The NIGC Approves Guidance on Class III MICS

On August 14, 2018, the National Indian Gaming Commission (NIGC) approved nonbinding guidance on Class III Minimum Internal Control Standards (MICS).

Key Provisions

The NIGC’s Class III MICS hadn’t been updated since 2005 due to the 2006 Colorado River Indian Tribes v. National Indian Gaming Commission case that ruled that the NIGC didn’t have jurisdiction over Class III MICS. However, many tribes have elected to continue following Class III guidance and many gaming compacts and ordinances reference the MICS as it pertains to Class III gaming.

With the release of this guidance, the NIGC has made updates to standards that became obsolete due to rapid advancements in technology and introduced new areas of risk that weren’t previously addressed by the old standards.

Effective Dates and Transition

The new guidance is nonbinding, and it’s only guidance—not regulation. The NIGC suspended its existing regulations in 25 Code of Federal Regulations (CFR) Part 542, which means they’ll stay on record though they aren’t enforceable.

This new guidance isn’t intended to modify or amend any terms in a state compact. Tribes are free to adopt any of the NIGC guidance they find useful, but the tribal-state compact must be followed in any conflicts.

We’re Here to Help

For more information about how this new guidance will affect you and your organization, contact your Moss Adams professional.