Indian Gaming Regulatory Act - Opposition To The IGRA

Opposition To The IGRA

The IGRA has proven to be a major focus of the controversy surrounding Indian gambling. The controversy and concerns come from the following three main areas: (1) tribal-state compacts (2) negative public reaction, and (3) gambling competition.

Tribal-State Compact is a form of cooperation commonly used in Class III gambling. These compacts affect the balance of power between states, federal, and tribal governments. Although the compact must receive final approval from the U.S. Secretary of the Interior, the compact demonstrates a state’s ability to regulate and even tax Class III tribal gaming within its borders. In addition, compacts often include language relating to a state’s right to enforce criminal and civil law and prosecution for gambling-related crimes. This right may conflict with tribal law enforcement jurisdictions and legal procedures. Since enforcement of gambling-related laws requires resources, states make sure to include language in the compact that requires tribes to financially compensate the state for regulation and law enforcement. As problems often arise because of compacts, the IGRA seeks to carefully define what compacts entail.

Some public voices oppose the current practice of government. One reason for the opposition comes from the fact that the Bureau of Indian Affairs grants tax-payer money to tribes for economic development purposes. Some tribes take that money and use it to create casinos and other gaming establishments. Certain citizens reject the idea of using tax payer money to build tax-exempt tribal casinos which generate tax-exempt revenues. Another complaint from other U.S. citizens is the negative effects casinos have on nearby neighborhoods. They argue that casinos increase the amount of traffic, pollution, and crime. As a result, cities find themselves paying the cost of dealing with these issues.

Because Indian casinos pose a threat to the Non-Indian casinos, a gambling competition has developed between the two kinds of casinos. Such high-stakes gambling in tribal areas and tax-exempt policy give Indian casinos great advantages in this competition. Consequently, Non-Indian casinos have lobbied the government to strengthen the regulatory power of the states toward Indian gaming.