and Performance Information

Fiscal Year 2012

BUDGET

JUSTIFICATIONS

The United States

Department of the Interior

NOTICE: These budget

justifications are prepared

 for the Interior, Environment 

and Related Agencies 

Appropriations Subcommittees. 

Approval for release of the 

justifications prior to their 

printing in the public record of 

the Subcommittee hearings 

may be obtained through 

the Office of Budget of the 

Department of the Interior.

NATIONAL INDIAN

GAMING COMMISSION

NIGC - iii 

DEPARTMENT OF THE INTERIOR 

NATIONAL INDIAN GAMING COMMISSION 

Fiscal Year 2012 Budget Justification 

Table of Contents

 Page 

Item Number 

Executive Summary 1 

General Statement 2 

The Indian Gaming Regulatory Act of 1988 4 

The Commission and its Operations 5 

Budget Priorities 9 

Annual Fees for Operations 9 

Appropriation Summary Information

Appropriations Summary Statement 11 

Summary of the Fiscal Year 2012 Budget 12 

Fee Regulation 13 

Gaming Activity Fees – Program and Financing Schedules 15 

Gaming Activity Fees – Object Classification Schedule 16 

Salary and Expenses – Programming and Financing Schedule (Reimb) 17 

Salary and Expenses – Object Classification Schedule (Reimb) 18 

Miscellaneous Data

Employee Count by Grade 19 

NIGC Summary of Employment 20 

Indian Gaming Industry Growth – Chart 21 

Growth in Indian Gaming Operations – Chart 22 

NIGC Fee Revenue – Chart 23 

NIGC Expenditures – Chart 24 

Staffing Levels – Chart 25 

Government Performance and Results Act (GPRA) Information

Summary of Highlights of Commission Activities 27 

NIGC - 1 

National Indian Gaming Commission (NIGC) 

Executive Summary 

The National Indian Gaming Commission (NIGC or “Commission”) was created by the 

Indian Gaming Regulatory Act of 1988 (P.L. 100-497). The Indian Gaming Regulatory 

Act (IGRA) created a mechanism whereby NIGC operations are funded by the fees 

collected from tribal gaming operations. When the Commission began operations in 

February 1992, the Indian gaming industry generated revenue of about $3 billion per 

year. The Commission itself operated on a budget of $2.2 million with 33 full-time 

employees and with oversight responsibilities for approximately 200 gaming operations. 

As with many emerging industries, Indian gaming experienced consistent growth. 

Today, there are over 400 Indian gaming operations in 29 states. Revenues over the past 

few years suggest that the industry has stabilized with the moderate growth largely 

attributable to the expansion of existing facilities and the opening of new facilities. 

The governmental entities regulating Indian gaming have grown along with the industry. 

In addition to the Commission, there are approximately 200 tribal gaming commissions 

serving as the primary regulators of Indian gaming. Further, each of the 29 states 

provides regulatory support to implement their respective responsibilities under IGRA 

and tribal-state compacts. In addition to NIGC, tribal and state regulatory agencies, the 

Department of the Interior, the Department of Justice, the Federal Bureau of 

Investigation, the Internal Revenue Service and the Department of the Treasury all 

implement and enforce laws that serve to ensure tribes are the primary beneficiaries of 

Indian gaming. The NIGC coordinates closely with all of these governmental entities to 

fulfill Congress’ mandates in IGRA. 

In May 2006, Congress enacted the Native American Technical Corrections Act of 2006 

(P.L. 109-22). This Act authorizes the Commission to collect up to 0.080 percent of the 

gross gaming revenue but it also links NIGC fee collections to the growth, or contraction, 

of the Indian gaming industry so that the agency’s funding reflects the financial status of 

the industry. Secondarily, the Act identified training and technical assistance as an 

agency function. 

The fiscal year 2012 budget will focus primarily on improving governmental 

coordination and expanding tribal consultation, providing training and technical 

assistance to tribal gaming commissions and operations, conducting a regulatory review, 
NIGC - 2 

examining and assessing the efficiency and effectiveness of the Commission, and 

enhancing the information technology infrastructure. 

Vision 

A fundamental principle of this Commission’s vision is that we are committed to 

strengthening government-to-government relations by engaging in meaningful 

consultation with Tribes to fulfill the intent of IGRA. Our vision is to adhere to the 

principles of good government, including transparency, to promote agency accountability 

and fiscal responsibility, to operate consistently to ensure fairness and clarity in the 

administration of IGRA, and to respect the responsibilities of each sovereign in order to 

fully promote tribal economic development, self-sufficiency and strong tribal 

governments. 

Mission 

The mission of the NIGC is: To work within the framework created by the Act for the 

regulation of gaming activities on Indian lands, and thereby fully promoting tribal 

economic development, self-sufficiency, strong tribal governments, and the integrity of 

the Indian gaming industry. 

General Statement 

The Indian Gaming Regulatory Act established, within the Department of the Interior, the 

National Indian Gaming Commission, and provided it with independent Federal 

regulatory authority. IGRA was enacted as means of supporting tribal economic 

development, self-sufficiency, and strong tribal governments through the creation of a 

statutory basis for the operation of gaming on Indian lands. It provides a regulatory 

framework to shield Indian gaming from corruption, to ensure the games are fair and 

honest and to ensure that Tribes are the primary beneficiaries of the gaming operation. 

The Commission was created to address these congressional concerns regarding gaming 

and to protect such gaming as a means of generating tribal revenue. 

