By Daniel Tucker

The recent successful completion of a multiyear FBI investigation of a nationwide gambling cheating ring is a great example of how tribal, state and federal gaming regulators and law enforcement agencies are working together to ferret out and prosecute criminal elements trying to cheat in tribal casinos. The 19 indictments handed down by the federal grand jury also demonstrate that the Tribal Gaming Commission of Sycuan is capable, robust and effective.

As the tribal chairman of the Sycuan Band of the Kumeyaay Nation, I am proud of the role that our Tribal Gaming Commission and our casino management played in this investigation. The ring leader of this alleged racketeering enterprise began his operations as one of our employees five years ago. His criminal activity was quickly discovered. He was immediately discharged, and Sycuan then worked closely with the FBI and the San Diego County District Attorney’s Office to successfully prosecute him at that time.

Following that incident, the Sycuan Gaming Commission continued to work closely with the National Indian Gaming Commission and with the FBI throughout the lengthy criminal investigation that led to last week’s indictments of the founder of the cheating ring and his co-conspirators.

The benefits of this cooperation were highlighted by NIGC Chairman Philip N. Hogen, who stated, “The NIGC is pleased to have contributed to such a large scale investigation involving a criminal network that cheated Indian casinos out of millions of dollars.” Hogen continued, “This investigation is a good example of the high-quality work tribal gaming regulators do in protecting fair play at their facilities.”

In a recent editorial, The San Diego Union-Tribune questioned the proposed amended compacts because of the concern they do not provide sufficient external oversight of gaming operations by the state or the National Indian Gaming Commission. The successful indictments handed down recently demonstrate that strong and effective oversight already exists, and that tribal, state and federal regulators are committed to maintaining and enforcing strict internal control standards. In addition to the strong internal control standards now in place, these amended compacts expressly allow the state to audit gaming operations at any time and under strict auditing standards.

This month, the Legislature has the opportunity to dramatically improve Indian gaming operations and to further strengthen the state’s oversight of tribal gaming by ratifying new Tribal Gaming Compacts with five major gaming tribes, including Sycuan here in San Diego County. These five amended compacts, negotiated by Gov. Arnold Schwarzenegger last year, would give local non-tribal governments, including San Diego County, the right to require binding and enforceable agreements to mitigate the off-reservation impacts on the environment and local government services from new or expanded tribal gaming facilities, while also dramatically increasing the revenues these gaming operations must pay to the state of California.

Here are the facts about federal and state oversight of Sycuan’s gaming operations under the amended compact now before the Assembly:

Federal law and the existing compact already require the tribe to adopt and maintain in effect a gaming ordinance approved by the NIGC, and to operate with effective internal control standards equivalent to those previously issued by the NIGC. This requirement is still in place and has not been impacted by the recent court decision regarding the NIGC’s lack of authority to impose minimum internal control standards.

Failure to maintain and enforce effective internal control standards would constitute grounds for an NIGC enforcement action under IGRA, or state enforcement action under the compact.

Sycuan’s pending amended compact continues the state’s authority to bring an enforcement action that could result in closure of the gaming operation if Sycuan were to violate required standards.

Section 7.5 of the pending amended compact expressly grants the State Gaming Agency full authority to test gaming equipment and to audit and inspect gaming operations, books and records, including ” . . . the Tribe’s technical standards, regulations and internal controls applicable to the Tribe’s Gaming Devices.”

Finally, under Sec. 8.4.1 of the Sycuan’s existing compact, which would not be changed by the pending amended compact, the California Gambling Control Commission has full authority to propose any additional regulations that might be necessary and to impose those regulations over tribal objections, if necessary.

For the last 25 years, the growth of tribal gaming in San Diego County has provided a major stimulus to the regional economy. The network of Indian gaming and entertainment facilities in the county are an important source of regional employment and regional attractions for our tourist economy. Sycuan’s amended gaming compact as negotiated by the governor will ensure that we will continue to operate a strictly regulated gaming facility while responding to long-term growth in market demand and while still protecting surrounding non-tribal communities from potential impacts from our operations.

Tucker is chairman of the Sycuan Band of the Kumeyaay Nation.

© Copyright 2007 Union-Tribune Publishing Co.

Posted on June 12th, 2007 by admin
Filed under: Gaming