Tuesday, July 1, 2008

Government Retreats on Tribal Bingo Regulation

Under pressure from Indian tribes, federal regulators announced Thursday they're retreating on attempts to make sure electronic bingo machines at tribal casinos can't masquerade as Las Vegas-style slots.

Phil Hogen, chairman of the National Indian Gaming Commission, said in a statement that he will "put aside the controversial proposals," acceding to tribes' complaints that they could have dire economic impacts.

Hogen issued the statement after making the announcement to the Oklahoma Sovereignty Symposium in Oklahoma City. His move underscored the federal government's struggles in trying to regulate the $25 billion-a-year tribal gambling industry, which has grown explosively.

Slot machines are more lucrative than video bingo and more attractive to players, but they are subject to state approval and limits. Video bingo isn't.
The basic difference between the two is that slot machines involve a gambler interacting only with a single machine, whereas video bingo requires gamblers to play each other over a linked network.

As tribes increasingly supplement their slot machine allotments with video bingo, manufacturers have produced electronic bingo machines that are virtually indistinguishable from slots -- spinning reels, blinking lights and all. That allows tribes to draw in more players and make more money.

For the full story, please see Erica Werner, Government retreats on tribal bingo regulation, Orlando Sentinel, June 5, 2008.

No comments: