Class II games are those in which a player competes against other players for a common prize whereas Class III games are those in which a player is attempting to win prizes from “the house” (i.e. the casino).
In the case of Class II electronic bingo games, players are using technological aides that allow them to be linked to other players in a common game, trying to be the first person to cover a predetermined bingo pattern.
For Class III, also referred to as Compact games, a player is not required to be linked to other players in order for them to participate in the gaming activity. In short, a player can play against the machine rather than other players.
The tribe must determine what types of gaming activities are allowed within the state in which the gaming facility is to be located. If the state permits gaming by any person, organization or entity, then tribes are allowed to conduct Class II gaming activities without state approval. A tribe and the respective state must enter into a tribal-state compact in order for Class III gaming to be conducted.
The land on which the gaming facility will reside must be considered Indian lands. Indian lands are defined as all lands within the limits of any Indian reservation and any lands title to which is either held in trust by the United States for the benefit of any Indian tribe or individual or held by any Indian tribe or individual subject to restriction by the United States against alienation and over which an Indian tribe exercises government power.
The tribe must submit a gaming ordinance to and receive approval from the National Indian Gaming Commission (NIGC), the federal agency established to oversee Indian gaming. After receiving approval on the gaming ordinance, the tribe must construct, operate, and maintain a gaming facility in compliance with standards established by the NIGC, the tribe, and, if applicable, the terms of a tribal-state compact.
A Tribal-State Compact is an agreement between two sovereign entities on matters in which they have a common concern and is the means by which tribes may offer Class III gaming at tribal gaming facilities. In addition to being approved by the respective governing state and tribal entities, gaming compacts must also be reviewed and approved by the Bureau of Indian Affairs prior to becoming effective. Tribes must also have a Class III gaming ordinance approved by the National Indian Gaming Commission as a precursor to the gaming compact.
The compact between the Cherokee Nation and the State of Oklahoma is contained as a part of the State Gaming Act in Title 3A of the Oklahoma statutes, which may be found at www.oklegislature.gov/osStatuesTitle.
The Indian Gaming Regulatory Act prescribes how gaming revenues may be used by tribes. There are five (5) areas in which gaming revenues are to be used:
The Cherokee Nation currently receives 38% of the net profit from all Cherokee gaming facilities.
Gaming revenues are not distributed to individual Cherokee citizens from the tribal government. The Cherokee Nation Administration and Tribal Council allocate dividends paid by Cherokee Nation Entertainment, the tribal corporation that operates all Cherokee gaming facilities, to tribal service programs, such as housing, health, roads, and education.
This is completely untrue. The tribal-state compact does not require a minimum payout percentage nor does it empower the state to levy a fine on a tribe for any reason. The payout percentages are determined by the individual gaming operators and are approved by tribal gaming regulatory agencies (TGRA). Game performance, including payout percentages, is regularly monitored by the TGRA to ensure the gaming machines are within parameters established by the TGRA; changes to payout percentages cannot be made without authorization from the TGRA.
Under the Indian Gaming Regulatory Act (IGRA), the state may only become involved in Indian gaming under the terms of a tribal-state compact. The state’s involvement will be limited to those Class III games and areas that are agreed to in the compact and will not extend into Class II gaming areas.
In the case of the compact between the Cherokee Nation and the State of Oklahoma, the Office of Management and Enterprise Services serves as the State Compliance Agency for gaming related matters. The state is also represented in the casinos by the ABLE Commission, if the facility serves alcohol, and possibly the Oklahoma State Athletic Commission for any sporting events that may be held at a Cherokee gaming facility.
