NIGC Regulation Insight 

By Associate General Counsel Eric Shepard 

Over the past three years, the National Indian Gaming Commission has made a number of 

changes to every aspect of the Agency. We began with our consultation process with the goal 

of strengthening our relationship with tribes and increasing open, candid communication. We 

then turned to internal Agency operations review, training and technical assistance, and an 

aggressive review of NIGC regulations. While we continue to reflect and make 

improvements in every area, there are a number of key changes to our regulations that will 

affect tribes in the coming months. Additionally, tribes and the NIGC will likely feel the 

affects of the Federal budget sequester. 

In 2010, the NIGC embarked on a regulatory review with tribes, tribal regulators and the 

public to ensure 21st century regulations for a 21st century industry. Since then, the 

Commission has held more than 50 consultations, considered 20 regulations or potential 

regulations and adopted and implemented 17 regulations. These new regulations will need to 

be implemented at nearly every tribal gaming operation. Implementation will require close 

dialogue with tribal leaders, tribal regulators and tribal attorneys. 

Most recently, the Commission adopted amendments to Part 518 – Self Regulation of Class 

II Gaming. The key changes in Part 518 include: an emphasis on a tribe’s ability to regulate 

gaming; elimination of redundant submission requirements and; a defined and streamlined 

process for the review of self-regulation petitions by the full Commission. These changes are 

aimed at clarifying and streamlining the process for obtaining a certificate of self-regulation 

for those tribes that wish to do so. 

As with part 518, many of the new regulations reflect the diversity of tribes and their gaming 

operations; from a 12 machine operation in a rural location to a large facility in a more urban 

setting. For example, the new Part 543--Minimum Internal Controls for Class II Gaming-- 

provides a foundation from which tribes can build their own Tribal Internal Control 

Standards suited to their own unique structure and circumstances. 

Currently, the Commission is reviewing comments in response to its most recent notice of 

proposed rulemaking, which seeks to amend Part 543 to include requirements for 

surveillance of kiosks. After the Commission has reviewed and considered all public 

comments, a final rule will be published in the Federal Register. We thank those tribes that 

submitted comments on the proposed amendment to Part 543. As has been the Commission’s 

experience since 2010, many tribes provided insightful comments that will inform the final 

rule. 

In adopting these regulations, the Commission was mindful that tribes would need time to 

implement them. As a result, the regulations have different implementation timelines. 

To assist tribes in implementing the new regulations the Commission created a regulation 

summary, which identifies major regulatory changes and cross-references the new and old 

regulations. The regulation summary can be obtained from the NIGC website at 
www.nigc.gov. If a tribe or tribal regulator has questions regarding the new regulations, the 

NIGC has seven regional offices able to assist. Our regional staff is ready to provide training 

and technical assistance on a variety of issues, including new and revised regulations. 

The Commission has also furthered the ACE initiative – Assistance, Compliance and, when 

necessary, Enforcement. ACE is a commitment to Indian country that the Commission is 

here, first and foremost, to work with tribes to identify issues and find solutions. As part of 

our commitment to assistance, in 2012, over 2,000 participants attended 84 NIGC training 

events throughout Indian country. Through these trainings we have helped ensure compliance 

throughout the Indian gaming industry. 

The Commission will continue to consider training and technical assistance as critical to its 

regulatory mission in Indian country. However, some non-mission critical services may be 

affected by the Federal budget sequester. 

On March 1, 2013, the President was required by law to issue a sequestration order. This 

order reduced budgetary authority for Fiscal Year 2013 by approximately $85 billion for 

all Federal accounts. At the Department of the Interior, over $800 million will be cut 

from bureaus and offices over the next several months. This means that, unless Congress 

is able to reach a debt reduction deal that affects sequestration, the NIGC, along with the 

rest of the Federal government, will have its budget reduced by approximately five 

percent each year for a period of 10 years. 

The Commission made extensive efforts to exempt the NIGC from sequestration cuts due 

to the fact that we are a fee-for-service agency funded solely by tribal funds. 

Unfortunately, despite our efforts, we have been advised that five percent of the NIGC’s 

funds will be sequestered. We will continue to monitor the impacts to NIGC for this 

fiscal year and next. 

The NIGC is dealing with sequestration in a number of ways. The Commission has taken 

measures to maximize efficiency and streamline operations by curtailing travel, eliminating 

overtime and compensatory time, and leaving some staff positions vacant. We will prioritize 

mission-critical activities and, although we will continue to assist tribes in other ways, some 

processes may take longer than normal. For example the Office of General Counsel regularly 

issues “declination letters” opining whether agreements need to be submitted for the 

Chairwoman’s approval as a management contract, or raise sole proprietary interest issues. 

While the Commission recognizes the importance of this process to tribal economic 

development, tribes should expect longer review times. The Commission encourages tribes to 

submit agreement as far in advance as possible and to allow at least six to eight weeks for 

review. 

Despite these challenges, as we move forward, the Commission will continue to engage in 

candid, open communications with tribes; improve Agency efficiency; review regulations to 

ensure effective oversight; and provide training and technical assistance to achieve full 

compliance with IGRA and NIGC regulations. 
Eric Shepard serves as Associate General Counsel at the National Indian Gaming 

Commission. He can be reached by calling (202) 632-7003. For more information about the 

NIGC, visit www.nigc.gov.