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www.tribalgovernmentgaming.com Association of Gaming Equipment Manufacturers Annual Industry Report 2023 • $10 WHEN COMPACTS EXPIRE HELP GETTING ONLINE EDUCATION IN INDIAN COUNTRY Oklahoma is OK The most successful tribal gaming state weighs new compacts, sports betting TRIBAL Government Gaming Tribal Technology Why Indian Country is at the cutting edge of cashless, AI and other tech A GGB Publication The Next Generation How you can turn your tribal casino into an integrated resort TRIBAL CASINO DIRECTORY www.tribalgovernmentgaming.com 3 The New Model Tribal casinos have come a long way from the days of makeshift gaming floors in Sprung Structures. The tribal gaming model today is a new generation of integrated resorts, as tribes reinvest in their gaming businesses and branch out to new revenue streams outside of their casino properties. By Roger Gros and Dave Bontempo Tribal Government Gaming 2023 20th Annual Edition CONTENTS A GGB Publication FEATURES 16Tribes Online As online gaming and sports betting spread through the commercial gaming world, tribes in various markets, headed by California, contemplate how to proceed. By Marjorie Preston 22Higher Education in Indian Country For 17 years, the Sycuan Institute on Tribal Gaming at San Diego State University has assured educational opportunities for the tribal government gaming market. By Dr. Kate Spilde 26Shining Sooner State Oklahoma has long been one of the epicenters of the Indian gaming industry. Here’s a look at one of the powerhouse markets of tribal gaming. By Chris Irwin 34Tribal Tech Tribal casinos have always been at the forefront as early adopters of new technologies from payments to AI, and the pioneering continues. By Frank Legato 74Bright Future Chief financial officers in the tribal gaming market are optimistic about the coming year. By Grant Eve COLUMNS 6 NIGC Voluntary Compliance and the Letter of Concern E. Sequoya Simermeyer 30Purchasing Over-Deliver on Expectations Carl Long 32Compacts Achieving the Upper Hand Judy Shapiro DEPARTMENTS 6Editor’s Letter 40Tribal Government Gaming 2023 Directory 73 Advertiser Index 42Acres Manufacturing 44Advantech-Innocore 45Bluberi 46Eclipse Gaming Systems 48Everi 50 HBG Design 51Imagine This 52Interblock 54Kambi 56Marker Trax 60Morse Watchmans 61Novomatic Americas 62PMI Tribal Services 64R2Architects 66Sightline Payments 68TBE Architects 70 Western Alliance Bank CORPORATE PROFILES 10 COVER STORY On the cover: Phase 5 of the expansion of Gun Lake Casino and the Aquadome by HBG Design4 TRIBAL GOVERNMENT GAMING 2023 S ince the start of 2022, the U.S. gaming in- dustry has experienced a revitalization of epic proportions, posting record revenues despite constant fears related to lingering pan- demic impacts and economic uncertainty. Much of the conversation, however, has re- volved around big-name commercial operators and bookmakers, and while they have certainly experienced growth, they’ve also made some headline-grabbing mistakes, and one cannot tell the full story of this record-breaking resurgence without admiring the steady role that tribal gam- ing has played in that success. Indeed, it’s hard to detail all of the victories that tribal operators have enjoyed in the last 15 or so months, but they encompass nearly all aspects of U.S. gaming, from land-based casinos to sports betting and everything in between. Perhaps the most notable example came from California this past November, when commercial bookmakers flamed out in epic fashion, setting hundreds of millions on fire in a brazen attempt to disrupt what has long been the biggest tribal market in the U.S. The extremely public defeat of Prop 27 was easily the biggest reminder in recent memory that tribal gaming is a force to be reck- oned with, both now and in the future. And not even six months later, those same sentiments were echoed in Washington state, when U.S. District Court Judge David Estudillo quickly dismissed Maverick Gaming’s lawsuit that challenged the tribal monopoly on sports betting in the market. The comments given by Washington Attorney General Bob Ferguson after the ruling were, I be- lieve, extremely indicative of what regulators and patrons all over the country are starting to realize, and that is that tribal outfits are incredibly well-run organizations whose track records are becoming in- creasingly more impressive, especially as commer- cial operators continue to fall over themselves in a scramble to expand everywhere, at any cost. Ferguson called the ruling “a significant vic- tory for tribal sovereignty,” and noted that “Washington law strikes the right balance by per- mitting sports betting