Memorandum 

To: Alan Fedman, Director 

Division of Enforcement 

From: Penny J. Coleman, Acting General Counsel 

Re: Card Games at Seneca Nation of New York Class I1 Bingo Halls 

Date: April 4,2003 

You requested an opinion on whether the Player Pooled Blackjack at the Seneca 

Nation of Indians Gaming & Entertainment Center located on the Cattaraugus 

Reservation constitutes a class II or class IU game. The Indian Gaming Regulatory Act 

(JGRA) specifically excludes blackjack from class I1 games and is therefore a class III 

game. Based on the information provided, including table games standards and internal 

controls, the game as played at the Entertainment Center is blackjack and is a class III 

game. k4 

UR 

DESCRIPTION OF THE GAME 

According to the rules supplied by the casino, this blackjack game is 

fundamentally the same as traditional blackjack. The rules do not specify the minimum 

number of players; however, the maximum number of players at a table is seven. Players 

are required to place an administrative fee in the proper circle prior to receiving any 

cards. This administrative fee is placed in the left drop box. Players buy chips at the 

table, and the money fiom this is placed in a right drop box. 

The tables are similar to blackjack tables except there is a small circle above and 

off to the right of the wagering circle where players place their administrative fee. The 

administrative fee is based on the amount of the wager. 

Players make a wager by placing gaming chips in the appropriate space on the 

table. The maximum wager allowed is $200 before double downs or splits. Cards are 

dealt fiom a multi-deck shoe located to the left of the dealer. The object of the game is to 

beat the dealer's hand without exceeding twenty-one; a hand of "Blackjack," which is an 

initial deal of an ace and a card valued at ten, is an automatic winner; the house deals; 

players play against the house and not each other; the house has the potential to win or 

lose; and the bank, in the form of a pool, is used to pay winners. If a player receives a 

combination of cards in single hand of 22 or more then the dealer immediately picks up 

his losing bet and places it in the game bankroll. # 

NATIONAL HEADQUARTERS 1441 L St. NW, Suite 9100, Washington, DC 20005 Tel: 202.632.7003 Fax: 202.632.7066 WWW.NIGC.GOV 

REGIONAL OFFICES Portland, OR; Sacramento, CA; Phoenix, AZ; St. Paul, MN; Tulsa, OK 
I* The players' pool was established by the game room providing seed funds to the 

table games. These funds are repaid to the operation from the pool prior to any 

tournament play commencing. If the pool runs out of money during play, the gaming 

operation replenishes the pool. The casino provides a dealer and each player plays 

against the "pool's" hand. Table win is recorded to an "Accrued Progressive BJ 

Tournament" accrual account. After 30 days, the balance in the accrual account is the 

basis for the prizes to be won in the tournament. Players who accumulate six hours of 

play in a month are eligible for the Progressive Blackjack Tournament. The tournament 

will consist of rounds that will continue until 6 players are left. Prize money for the 

tournament will be distributed to the top 4 players. According to the games standards 

provided by the casino, 100 percent of the accrual account will be utilized. 

INDIAN GAMING REGULATORY ACT 

IGRA creates three classes of gaming that differ in the degree of tribal, state, and 

federal oversight. Class I gaming consists of "social games [played] solely for prizes of 

minimal value or traditional forms of Indian gaming engaged in by individuals as part of, 

or in connection with, tribal ceremonies or celebrations." 25 U.S.C. § 2703(6). Class I1 

gaming includes bingo, related activities, and certain non-banking card games. 25 U.S.C. 

5 2703(7)(A). Class III gaming is defined residually; it includes "all forms of gaming 

that are not class I gaming or class 11 gaming." 25 U.S.C. $2703(8). 

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'IO* IGRA specifically excludes any banking card games from classification as a class 

II game. 25 U.S.C. 5 2703(7)(B). The IGRA states that "[tlhe term class II gaming 

does not include any banking card games, including baccarat, chemin de fer, or blackjack 

(21) . . ." 25 U.S.C. § 2703(7)(B)(i)(Emphasis added). By excluding banking card games 

from class 11 gaming, the only card games Congress intended to fall within class II are 

non-banking card games. 

Furthermore, the NIGC regulations define "house banking" as: 

House banking game means any game of chance that is played 

with the house as a participant in the game, where the house takes 

on all players, collects fiom all losers, and pays all winners, and 

the house can win. 

25 C.F.R. tj 502.11. A "banked" card game is not limited to the gaming operation bank, 

but refers to anyone who is a participant in the game, takes on all players, collects fiom 

all losers, and pays all winners.' Further, non-banking card games are games where 

players play against each other. See NIGC Bulletin No. 95-1 (April 10, 1995). 

1 We have previously opined that non-banking card games are games where players play against each 

other. It has been asserted that in player banked blackjack, players are playing against each other. This is 

incorrect. In player banked blackjack, the players are not playing against each other. They are playing 

.(I 11 

'*mi against a banker who happens to be another player. This player banker has a percentage or odds advantage 

over all other players. This advantage is a fundamental characteristic of a banking game. See NIGC 
ANALYSIS 

Under IGRA, Class II games do not include any banking card games. The game 

of blackjack being played at the Seneca facility is a banked card game because the house 

created the pool, the house maintains control of and replenishes the pool if it is depleted, 

and players are playing against the house instead of each other. 

The seed money for the player pool is supplied by the gaming facility. This 

illustrates that the tribe created the "pool" that operates as the "bank." If the gaming 

facility is loaning or giving money to start the pool, then the gaming facility is banking 

the game. 

The gaming facility maintains control of the pool and if the pool is depleted the 

facility will re-seed the pool. The facility provides a dealer that plays the pool's hand, 

much like in traditional blackjack. The result of such a close relationship between the 

players' pool and the tribe's casino accounts is that the Tribe is banking the game. 

When applying the NIGC's regulatory definition of "house banking" to the 

Seneca Nation's blackjack, it is clear that the game is a banking game. Players play 

'1 IPW against the dealer who is playing the pool's hand. If a player "busts" (goes over twentyone), the dealer does not wait to see whether he will also bust and tie at a count above 2 1. 

The dealer rakes in the bet and closes that transaction. The player has lost, even though 

his count may later tie the dealer's. The dealer has a percentage or odds advantage over 

all other players. The dealer pays all winners and collects from all losers. The players 

are not playing against each other. 

CONCLUSION 

All banking card games, including blackjack, are excluded from class I1 gaming 

in the IGRA. The card game played at the Entertainment Center is a banked card game 

and is therefore a class III game. 

If you have any further questions please contact John Hay. 

\I +, Bulletin No. 95-1 (April 10, 1995). While it is clear that player banked blackjack is not being played at the 

Seneca facility, the same principles apply. 

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