64372 Federal Register / Vol. 74, No. 233 / Monday, December 7, 2009 / The Regulatory Plan 

NATIONAL INDIAN GAMING 

COMMISSION (NIGC) 

Statement of Regulatory Priorities 

The Indian Gaming Regulatory Act 

(IGRA or the Act), 25 U.S.C. 2701 et 

seq., was signed into law on October 17, 

1988. The Act established the National 

Indian Gaming Commission (NIGC). The 

stated purpose of the NIGC is to regulate 

the operation of gaming by Indian tribes 

as a means of promoting tribal economic 

development, self-sufficiency, and 

strong tribal governments. It is the 

NIGC’s intention to provide regulation 

of Indian gaming to adequately shield it 

from organized crime and other 

corrupting influences, to ensure that 

each Indian tribe is the primary 

beneficiary of its gaming operation(s), 

and to assure that gaming is conducted 

fairly and honestly by both the operator 

and players. 

The regulatory priorities for the next 

fiscal year reflect the NIGC’s 

commitment to uphold the principles of 

IGRA. As the Indian gaming industry 

continues to grow and evolve, the NIGC 

must be continually attentive to 

reviewing and revising its existing 

regulations to ensure that they do not 

become outdated and lose their 

usefulness. To that end, the NIGC is 

currently revising its existing 

regulations concerning background 

investigations and licenses to ensure the 

continued integrity of the Indian gaming 

industry, and that background 

investigations for key employees and 

primary management officials are 

performed as thoroughly and efficiently 

as possible, and are updated on a 

regular, ongoing basis. In addition, the 

NIGC is currently revising its existing 

regulations on minimum internal 

control standards to ensure that they 

remain up to date, and continue to 

adequately protect against the risks 

inherent in gambling, especially as 

gaming technology continues to evolve. 

As new developments and trends of 

concern to effective gaming regulation 

are most often first perceived and 

addressed on the gaming floors and in 

the backs of the gaming houses 

themselves, it is often that the all-day, 

everyday tribal gaming regulators 

present at the tribal gaming facilities are 

the first to identify weaknesses in the 

gaming regulatory structure. To detect 

these concerns as early as possible, the 

NIGC has been innovative in using 

active outreach efforts to inform its 

policy development and its rulemaking 

efforts. For example, the NIGC has had 

great success in using regional meetings, 

both formal and informal, with tribal 

governments to gather views on current 

and proposed NIGC initiatives. The 

NIGC anticipates that these ongoing 

consultations with regulated tribes will 

continue to play an important role in 

the development of the NIGC’s 

rulemaking efforts. 

NIGC 

PROPOSED RULE STAGE 

176. TRIBAL BACKGROUND 

INVESTIGATION SUBMISSION 

REQUIREMENTS AND TIMING 

Priority: 

Other Significant 

Legal Authority: 

25 USC 2706(b)(3); 25 USC 2706(b)(10); 

25 USC 2710(b)(2)(F)(ii); 25 USC 

2710(c)(1)–(2); 25 USC 2710(d)(A) 

CFR Citation: 

25 CFR 556; 25 CFR 558 

Legal Deadline: 

None 

Abstract: 

It is necessary for the National Indian 

Gaming Commission (NIGC) to: modify 

certain regulations concerning 

background investigations and licensing 

to streamline the process for submitting 

information; ensure that the process 

complies with the Indian Gaming 

Regulatory Act (IGRA); and distinguish 

the requirements for temporary and 

permanent licenses. 

Statement of Need: 

Modifications to specific background 

investigation and licensing regulations 

are needed to ensure compliance with 

the Indian Gaming Regulatory Act 

(IGRA), which mandates that certain 

notifications be submitted to the 

Commission. Modifications are also 

needed to reduce the quantity of 

documents submitted to the 

Commission under these regulations 

and to distinguish the requirements for 

temporary and permanent licenses. 

Summary of Legal Basis: 

It is the goal of NIGC to provide 

regulation of Indian gaming to shield 

it from organized crime and other 

corrupting influences as well as to 

assure that gaming is conducted fairly 

and honestly. (25 U.S.C. 2702). The 

Commission is charged with the 

responsibility of monitoring gaming 

conducted on Indian lands. (25 U.S.C. 

2706(b)(1)). IGRA expressly authorizes 

the Commission to ‘‘promulgate such 

regulations and guidelines as it deems 

appropriate to implement the 

provisions of the (Act).’’ (25 U.S.C. 

2706(b)(10)). Sections 2710(b)(2)(F) and 

2710(d)(A) require Tribes to have an 

adequate system for background 

investigations of primary management 

officials and key employees and inform 

the Commission of the results of those 

investigations. Under section 2710(c), 

the Commission may also object to 

licenses or require a tribe to suspend 

a license. The Commission relies on 

these sections of the statute to 

authorize the modification of the 

background and licensing regulations to 

ensure compliance with IGRA, reduce 

the quantity of documents submitted to 

the Commission, and distinguish the 

requirements for temporary and 

permanent licenses. 

