Only about 15 tribes have received federal recognition through the “Federal Acknowledgement Process” since 1978, and only one of those tribes has gaming. Since then 16 petitions for recognition have been denied. Tribal governments, though, are still mostly sovereign entities when it comes to regulating their gaming industries, a fact many Indians value as part of being recognized as a tribe.

Tribal Governments and Regulations

Tribal governments still have certain regulations and rules they must meet in terms of the gaming industry and related businesses. Over three-fourths of Indian tribes use all their gaming revenue for government services, community development, neighboring communities, and charitable purposes. These tribes do not give per capita payments, and certain requirements must be met before tribes can file for a revenue allocation plan. Only about 73 tribes, or about one-quarter of the recognized tribes that have gaming, distribute per capita payments to tribal members. These members must pay federal income tax.

Tribal governments regulate their gaming industry on three levels. The Indian nations are the primary regulators of their gaming industry, as established under the Indian Gaming Regulation Act, or IGRA. This act established the basic framework for tribes to regulate their own gaming. Depending on the compact signed between the tribal and state governments, state regulation may or may not be included in the compact’s regulation for class three gaming. Federal agencies, though, can enforce laws related to Indian gaming.

In most cases, tribal governments are sovereign entities in regards to who regulates their industries. States cannot by law directly dictate rules and regulations to the Indian gaming industry. In instances where a state and tribal law have come into conflict, federal law will usually determine the outcome of the case. Tribal governments may be sovereign from state law, but they are not independent from federal law.

Thus, Indian reservations can create their own requirements and regulations in regards to their casinos and other gaming opportunities and cannot be overruled by the states, although in the case of a tribal law coming into conflict with federal law, the tribal law would be trumped. This is evident in the fact that tribal members must still pay income tax, social security tax, and other special taxes required by the federal government.