BULLETIN

No. 2021-7 October 28, 2021

Subject: Frequently Asked Questions regarding IGRA and Cannabis

As states have legalized or decriminalized the cultivation, sale, and use of cannabis to varying 

degrees in recent years, the National Indian Gaming Commission has begun to receive questions 

from gaming Tribes as to how certain cannabis related issues may be implicated by the Indian 

Gaming Regulatory Act. The NIGC is publishing this Bulletin in an effort to provide some 

guidance to Tribes.

The frequently asked questions below are not specific to any single tribe, but are intended to 

address various questions the Commission has received. This guidance may be updated from 

time-to-time as needed. If you have additional questions, please contact the NIGC at 

contactus@nigc.gov.

Q. Is Cannabis legal everywhere?

A. No. Cannabis remains illegal under federal law. And although many states have passed 

laws legalizing or decriminalizing cannabis, not every state has done so, and the laws that 

have been adopted by the various states are not uniform.

Q. Does Cannabis use disqualify an applicant from obtaining a gaming license and are we 

required to test for it?

A. Ultimately, each Tribe must determine whether and to what extent cannabis use will 

impact an employee or potential employee’s eligibility for a gaming license. IGRA and 

NIGC regulations require tribes to determine whether an applicant is eligible for a

gaming license based on a review of the applicant’s prior activities, criminal record, 

reputation, habits, and associations. The tribal official making the determination should 

evaluate any information discovered during the review with an eye toward any threat the 

applicant may pose to the public interest or to the effective regulation of gaming, or 

whether the applicant raises the risk of unsuitable, unfair, or illegal practices and methods
and activities in the conduct of gaming. (25 C.F.R. § 556.5). The specifics of that process 

depend on tribal regulations and policies.

Q. My tribe has been approached by vendors wanting to sell cannabis products out of the 

casino building. Is this permissible?

A. No. Despite recent changes in state laws, federal law continues to classify cannabis as a 

controlled substance. It is illegal to manufacture, distribute, or dispense cannabis under 

federal law and NIGC is obligated to refer knowledge of any such activity to the 

appropriate federal law enforcement agencies.

Q. My tribe is considering entering the market with our own grow operation or processing 

facility. We will not sell from the casino or use the casino property in any way for the 

cannabis business. Can we fund the operation with gaming revenue?

A. The NIGC recommends that tribes not use net gaming revenue as defined by IGRA and 

NIGC regulations1 to fund any aspect of their cannabis related businesses. IGRA restricts 

the use of net gaming revenues to five categories, and may not be used to fund an illegal 

enterprise. The cultivation, sale, and possession of cannabis is illegal under federal law 

and, therefore, net gaming revenue should not be used to finance such an operation.

The information provided in this Bulletin sets forth the NIGC’s regulatory approach and existing 

positions and may be updated as needed. Please email any comments on this topic to 

contactus@nigc.gov.

1 25 U.S.C. § 2703(9); 25 C.F.R. § 502.16