The Commission monitors tribal gaming activity, inspects gaming premises, conducts 

background investigations, audits and reviews financial records of Class II gaming 

operations (and Class III gaming operations upon request or as provided by applicable 

law such as tribal gaming ordinances and tribal-state compacts), provides technical 

assistance and training to tribal gaming commissions and operations and, when 

appropriate, undertakes enforcement actions. 
NIGC - 3 

This is accomplished by: 

• Direct regulation of certain aspects of Indian gaming, and coordinating 

regulation with tribal and other regulatory agencies through the review and 

approval of tribal gaming ordinances and management agreements. 

• Reviewing the backgrounds of individuals and entities to ensure the suitability 

of those seeking to engage or invest in Indian gaming. 

• Maintaining oversight and reviewing the conduct of Indian gaming operations 

and their financial performance. 

• Referring matters to appropriate Federal, tribal and state entities. 

• Undertaking enforcement actions as necessary for violations of IGRA, the 

Commission’s regulations and tribal gaming ordinances, including the 

imposition of appropriate sanctions on those committing such violations. 

As it fulfills these responsibilities, the Commission is particularly vigilant of any 

indications of corrupting influences, such as those posed by organized criminal 

elements known to be attracted to cash-intensive industries such as gaming. 

IGRA authorizes the Commission to assess and collect fees on tribal gaming revenues 

to cover agency operating costs. The NIGC also conducts background investigations, 

including fingerprinting, of individuals and entities with a financial interest in, or 

management responsibility for, potential management contracts. These investigations 

are conducted to determine whether the management contracts can be approved. The 

Commission is reimbursed by the potential contractors for performing these 

investigative services. The Commission is also reimbursed for fingerprint processing 

costs. 

The Commission, as an agency of the Federal government, maintains a trust relationship 

with Indian nations. Consistent with Executive Order 13175, signed by President 

Clinton on November 6, 2000, the Commission is committed to meaningful 

consultation with tribes prior to making changes to regulations or policies having tribal 

implications. Additionally, the Commission endeavors to provide tribes with courteous 

and timely responses to issues as they arise. In all phases of its regulatory 

performance, the Commission and its staff observe the due process rights of those who 

come before it. The Commission strives to be responsive to tribes seeking guidance as 

they enter the Indian gaming industry, monitors trends in tribal government gaming, and 

reports its findings to Congress and the Administration. 
NIGC - 4 

The Indian Gaming Regulatory Act (IGRA) of 1988 

In 1987, the Supreme Court affirmed the sovereign authority of tribes to operate and 

regulate gaming facilities on Indian lands free from state regulation if the state did not 

prohibit gaming (California v. Cabazon Band of Indians, 480 U.S. 202 (1987). The 

following year, Congress enacted the Indian Gaming Regulatory Act. Embodied in 

IGRA was a compromise between state and tribal interests. The drafters “balance[d] the 

need for sound enforcement of gaming laws and regulations, with a strong Federal 

interest in preserving the sovereign rights of tribal governments to regulate activities and 

enforce laws on Indian lands.” IGRA fully preserved tribal regulatory authority over 

Class II gaming without state intervention. However, IGRA gave the states a role in 

determining the scope and extent of tribal gaming by requiring tribal-state compacts for 

Class III gaming. 

IGRA establishes the jurisdictional framework that governs Indian gaming. IGRA 

establishes three classes of games with a different regulatory scheme for each. 

• Class I gaming is defined as traditional and social Indian gaming for minimal 

prizes. Regulatory authority over Class I gaming is vested exclusively in tribal 

governments. 

• Class II gaming is defined as the game of chance commonly known as bingo 

(whether or not electronic, computer, or other technological aids are used in 

connection therewith) and (if played in the same location) pull-tabs, lotto, 

punchboards, tip jars, instant bingo and other games similar to bingo. Class II 

gaming also includes non-banked card games. IGRA specifically excludes slot 

machines or electronic facsimiles of any game of chance from the definition of 

Class II games. Tribes retain their authority to conduct, license and regulate Class 

II gaming as long as the state in which the tribe is located permits such gaming for 

any purpose, and the tribal government adopts a gaming ordinance approved by 

the Commission. Tribal governments are responsible for regulating Class II 

gaming, with Commission oversight. 

• Class III encompasses all forms of gaming that are neither Class I nor Class II. 

Games commonly played in casinos, such as slot machines, blackjack, craps, and 

roulette, fall in the Class III category. Class III gaming is often referred to as fullscale casino-style gaming. As a compromise among tribal, state and Federal 

interests, IGRA restricts tribal authority to conduct Class III gaming. Before a 

tribe may lawfully conduct Class III gaming, the following conditions must be 

met: (1) the facility must be located in a State that permits such gaming for any 

purpose by any person, organization or entity; (2) the tribe and the state must have 

negotiated a compact that has been approved by the Secretary of the Interior, or 

the Secretary must have approved regulatory procedures; and (3) the tribe must 

have adopted a tribal gaming ordinance that has been approved by the Chairman 

of the Commission. State and tribal governments are primarily responsible for 

regulating Class III gaming. 
NIGC - 5 

Although Congress clearly intended states to address Class III regulatory issues in tribalstate compacts, IGRA did not make this mandatory, and many states accordingly rely 

upon continued tribal and Federal oversight by the NIGC to address their regulatory 

concerns regarding Class III tribal gaming under IGRA. Additionally, IGRA tasks the 

NIGC with a number of specific regulatory functions to the NIGC, such as: approving 

tribal ordinances for Class II and Class III gaming; approving management contracts; 

ensuring tribes and management contractors comply with IGRA and Commission rules 

and regulations; and implementing regulations. Accordingly, the Commission plays a 

key role in the oversight and regulation of both Class II and Class III gaming. 

