NIGC Publishes Final Rule to Amend Fee Calculation Regulations

To
Indian Gaming Association Members
From

Ernie Stevens, Jr., Chairman
Jason Giles, Executive Director

re
NIGC Publishes Final Rule to Amend Fee Calculation Regulations
Date
September 7th, 2022

On September 6, 2022, the National Indian Gaming Commission (“NIGC”) published a final rule in the Federal Register amending its regulations at 25 C.F.R. § 514.4 that govern the calculation of annual fees owed by a gaming operation to the NIGC. The NIGC first proposed amending this regulatory section during its Series B Consultation held between September 13 and November 1, 2021; and subsequently, on December 2, 2021, the NIGC published its proposed rule to amend 25 C.F.R. Part 514 in the Federal Register. However, as stated in the preface of this final rule, the NIGC was responsive to comments in opposition to the manner in which the NIGC was initially seeking to exclude promotional credits from the annual fee calculation formula.

The final rule here amends 25 C.F.R. § 514.4 (c) to exclude amounts wagered as promotional credits from the “total amount of money wagered” when calculating the amount of annual fees owed to the NIGC. Further, the exclusion of promotional credits from the calculation of the “total amount of money wagered” is mandatory under this final rule rather than merely discretionary as initially proposed.

The amendments to 25 C.F.R. § 514.4 (c) established by this final rule will become effective on October 6, 2022. This final rule, as published in the Federal Register, may be found here:

https://www.federalregister.gov/documents/2022/09/06/2022-19217/annual-fee-calculation.

Please contact Danielle Her Many Horses at dhermanyhorses@indiangaming.org with any questions or concerns regarding this Alert.