CRIT v. NIGC, D.C. Cir.

by Brad Jolly, Partner
Oct 24, 2006

On October 20, 2006, the D.C. Circuit dealt another blow to the National Indian Gaming Commission's ("NIGC") claimed penultimate authority over Indian gaming. As both the original administrative law judge recommended and the D.C. District Court held, the D.C. Circuit found that the NIGC's claimed authority over all aspects of class III gaming, even if it contravenes a tribal-state compact, simply does not exist. Specifically, the Court held that the NIGC has no authority to promulgate and enforce minimum internal control standards ("MICS") for class III gaming.

The case originated from the NIGC attempting to force the Colorado River Indian Tribes' ("CRIT") Blue Water Casino to allow a class III MICS audit. The Tribes and the Casino refused, arguing that the NIGC lacked authority to promulgate and enforce class III MICS. In response, the Chairman of the NIGC issued a notice of violation and civil fine assessment on CRIT. CRIT appealed to the full NIGC, followed by seeking review by the D.C. District Court. The NIGC appealed the District Court's finding that it lacked authority to enforce the MICS.

The D.C. Circuit, like every other independent decider in this case before it, has held what the majority of Indian country has been saying all along and what even the NIGC once originally said itself: the NIGC's role is limited to class II gaming, except for the specific enumerations of IGRA granting the NIGC some involvement with respect to class III gaming. This decision is a great victory for tribes who have been facing down unjustified attempts by the NIGC to expand its authority beyond its limits.

Read the court's opinion here.