The Commission and its Operations 

The Commission is comprised of a Chair and two associate Commissioners, each of 

whom are appointed to three-year terms. The Commission establishes policy, and is 

responsible for carrying out the duties assigned to it by IGRA. 

The Commission provides Federal oversight to over 400 tribally owned, operated, or 

licensed gaming establishments operating in 29 states. The Commission maintains its 

headquarters in Washington, DC, has seven regional offices, and four satellite offices. 

The Commission is divided into seven separate divisions with a combined staff of 116 

full-time employees as of 2010. Total FTE utilization in 2010 was 112. Approximately 

half of the Commission staff are assigned to headquarters in Washington, DC, with the 

remaining assigned among its regional offices located in: Portland, OR; Sacramento, CA; 

Phoenix, AZ; St. Paul, MN; Tulsa, OK; Washington, DC; and Oklahoma City, OK, and 

among its satellite offices in Rapid City, SD; Temecula, CA; Bellingham, WA; and 

Flowood, MS. 

The Commission established its field structure to increase effectiveness and improve the 

level and quality of services it provides. The field offices are vital to carrying out the 

statutory responsibilities of the Commission, providing technical assistance and training 

and securing industry compliance with the IGRA. Tribal compliance with the Act has 

improved as a result of locating auditors and field investigators closer to tribal gaming 

facilities. In addition to auditing and investigative activities, the field staff provides 

technical assistance, education, and training to promote a better understanding of gaming 

controls within the regulated industry, and to enhance cooperation and compliance in 

order to prevent violations thus ensuring the integrity of the gaming operations. 

 
NIGC - 6 

Organizational Structure 

The Commission’s organizational structure is composed of two main branches, the Office 

of the General Counsel and the Office of the Chief of Staff. 

The Office of the General Counsel provides legal advice and counsel to the 

Commission on all matters relating to IGRA and Commission compliance with all 

applicable laws and regulations. The Office represents the Chairman in all enforcement 

actions and, as needed, coordinates with the U.S. Department of Justice to implement the 

Commission’s enforcement actions. The Office also plays an important role in handling 

appeals before the full Commission, and where Commission action results in litigation, 

the Office works directly with the Department of Justice. 

Vice Chairwoman Chairwoman Commissioner 

General 

Counsel 

Chief of 

Staff 

Associate 

General 

Counsel, 

Litigation 

and 

Enforcement

Associate 

General 

Counsel, 

General 

Law 

Director, 

Division of 

Audits

Deputy 

Chief of 

Staff

Director, 

Division of 

Administration

Director, 

Division of 

Management 

Contracts and 

Investigations 

Director, 

Division of 

Congressional 

Affairs and 

Media 

Relations

Director, 

Division of 

Training 

Director, 

Division of 

Enforcement

Executive 

Secretary 

National Indian Gaming Commission 

Counselor 

to the Chair 
NIGC - 7 

The Office of the General Counsel also manages the day-to-day legal affairs of the 

Commission, providing counsel and legal support to each division. The Office reviews 

tribal gaming ordinances and proposed management contracts, provides legal advisory 

opinions on the appropriate classification of games played in Indian gaming facilities, on 

Indian land issues, contract issues, and general law questions. The Office also coordinates 

opinions and other specific matters with the Department of the Interior’s Office of the 

Solicitor and other Federal agencies as necessary. 

The Office of the Chief of Staff implements the policies of the Commission and is 

responsible for the direction, supervision, and evaluation of the work of all Commission 

employees outside of the Office of the General Counsel. It is divided into six divisions 

which include: Division of Management Contracts and Investigations; Division of 

Enforcement; Division of Congressional Affairs and Media Relations; Division of 

Audits; Division of Training; and Division of Administration. 

The Division of Management Contracts and Investigations works with all 

interested parties, including tribal officials, management contractors, attorneys, 

accountants, and tribal gaming regulatory authorities to ensure that proposed 

management contracts meet the requirements established by IGRA. The Division 

conducts required background investigations to ensure the satisfaction of 

suitability criteria as it relates to management contractors. The Division manages 

the submission and distribution of results from the processing of fingerprint 

identification and background investigations through a Memorandum of 

Understanding (MOU) with the FBI. The Division is also responsible for tracking 

and reporting annual Indian gaming industry gross revenue. 

The Division of Enforcement serves as the Commission’s main tool in 

monitoring tribal compliance with all applicable laws and regulations. The 

Division consists of seven regional offices and four satellite offices. 

Regional Office – Portland, OR Satellite Office – Bellingham, WA 

Regional Office – Sacramento, CA Satellite Office – Temecula, CA 

Regional Office – Phoenix, AZ 

Regional Office – St. Paul, MN Satellite Office – Rapid City, SD 

Regional Office – Tulsa, OK 

Regional Office – Washington DC Satellite Office – Flowood, MS 

Regional Office – Oklahoma City, OK 

Employees from the Division of Enforcement routinely visit Indian gaming 

facilities in their region, evaluating compliance with relevant Federal laws and 

regulations, providing training and technical assistance and, where indicated, 

facilitating the activities of other Federal agencies responsible for implementing 

the IGRA’s provisions. Education and outreach are among the Division’s best 

tools in achieving compliance. As such, the Division offers training and technical 

assistance on a wide range of matters. The Division also plays a critical role in 

processing background investigations at Indian gaming facilities. IGRA requires 
NIGC - 8 

tribes to conduct background investigations on key employees and primary 

management officials, including submission of fingerprint cards to the FBI. 

The Division of Training was established in fiscal year 2008 to provide both 

external and internal training. The Division supports the implementation of 

Public Law 109-221 and assists in accomplishing the strategic goal of 

organizational excellence. Externally, the Division of Training, among other 

responsibilities, provides numerous course offerings related to gaming. The 

Division works with tribal governments, gaming regulators, law enforcement, and 

members of the state and Federal agencies to identify needed areas of training. 

The Division of Administration provides administrative, technical, and support 

services to the Commission, including its regional and satellite offices. All daily 

office support functions, including personnel management, procurement activities, 

travel, and information technology, are provided by the Administration Division. 

The Division is also responsible for accounting of fees, network management and 

internet services, records management, and Freedom of Information Act requests. 

The Division of Congressional Affairs and Media Relations is responsible for 

planning, coordinating, and managing activities related to both legislative and 

public affairs, and media relations. This Division works with various media for 

the purpose of informing the public of the Commission's mission, policies and 

activities through press releases, media alerts, newsletters, and guest columns. 

The Division also monitors legislation affecting the Commission and advises on 

any necessary policy action. The Division coordinates submission of bills, 

resolutions, reports, testimony, and other statements on legislation to the 

Congress. 

The Division of Audits monitors compliance with the Commission’s minimum 

internal control standards and other regulations specific to the operational 

workflows of the gaming enterprises. The internal control regulations establish 

uniform standards for protecting the integrity of Indian gaming. The results of 

these reviews provide valuable feedback to tribal governments regarding 

regulatory compliance and, most importantly, how tribes may better safeguard 

their investments. The Division is also called upon periodically to provide 

support to the Commission’s Enforcement Division in examining alleged 

financial irregularities. Based on an analysis of financial filings with the 

Commission, the Division identifies trends to aid the Commission in the 

administration of its regulatory responsibilities. 
NIGC - 9 

Budget Priorities 

Currently, the industry consists of over 400 Indian gaming operations in 29 states. These 

operations are owned, operated, or licensed by more than 240 tribal governments. The 

industry generated $26.5 billion of gross gaming revenues in 2009, a slight decrease of 

less than 1 percent from 2008. 

As with any industry, technology continues to evolve, resulting in both greater 

efficiencies and new challenges. To keep pace with changes in technology, financial 

resources must be directed to training Commission staff and providing training to tribal 

gaming operators and regulators to assure their ability to regulate and safeguard their 

operations.

Background 

Prior to 1997, the Commission was legislatively prohibited from collecting fees in excess 

of $1.5 million annually. The 1998 Interior Appropriations Act (P.L. 105-83) expanded 

the fee base to include Class III (casino style) gaming and raised the limitation on annual 

fee collections to $8 million. In the 2003, 2004, 2005, and 2006 Interior Appropriations 

Acts, the Congress enacted a general provision raising this limitation to $12 million for 

fiscal years 2004, 2005, 2006, and 2007 respectively. On May 12, 2006, the Native 

American Technical Corrections Act of 2006 (P.L. 109-221) was enacted establishing a 

new fee limitation. 

This legislative change allows the Commission to maintain a fee collection level that is in 

proportion to the size of the industry it oversees. With fees now capped at 0.080% of the 

industry's gross revenue, the Commission’s funding will expand or contract in proportion 

to the growth or contraction of the Indian gaming industry. 

Another change included in Public Law 109-221 was the requirement that the 

Commission, like other Federal agencies, be subject to the Government Performance and 

Results Act of 1993 (GPRA), and that any plan instituted in compliance with GPRA 

include technical assistance to tribal gaming operations. Consequently, on January 8, 

2009, the NIGC submitted its GPRA Strategic Plan for Fiscal Years 2009 to 2014 to 

Congress and the Office of Management and Budget (OMB). 

Annual Fees for Operations 

The Commission assesses annual fees on tribal gaming revenues in accordance with 

procedures set forth in 25 C.F.R. Part 514. In 2009, the Commission promulgated 

changes to these regulations that became effective on December 31, 2009. In accordance 

with the new regulation, the Commission will publish a preliminary fee rate on or before 

February 1 of each year. If necessary, changes to the fee rate will be published no later 

than July 1 of that year. The rate must be sufficient to generate income to fund the 

annual operation of the Commission, and to maintain a transition balance for the 
NIGC - 10 

upcoming year’s operation. Each gaming operation must submit payments for fees 

assessed by June 30 and December 31 of each calendar year. 

Maintenance of the transition balance is essential to the fiscal integrity of the 

Commission because the unique statutory provisions governing the Commission’s 

funding subject it to significant cash flow variations. Unlike other Federal agencies, the 

Commission’s authorizing legislation does not provide for full funding at the beginning 

of each fiscal year. Instead, the Commission receives semi-annual payments equal to 

approximately one-half of each gaming operation’s projected annual fee assessment. The 

carryover transition balance is necessary to cover the first and second quarter of operation 

until the fees are actually received and credited to the operating account. For example, 

fees collected on or before the December 31, 2010 due date will provide the operational 

capital for the first six months of calendar year 2011. The Commission attempts to 

maintain a transition balance to fund the first two quarters of the new year in order to 

absorb any cash flow variations that may occur. 
NIGC - 11 

DEPARTMENT OF THE INTERIOR 

NATIONAL INDIAN GAMING COMMISSION

Appropriation Summary Statement 

The Indian Gaming Regulatory Act (Public Law 100-497) established, within the 

Department of the Interior, the National Indian Gaming Commission. The Commission 

monitors and regulates gaming activities conducted on Indian lands. The Commission 

fosters the economic development of Indian tribes by ensuring the integrity of Indian 

gaming and ensuring that the tribes are the primary beneficiaries of their gaming 

revenues. Operating costs of the Commission are financed through annual assessments 

of gaming operations regulated by the Commission consistent with provisions of the 

