New rules proposed by the federal government could see Native American tribes expand their gambling operations.
Tribes would have more control over the location of future casino developments
The Bureau of Indian Affairs’ proposals involve loosening regulations that impede tribes from obtaining more land, potentially paving the way for the approval of casino projects. Additionally, the new regulations would guarantee that tribes can engage in discussions with states regarding online betting agreements.
Comments submitted last week to the Bureau of Indian Affairs indicated that the proposed rule changes will be opposed some commercial gambling companies, state officials, and local government leaders. State officials are said to be worried about losing tax revenue and relinquishing control over casino development locations.
In a letter signed by 20 attorney generals, Montana Attorney General Austin Knudsen said:
“The proposed regulations would authorize an unprecedented expansion of tribal casino gaming—and would achieve that outcome by unjustifiably restricting the ability of state governments to adopt and enforce their own policies on gaming matters.”
The proposed rule changes were introduced by the Bureau of Indian Affairs late last year as a direct result of the growth of the gambling industry following the legalization of sports betting and online casinos.
At the time, Bryan Newland, Interior Department assistant secretary overseeing Indian Affairs, said:
“The federal government has a treaty and trust responsibility to protect tribal sovereignty and revitalize tribal communities by strengthening their homelands and economic self-sufficiency.”
According to the proposed rule changes, tribes will be allowed to seek statewide online gambling opportunities via tribal-state compacts. The proposal states that online wagers may be considered on-reservation as long as the remote wager server is located on tribal property. Critics of the proposal argue that it could mandate states to authorize types of gambling, such as sports betting, blackjack, or roulette, which may have been prohibited under state law.
The Bureau of Indian Affairs also proposes a separate plan that streamlines the process for tribes to acquire new land. This process involves tribes requesting that the U.S. government places land under their control, a process known as “trust” designation. For non-reservation land, the proposal dictates that the Interior Department should prioritize assessing how the land benefits the tribe, without factoring in its distance from a reservation. While this proposal isn’t directly tied to gambling operations, tribes could, in theory, use the newly acquired land to develop casinos.
Image credit: Valerie / CC BY-NC-ND 2.0
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.