NIGA 2018 Annual Report

NIGA 2018 Annual Report

NIGA TAX EXEMPT STATEMENT

The National Indian Gaming Association (NIGA) is a tax exempt corporation under Internal Revenue Code section 501(c)(6). Although ruled tax exempt, this does not make NIGA a “charity” and thus contributions to the organization are not always deductible by the donor as a charitable contribution for federal Income Tax purposes. NIGA was founded in 1985 and incorporated in the District of Columbia in 1993.

MISSION STATEMENT The mission of the National Indian Gaming Association (NIGA) is to protect and preserve the general welfare of the Tribes striving for self-sufficiency through gaming enterprises in Indian Country. To fulfill its mission, NIGA works with the federal government and Congress to develop sound policies and practices and to provide technical assistance and advocacy on gaming related issues. In addition, NIGA seeks to maintain and protect Indian sovereign governmental authority in Indian Country.

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ANNUAL REPORT 2018

Chairman’s Report

4

Vice Chairman’s Report

10

Treasurer’s Report

12

Secretary’s Report

14

Executive Director’s Report

16

Board of Directors 2016

20

Staff Matrix 2017

21

Nationwide Impacts of Indian Gaming

23

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CHAIRMAN’S REPORT ERNEST L. STEVENS, JR. Oneida Nation of Wisconsin

T he state of the Indian Gaming Industry is strong and we should all take great pride in the strides we have made together over the past forty years. Not only have we become the nationwide industry leader in growth year over year since the great recession, we now represent the largest segment of the overall gaming industry in the United States. According to Nathan Associates Casino City’s Indian Gaming Industry Report of 2017 Indian Tribal Government Gaming represents 44.3% of the gaming market—while commercial casinos represent 43.3% of the market and racino’s represent 12.4% of the national casino market. There can be no doubt that Tribal Government Gaming has made the most out of the Indian Gaming Regulatory Act (IGRA), which turns thirty years old on October 18th of this year. Although IGRA was a compromise, the significant benefits that Indian gaming revenues have provided to Native communities and tribal governments over these past thirty years is phenomenal. With that said, NIGA will continue to push for a Seminole fix to restore balance to the Tribal/State compacting process, to ensure that the economic benefits of Tribal Government Gaming go back to our Tribal communities to promote tribal economic development, tribal self-sufficiency, and strong tribal governments. This is not rhetoric, and I consider my job not done until this task is complete. The White House Transition Plan/115th Congress NIGA has continued our outreach and education efforts with the new Administration, following up on the Transition Plan we submitted in January of 2017 and pursuit of our legislative and regulatory priorities. Through our Winter and Summer Legislative Summits, we’ve also continued to educate key Members of Congress and work with our champions to strengthen tribal sovereignty. We have also continued to strengthen alliances with the national and regional native organizations. Throughout the year, NIGA worked to ensure that the voice of our Member

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Tribes are heard voice is at key congressional hearings, listening sessions, and government-to-government consultations. Despite our consistent outreach and education, progress with the new Administration has been slow and frustrating to say the least. Throughout 2017, all of Indian Country united in the push to include Indian Country in national tax reform efforts. NIGA hosted more than a half dozen meetings at our Stanley R. Crooks Tribal Leaders Conference Center to press policy makers to amend the U.S. Tax Code to provide Indian tribes with all the tools, tax incentives and tax credits for economic development that are made available to state and territorial governments. Tribes and tribal organizations nationwide expressed great disappointment in the failure of the Tax Cuts and Jobs Act to make any progress on this and many other tribal tax priorities. NIGA will continue work on behalf of our Member Tribes and all of Indian Country to break down barriers to economic development in Indian Country and to amend federal laws to acknowledge the constitutional status of Indian tribes as distinct governments. We will raise awareness to the more than $50 billion in unmet needs to rebuild Indian Country’s neglected infrastructure, and for potential legislation to advance economic development and commerce in Indian Country. We will continue to push our legislative agenda and remain optimistic that this administration and congress will stay true to their words that, “Tribal Sovereignty should mean something” and that self-determination unites all Indian Tribes and this administration. We will continue to work with them to ensure our communities continue to make strides that improve the quality of life for our members and our neighbors. NIGA’s Legislative Agenda We continue to advance our legislative and policy agenda with the Administration and the 115th Congress. Items that we continue to educate, advance and promote include: protection of existing rights to conduct gaming under IGRA and opposition to amendments to that Act; passage of the Tribal Labor Sovereignty Act; ensuring fairness for Indian tribes as governments in any federal iGaming legislation; reversing the Supreme Court’s attack in Carcieri and restoring tribal homelands; fully implementing the Tribal General Welfare Exclusion Act; ending Dual Taxation; advancing updates to the Indian Trader Regulations; eliminating the essential governmental function test for bonding and pension plans while working to bring parity in the treatment of Indian tribes as governments for federal tax laws and tax credit programs; and further developing and diversifying tribal economies. NIGA learned early last week that the Senate is scheduling a vote on the Tribal Labor Sovereignty Act next week. It is imperative that all Tribes press their Senators for this floor vote. This Act will amend the National Labor Relations Act to restore Tribal Governments as sovereign entities, just as U.S. Territories and possessions (States) and the District of Columbia are recognized. This will provide parity for Tribal Governments and the government revenue generated by them to provide essential programs and services to reservation residents. We have an opportunity to bring this twelve year issue to closure for once and for all. Please take time out of your schedule this week to call, email and contact your Senators to encourage their vote for cloture on S63.