Native American Technical Corrections Act of 2006 (Public Law 109-221). 
NIGC - 12 

Summary of the Fiscal Year 2012 Budget 

Permanent Appropriation 

The Indian Gaming Regulatory Act, as amended, established the National Indian Gaming 

Commission to monitor and participate in the regulation of gaming conducted on Indian 

lands. The NIGC’s operational costs are financed through annual assessments of gaming 

operations regulated by the Commission. 

All costs associated with the Commission’s operation during fiscal year 2012 will be 

derived from fees assessed on, and collected from, the regulated Indian gaming industry. 

The Commission will continue its consultation with the affected tribes and evaluate their 

input prior to implementing the proposed budget. The revenue to be collected in 2012 

will assure funding to address the full-year impact of new hires. The Commission will 

continue to maintain a carryover balance sufficient to assure that cash flow variations do 

not impact ongoing operations. Fees are paid semi-annually, based on each gaming 

operation’s assessable gross revenue. This system often results in cash flow variations, 

and therefore a transition balance, derived from prior year funds carried forward to the 

new fiscal year, is essential for continuity of operations. 

With an increase in FTE utilization from 112 FTE in fiscal year 2010 to 123 FTE in fiscal 

years 2011 and 2012, the NIGC is forecasting full-year obligations of $17 million in 

fiscal year 2011, and $18 million in 2012. This will allow the Commission to hire 

additional local and field personnel to implement its responsibilities under the Act. These 

funds will also be used to upgrade and improve the NIGC’s information management 

system, and expand training and technical assistance. This forecast includes expenditures 

for oversight of class III gaming, as provided by applicable law such as tribal gaming 

ordinance and tribal-state compacts. 

Reimbursable Expenses 

The NIGC conducts background investigations of individuals and entities with a financial 

interest in, or management responsibility for, potential management contracts. Pursuant 

to the 25 U.S.C § 2711(e), these investigations are conducted to determine whether the 

contracts may be approved. In accordance with §2711(i), the Commission is reimbursed 

approximately $1 million annually from the potential contractors to conduct these 

background investigations. In addition, the Commission is reimbursed for fingerprint 

processing costs in the approximate amount of $1.2 million annually. 
NIGC - 13 

Fee Regulation 

The regulations implementing the legislative provisions governing the collection of fees 

have been revised to allow the Commission to collect the statutory maximum allowed by 

Congress. The revised regulations are as follows: 

§514.1 Annual Fees 

(d) The total amount of all fees imposed during any fiscal year shall not exceed 

the statutory maximum imposed by Congress. The Commission shall credit 

pro-rata any fees collected in excess of this amount against amounts otherwise 

due by June 30th and December 31st of each calendar year. 

Supplementary Information: 

The Commission has changed its regulations to reflect changes in the statutory fee 

limitation. This regulation has been amended so that the amount of fees imposed by the 

Commission is directly related to Congressional action. The change allows the 

Commission to collect up to the statutory maximum and eliminates the need to regularly 

amend this regulation as Congress raises or lowers the fee level. The change was 

effective December 31, 2009. 

Authorization: 

Indian Gaming Regulatory Act, Public Law 100-497, as amended. 

Objectives: 

To regulate and monitor gaming conducted on Indian lands and to protect Indian gaming 

as a means of generating Indian tribal revenues. 

Program Activities: 

The Commission’s mission is to effectively monitor and participate in the regulation of 

Indian gaming pursuant to the Indian Gaming Regulatory Act (IGRA) in order to 

promote the integrity of the Indian gaming industry. To affect these goals, the 

Commission is authorized to conduct investigations, undertake enforcement actions 

including the issuance of notices of violation, assessment of civil fines, issuance of 

closure orders, approve management contracts, and issue such regulations as necessary to 

meet its responsibilities under the Act. 

The Act grants broad authority to the Commission and provides authority to the 

Chairman to: 

• Issue temporary closure orders. 

• Levy civil fines, of up to $25,000 per violation per day against a tribe, management 

contractor, or individual operator for violation of the Act, the regulations, or a tribal 

gaming ordinance. 
NIGC - 14 

• Approve tribal gaming ordinances. 

• Approve gaming management contracts. 

• Appoint and supervise staff. 

The Commission as a whole is empowered to: 

• Monitor gaming activities. 

• Inspect gaming premises. 

• Conduct background investigations. 

• Inspect records relating to gaming. 

• Approve the annual budget. 

• Adopt regulations for the assessment and collection of civil fines. 

• Adopt a schedule of annual fees. 

• Issue permanent closure orders. 

• Adopt regulations as deemed appropriate to implement the provisions of IGRA. 

Together the Commission serves as an appellate body. Aggrieved parties may appeal 

decisions of the Chairman to the full Commission. 

In carrying out these responsibilities, the Commission also: 

• Provides education, training and technical assistance regarding applicable regulatory 

requirements. 

• Assists tribes with background investigations and fingerprint processing. 