and confining it to tribal casinos, where tribes have experience carefully regulating gambling where individuals must be physically present.” Such endorsements are almost impossible to find in today’s industry, and although Maverick and most of the larger commercial bookmakers have vowed to continue their respective quests, their initial losses were sizeable, and may serve as a boon for other bat- tles, such as the legal gridlock that is currently pre- venting the Seminole Tribe from launching sports betting in Florida, another tribal hotspot. Earlier this month, the American Gaming Asso- ciation celebrated the fact that commercial gaming revenues surpassed $60 billion in 2022, which repre- sented a new record for the U.S. Tribal revenues were notably absent from that report, but as CNIGA Chairman James Siva said during a presentation at the recent ICE London conference, the tribal market “now represents 44 percent of the total gaming mar- ket in the U.S.” I’m no mathematician, but based on that per- centage, one can deduce that tribal operators brought in at least $40 billion last year. The number itself is eye-popping, but what makes it even more impres- sive is that it came quietly—no scandals, no regula- tory gruff and no controversy. That goodwill is now starting to pay off in a big way, especially as tribes look to expand into new mar- kets. Take Las Vegas for example—the once-impene- trable commercial mecca now has a multitude of tribal developments, from the San Manuel Band’s new-look Palms to the Seminoles’ takeover of the Mi- rage via Hard Rock International. Both examples were welcomed with open arms by Nevada regulators, who are notoriously scrupulous and hard to impress. So, as we enter the newest phase of tribal gam- ing, one defined by full-scale integrated resorts, inter- national investments and tens of billions in revenues, it’s important to remember that no matter how big and flashy tribal operators may become, their insis- tence on doing things the right way is and always has been the catalyst behind their unprecedented growth. Our goal for this year’s edition of Tribal Govern- ment Gamingis to shed some light on the latest and greatest innovations that tribal gaming has to offer, while also highlighting the figures most responsible for setting that impressive standard. And if the sector continues its current trajectory, it’s hard to imagine we’ll be saying anything different come next year and beyond. EDITOR’S LETTER Growth, Success and Prosperity-- the Right Way By Jess Marquez TRIBAL Government Gaming 2023 Roger Gros, Publisher | rgros@ggbmagazine.com twitter: @GlobalGamingBiz Jess Marquez, Editor jmarquez@ggbmagazine.com Frank Legato, Managing Editor |flegato@ggbmagazine.com twitter: @FranklySpeakn Monica Cooley, Art Director mcooley@ggbmagazine.com Terri Brady, Sales & Marketing Director tbrady@ggbmagazine.com Becky Kingman-Gros, Chief Operating Officer bkingros@ggbmagazine.com Lisa Johnson, Communications Advisor lisa@lisajohnsoncommunications.com twitter: @LisaJohnsonPR Columnists Carl Long |Judy Shapiro E. Sequoya Simermeyer Contributing Editors Dave Bontempo twitter: @bontempomedia Grant Eve |Chris Irwin |Pamela Jones Marjorie Preston |Dr. Kate Spilde • • • • • • • • • • • • • Official Publication GGB6 TRIBAL GOVERNMENT GAMING 2023 hen tribes think of the National Indian Gaming Commission’s compliance efforts, they might only think about the Notice of Violation (NOV) and assume it is the agency’s go-to enforcement tool to obtain compliance with IGRA. As I have written previously, any en- forcement action I take is based on an exhaustive investigation and analysis of the unique circum- stances involved, and it is not something I take lightly. When NIGC must take enforcement action, we do so to preserve the integrity of the industry and protect the valuable tool Indian gaming rep- resents for many tribes. But it is critically impor- tant for the Indian gaming community to understand that the majority of NIGC compli- ance efforts do not result in the issuance of an NOV and a subsequent Civil Fine Assessment that may result in an operation’s closure or a daily penalty of over $57,000 for each violation. NOVs are rare. It is far more likely that non- compliance is addressed first with technical assis- tance efforts followed by a Letter of Concern (LOC). The agency uses the LOC to alert tribes to concerns regarding compliance with IGRA or NIGC regulations that have not been resolved through technical assistance efforts. The LOC identifies the concern(s) and provides a time pe- riod for the tribe to respond with corrective ac- tions. Often, the LOC process results in resolution of the matter without penalty. NIGC’s