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Right now the fine line of delineation between Class II
slot machines and Class III slot machines is under attack—and it looks like
there is a possibility that many of the tribes in states that do not offer
state-wide Class III slot machine gaming could lose all of their rights to
operate the other types of slots gaming. Currently the National Indian
Gaming Commission is looking at how the Class II slot machines are defined,
and they are considering a revision that may just spell disaster for many
tribes.
Class III slot machines are the Vegas style slots—Class II on the other hand
are normally bingo machines. Right now the Class II machines are legal for
the tribes, even if Class III slot machines are not legal in the rest of the
state. If the Commission finds that the Class II machines are basically the
same as the Class III, tribes that currently operate the Class II machines
will then be at the mercy of the state they reside in to negotiate terms.
Part of the problems stem from the recent court cases in which the US
Department of Justice lost cases in which the government’s lawyers argued
the similarities between the Class II and Class III machines. Many states so
far have had a difficult time regulating and coming to agreeable terms with
the tribes. Right now, when a state cannot come to terms with a tribe in the
form of a compact, the Department of the Interior then has to step in—and if
that happens the state loses all chances at receiving part of the slots
revenue.
Some states are currently in the negotiations with the tribe, and they are
finding the process harder than it seems. In Florida, for example, the
Seminole tribe essentially refuses to negotiate the use of Class III slot
machines—opting instead for the deal the Department of the Interior will
draw up when it steps in. In California though, they are an example of a
state willing to negotiate and come to favorable terms with the tribes.
Governor Schwarzenegger had a rough start in negotiations with the tribes in
the state—but over the last couple of years, his new compacts with the
tribes show that negotiations are possible.
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