• Receives and processes appeals. 

• Conducts formal and informal hearings. 

• Consults with Indian tribes, states and the regulated community. 

• Defends against lawsuits challenging the Commission’s actions. 

• Issues advice and guidance through bulletins, advisory opinions and other 

publications. 

• Provides audits and other evaluative services. 

 
Identification code 14-5141-0-2-806 2010

2010 Enacted/ 2012

Actual 2011 CR Estimate

01.00 Balance, start of year................................................ - - - 

 Receipts: 

02.00 NIGC, Gaming activity fees..................................... 13 17 17

04.00 Total: Balances and Collections.............................. 13 17 17

 Appropriations:

 National Indian Gaming Commission

05.00 NIGC, Gaming activity fees..................................... -13 -17 -17

07.99 Balance, end of year................................................. - - - 

 Program and Financing (in millions of dollars)

Obligations by program activity:

00.01 Direct Program Activity 18 17 18

Budgetary resources:

Unobligated balance: 

10.00 Unobligated balance brought forward, Oct 1........... 9 4 4

Budget authority:

Appropriations, mandatory:

12.01 Appropriation (special fund).................................... 13 17 17

19.30 Total budetary resources available........................... 22 21 21

Memorandum (non-add) entries:..............................

19.41 Unexpired unobligated balance, end of year........... 4 4 3

Change in obligated balance:

Obligated balance, start of year (net):

30.00 Unpaid obligations, brought forward, Oct 1 (gross) 1 1 1

30.30 Obligations incurred, unexpired accounts................ 18 17 18

30.40 Outlays (gross)......................................................... -18 -17 -18

Obligated balance, end of year (net):

30.90 Unpaid obligations, end of year (gross)................... 1 1 1

Budget authority and outlays, net:

Mandatory:

40.90 Budget authority, gross............................................ 13 17 17

Outlays (gross):

41.00 Outlays from new mandatory authority................... 9 15 15

41.01 Outlays from mandatory balances............................ 9 2 3

41.10 Outlays, gross (total) ............................................... 18 17 18

41.80 Budget authority, net (total)..................................... 13 17 17

41.90 Outlays, net (total).................................................... 18 17 18

(in millions of dollars)

DEPARTMENT OF THE INTERIOR

NATIONAL INDIAN GAMING COMMISSION

Special Fund Receipt/Expenditure Account

Gaming Activity Fees

NIGC - 15
DEPARTMENT OF THE INTERIOR

NATIONAL INDIAN GAMING COMMISSION

Identification code 14-5141-0-2-806 2010

2010 Enacted/ 2012

Actual 2011 CR Estimate

Direct obligations

11.10 Personnel compensation: Full-time 

permanent............................................ 11 10 11

12.10 Civilian personnel benefits................... 33 3

21.00 Travel and transportation of persons... 11 1

23.10 Rental payments to GSA....................... 11 1

25.20 Other Services....................................... 21 1

99.00 Direct obligations................................ 18 16 17

99.50 Below reporting threshold.................... - 1 1

99.90 Total new obligations............................ 18 17 18

Employment Summary

 Total compensable workyears

10.01 Direct civilian full-time equivalent 

employment......................................... 112 123 123

 Object Classification (in millions of dollars)

Special Fund Receipt/Expenditure Account

Gaming Activity Fees

NIGC - 16
Identification code 14-0118-0-1-806 2010

2010 Enacted/ 2012

Actual 2011 CR Estimate

 Obligations by program activity:

08.01 Reimbursable program 1 3 3

09.00 Total new obligations (object class 25.2)....................................... 13 3

Budgetary Resources:

Unobligated balance: 

10.00 Unobligated balance brought forward, Oct 1........................ 2 3 3

Budget authority:

Spending authority from offsetting collections, discretionary:

17.00 Collected................................................................................ 2 3 3

19.30 Total budgetary resources available...................................... 4 6 6

19.41 Unexpired unobligated balance, end of year......................... 3 3 3

Change in obligated balance:

Obligated balance, start of year (net):

30.00 Unpaid obligations, brought forward, Oct 1 (gross).............. 1 1 1

30.30 Obligations incurred, unexpired accounts............................ 1 3 3

30.40 Outlays (gross)....................................................................... -1 -3 -3

Obligated balance, end of year (net):

30.90 Unpaid obligations, end of year (gross)................................. 1 1 1

Budget authority and outlays, net:

 Discretionary:

40.00 Budget authority, gross.......................................................... 2 3 3

Outlays, gross:

40.10 Outlays from new discretionary authority............................. 1 3 3

Offsets against gross budget authority and outlays:

Offsetting collections (collected) from:

40.33 Non-Federal sources.............................................................. -2 -3 -3

40.70 Budget authority, net (discretionary)..................................... --- --- ---

40.80 Outlays, net (discretionary)................................................... -1 --- ---

41.80 Budget authority, net (total)................................................... --- --- ---

41.90 Outlays, net (total)................................................................. -1 --- ---

Program and Financing

(in millions of dollars)

DEPARTMENT OF THE INTERIOR

NATIONAL INDIAN GAMING COMMISSION

Reimbursable Activity

NIGC - 17
DEPARTMENT OF THE INTERIOR

NATIONAL INDIAN GAMING COMMISSION

General and Special Funds: Salaries and Expenses

Identification code 14-0118-0-4-806 2010

2010 Enacted/ 2012

Actual 2011 CR Estimate

Reimbursable obligations

25.20 Other services...................................................... 133

99.90 Total new obligations.......................................... 133

Object Classification (in millions of dollars)

