§ 2710. — Tribal gaming ordinances.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 25USC2710]
TITLE 25--INDIANS
CHAPTER 29--INDIAN GAMING REGULATION
Sec. 2710. Tribal gaming ordinances
(a) Jurisdiction over class I and class II gaming activity
(1) Class I gaming on Indian lands is within the exclusive
jurisdiction of the Indian tribes and shall not be subject to the
provisions of this chapter.
(2) Any class II gaming on Indian lands shall continue to be within
the jurisdiction of the Indian tribes, but shall be subject to the
provisions of this chapter.
(b) Regulation of class II gaming activity; net revenue allocation;
audits; contracts
(1) An Indian tribe may engage in, or license and regulate, class II
gaming on Indian lands within such tribe's jurisdiction, if--
(A) such Indian gaming is located within a State that permits
such gaming for any purpose by any person, organization or entity
(and such gaming is not otherwise specifically prohibited on Indian
lands by Federal law), and
(B) the governing body of the Indian tribe adopts an ordinance
or resolution which is approved by the Chairman.
A separate license issued by the Indian tribe shall be required for each
place, facility, or location on Indian lands at which class II gaming is
conducted.
(2) The Chairman shall approve any tribal ordinance or resolution
concerning the conduct, or regulation of class II gaming on the Indian
lands within the tribe's jurisdiction if such ordinance or resolution
provides that--
(A) except as provided in paragraph (4), the Indian tribe will
have the sole proprietary interest and responsibility for the
conduct of any gaming activity;
(B) net revenues from any tribal gaming are not to be used for
purposes other than--
(i) to fund tribal government operations or programs;
(ii) to provide for the general welfare of the Indian tribe
and its members;
(iii) to promote tribal economic development;
(iv) to donate to charitable organizations; or
(v) to help fund operations of local government agencies;
(C) annual outside audits of the gaming, which may be
encompassed within existing independent tribal audit systems, will
be provided by the Indian tribe to the Commission;
(D) all contracts for supplies, services, or concessions for a
contract amount in excess of $25,000 annually (except contracts for
professional legal or accounting services) relating to such gaming
shall be subject to such independent audits;
(E) the construction and maintenance of the gaming facility, and
the operation of that gaming is conducted in a manner which
adequately protects the environment and the public health and
safety; and
(F) there is an adequate system which--
(i) ensures that background investigations are conducted on
the primary management officials and key employees of the gaming
enterprise and that oversight of such officials and their
management is conducted on an ongoing basis; and
(ii) includes--
(I) tribal licenses for primary management officials and
key employees of the gaming enterprise with prompt
notification to the Commission of the issuance of such
licenses;
(II) a standard whereby any person whose prior
activities, criminal record, if any, or reputation, habits
and associations pose a threat to the public interest or to
the effective regulation of gaming, or create or enhance the
dangers of unsuitable, unfair, or illegal practices and
methods and activities in the conduct of gaming shall not be
eligible for employment; and
(III) notification by the Indian tribe to the Commission
of the results of such background check before the issuance
of any of such licenses.
(3) Net revenues from any class II gaming activities conducted or
licensed by any Indian tribe may be used to make per capita payments to
members of the Indian tribe only if--
(A) the Indian tribe has prepared a plan to allocate revenues to
uses authorized by paragraph (2)(B);
(B) the plan is approved by the Secretary as adequate,
particularly with respect to uses described in clause (i) or (iii)
of paragraph (2)(B);
(C) the interests of minors and other legally incompetent
persons who are entitled to receive any of the per capita payments
are protected and preserved and the per capita payments are
disbursed to the parents or legal guardian of such minors or legal
incompetents in such amounts as may be necessary for the health,
education, or welfare, of the minor or other legally incompetent
person under a plan approved by the Secretary and the governing body
of the Indian tribe; and
(D) the per capita payments are subject to Federal taxation and
tribes notify members of such tax liability when payments are made.
(4)(A) A tribal ordinance or resolution may provide for the
licensing or regulation of class II gaming activities owned by any
person or entity other than the Indian tribe and conducted on Indian
lands, only if the tribal licensing requirements include the
requirements described in the subclauses of subparagraph (B)(i) and are
at least as restrictive as those established by State law governing
similar gaming within the jurisdiction of the State within which such
Indian lands are located. No person or entity, other than the Indian
tribe, shall be eligible to receive a tribal license to own a class II
gaming activity conducted on Indian lands within the jurisdiction of the
Indian tribe if such person or entity would not be eligible to receive a
State license to conduct the same activity within the jurisdiction of
the State.
