Tulsa World: Tribes hail bingo rules' demise

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Tribes hail bingo rules' demise
The plan would have clearly defined the distinction in gambling machines.

By AP Wire Services
Published: 9/27/2008 2:10 AM
Last Modified: 9/27/2008 3:26 AM

The plan would have clearly defined the distinction in gambling machines.

OKLAHOMA CITY (AP) — Oklahoma tribal casinos are hailing a decision by the National Indian Gaming Commission to formally withdraw a plan to redefine Class II gambling machines.

Some tribal officials said the proposed regulations would have crippled the state's $2.4 billion-a-year industry.

"This was a serious threat to the economy, not just for Indian country, but for Oklahoma as a whole," said David Qualls, chairman of the Oklahoma Indian Gaming Association.

The regulatory agency said technological advances had erased the line between Class II machines and Class III slot machines such as those found in Las Vegas.

The distinction is critical because Class III games require compacts between states and tribes. In Oklahoma, tribes pay the state 4 percent to 6 percent of their revenue from Class III machines. No such payments are required for Class II machines, which by law must be based on bingo.

The state received $71.6 million in fees from tribes in 2007 and is on pace for $87.2 million this year. That money goes to public education.

Oklahoma's tribes have migrated toward the compacted games, but Qualls said many gamblers still prefer to play the Class II machines.

Many casino officials feared that the new definitions would have been so restrictive as to outlaw virtually every Class II machine now in play. That would have left tribes with slot machines as their only option, which Qualls said would have alienated some loyal customers.

"You can't fry up corn and tell 'em it's hominy," he said.

The federal agency's announcement was not a surprise. In June, commission Chairman Phil Hogen said he was shelving the plan.

Cherokee Nation Enterprises CEO David Stewart praised the decision. Class II games make up about 40 percent of his tribe's machines.

"The regulations, as they were proposed, would have had a significant negative economic impact on Indian Country," Stewart said.

The financial impact would have been far greater in the four states that allow only Class II gambling: Alabama, Alaska, Nebraska and Texas. But those four states combine for only 3,800 machines.

Brian Campbell, head of the Chickasaw Nation's commerce division, said market conditions are driving Oklahoma tribes further toward compacted machines. He's glad that regulators won't interfere with that.

"Dramatic change would have been very harmful," said Campbell, adding that Class II makes up about half of his tribe's machines. In 2004, Oklahoma voters approved a modified version of Las Vegas-style gambling. In return, tribes pay the state a share of the revenue.

Tribes gradually have replaced bingo-based machines with Class III machines. A recent report says Oklahoma's 52,000 machines are almost evenly split between Class II and Class III By AP Wire Services

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	Report Comment Ayo, (9/28/2008 12:14:51 AM) Well good. Now, I want to know what the State Ed. is doing with our money? I would like to see some GOOD, no.....GREAT math and science teachers, please. IN the PUBLIC schools. Remember, this is money from the NDN's, so don't even think about complaining about us.
	Report Comment Tony G, Tulsa (9/28/2008 6:08:28 AM) I would like to see GAMING made illegal. I do NOT see where it has actually helped education. Or anything else for that matter. I have seen a few people hurt by the casinos. It seems--anywhere MONEY is involved--the welfare of the people--is pushed aside.

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