NIGC - 18
DEPARTMENT OF THE INTERIOR

NIGC - 19

DEPARTMENT OF THE INTERIOR

NATIONAL INDIAN GAMING COMMISSION NATIONAL INDIAN GAMING COMMISSION

EMPLOYEE COUNT BY GRADE OR GRADE EQUIVALENT EMPLOYEE COUNT BY GRADE OR GRADE EQUIVALENT

2010 2011 2012

Actual Estimate Estimate

EX IV- 1 1 1

EX V- 1 2 2

ES 4- 1 1 2

ES-3 0 1 0

ES 1- 0 0 0

GS 15- 18 18 18

GS 14- 18 18 18

GS-13 35 36 36

GS-12 19 27 27

GS 11- 1 1 1

GS 10- 3 3 3

GS 09- 5 5 5

GS 08- 0 0 0

GS-07 0 0 0

GS-06 9 9 9

GS-05 1 1 1

T t l FTE Total FTE ota 112 123 123

In accordance with the Act appointments are made without regard to the provisions of Title 5 In accordance with the Act, appointments are made without regard to the provisions of Title 5, 

U S Code governing appointments in the competitive services U.S. Code governing appointments in the competitive services 

NIGC - 19
NIGC - 20 

NIGC Summary of Employment 

 Number of Positions 

 

2010 

Actual 

2011 

Estimate 

2012 

Estimate 

Enforcement 

HQ - Washington, DC 2 2 2 

Portland Region 4 5 5 

Sacramento Region 6 7 7 

Phoenix Region 5 6 6 

St. Paul Region 4 5 5 

Tulsa Region 4 4 4 

Washington, DC Region 1 1 1 

Oklahoma City Region 4 5 5 

Satellite - Rapid City, SD 2 2 2 

Satellite - Temecula, CA 2 3 3 

Satellite - Bellingham, WA 1 1 1 

Satellite - Flowood, MS 1 1 1 

Total Enforcement 36 42 42 

Management Contracts & Investigations 

HQ - Washington, DC 6 6 6 

Various 8 8 8 

Total Management Contracts & Investigations 14 14 14 

Audits 

HQ - Washington, DC 1 1 1 

Region 1 - Portland, OR 5 5 5 

Region 2 - Sacramento, CA 1 1 1 

Region 3 - Phoenix, AZ 1 2 2 

Region 4 - St. Paul, MN 2 2 2 

Region 5 - Tulsa, OK 3 3 3 

Region 6 - Washington, DC 0 0 0 

Satellite - Rapid City, SD 1 1 1 

Satellite - Temecula, CA 1 1 1 

Satellite - Flowood, MS 1 1 1 

Various 2 2 2 

Total Audits 18 19 19 

Office of the General Counsel 20 20 20 

Training 1 1 1 

Administration 

Administration 14 14 15 

Information Technology 5 5 5 

Total Administration 19 19 19 

Congressional Affairs and Media Relations 1 1 1 

Commission Staff 7 8 8 

 

Total 116 124 124 

Utilization rate 97% 99% 99% 

FTE Utilization 112 123 123 
NIGC - 21 
NIGC - 22 
NIGC - 23 
NIGC - 24 
NIGC - 25 

NIGC - 27 

Government Performance and Results Act Information 

In 2006, Congress amended the Indian Gaming Regulatory Act, 25 U.S.C. §§2701 – 

2721, Public Law 100-497, and for the first time made the National Indian Gaming 

Commission subject to the Government Performance and Results Act of 1993 (GPRA), 

Public Law 103-62. That obligation is set out at 25 U.S.C. §2706(d)(1), which states: “In 

carrying out any action under this chapter, the Commission shall be subject to the 

Government Performance and Results Act of 1993.” 

 

On September 30, 2007, the Commission filed its first GPRA performance and 

accountability report with the Office of Management and Budget (OMB). One year later, 

on September 18, 2008, the Commission released a draft five-year strategic plan for 

review and comment, and it published the final five-year strategic plan on January 8, 

2009. 

GPRA requires that an agency’s “strategic plan shall be updated and revised at least 

every three years” (5 U.S.C. § 306(b)). Consistent with this obligation and the 

Commission’s vision of adhering to principles of good government including 

transparency to promote agency accountability and fiscal responsibility, the Commission 

is in the process of reviewing, revising, updating, and improving its strategic plan. 
NIGC - 28 

Summary and Highlights of Commission Activities 

The Commission’s accomplishments during the past fiscal year include the 

following: 

• Implemented the submission of fees and worksheets on a semi-annual basis, 

rather than quarterly basis, per the regulatory changes to 25 C.F.R. §514 that 

became effective December 31, 2009. 

• In 2010, with the hiring of the gaming machine engineer, the NIGC was capable 

of tracking class II “grandfather” machines and provided training to the tribes that 

have or were obtaining new class II devices. The gaming machine engineer was 

also able to assist in monitoring for compliance with NIGC technical standards 

and providing training to NIGC employees and tribal governments. 

• Commission personnel worked with an advisory committee composed of tribal 

representatives to establish a new set of minimum internal control standards 

(MICS) specific to Class II gaming. This work was undertaken in response to the 

need to develop a comprehensive set of regulations specific to Class II gaming 

that would be commensurate with 25 CFR Part 542 MICS. The proposed 

regulations address all Class II revenue centers, with the exception of those 

covered by the already existing Part 543.7 as well as the relevant support services. 