(B)(i) The provisions of subparagraph (A) of this paragraph and the
provisions of subparagraphs (A) and (B) of paragraph (2) shall not bar
the continued operation of an individually owned class II gaming
operation that was operating on September 1, 1986, if--
(I) such gaming operation is licensed and regulated by an Indian
tribe pursuant to an ordinance reviewed and approved by the
Commission in accordance with section 2712 of this title,
(II) income to the Indian tribe from such gaming is used only
for the purposes described in paragraph (2)(B) of this subsection,
(III) not less than 60 percent of the net revenues is income to
the Indian tribe, and
(IV) the owner of such gaming operation pays an appropriate
assessment to the National Indian Gaming Commission under section
2717(a)(1) of this title for regulation of such gaming.
(ii) The exemption from the application of this subsection provided
under this subparagraph may not be transferred to any person or entity
and shall remain in effect only so long as the gaming activity remains
within the same nature and scope as operated on October 17, 1988.
(iii) Within sixty days of October 17, 1988, the Secretary shall
prepare a list of each individually owned gaming operation to which
clause (i) applies and shall publish such list in the Federal Register.
(c) Issuance of gaming license; certificate of self-regulation
(1) The Commission may consult with appropriate law enforcement
officials concerning gaming licenses issued by an Indian tribe and shall
have thirty days to notify the Indian tribe of any objections to
issuance of such license.
(2) If, after the issuance of a gaming license by an Indian tribe,
reliable information is received from the Commission indicating that a
primary management official or key employee does not meet the standard
established under subsection (b)(2)(F)(ii)(II) of this section, the
Indian tribe shall suspend such license and, after notice and hearing,
may revoke such license.
(3) Any Indian tribe which operates a class II gaming activity and
which--
(A) has continuously conducted such activity for a period of not
less than three years, including at least one year after October 17,
1988; and
(B) has otherwise complied with the provisions of this section
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may petition the Commission for a certificate of self-regulation.
(4) The Commission shall issue a certificate of self-regulation if
it determines from available information, and after a hearing if
requested by the tribe, that the tribe has--
(A) conducted its gaming activity in a manner which--
(i) has resulted in an effective and honest accounting of
all revenues;
(ii) has resulted in a reputation for safe, fair, and honest
operation of the activity; and
(iii) has been generally free of evidence of criminal or
dishonest activity;
(B) adopted and is implementing adequate systems for--
(i) accounting for all revenues from the activity;
(ii) investigation, licensing, and monitoring of all
employees of the gaming activity; and
(iii) investigation, enforcement and prosecution of
violations of its gaming ordinance and regulations; and
(C) conducted the operation on a fiscally and economically sound
basis.
(5) During any year in which a tribe has a certificate for self-
regulation--
(A) the tribe shall not be subject to the provisions of
paragraphs (1), (2), (3), and (4) of section 2706(b) of this title;
(B) the tribe shall continue to submit an annual independent
audit as required by subsection (b)(2)(C) of this section and shall
submit to the Commission a complete resume on all employees hired
and licensed by the tribe subsequent to the issuance of a
certificate of self-regulation; and
(C) the Commission may not assess a fee on such activity
pursuant to section 2717 of this title in excess of one quarter of 1
per centum of the gross revenue.
(6) The Commission may, for just cause and after an opportunity for
a hearing, remove a certificate of self-regulation by majority vote of
its members.
(d) Class III gaming activities; authorization; revocation; Tribal-State
compact
(1) Class III gaming activities shall be lawful on Indian lands only
if such activities are--
(A) authorized by an ordinance or resolution that--
(i) is adopted by the governing body of the Indian tribe
having jurisdiction over such lands,
(ii) meets the requirements of subsection (b) of this
section, and
(iii) is approved by the Chairman,
(B) located in a State that permits such gaming for any purpose
by any person, organization, or entity, and
(C) conducted in conformance with a Tribal-State compact entered
into by the Indian tribe and the State under paragraph (3) that is
in effect.
(2)(A) If any Indian tribe proposes to engage in, or to authorize
any person or entity to engage in, a class III gaming activity on Indian
lands of the Indian tribe, the governing body of the Indian tribe shall
adopt and submit to the Chairman an ordinance or resolution that meets
the requirements of subsection (b) of this section.
(B) The Chairman shall approve any ordinance or resolution described
in subparagraph (A), unless the Chairman specifically determines that--
(i) the ordinance or resolution was not adopted in compliance
with the governing documents of the Indian tribe, or
(ii) the tribal governing body was significantly and unduly
influenced in the adoption of such ordinance or resolution by any
person identified in section 2711(e)(1)(D) of this title.
