Testimony of Chairwoman Tracie Stevens 

National Indian Gaming Commission 

Senate Indian Affairs Oversight Hearing 

July 26, 2012 

 Thank you, Chairman Akaka, Vice Chairman Barrasso, and members of the 

Committee for inviting me to testify today. It is an honor to appear before you in my 

capacity as Chairwoman for the National Indian Gaming Commission (NIGC or 

Commission). 

 During our tenure with the Commission, the Commissioners have established four 

major priorities: consultation and relationship building; training and technical assistance; 

regulatory review; and agency operations. We have made significant progress on each of 

these four priorities since I was sworn into office in June 2010. Meaningful consultation 

and relationship building are paramount in maintaining strong regulation of the industry 

by Federal, tribal and state regulators. NIGC-sponsored training opportunities and 

technical assistance provide early resources to address potential regulatory issues, thereby 

maintaining the integrity of Indian gaming. Regulatory review improves the industry by 

establishing clear, effective standards. Finally, review of our internal operations 

promotes efficient and effective regulation by eliminating redundancies, work silos, and 

unnecessary processes. 

 Each of the four priorities aids NIGC’s administration of its statutory 

responsibilities as set forth in the Indian Gaming Regulatory Act (IGRA). As I have 

discussed in prior testimony, this Commission has established the “ACE” approach to 

enforcement consistent with the four priorities: assistance, compliance, and enforcement. 

This approach prevents foreseeable problems through effective communication, training 

and technical assistance, and compliance efforts. When necessary, the Commission takes 

enforcement action to ensure compliance and protect the integrity of Indian gaming. 

 Today I will discuss the status of tribal gaming and provide an update on the 

Commission’s progress in achieving its four priorities. 

The Current Status of Indian Gaming and Regulatory Oversight 

 Gaming revenue provides resources for many tribal services as well as thousands 

of jobs for tribal members and surrounding communities. Currently, gaming operations 

employ tens of thousands of individuals across the United States, mostly in areas that, 

historically, suffer from high unemployment. Over the past few years, gaming revenue 

has remained roughly stable, collectively generating approximately $27.2 billion in gross 

revenue for tribes. In 2011, 237 tribes engaged in gaming as a means of tribal economic 

development, with 421 active gaming operations. 

 There are over 6,500 tribal, state, and Federal regulators working together to 

maintain the integrity of Indian gaming. NIGC is the Federal civil regulatory agency 

primarily responsible – along with tribal and state regulators – for regulation of Indian 
gaming on Indian lands. Tribal governments employ approximately 5,900 gaming 

regulators and states employ approximately 570 regulators. In addition to working with 

tribal and state regulators, at the Federal level, NIGC works with Federal agencies such 

as the Federal Bureau of Investigation, the Department of the Interior, the Department of 

Treasury and the Department of Justice, to promote compliance with all Federal laws. 

 

 During the last 12 months, the NIGC has successfully implemented the ACE 

approach. In addition to providing informal day-to-day technical assistance, our auditors, 

compliance officers and attorneys work closely with tribes to resolve compliance issues 

in a manner that takes into account unique aspects of a particular gaming operation. If 

compliance steps are unsuccessful, we take enforcement action. ACE has effectively 

reduced the number of notices of violations (NOVs) by proactively addressing potential 

compliance issues and proceeding with enforcement action only for substantial regulatory 

violations that were not, or could not, be corrected through technical assistance and 

compliance efforts. 

 As the Committee is aware, six years ago the D.C. Circuit held that the NIGC 

does not possess authority to promulgate regulations establishing Minimum Internal 

Controls (MICS) for Class III gaming. As I have discussed in my previous testimony, 

Class III MICS are essential to protect the integrity and security of gaming operations. 

During my tenure as Chairwoman, we have examined the real world impact of the court’s 

decision on the regulation of Indian gaming. 

Through research and working with tribes and tribal regulators, we have learned 

that all tribes engaged in Class III gaming pursuant to a tribal-state compact have Class 

III MICS. Of the 24 states that allow Class III gaming, 15 require stringent MICS 

specifically in their compacts, and the other nine states require tribes to develop 

comprehensive MICS of their own. Therefore, every such tribe has a system of internal 

controls that governs procedures for Class III operations. 

