8:46 a.m. Federal lawmakers lament new gaming regulations

TULSA, Okla. (AP) — New federal regulations on electronic bingo games will cost Oklahoma’s tribal casinos millions of dollars more than a flawed economic study predicted, the head of the Oklahoma Indian Gaming Association said.

OIGA Chairman David Qualls said the regulations were a last-ditch effort by a lame-duck National Indian Gaming Commission to act on so-called Class II gaming without congressional oversight.

The gaming commission’s regulations also drew strong criticism from U.S. Rep. Tom Cole, R-Okla., a member of the Chickasaw Nation of Oklahoma.

“I am deeply concerned about the NIGC’s ongoing reliance on flawed and incomplete data to justify irresponsible and unnecessary regulations on Indian tribes,” Cole told the Tulsa World’s Washington bureau.

“I look forward to a new commission being appointed and I sincerely hope they do not exhibit the same hostility towards the Indian gaming industry that is the legacy of the current commission.”

U.S. Rep. Dan Boren, D-Okla., agrees with the OIGA that the economic impact on the industry will be far greater than the gaming commission states.

“While I understand the need for proper technical standards and oversight,” Boren said, “I am concerned by the lack of consultation from NIGC with Oklahoma’s tribes.”

Both Cole and Boren serve on a the House Natural Resources Committee, which has oversight responsibility for tribal issues.

The NIGC stood by the regulations as well as the process used to complete them.

Effective this week, the regulations were the last two standing after the commission dropped two more controversial proposals intended to draw a clear distinction between Class II, or bingo-type games, and Class III games such as slot machines.

One of the new regulations, the Minimum Internal Control Standards, deals with the physical and communications security of the Class II games and the control of the money and operational systems.

A second, the Technical Standards, pertains to the certification of the equipment and ensures the systems operate properly and remain resistant to tampering.

NIGC spokesman Shawn Pensoneau said the economic impact of the two regulations is expected to be about $7.8 million.

But an OIGA-backed study, conducted by Alan Meister, concluded the economic impact of the two new regulations would be about $145 million.