Upon the approval of such an ordinance or resolution, the Chairman shall
publish in the Federal Register such ordinance or resolution and the
order of approval.
(C) Effective with the publication under subparagraph (B) of an
ordinance or resolution adopted by the governing body of an Indian tribe
that has been approved by the Chairman under subparagraph (B), class III
gaming activity on the Indian lands of the Indian tribe shall be fully
subject to the terms and conditions of the Tribal-State compact entered
into under paragraph (3) by the Indian tribe that is in effect.
(D)(i) The governing body of an Indian tribe, in its sole discretion
and without the approval of the Chairman, may adopt an ordinance or
resolution revoking any prior ordinance or resolution that authorized
class III gaming on the Indian lands of the Indian tribe. Such
revocation shall render class III gaming illegal on the Indian lands of
such Indian tribe.
(ii) The Indian tribe shall submit any revocation ordinance or
resolution described in clause (i) to the Chairman. The Chairman shall
publish such ordinance or resolution in the Federal Register and the
revocation provided by such ordinance or resolution shall take effect on
the date of such publication.
(iii) Notwithstanding any other provision of this subsection--
(I) any person or entity operating a class III gaming activity
pursuant to this paragraph on the date on which an ordinance or
resolution described in clause (i) that revokes authorization for
such class III gaming activity is published in the Federal Register
may, during the 1-year period beginning on the date on which such
revocation ordinance or resolution is published under clause (ii),
continue to operate such activity in conformance with the Tribal-
State compact entered into under paragraph (3) that is in effect,
and
(II) any civil action that arises before, and any crime that is
committed before, the close of such 1-year period shall not be
affected by such revocation ordinance or resolution.
(3)(A) Any Indian tribe having jurisdiction over the Indian lands
upon which a class III gaming activity is being conducted, or is to be
conducted, shall request the State in which such lands are located to
enter into negotiations for the purpose of entering into a Tribal-State
compact governing the conduct of gaming activities. Upon receiving such
a request, the State shall negotiate with the Indian tribe in good faith
to enter into such a compact.
(B) Any State and any Indian tribe may enter into a Tribal-State
compact governing gaming activities on the Indian lands of the Indian
tribe, but such compact shall take effect only when notice of approval
by the Secretary of such compact has been published by the Secretary in
the Federal Register.
(C) Any Tribal-State compact negotiated under subparagraph (A) may
include provisions relating to--
(i) the application of the criminal and civil laws and
regulations of the Indian tribe or the State that are directly
related to, and necessary for, the licensing and regulation of such
activity;
(ii) the allocation of criminal and civil jurisdiction between
the State and the Indian tribe necessary for the enforcement of such
laws and regulations;
(iii) the assessment by the State of such activities in such
amounts as are necessary to defray the costs of regulating such
activity;
(iv) taxation by the Indian tribe of such activity in amounts
comparable to amounts assessed by the State for comparable
activities;
(v) remedies for breach of contract;
(vi) standards for the operation of such activity and
maintenance of the gaming facility, including licensing; and
(vii) any other subjects that are directly related to the
operation of gaming activities.
(4) Except for any assessments that may be agreed to under paragraph
(3)(C)(iii) of this subsection, nothing in this section shall be
interpreted as conferring upon a State or any of its political
subdivisions authority to impose any tax, fee, charge, or other
assessment upon an Indian tribe or upon any other person or entity
authorized by an Indian tribe to engage in a class III activity. No
State may refuse to enter into the negotiations described in paragraph
(3)(A) based upon the lack of authority in such State, or its political
subdivisions, to impose such a tax, fee, charge, or other assessment.
(5) Nothing in this subsection shall impair the right of an Indian
tribe to regulate class III gaming on its Indian lands concurrently with
the State, except to the extent that such regulation is inconsistent
with, or less stringent than, the State laws and regulations made
applicable by any Tribal-State compact entered into by the Indian tribe
under paragraph (3) that is in effect.
(6) The provisions of section 1175 of title 15 shall not apply to
any gaming conducted under a Tribal-State compact that--
(A) is entered into under paragraph (3) by a State in which
gambling devices are legal, and
(B) is in effect.
(7)(A) The United States district courts shall have jurisdiction
over--
(i) any cause of action initiated by an Indian tribe arising
from the failure of a State to enter into negotiations with the
Indian tribe for the purpose of entering into a Tribal-State compact
under paragraph (3) or to conduct such negotiations in good faith,
(ii) any cause of action initiated by a State or Indian tribe to
enjoin a class III gaming activity located on Indian lands and
conducted in violation of any Tribal-State compact entered into
under paragraph (3) that is in effect, and
(iii) any cause of action initiated by the Secretary to enforce
the procedures prescribed under subparagraph (B)(vii).