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Class II Gaming Subcommittee NIGA’s Class II Gaming Subcommittee has accomplished some outstanding work this year. They were able to track and monitor the National Indian Gaming Commission’s (NIGC) Consultation Process regarding Class II Gaming Systems and other related regulatory issues. The Subcommittee kept our Member Tribes abreast of the issues, provided an analysis of the impacts, and recommended comments, input and participation throughout this year long process. As a result of this work, on December 27, 2017, the NIGC published a final rule eliminating the sunset provision requiring Tribes to remove “non-compliant” Class II gaming systems manufactured before November 10, 2008 (2008 Systems) from the gaming floor. 2008 Systems are now subject to annual review and testing. The NIGC’s issuance of this final rule concludes a multi-year process in a way that ensures the integrity and security of Class II gaming while not disrupting the significant economic benefits Tribes receive from these 2008 Systems. The effective date of the amended regulation is January 26, 2018. The new rule transforms the treatment of 2008 Systems from being treated as an exception to compliant gaming systems, to being treated as an alternative set of gaming system. This new process requires Tribal Gaming Regulatory Agencies (TGRAs) to annually review and assess each 2008 System operating within its jurisdiction for compliance with the minimum technical standards. The new provision requires TGRAs to not only identify specific Class II gaming systems not conforming to these standards, but to also enumerate all components of each system that functionally prevent compliance with NIGC regulations. According to the NIGC, this will aid TGRAs in determining whether the modification will maintain the system’s compliance or advance the system’s compliance with the standards for newer systems. This is a great example of our industry working with Administrative officials to reach solutions that safeguard the integrity of Indian gaming systems and protect both the gaming public and the gaming operation. The NIGC recently announced a new round of consultations on new regulatory issues and our Gaming Sub- Committee will continue to monitor those discussions as well as promote the many benefits that Class II gaming brings to Tribal Government Gaming. Sports Betting Working Group & Emerging Gaming Opportunities Enacted in 1992, the Professional and Amateur Sports Protection Act (PASPA) prohibits tribal and state governments from enacting laws or entering into compacts to legalize sports betting. On December 4, 2017, the U.S. Supreme Court heard oral arguments in a challenge to the constitutionality of that law. A decision is expected any day. With the potential to lift the federal ban against sports betting in the United States, NIGA established its Sports Betting Working Group, which has gathered information, researched and identified possible impacts on brick and mortar Indian Gaming operations, as well as other related issues in this critical discussion.

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While the average margin of a sports book is 5%, the activity is an amenity that draws an additional customer base that could prove crucial in the current highly competitive gaming environment. To further complicate the issue, Internet sports gaming will likely enter the policy debate, in order to enhance the economic viability of the activity. Internet gaming adds several elements to the debate, including Social iGaming, Internet Skill Dominant Gaming, Mobile Casino Gambling, Internet Casino Gambling, Daily Fantasy Sports, among others. The Indian Gaming regulatory community has also been engaging in discussions to prepare for the potential new evolution of games. NIGA Sports Betting Working Group held four regional meetings to gather input from our membership about sports betting. From the feedback provided throughout this debate, NIGA’s Board of Directors is working to finalize a policy position on federal legislative efforts to amend PASPA. In addition, we must prepare our Member Tribes for several possible outcomes of the Supreme Court case: PASPA is upheld (status quo), overturned as unconstitutional (free for all for states and Tribes), or partial repeal (which could result in a Tribal-only Prohibition). We have the foundation for these discussions in place with the NIGA Internet Gaming Principles, which were established in 2011. These principles are directives from our leadership, and are grounded in NIGA’s overall mission to protect and preserve tribal sovereignty and the respect for Indian tribes as governments. Tribal Government Gaming Expanding Worldwide NIGA has participated in the International Casino Exhibition (ICE) since 2014, educating the world gaming market about the Indian Gaming industry. Having been in the industry for forty years, Indian Gaming is now taking steps to use our expertise in markets beyond the United States. ICE is the largest gaming tradeshow in the world and offers venues for Governmental Representatives, regulators, operators and vendors. Many governmental entities from around the world that are considering offering gaming in their jurisdictions attend the conference in search of potential partners. With this initiative also come opportunities for furthering Tribal Tourism in the United States and abroad. NIGA will continue to forge relationships at ICE and elsewhere to expand economic opportunities for our Member Tribes and all of Indian Country. Domestic and International Trade and Business Development One of the primary goals of the Indian Gaming Regulatory Act is to promote Tribal economic development and self-sufficiency. While Indian gaming revenues are helping some Tribal Nations improve their economies, more must be done to break down barriers to economic development on Indian lands. NIGA has advocated for needed legislative changes through tax reform, improvements to Indian Country infrastructure, and tribal commerce initiatives. The Department of the Interior conducted a number of Listening Sessions in 2017 to build the case for economic development in Indian Country and gather information to update the Indian Trader Statute and regulations. NIGA will continue to press this Administration to finalize this work. We will also continue to forge these discussions on the international level where we have engaged with the British Parliament to explore potential economic development endeavors, and with the U.S. Embassy in Great Britain, where we had our first discussion this year in collaboration with the National Center for American Indian Enterprise Development. We will be gathering >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48

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