+ TESTIMONY + CHAIRMAN STEVENS VERBAL TESTIMONY TO THE SENATE COMMITTEE ON INDIAN AFFAIRS Good afternoon Chairman Akaka, Vice Chairman Barrasso, and Members of the Committee. Thank you for this opportunity to provide the views of the National Indian Gaming Association on the important issue of Internet gaming. I have to say it’s an honor to again be seated on a panel with Senator D’Amato. We testified on the House side last month on this topic. I appreciate his attempts to understand Indian country, and I hope he will continue to learn about why tribal governments cannot compromise Indian sovereignty. As this Committee knows, more than 200 Indian tribes use gaming as a means to generate essential tribal governmental revenue. Under IGRA, that revenue is used to address the severe unmet needs of tribal communities. Because Indian gaming revenues are used for government purposes, tribal government revenues are not subject to taxation. For more than two decades under IGRA, tribes have consistently proven their ability to operate and independently regulate Indian gaming. The success of Indian gaming has been felt across America, creating more than 600 thousand American jobs for Indians and non-Indians alike. Knowing how many people depend on Indian gaming, legalization of Internet gaming raises significant concerns. In 2010, tribal leaders conducted more than a dozen meetings to discuss bills to legalize Internet gaming. This year at our Board meeting in conjunction with our annual trade show, NIGA established the Internet Gaming Subcommittee, and
has since met several times. The Subcommittee is made up entirely of tribal leaders from throughout the country and their respective support teams. As a result, tribal leaders nationwide unified behind a set of core principles that I’d like to now share with you. (1) First, legislation should acknowledge that all tribes are eligible to both operate AND regulate Internet gaming. Under IGRA, tribes have proven our ability to both regulate and operate gaming facilities. That expertise should be recognized in the new legislation. In addition, the National Indian Gaming Commission is the only federal agency with experience in regulating any form of gaming in the U.S. They’re the only logical entity to regulate tribal Internet gaming. (2) Second, legislation should allow customers to access tribal Internet sites as long as it’s legal where the customer is located. Again we have experience here. Tribes have conducted gaming beyond local tribal borders for years by linking machines to broaden participation. Internet gaming is the next logical step. (3) Third, as I stated above, Indian gaming revenues are dedicated to meeting tribal community needs. That’s essentially a 100 percent tribal tax. Legislation should acknowledge that tribal Internet revenues must not be taxed. (4) Fourth, legislation must fully protect tribal rights under IGRA and existing tribal-state gaming compacts. Tribal-state gaming compacts have been carefully negotiated. Tribes have invested significant resources
based on these agreements, and they must be honored. (5) Finally, our principles ask that Congress NOT amend IGRA as it establishes a new law on Internet gaming. Many federal laws recognize Indian tribes as governments outside of Title 25, and tribes ask to follow that precedent These are the core principles that tribal leaders nationwide have united behind. Unfortunately, current Internet gaming proposals – including the bill offered by Congressman Barton – violate these principles, and we oppose their passage. My written testimony details our concerns, but I’ll summarize our major objections: ONE, the bills fail to treat tribes as government operators, TWO, the bills would tax tribal government revenue, AND THREE, the bills would violate IGRA and existing tribal-state compacts. In closing, Indian gaming has proven to be the most effective tool to help many tribes address more than a century of failed federal policies. More than 600 thousand American families, and more than 200 tribal communities rely on the current system. If Congress is going to change the system, Tribes ask that the new law follow these principles: that it provide fair access to tribes, that it continue to treat Tribes as governments, and that it respect the essential government purposes for which tribal revenues are used. We truly appreciate the Committee’s oversight, and look forward to working with you and your Senate colleagues on this important issue.
5 | INDIAN GAMING UPDATE - DECEMBER 2011