The North County tribe will now work directly with the National Indian Gaming Commission for casino regulation
A 500-member tribe in northern San Diego County has become the first in California to opt out of state oversight of its gambling operations in favor of federal supervision.Indians ends nearly two decades of legal wrangling rooted in the way California assesses regulatory costs.
Tribes can operate Class II gaming — Bingo and non-banked games — without a state compact directly under National Indian Gaming Commission oversight. With California and the tribe unable to reach agreement in the years since, Mazzeti said Rincon entered into an interim arrangement known as a secretarial procedure that allowed it to operate its casino under federal approval instead of state approval.
Although the tribe will no longer be under the state’s gaming regulation, that doesn’t mean there won’t be an abundance of regulatory oversight. The fund’s balance was found to have an excessive reserve last June with a balance of $127 million — enough to pay for four years of expenditures related to regulating tribal gaming. California collected $34 million more in distribution fund fees than the cost of regulation in 2021.
The tribe’s casino is also covered by its own oversight through the Rincon Tribal Gaming Commission, which monitors all casino activities to make sure staff receive proper background checks, and that all transactions adhere to federal, state and tribal gaming laws. “Tribes cannot simply opt out. These compacts — the more recent ones — are 25-year agreements,” Forman said.
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