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land is not under state law unless a federal law places it under
state law. The Supreme Court held that even if a tribe is under
state law the state gaming regulations do not apply on Indian trust
land. In 1988, Congress passed the Indian Gaming Regulatory Act
the IGRA, the National Indian Gaming Commission (NIGC) was
created as a federal agency in 1988, to regulate high-stakes Indian
gaming. There are three classes of
Indian gaming, Class I gaming includes traditional Indian gaming
with minimal prizes.
Class I is not regulated by the IGRA, but is controlled entirely by
the tribal governments. Class II gaming includes bingo, pull tabs,
lotto, punch boards, tip jars, and certain card games on tribal
land. Class II is regulated by the Tribal government if they have a
gaming ordnance approved by the NIGC.
Class III gaming includes all forms of gaming not included in
either Class I or II. Generally these are considered high stakes
casino style games such as slot machines, blackjack, roulette and
craps. Class III requires a tribal/state compact approved by the
Secretary of the Interior.
have been used by state officials to confiscate Indian casino
revenue which serves as a "special" tax on Indian reservations.
Essentially, the tribes still have "exclusive right" to all class of
gaming except when states do not accept that class or it clashes
with federal law. After the enactment of the IGRA Indian gaming revenue
increased from $100 million in 1988 to $16.7 billion in 2006.
Gambling has brought large amounts of revenue to many Native
nations, but has also brought negative results such as corruption.
Recent statistics show that among the 565 federally recognized
tribes there are 400 Indian gaming establishments. These
establishments generate approximately $18.5 billion annually.