November 1, 1997

Congress: Regulations Needed to Stem Organized Crime

Tulsa World

31 October 1997

WASHINGTON (AP) - Tribal casinos will become more vulnerable to organized crime unless the federal government tightens regulation of them, says the author of a proposed overhaul of Indian gambling laws.

"The absence of federal standards has allowed a void to develop which will become more and more attractive to criminal elements," Sen. John McCain, R-Ariz., said Wednesday.

McCain's legislation would expand the powers of the National Indian Gaming Commission and set minimum standards for casino operations, including the licensing of key employees and managers.

Similar legislation died in Congress last year and still faces stiff opposition from tribes, which don't want to pay for the tougher federal enforcement and argue that it isn't necessary.

"Indian gaming is the most regulated gaming in the United States, if not the world," Rick Hill, president of the National Indian Gaming Association, told the Senate Indian Affairs Committee.

States also oppose the bill because they fear it would give tribes the upper hand in negotiating gambling agreements. Lawmakers also criticized the Justice Department on Wednesday for allowing Indian tribes to operate casinos in California and other states without state approval.

"It's beyond my comprehension how the federal government is acknowledging massive illegal gambling and doing nothing," Sen. Harry Reid, D-Nev., said.

Sen. Frank Murkowksi, R-Alaska, said Attorney General Janet Reno should appoint a special counsel to close down the casinos.

More than 30 tribes in California have been operating video gambling without the state-tribal compacts that are required under federal law to sanction Indian casinos. Such agreements determine how large the operations can be and how they will be regulated.

California Gov. Pete Wilson has been negotiating an agreement with a tribe that wants to open a casino in San Diego County, but he refuses to talk with the tribes that are running illegal operations.

The Justice Department is waiting to see whether that agreement can serve as a framework for negotiating deals that would legalize the existing casinos, said Kevin DiGregory, A deputy assistant attorney general.

Some casinos in Florida and a few other states have been allowed to continue to operate while tribal and state officials argue over whether they should be permitted. Nevada's senators, who have been the most vocal critics of Indian gambling, say the Justice Department's inaction encourages tribes to open illegal casinos.