Plan links Indian gaming, state lotteries

Monday, Feb. 8, 1999 | 12:15 p.m.

VIRGINIA BEACH, Va. -- A member of the National Gambling Impact Study Commission with strong ties to the casino industry has proposed creating a new super federal agency to oversee Indian gaming and state-run lotteries.

International Culinary Union President John Wilhelm, who represents casino workers in Las Vegas and Atlantic City, unveiled his proposal at a meeting Sunday of the Impact Study Commission's Indian Gambling Subcommittee. Wilhelm is a member of the subcommittee.

"I'm not wedded to the idea," Wilhelm said afterward. "And I'm not saying it's the right proposal."

But Wilhelm said he hoped his suggestion would steer the commission toward a discussion of putting state-run lotteries, now in 37 states, on the same regulatory playing field as tribal gambling.

Nearly 200 tribes now operate 285 gambling operations in 28 states under the jurisdiction of the National Indian Gaming Commission, which has received much criticism for being understaffed and ineffective. The states, which are considered sovereign entities like the Indian tribes, regulate themselves.

Wilhelm proposed patterning the new five-member agency, which would be part of the Justice Department, after the regulatory schemes of Nevada and New Jersey, considered the toughest in the world.

States and tribes can exempt themselves from the national regulations if they set up their own independent regulatory systems that match the toughness of the new federal panel, Wilhelm said.

Wilhelm also proposed reshaping the Indian Gaming Regulatory Act of 1988 so that it improves the working relationships between tribes and states.

The Gambling Impact Study Commission will hear recommendations from its Indian Gaming Subcommittee on Tuesday.