Alternatives: 

If the Commission does not modify 

these regulations to reduce the quantity 

of documents submitted under them, 

tribes will continue to be required to 

submit these documents to the 

Commission. Further, to ensure 

compliance with IGRA, the 

modifications mandating notifications 

to the Commission regarding the results 

of background checks and the issuance 

of temporary and permanent gaming 

licenses must be made. 

Anticipated Cost and Benefits: 

These modifications to the background 

investigation and licensing regulations 

will reduce the cost of regulation to the 

Federal Government by reducing the 

amount of documents received from 

tribes that must be processed and 

retained. Further, these modifications 

will reduce the quantity of documents 

that tribes are required to submit to the 

NIGC, which will result in a cost 

savings to the tribes. There are minimal 

anticipated cost increases to tribal 

governments due to additional 

notifications to the NIGC. 

Risks: 

There are no known risks to this 

regulatory action. 

Timetable: 

Action Date FR Cite 

NPRM 06/00/10 

Regulatory Flexibility Analysis 

Required: 

No 


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Federal Register / Vol. 74, No. 233 / Monday, December 7, 2009 / The Regulatory Plan 64373 

Government Levels Affected: 

Tribal 

Agency Contact: 

Heather M Nakai 

Staff Attorney 

National Indian Gaming Commission 

1441 L Street NW 

Suite 9100 

Washington, DC 20005 

Phone: 202 632–7003 

Fax: 202 632 7066 

RIN: 3141–AA15 

NIGC 

177. CLASS II AND CLASS III 

MINIMUM INTERNAL CONTROL 

STANDARDS 

Priority: 

Other Significant 

Legal Authority: 

25 USC 2706(b)(10); 25 USC 

2706(b)(1)–(4); 25 USC 

2710(d)(3)(C)(vi); 25 USC 

2710(d)(7)(B)(vii) 

CFR Citation: 

25 CFR 542; 25 CFR 543 

Legal Deadline: 

None 

Abstract: 

The National Indian Gaming 

Commission is revising the existing 

minimum internal control standards 

(MICS) to reflect the changing 

technologies in the industry. The 

Commission will routinely revise the 

MICS in response to these changes. It 

is also continuing with its plan to 

clarify the regulatory structure by 

segregating Class II MICS from Class III. 

Statement of Need: 

The rapid evolution of gaming 

technology and regulatory structures in 

Indian gaming brings new risks and 

requires a distinction between the 

control standards for Class II and Class 

III gaming. Periodic review and revision 

of existing standards are necessary to 

ensure that they remain relevant and 

continue to adequately protect tribal 

gaming assets and the interests of 

stakeholders and the gaming public. 

Summary of Legal Basis: 

It is the goal of NIGC to provide 

regulation of Indian gaming to shield 

it from organized crime and other 

corrupting influences as well as 

assuring that gaming is conducted fairly 

and honestly. (25 U.S.C. 2702). The 

Commission is charged with the 

responsibility of monitoring gaming 

conducted on Indian lands. (25 U.S.C. 

2706(b)(1)). This responsibility includes 

inspecting and examining the premises 

located on Indian lands on which Class 

II gaming is conducted; and auditing 

all papers, books, and records 

respecting gross revenues of Class II 

gaming conducted on Indian lands and 

any other matters necessary to carry out 

the duties of the Commission under 

this chapter. (25 U.S.C. 2706(b)(2),(4)). 

With regard to Class III gaming, section 

2710(d)(3)(C)(vi) allows Tribal-State 

compacts to include negotiated 

provisions governing the standards for 

operation of gaming activity, and where 

states and tribes cannot reach 

agreement, section 2710(d)(7)(B)(vii) 

allows the Secretary of the Interior to 

establish procedures in place of a 

compact whereby a particular tribe may 

conduct Class III gaming. In each of the 

procedures approved to date, the 

Secretary has delegated the 

responsibility for gaming standards and 

oversight to the NIGC. The Commission 

relies on these sections of the statute 

to authorize the promulgation of MICS 

to ensure integrity in tribal gaming. 

Alternatives: 

If the Commission does not periodically 

update the MICS, the regulations that 

govern tribal gaming will not address 

changing technology and gaming 

methods. 

Anticipated Cost and Benefits: 

Updated MICS will aid tribal 

governments in the regulation of their 

gaming activities. 

Risks: 

There are no known risks to this 

regulatory action. 

Timetable: 

Action Date FR Cite 

First NPRM 12/01/04 69 FR 69847 

Second NPRM 03/10/05 70 FR 11893 

Final Action on First 

Rule 

05/04/05 70 FR 23011 

Final Action on 

Second Rule 

08/12/05 70 FR 47097 

Third NPRM 11/15/05 70 FR 69293 

Final Action on Third 

Rule (1) 

05/11/06 71 FR 27385 

Fourth NPRM 12/00/09 

Regulatory Flexibility Analysis 

Required: 

No 

Government Levels Affected: 

Tribal 

Agency Contact: 

Jennifer Ward 

Staff Attorney 

National Indian Gaming Commission 

1441 L Street NW. 

Suite 9100 

Washington, DC 20005 

Phone: 202 632–7003 

Fax: 202 632–7066 

RIN: 3141–AA27 

BILLING CODE 7565–01–S 


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