The Commission has never taken an enforcement action for failure to comply 

with MICS. Prior to the decision in Colorado River Indian Tribes v. National Indian 

Gaming Commission, 466 F.3d 134 (D.C. Cir. 2006), (CRIT) if NIGC identified an issue 

with a particular tribe’s Class III MICS, the agency worked with the tribe to achieve 

compliance. Although we do not have independent authority to promulgate or enforce 

Class III MICS, tribes continue to request our assistance and we continue to work with 

them to strengthen the effectiveness of their Class III MICS. 

We have also consulted with tribes regarding how the Commission should address 

the D.C. Circuit’s decision. While there does not appear to be a tribal consensus, many 

tribes support publication of Class III MICS as guidance for their own regulations and 

compacts. We continue to utilize the MICS to provide technical assistance and training, 

and many tribes utilize NIGC’s Class III MICS as part of their own regulatory schemes 

or as part of their tribal-state compacts. 

2
Consultation and Relationship Building

 Meaningful and transparent consultation with tribes is integral to the success of 

NIGC’s mission. As the primary Federal civil regulatory agency, the Commission 

conducts government-to-government consultations regarding changes to its regulations. 

This government-to-government dialogue is crucial in maintaining the integrity of the 

industry given the tribal, state and federal regulatory roles under IGRA. 

We make every effort to consult throughout Indian country and bring NIGC to 

tribal communities and widely-attended gatherings, in an effort to be mindful of both 

tribal and NIGC resources. In the past 12 months, we have conducted 19 consultations in 

every region of the United States regarding regulatory review. Tribal leaders and 

representatives from approximately 179 tribes attended, totaling approximately 345 

individuals. 

We have also been working collaboratively with Federal, tribal and state officials 

to ensure roles under IGRA are coordinated. This promotes effective inter-governmental 

communications regarding gaming issues and helps ensure that the appropriate agency 

has the information and support needed to perform its duties. As such, the Commission 

has reached out to the Federal Bureau of Investigation, the Department of Justice, 

Financial Crimes Enforcement Network, and other agencies, to develop inter-agency 

practices and to participate in inter-agency work groups. 

Technical Assistance and Training

The Commission views training and technical assistance as a critical tool in 

bolstering industry security and maintaining compliance with regulatory and statutory 

requirements. Therefore, consistent with express mandates contained in IGRA and the 

goals of the Commission, the NIGC offers training and technical assistance to tribal 

governments, tribal regulators and gaming operations personnel. Successful regulation 

depends on a well-trained workforce and well-targeted training to ensure compliance 

with Federal regulations. Our goal is to achieve compliance with IGRA before issues 

arise, which will serve to preserve the integrity of tribal gaming and preempt the need for 

enforcement actions. 

Last year, we conducted a survey of our program, which helped inform our 

review and revisions to our course catalog. As a result, requests for training and 

technical assistance, as well as participation in trainings, have risen. 

In 2011, the NIGC provided 83 training programs, totaling 659 training hours. 

Over 2,300 individuals attended training sessions, representing 209 (87%) of all gaming 

tribes. So far this year, 1069 individuals from 132 tribes have attended our training 

programs. The NIGC has offered 51 different types of training. As more tribes learn 

about training opportunities, we expect trainings and attendance to continue to increase. 

 

3
Training and technical assistance will be an on-going initiative in our mission to 

achieve full compliance and serve the needs of the industry. 

Internal Agency Operations

As part of our effort to optimize regulation of tribal gaming, we have removed 

work flow silos, eliminated redundant functions, streamlined and implemented better 

processes to improve the functioning of the Agency. Further, in accordance with 

requirements of the Government Performance and Results Modernization Act of 2010, 

P.L. 111-352, we are in the process of drafting a strategic plan, which will outline the 

NIGC’s priorities over the next several years. The plan also will detail processes and 

methods by which the NIGC will achieve its goals, including performance measurements 

to assess the success of each initiative. In addition, consistent with Executive Order 

13589, “Promoting Efficient Spending,” we are continuously examining how to promote 

the cost-effective use of resources, including the hiring of staff to build upon NIGC’s 

capabilities to perform mission-critical functions efficiently. 

