gross receipts from slots. There are similar agreements in other states.