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Native America News Proposed Class II Indian Gaming Regs Are Cause For Major Concern Political, legal, and regulatory events are occurring from California to Florida to Massachusetts to Washington, DC that will have a direct impact on our business. Following are highlights of current activity on these fronts. A major concern for IGT and many of our tribal customers is a set of Class II gaming regulations that has been proposed by the National Indian Gaming Commission (NIGC). The Indian Gaming Regulatory Act permits tribes to operate electronic aids in the play of bingo. The regulations proposed by the NIGC would put restrictions on such devices and on the play of bingo that are over and above what is required by law. Also of concern is a proposed regulation that would govern the process by which the Department of the Interior takes land into trust for tribes for gaming purposes. On January 3rd, based on the terms of the proposed regulation, the Department of the Interior denied eleven land in trust applications and voided another eleven trust applications for insufficient information. These device and land regulations are under review and may become effective in the coming months. Depending on the final form of these regulations, tribes may file legal challenges to them. In California, five tribes have amended their compacts with the state to allow the operation of more machines by those tribes. These amendments would increase the five tribes’ legal machine maximums by a combined total of 22,500 machines. If approved, new machines would be added under the new maximums as dictated by demand and 24 capacity. It is very important to note that this would occur gradually, over a period of years. On February 5th, California voters ratified compact amendments between the state and the Agua Caliente Band of Cahuilla Indians, Morongo Band of Mission Indians, Pechanga Band of Luiseno Indians, and the Sycuan Band of Kumeyaay Nation. That ratification will be final once the election results are certified in March. However, as the amendments have already been published in the Federal Register, they are basically effective now. The San Manuel compact amendment took effect January 18, 2008. In Florida, the Governor has signed a compact with the Seminole tribe for tribal operation of Class III games including slot machines. That compact became effective on January 7th, 2008. To date, IGT has placed 700 machines with the Seminoles. In Massachusetts, two tribes are looking at two potential avenues to provide legal gaming. A newly recognized Massachusetts tribe, the Mashpee Wampanoag, has secured land and is seeking approval from the Department of the Interior to use that land for gaming. They would then provide Class II games and, if the state were to authorize Class III gaming, negotiate with the state for Class III games. The Aquinnah Wampanoag tribe is focused on pursuing one of three commercial casino licenses that would become available if legislation introduced by the Governor is passed. Passage of casino legislation and final Department of the Interior land approval would not occur for some time. But, the wheels have begun to turn.
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