US Casinos

Casino Game Classifications in the U.S

In addition to tens of thousands of commercial casinos and gambling venues, many of America’s casinos are owned and operated by Indian tribes.

Tribal gaming is regulated by tribal authorities as well as federal and state authorities (depending on the type of gaming which is being conducted ) – as outlined by the Indian Gaming Regulatory Act (IGRA), 25 U.S.C §2701 et seq.

The IGRA classifies gaming into three distinct classes, Class I, Class II and Class III, as well as providing a framework for the regulation of tribal gaming.

Class I gaming includes social games and traditional/ceremonial games. An Indian tribe can offer Class I games without any restrictions.

Class II gaming includes bingo and non-banked card games.

Four U.S. states (Alabama, Alaska, Nebraska and Texas) are limited to offering Class II gaming only.

Tribes don’t require any agreements at the state level to conduct Class II gaming – instead, tribal governments are themselves responsible for regulating Class II gaming with oversight from the National Indian Gaming Commission (NIGC).

Class III gaming includes all other forms of gambling, including casino-style gambling video games of chance (video slots, video poker) & the casino “classics” – blackjack, poker, roulette, craps, baccarat and so on.

An Indian tribe may operate Class III games only if the tribe and the state have agreed to a tribal-state gaming compact.

If and when a state and tribe have reached an agreement, the federal government must approve the compact before it is
valid and allowed to conduct gambling business.

Minnesota tribes were the first in the nation to negotiate and sign gaming compacts with a state government and has since negotiated 22 tribal-state compacts with 11 Indian tribes, resulting in the establishment of 18 casinos in the state.

The National Indian Gaming Commission Office of General Counsel is responsible for evaluating and reviewing new games when requested by on a casino games studio or a tribe – issues advice on whether they will be classified as Class II or Class III games.

An Indian tribe can offer Class II games if the games are generally legal in the state where the tribe is located and adopt a gaming ordinance approved by the National Indian Gaming Commission.

Class II Regulation

As long as the tribal government passes a gaming ordinance that has been approved by the NIGC, tribes may continue to exercise their federally granted ability to conduct, license, and control Class II gambling. According to the IGRA, the tribal gaming legislation must include provisions for yearly external audits of the gaming, which the Indian tribe will submit to the NIGC.

The net profits from Class II tribal gaming must be used by tribal governments to finance tribal operations or programs, to ensure the welfare of the Indian tribe and its members generally, to encourage tribal economic development, to make donations to nonprofits, or to assist in funding local government agencies’ operations.