If you've visited any of Oklahoma's 130+ tribal gaming facilities, you've participated in an industry built on a specific federal law: the Indian Gaming Regulatory Act of 1988 (IGRA).
Before IGRA, the Supreme Court ruled in California v. Cabazon Band of Mission Indians that states could not regulate gaming on sovereign tribal land. IGRA was Congress's response—a compromise that balanced tribal sovereignty with state interests and federal oversight.
For tribal leaders, gaming commissioners, and industry partners, understanding IGRA's three-part structure is essential.
The Three Classes of Gaming
IGRA classifies all gaming into three categories, each with different regulatory requirements:
Class I Gaming
Definition: Traditional tribal games associated with ceremonies or celebrations, and social gaming for minimal prizes. Regulation: Exclusively regulated by the Tribe. No federal or state oversight. Example: Traditional stickball games with wagering; social bingo games with nominal prizes.
Class II Gaming
Definition: Bingo and games "similar to bingo" (including pull-tabs, lotto, punch boards) and non-banked card games (like poker played against other players, not the house). Regulation: Regulated by the Tribe and the National Indian Gaming Commission (NIGC). State law does not apply. Example: Electronic bingo machines (often looking like slots but mathematically based on bingo patterns) and poker rooms.
Class III Gaming
Definition: All other forms of gaming, including slot machines, blackjack, craps, roulette, and sports betting. Regulation: Requires a Tribal-State Compact. Without a compact, Class III gaming is generally illegal (though federal "Secretarial Procedures" can sometimes substitute). Example: The casino-style slots and table games found in most major Oklahoma casinos.
The Role of the Tribal-State Compact
For Class III gaming, IGRA requires tribes to enter into a valid compact with the state. This Compact:
- Defines the scope of allowed gaming
- Establishes exclusivity fees (the "revenue share" paid to the state)
- Sets regulatory standards (auditing, licensing, tort liability)
In Oklahoma, the Model Tribal Gaming Compact approved by voters in 2004 (State Question 712) provides the standard framework. Disputes over Compact renewals and exclusivity fees have defined recent political battles between Tribes and the Governor's office.
The National Indian Gaming Commission (NIGC)
IGRA created the NIGC as an independent federal regulatory agency. The NIGC:
- Approves Tribal Gaming Ordinances
- Reviews management contracts
- Conducts audits and investigations
- Enforces federal compliance
Tribal Gaming Ordinances
Before a tribe can game, it must pass a Tribal Gaming Ordinance approved by the NIGC chair. This tribal law must ensure:
- The tribe has sole proprietary interest in the gaming activity
- Net revenues are used for specific purposes (government operations, general welfare, economic development, charity, or local government funding)
- Independent audits are conducted annually
Why IGRA Matters Today
IGRA remains the bedrock of tribal economic independence. It ensures that gaming revenues primarily benefit the tribe and its members—funding healthcare, education, and infrastructure.
However, as gaming evolves (mobile betting, iGaming), the interpretation of IGRA continues to be litigated. Does a server on tribal land make a mobile bet "occur" on tribal land? These are the questions fixing to shape the next decade of Indian gaming.
We Advise on Tribal Gaming Compliance
From drafting ordinances to navigating NIGC audits and Compact negotiations, we help tribes protect their gaming operations. Contact our Tribal Law practice for strategic counsel.
Need Strategic Counsel?
Navigating complex legal landscapes requires more than just knowledge; it requires strategic foresight. Contact Addison Law Firm today.
*This article is for general information only and is not legal advice.*