Washington – The $18 billion-a-year Indian casino industry has been left open to corruption and exploitation by non-Indians because regulators are hobbled by poor funding and vague rules.
“When there’s this much money involved, bad guys will come,” Interior Department Inspector General Earl Devaney told the Senate Indian Affairs Committee on Wednesday.
But Indian casino representatives say those who call Indian casinos under-regulated ignore the 2,800 regulators employed by tribes.
“We have stringent regulations because our reputations are at stake,” said Charles Colombe, president of the Rosebud Sioux tribe.
Looming over the hearing was the ongoing investigation of lobbyist Jack Abramoff and his associates, who billed six Indian tribes more than $66 million to lobby for their casinos and other issues. The tribes question whether some charges were excessive.
Besides Abramoff, no significant cases of exploitation or corruption were discussed at the hearing. Officials said the problem is the potential for exploitation of unsophisticated tribes by non-Indians using tribes to make fast money.
Among the problems cited:
Casino developers who use loopholes to run Indian casinos without background checks and other oversight.
Vague rules about whether the National Indian Gaming Commission can regulate Las Vegas-style casinos on reservations.
A loophole in ethics law that allows former federal officials to work for tribes without the customary one-year “cooling off” period.
The “dual role” of NIGC field officials in helping casinos and policing them.
The $12 million limit on how much the NIGC can spend to regulate casinos, regardless of how many casinos they regulate.
Staff writer Mike Soraghan can be reached at 202-662-8730 or msoraghan@denverpost.com.