(B)(i) An Indian tribe may initiate a cause of action described in
subparagraph (A)(i) only after the close of the 180-day period beginning
on the date on which the Indian tribe requested the State to enter into
negotiations under paragraph (3)(A).
(ii) In any action described in subparagraph (A)(i), upon the
introduction of evidence by an Indian tribe that--
(I) a Tribal-State compact has not been entered into under
paragraph (3), and
(II) the State did not respond to the request of the Indian
tribe to negotiate such a compact or did not respond to such request
in good faith,
the burden of proof shall be upon the State to prove that the State has
negotiated with the Indian tribe in good faith to conclude a Tribal-
State compact governing the conduct of gaming activities.
(iii) If, in any action described in subparagraph (A)(i), the court
finds that the State has failed to negotiate in good faith with the
Indian tribe to conclude a Tribal-State compact governing the conduct of
gaming activities, the court shall order the State and the Indian Tribe
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such an action whether a State has negotiated in good faith, the court--
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(I) may take into account the public interest, public safety,
criminality, financial integrity, and adverse economic impacts on
existing gaming activities, and
(II) shall consider any demand by the State for direct taxation
of the Indian tribe or of any Indian lands as evidence that the
State has not negotiated in good faith.
(iv) If a State and an Indian tribe fail to conclude a Tribal-State
compact governing the conduct of gaming activities on the Indian lands
subject to the jurisdiction of such Indian tribe within the 60-day
period provided in the order of a court issued under clause (iii), the
Indian tribe and the State shall each submit to a mediator appointed by
the court a proposed compact that represents their last best offer for a
compact. The mediator shall select from the two proposed compacts the
one which best comports with the terms of this chapter and any other
applicable Federal law and with the findings and order of the court.
(v) The mediator appointed by the court under clause (iv) shall
submit to the State and the Indian tribe the compact selected by the
mediator under clause (iv).
(vi) If a State consents to a proposed compact during the 60-day
period beginning on the date on which the proposed compact is submitted
by the mediator to the State under clause (v), the proposed compact
shall be treated as a Tribal-State compact entered into under paragraph
(3).
(vii) If the State does not consent during the 60-day period
described in clause (vi) to a proposed compact submitted by a mediator
under clause (v), the mediator shall notify the Secretary and the
Secretary shall prescribe, in consultation with the Indian tribe,
procedures--
(I) which are consistent with the proposed compact selected by
the mediator under clause (iv), the provisions of this chapter, and
the relevant provisions of the laws of the State, and
(II) under which class III gaming may be conducted on the Indian
lands over which the Indian tribe has jurisdiction.
(8)(A) The Secretary is authorized to approve any Tribal-State
compact entered into between an Indian tribe and a State governing
gaming on Indian lands of such Indian tribe.
(B) The Secretary may disapprove a compact described in subparagraph
(A) only if such compact violates--
(i) any provision of this chapter,
(ii) any other provision of Federal law that does not relate to
jurisdiction over gaming on Indian lands, or
(iii) the trust obligations of the United States to Indians.
(C) If the Secretary does not approve or disapprove a compact
described in subparagraph (A) before the date that is 45 days after the
date on which the compact is submitted to the Secretary for approval,
the compact shall be considered to have been approved by the Secretary,
but only to the extent the compact is consistent with the provisions of
this chapter.
(D) The Secretary shall publish in the Federal Register notice of
any Tribal-State compact that is approved, or considered to have been
approved, under this paragraph.
(9) An Indian tribe may enter into a management contract for the
operation of a class III gaming activity if such contract has been
submitted to, and approved by, the Chairman. The Chairman's review and
approval of such contract shall be governed by the provisions of
subsections (b), (c), (d), (f), (g), and (h) of section 2711 of this
title.
(e) Approval of ordinances
For purposes of this section, by not later than the date that is 90
days after the date on which any tribal gaming ordinance or resolution
is submitted to the Chairman, the Chairman shall approve such ordinance
or resolution if it meets the requirements of this section. Any such
ordinance or resolution not acted upon at the end of that 90-day period
shall be considered to have been approved by the Chairman, but only to
the extent such ordinance or resolution is consistent with the
provisions of this chapter.
(Pub. L. 100-497, Sec. 11, Oct. 17, 1988, 102 Stat. 2472.)
Section Referred to in Other Sections
This section is referred to in sections 1775b, 2703 of this title.
