Rocha, who serves as the conference chair for the Indian Gaming Association (IGA), appeared alongside IGA executive director Jason Giles. This week's guest was Jonodev Chaudhuri, principal at Chaudhuri Law and former chair of the National Indian Gaming Commission (NIGC).
The focus of their discussion was on regulation and enforcement, particularly regarding the NIGC's and governmental authorities' tools to combat the increasing number of sweepstakes sites.
"You see the entire industry is reacting to this," Rocha remarked, highlighting a growing sense of outrage among California tribes towards efforts that undermine tribal exclusivity. He firmly stated that "this is not a dialogue, this is not a discussion – we don’t negotiate with terrorists."
Chaudhuri, who led the NIGC from 2013 to 2019, elaborated on the complexities of tribal gaming regulation. He discussed the Indian Gaming Regulatory Act (IGRA) of 1988, which provides the legal framework for Indian gaming in the U.S. and created the NIGC, overseeing tribal gaming operations.
Chaudhuri noted the NIGC's enforcement capabilities are somewhat limited, as tribes primarily regulate gaming themselves, with the NIGC playing a supportive role and acting as a government liaison. The commission is largely bound by the directives of IGRA, making proactive measures challenging.
"In many ways the NIGC has to be somewhat reactive," Chaudhuri commented. Despite these limitations, he emphasized that IGRA mandates tribes as the primary beneficiaries of gaming, asserting that unauthorized gaming on tribal lands violates IGRA stipulations.
He pointed out that enforcement options exist if an entity is found to operate unlawfully on tribal lands, which can include fines and shutdown orders. Chaudhuri shared his experience at the NIGC, stating, "I did letters like that when I was [at the NIGC]." The NIGC can also assess games when approached by tribes to determine their classification, but such evaluations are especially difficult for sweepstakes since suppliers typically do not cooperate.
When Rocha and Giles probed whether California's gaming tribes could collectively challenge sweepstakes operators, Chaudhuri indicated that while this is technically feasible, it would depend on the individual compacts each tribe has with the state, as there is no uniform compact across California.
The significance of compacts was a recurring theme in their conversation. Chaudhuri explained that many compacts include clauses that nullify agreements if there’s an unlawful expansion or infringement on exclusivity. While Indian Country generally does not pay state taxes on gaming revenue, some tribes, like the Seminole Tribe of Florida, agree to share their revenues with states. This year, the Seminole Tribe ceased payments to Florida, citing the state's approval of commercial card rooms weakening its exclusivity rights.
States, benefiting from revenue sharing, also aim to curb sweepstakes that could jeopardize their revenues. However, convincing state and federal officials to recognize the significance of this issue remains a challenge even for the NIGC.
Chaudhuri remarked, "It’s a never-ending education challenge," as the NIGC continues to engage with various officials about the implications of Native issues on this front. The problem extends beyond sweepstakes to include skill games, card rooms, and other gambling forms viewed as encroachments on tribal exclusivity.
As the session concluded, Giles and Rocha emphasized the urgency of addressing these concerns for California tribes. “This is getting worse by the week,” Giles observed, pointing to the launch of the Legendz social casino and sportsbook in 43 states, including California. Rocha drew an analogy comparing this situation to a company constructing a dam upstream from a reservation, suggesting the long-term impacts might not be immediately visible but will certainly affect future development.
For upcoming discussions, Rocha expressed interest in reaching out to tribes in Connecticut and other states that are taking a more direct stance against sweepstakes. “The industry is behind us but we have to lead,” he said, noting that this position is familiar to them.
