Remarks of David 5. Qualls, Chairman 

Oklahoma lndian Gaming Association 

before the 

National Indian Gaming Commission 

January 18,2011 

The Oklahoma Indian Gaming Association's membership includes [21] tribes engaged in 

lndian gaming in Oklahoma. Gaming is a major part of the lives of these Tribes mil the State of 

Oklahoma. lndian Gaming employs over 14.000 people in OkIahoma and generates gross 

revenues of over $3.5 billion annually. 

The OIGA congratulates the new commissioners for initiating this regulatory review. 

This effort creates an oppertuniq to rebuild trust between the NIGC and the Tribes who fund the 

agency. The review allows the NIGC to break with the past and demonstrate a true commitment 

to the regulatory structure and limitations created by Congress in IGRA. Most importantly, this 

activity allows the NIGC to turn the page and advance that tribal sovereignty embodied in IGRA. 

rather than attack sovereignty through unlawful regulations. 

As the NIGC conducts its review, the OIGA suggests that the Commission evaluate each 

regulation under consideration in light of specific first principles. Initially, the regdatory 

structure of IGRA must be respected. The Tribes are the only primary regulator of Class I1 

gaming. Each regulation must respect, rather than diminish. that congressionally manda.ted role. 

As to Class 111. by allowing Tribes to define the regulatory framework in their compacts with the 

states, Congress effectively removed the NIGC from the vast bulk of the Class 113 regulation, as 

the Courts have confarmed. Accordingly, any NIGC regulation shouId have clear authorization 

by reciting an identified section of IGRA. 

Enforcement should reflect the primary role of the Tribal Gaming Regulators. 

Accordingly, the OIGA encourages an NIGC enforcement process that begins with collalsoration 

between the Tribal Gaming Regulatory Authority and the NIGC. Such an approach, founded on 

dialogue rather than litigation, should be 'both efficient and inexpensive. Only if such dialogue 

proves unsuccessful should a NOV be issued. In such a case, the NOV process should fclllow 

clearly defined rules designed to promote transparency and fairness resulting in a documented. 

reasoned decision. We are encouraged by the NOI's mention of that process, along with 

consideration of discontinuance of NOV's for late fees. We strongly encourage the Commission 

to go a one step Mer, and begin refraining from the use of NOV's except in cases of 

substantial and ongoing violations of law, or where there is an immediate threat or danger to the 

tribal operation or assets. 

Second, because one of the primary statutory purposes of IGRA is for Tribes to develop 

their economies, and thereby generate funds for vitally important governmental purposes, the 

NIGC should consider the cost burden on Tribes of each regulation examined. This 

consideration is of even greater importance in light of the uncertain economic times, As Tribal 
regulators know, regulatory objectives can be met through a variety of alternatives. The least 

costly regulation that reasonably meets the regulatory goal should be the first choice. h other 

words, each regulation should consider the economic cost in relation to the regulatory necessity 

of the rule, 

This cost of regulation is of particular interest to OTGA members in the context of selfregulation as allowed by IGRA. Oklahoma Tribes spend millions of dollars in high quality, 

effective regulation of their gaming activities each year. In particular. the OHaho~na tribal 

regulators have developed the highest degree of professionalism in the regulation of Class I1 

gaming. The success of the Tribal gaming regulators is confirmed by both the exaerneiy low 

number of NOV's in Oklahoma and the market place confidence expressed by our growing 

player base. Many OIGA members would qualify for the certificate of self reguIation ailthorized 

by IGM. However, the cost and complicated process of obtaining self regulation status 

embodied in existing NIGC regulations impede Tribes from receiving that sovereignty-based 

benefit. We urge the NTGC to streamline its regulations so that the exemplary regulatory 

environment created by OIGA members will be recognized as Congress intended. 'We stand 

ready to work with the Commission to finally, fully implement this statutory provision. 

Third, each regulation should be evaluated for its impact on attracting and rrrotecting 

capita!. Tribal gaming is capital dependent. Access to capital is presently limited for nearly all 

tribes, however, for many of OIGA's member Tribes it has always been a challenge to attract 

capital. Thus 0IGA member Tribes long ago learned to be creative in how they attract capital to 

grow their business. Particularly when considering management contract, collateral agreement 

and sale propriety interest regulations, the OlFGA urges the Commissioners to recognize the 

economic reality and analyze whether the regulation promotes or diminishes access to capital. 

The OIGA strongly believes that economic decisions are within the prerogative of the tribal 

government and, short of violations of law, the NlGC should not seek to usurp that prerogative 

through regulation or administrative practice. 

In addition to formal capital investment, the Oklahoma Tribes. and others avound the 

country, have created significant economic capital through technological innovation. Therefore, 

as part of the primary principal of attracting and protecting capital, NlGC regulatio!ns should 

encourage. rather than impeded technological innovation. The Tribal review of the MJCS and 

Tech standards should avoid barriers to entry while not cornpeILing obsolescence of existing 

investments. Accordingly, the OIGA supports repeal of the five year limitation on grandfather 

provisions in the Tech Standards. 

Finally, the OIGA Tribes strongly urge the Commission to remember that Ihe NIGC 

budget is funded 100 % by the Tribes. We believe that the NIGC budgets and stafGng should 

reflect tribal needs, not bureaucratic convenience. h particular we have seen in recent years the 

opening of new offices in areas that did not need them, at great cost to the Commission and 

ultimately the Tribes. It would be of much greater benefit to Tribes, and lead to bet1.e~ overall 

regulation, if that funding supported more training for Tribal regulators md operators. We 

encourage the Commission to consider this idea and stand ready to collaborate in developing 

more training options. 
When considering MIC's and Tech Standards, we encourage the NICK to remember the 

primary regularly authority of the Tribes. We encourage the NIGC to remember the clifference 

between standards which a Tribe can meet by operating procedures reflective of particular Tribal 

needs and an imposed, mandatory one size fits all operating procedure as standard. Class I1 

gaming has numerous regulatory procedures and standards that are unique to it. We strongly 

believe that those mles dealing with Class TI gaming require dialogue focused specifically on 

them, and we stand ready to work with the Commission on addressing those unique standards 

and procedures, 

In concIusion, the OIGA applauds the new approach initiated by Chairwoman Stevens, 

Vice Chairwoman Cochran and Commissioner Little. The OIGA values its relationship with you 

and stands ready to work together to strengthen tribal sovereignty, honor the rule of law, and 

further increase the benefits of Indian gaming for our member Tribes, their people and 

Oklahoma.