record usage of LOCs in recent years underscores the agency’s dedication to engage- ment in its oversight responsibilities and to a col- laborative resolution of potential enforcement matters. In FY2022, NIGC issued 22 LOCs— only one resulted in an NOV. Of those remain- ing, 70 percent have been satisfied and 30 percent are working through their corrective action plan. This voluntary compliance approach is NIGC’s proactive and collaborative handshake with gaming tribes to meet IGRA’s mandates. The agency is committed to providing gaming tribes with the best resources to help them success- fully operate and regulate their gaming in a man- ner that sustains for generations what has become the lifeblood for many tribes’ communities. Below is a short journey into aspects of the agency’s compliance environment. These high- lights point out that the agency would rather use voluntary compliance than enforcement actions when possible. First, while tribes’ regulatory bodies and NIGC may have distinct oversight responsibilities, there is a shared interest in protecting tribal assets de- rived from gaming. Through NIGC’s Division of Compliance, the agency monitors tribal gaming operations, provides technical assistance and train- ing, cultivates local-level relationships and sup- ports the work of more than 6,000 tribal gaming regulators. The division includes eight regional offices, an Audit Program and an Environmental Public Health and Safety (EPHS) Program. The Region Offices are comprised of compliance and audit staff, who conduct routine site visits and assess- ments at tribal gaming facilities, and perform au- dits and investigations to monitor compliance with the IGRA, NIGC regulations and tribal gam- ing ordinances or resolutions approved by the NIGC chair. In addition, other NIGC components, includ- ing the agency’s Finance, Technology, Public Af- fairs and General Counsel divisions, regularly provide a variety of assessment, advisory, planning and communication tools in coordination with the NIGC Compliance Division to encourage tribes’ proactive efforts at compliance. When technical assistance and training, inter- mediate communications and the LOC do not re- sult in compliance with IGRA, NIGC regulations or the tribal gaming ordinance, the NIGC will un- dertake enforcement action. Enforcement actions may include imposing appropriate sanctions for violations, such as civil penalties, issuing orders for temporary closure and referring criminal matters to appropriate tribal, federal and state entities. Fortunately for both patron and operator alike, these measures are few and far between. A majority of the time, once alerted to a violation, gaming tribes and NIGC work with a tribe’s regulatory staff and their gaming operations to correct the problem. This is what NIGC calls “voluntary compliance.” NIGC has historically approached IGRA viola- tions with the mindset that once alerted, tribes will remediate a violation in a reasonable time if given a chance to correct it. Voluntary compli- ance is the agency’s goal. The first step to volun- tary compliance is to alert the tribe to a potential violation; the agency codified that ap- proach in 2012. Set forth in 25 C.F.R. 573, an LOC de- scribes the available facts and information, in- cludes a preliminary assessment regarding the incident or condition and provides a tribe with a time period for its response. Voluntary com- pliance is often achieved when a tribe and the NIGC staff are able to resolve any potential en- forcement issues prior to the chair issuing an en- forcement action. Over the past 10 years, LOCs have been used to address concerns such as a tribe not maintaining sole proprietary interest in and re- sponsibility for the conduct of any gaming ac- tivity; entering and operating under contracts that contain management provisions which have not been submitted and approved by the NIGC chair; using net gaming revenues for purposes other than those set forth in IGRA (commonly called a misuse of revenue); instances where the construction, maintenance and operation of the gaming facility is conducted in a manner that does not adequately protect the environment, public health and safety of employees and pa- trons; failing to submit timely audits; failing to submit required licensing notices for facilities or employees; and instances where internal con- trols do not protect the integrity of gaming and NIGC Voluntary Compliance and the Letter of Concern Stamping out small regulatory infractions before they become big problems By E. Sequoya Simermeyer8 TRIBAL GOVERNMENT GAMING 2023 protect tribal assets. Recently, NIGC investigations revealed two tribes did not have an