To maximize efficiency within the Agency, we have adopted or revised internal 

policies to provide clarity to our employees. We are fully utilizing existing contracts 

with other agencies, which are cost effective. Tribal revenues are the sole funding source 

for the NIGC, and it is imperative that NIGC utilize these revenues efficiently and 

effectively. This means a smarter, better-equipped Agency that is more responsive and 

better adapts to its regulatory responsibilities and needs of the tribal gaming industry. 

 In addition to its efforts to increase internal efficiency, the NIGC has continued its 

commitment to transparency by holding public meetings on the state of the Agency and 

important issues. Our most recent public meeting was held on May 23, 2012 in Prior 

Lake, Minnesota. These meetings provide tribes, as well as the public, an opportunity to 

learn about Commission business and to address the Commission. We will continue to 

hold public meetings to inform the community of the NIGC’s progress toward 

achievement of its four priorities and other operational issues. 

 

Regulatory Review

We embarked on this important initiative in November 2010. Review of our 

regulations focused on maintaining a regulatory framework that is efficient and effective. 

Through internal deliberation, tribal consultation, and public comment, we are 

promulgating improvements that streamline processes while maximizing the NIGC’s 

ability to regulate the industry effectively. 

After consulting with tribes and considering public comment in response to a 

Notice of Intent, the Commission established a Regulatory Review priority list and 

consultation schedule. This initiative has been conducted in accordance with Executive 

Order 13563, “Improving Regulations and Regulatory Review,” issued on Jan 18, 2011. 

Over the past year, we have discussed 20 regulations or potential regulations, and 

circulated 13 discussion drafts to date. Since I appeared before you in 2011, the 

4
Commission has published 10 Notices of Proposed Rule, two Notices of No Action 

and two Final Rules. Of the 10 Notices of Proposed Rule, the Commission is working 

diligently to conclude those rulemakings by issuing final rules in the Federal Register. 

This Commission is dedicated to strong and efficient regulation of Indian gaming. 

Therefore, a large portion of our effort has been focused on reviewing and updating the 

Class II Minimum Internal Control Standards (MICS) and Technical Standards for 

Gaming Equipment Used With the Play of Class II Games, 25 C.F.R. Parts 543 and 547. 

These regulations outline minimum standards designed to protect the security and 

integrity of Class II gaming operations, as well as minimum standards for equipment used 

to play Class II games. Through internal deliberations and consultation with tribes, we 

are reviewing the current regulations to ensure that they provide for advances in 

technology and continue to be relevant to current state of the industry. Updating the 

MICS and Technical Standards for Class II gaming are integral to protecting the industry 

and patrons alike. 

As part of the review process for Parts 543 and 547, we developed a Tribal 

Advisory Committee (TAC) to advise and make recommendations to the Commission 

regarding the Class II MICS and Technical Standards. The TAC is comprised of diverse 

group of tribal government representatives whose expertise assisted the Commission in 

its review of Parts 543 and 547, and aided in the development of a discussion draft, which 

was published on March 16, 2012. 

We consulted with tribes in nearly all regions of the United States and reviewed 

over 50 written public comments to the discussion drafts. Although many tribes 

expressed opposition to potential changes to current regulations, the Commission’s 

regulatory role is to take a hard look at the issues and make well informed decisions, even 

if those decisions ultimately are unpopular with the regulated community. The 

Commission is dedicated to promulgating strong regulations that maintain the integrity of 

Indian gaming. 

The Commission’s proposed rules, which were published on June 1, 2012, are 

based on careful consideration of comments received on discussion drafts. Since the 

proposed rules were published, we have conducted five consultations in various regions 

of the country and continue to receive written comments. The comment period for the 

proposed rules will close on August 15, 2012, after which we will review all public 

comments, allowing the NIGC to make a well informed and fully considered decision 

regarding final regulations. 

Conclusion

 This concludes my testimony. I hope this summary of activities and initiatives 

provides the Committee with valuable information regarding the regulatory role and 

goals of the NIGC. 

5
 Thank you, Chairman Akaka, Vice-Chairman Barrasso, and members of the 

Committee for your time and attention today. I am available to answer any questions you 

might have for me. 

6