The NIGC is in the process of reviewing with the gaming community all of its 

regulations, inclusive of the recently drafted revisions. 

• A program was established and implemented to perform audits of the gaming 

operations of twelve California tribes to assess compliance with NIGC minimum 

internal control standards. This work was undertaken in response to a request 

from twelve California tribes conducting Class III gaming for the Commission to 

assume responsibility for monitoring compliance with the NIGC minimum 

internal control standards (MICS). To carry out this program, eight abbreviated 

MICS audits and two comprehensive MICS audit were performed. 

• Performed MICS audits specific to Class II gaming operations. Audit findings 

were included in reports that were provided to the audited tribes, subsequently 

identifying and implementing remedial action. Performed NIGC Fee audits of 

selected tribes. 

• Increased the amount of formal training offered in all seven NIGC regions. The 

subjects of the courses offered were in direct response to tribal requests for 

specific training. Data was collected regarding 28 training sessions conducted in 

fiscal year 2010 through speaker evaluations and electronic surveys completed by 

attendees. The objective of the evaluations and surveys was to assess the 

effectiveness of NIGC’s training program and to tailor future training to the needs 

of the tribes. 

• Continued the design and implementation of a performance measurement and 

tracking system to comply with GPRA requirements. 

• Performed internal audits of NIGC departments to increase the Commission’s 

efficiency, effectiveness and compliance with Federal regulations. 
NIGC - 29 

• The NIGC Chairperson(s) approved: six contracts; one amendment to an 

approved contract; and modifications to the list of individuals and entities with a 

direct or indirect financial interest in, or management responsibility for contracts 

with five tribes involving 21 individuals. This included conducting financial 

background investigations on certain persons and entities associated with the 

management contractors. The Commission billed 4,500 hours to the management 

contractors. 

• During fiscal year 2010, the Commission processed 56,761 fingerprint cards for 

tribal gaming commissions. In addition, the NIGC conducted 20 environmental 

public health and safety (EPHS) site visits, and offered 15 EPHS classes that were 

attended by over 275 people. 

The Commission’s four primary initiatives include: 

Consultation and relationship building with tribal governments, technical assistance and 

training, regulatory review, and internal operations review. Specifically: 

• Continues developing and distributing a wide range of internal 

Commission administrative and personnel policy chapters, including manuals for 

the individual divisions/offices. 

• Continues working on the implementation of the NIGC equal employment 

opportunity program. 

• Continues working with tribes on the Tribal Access Portal (TAP), a database that 

enables tribal gaming regulators engaged in issuing gaming licenses to check the 

history of license applicants relative to other gaming tribes. Along with 

information provided by the NIGC/FBI fingerprint submission service, the TAP 

system assists tribes in completing their own comprehensive background 

investigations of prospective license applicants. 

• Continues to develop a tracking system among the various NIGC divisions and 

regional offices in order to develop, implement, and monitor the annual budget. 

• Continues to work with NIGC divisions and regional offices to track fee 

payments. 

• Continues to provide individual gaming operations with updated fee statements on 

a semi-annual basis. 

• Continues to provide training to tribes within all seven NIGC regions, continues 

to facilitate voluntary compliance throughout all regions, and continues to 

maintain good working relationships with tribes, Federal and state law 

enforcement agencies, and state regulatory agencies. 

• Continues to perform MICS audits specific to Class II gaming operations. 

• Continues to respond to requests from tribal gaming operators and regulators for 

training on the MICS and other Commission regulations specific to fees, audited 

financial statements, and Agreed-Upon Procedures Reports. Commission 

personnel conduct training that is generally held at a tribal gaming operation, and 

consists of one-to-three days of instruction. 

• Continues to respond to invitations from various trade organizations or other 

governmental entities (such as the Institute of Internal Auditors, National Indian 
NIGC - 30 

Gaming Association, etc.) seeking a presenter to speak regarding Commission 

regulations. 

• Continues to update a database to accumulate financial data from the gaming 

operations’ audited financial statements and AUP Report filings; the database is 

intended to enhance agency decision making. 

• Continues performing internal audits of NIGC departments to increase the 

Commission’s efficiency, effectiveness and compliance with Federal regulations. 

• Continues to review management contracts and amendments to management 

contracts. 

• Continues to process fingerprint cards for tribal gaming employees as they are 

submitted by the tribal gaming commissions. Upon request, the NIGC also offers 

EPHS classes and conducts site visits. 

As part of its program objectives for fiscal years 2011 & 2012, the Commission 

plans to: 

• Continue the development of the Commission’s internal administrative and 

personnel manual, and develop and implement related training programs. 

• Continue to populate the Commission website with up-to-date Commission 

material, data, and training videos. 

• Conduct at least one training event per year in each of the seven regions. 

• Continue to respond to requests for technical assistance to tribes, and increase 

both the amount and breadth of technical assistance provided. 

• Continue to perform MICS and other types of compliance audits for the purpose 

of ensuring the internal controls of tribal gaming operations are commensurate 

with that of the gaming industry. 

• Continue to implement the requirements of GPRA, including the development 

and implementation of a performance measurement system. Publish a 

performance report for fiscal year 2011. 

• Improve the effectiveness and efficiency of the Indian Gaming Working Group 

(IGWG). 

• Maintain a consistently high level of compliance for the submission of gaming 

activity fees and external year-end audits through continued monitoring and 

contact with gaming tribes, with an emphasis on voluntary compliance. 

• Improve operational efficiency through the electronic conversion of documents, 

forms and manuals.