internal audit function for their Class II gaming operations. Internal audits as well as independent financial reviews are often the most effective tools to ensure a tribe is fully aware of how its licensed gaming operates and makes de- cisions impacting the tribal community’s access to gaming resources. For that reason, Part 543 of the NIGC Minimum Internal Control Standards (MICS) requires internal auditor(s) perform gam- ing operations audits for each department (at least annually) to review compliance with tribal and op- erational internal controls and NIGC MICS. The agency issued an LOC in both instances, requiring the tribes to submit a plan of action to es- tablish an internal audit function within a given time. Both tribes submitted an appropriate and timely plan and were able to successfully address the concerns. As a result, the NIGC issued LOC Satisfaction Letters and did not recommend further enforcement action. Both the tribes in the example and similar past re- sults demonstrate that the LOC approach works. As a fellow regulatory body in this process, NIGC provides tribes with the resources to keep compli- ant with IGRA and NIGC regulations. The agency maintains resources and processes in place to ad- dress compliance concerns that includeoffering tribes legal opinions and declination letters, man- agement contract reviews, training materials, in- person and virtual technical assistance and training, site visits, required ordinance audits, Agreed Upon Procedures (AUP) audits and reviews, Internal Control Assessments (ICA) and EPHS assess- ments—all at no additional cost. Since many tribes are well under way in their fiscal year operations, I encourage gaming leaders at all levels to take advantage of the tools and decades of regulatory expertise from a national perspective that NIGC has to offer. Again, by working proac- tively with NIGC, gaming tribes can quickly and efficiently resolve potential issues before they be- come major violations and help all of us protect the hard-fought reputation for integrity Indian gaming has earned over the past 35 years. In 2021, the NIGC launched the NIGC’s Report A Violation campaign so the NIGC could more easily re- ceive any information about potential violations of federal law or regulations in the Indian gaming indus- try. You may access the tab by isiting www.NIGC.gov. E. Sequoyah Simermeyer is chairman of the National Indian Gaming Commission. Celebrating Native Women Native women recognized at the National Congress of American Indians winter event I ndian Gaming Association (IGA) Chairman Ernie Stevens Jr. and several IGA board members joined the 27th annual National Indian Women’s “Sup- porting Each Other” luncheon hosted in conjunc- tion with the National Congress of American Indians (NCAI) Executive Council Winter Sum- mit at the Capital Hilton on Wednesday, Febru- ary 22, 2023. Honorees included Marilynn Malerba, chief of the Mohegan Tribe of Connecticut and the first Native American to serve as U.S. Treasurer, and Shannon Holsey, president of the Stock- bridge-Munsee Band of Mohican Indians, who also serves on the execu- tive board as the treasurer of NCAI. Chairman Stevens said, “I always look forward to joining in on this recognition yearly. It sets the stage to recognize and celebrate the outstanding contribution of these honorees as our Indian Country Warriors, always ready to stand and defend tribal sovereignty and our people. “For over two decades, I have been honored to participate in this fantastic luncheon, where we have recognized and celebrated the leadership of many outstanding Native women leaders. It’s a natural place for me as I have grown up in this industry and worked side-by- side with these amazing women.” He added, “Our women are our strength and our resilience and ensure our future. With- out a doubt, Treasurer Malerba and President Holsey are two of the truest examples of the strength of leadership in Indian country. These great women leaders have been strong advo- cates for not only the tribal communities they represent but are the greatest example of lead- ers who have dedicated their lives to advancing all of Indian country.” Minnesota Lieutenant Governor Peggy Flanagan presented the luncheon keynote. Flana- gan was recently elected to her second term and is the first Native American to be elected to that post in Minnesota. She served in the Minnesota House of Representatives from 2015 to 2019. The event was sponsored by the Indian Gaming Association, Tulalip Tribes, Indigenous Pact, Pechanga Tribe, National Indian Health Board, Seattle Indian Health Board, the Lummi tribe, the Jamestown S’Klallam Tribe, Emily’s List and AD PRO.LEARN MORENext >