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New casino rules deemed costly: Federal regulations will have a bigger impact than a study predicts, the state gaming association warns.(Tulsa World (OK) Via Acquire Media NewsEdge) Nov. 14--WASHINGTON -- New federal regulations designed to bring more clarity and integrity to electronic bingo games will cost tribal casinos millions of dollars more than a flawed economic study predicted, the Oklahoma Indian Gaming Association warned. OIGA Chairman David Qualls also charged the regulations were one more last-ditch effort by a lame-duck National Indian Gaming Commission to act on Class II gaming without congressional oversight. The gaming commission's regulations, the culmination of a years-long effort, also drew strongly worded criticism from U.S. Rep. Tom Cole, R-Okla. "I am deeply concerned about the NIGC's ongoing reliance on flawed and incomplete data to justify irresponsible and unnecessary regulations on Indian tribes," said Cole, a member of the Chickasaw Nation of Oklahoma. "I look forward to a new commission being appointed and I sincerely hope they do not exhibit the same hostility towards the Indian gaming industry that is the legacy of the current commission." U.S. Rep. Dan Boren, D-Okla., agrees with the OIGA that the economic impact on the industry will be far greater than the gaming commission states. "While I understand the need for proper technical standards and oversight," Boren said, "I am concerned by the lack of consultation from NIGC with Oklahoma's tribes." Both Cole and Boren serve on a the House Natural Resources Committee, which has oversight responsibility for tribal issues. The NIGC stood by the regulations as well as the process used to complete them. Effective this week, the regulations were the last two standing after the commission dropped two more controversial proposals intended to draw a so-called bright line between Class II, or bingo-type games, and Class III games such as slot machines. One of the new regulations, the Minimum Internal Control Standards, deals with the physical and communications security of the Class II, or bingo games, and the control of the money and operational systems. A second, the Technical Standards, pertains to the certification of the equipment and ensures the systems operate properly and remain resistant to tampering. The OIGA hired its own expert to rebut the findings of the gaming commission's cost-benefit study. Conducted by Alan Meister, who previously had submitted an earlier report to the NIGC, the OIGA assessment concluded the economic impact of the two new regulations would be about $145 million. NIGC spokesman Shawn Pensoneau said the economic impact of the two regulations is expected to be about $7.8 million. Pensoneau said a much bigger figure of $98 million, which the OIGA had questioned because it fell just short of the $100 million threshold that would have triggered congressional oversight, was for all four regulations, not just two. "All proposed rules are forwarded to Congress," he said. Pensoneau also defended the process used to come up with the two final regulations, pointing to the length of time the NIGC used to come with them. "These issues have been worked on for several years," he said. Now that the regulations are final, John Tahsuda, vice president of Navigators, a Washington, D.C., government relations firm and OIGA consultant, expressed hope a new commission will take a second look at the regulations. "I don't know if they have to start from scratch," Tahsuda said, adding that perhaps they could come up modifications to mitigate some of the costs. He said critics of the regulations will begin laying out their case to key members of Congress. Jim Myers (202) 484-1424 [email protected] To see more of the Tulsa World, or to subscribe to the newspaper, go to http://www.tulsaworld.com. Copyright (c) 2008, Tulsa World, Okla. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |