Regulators target illegal slots

Monday, May 19, 2003 | 9:39 a.m.

OKLAHOMA CITY -- Federal regulators warned Oklahoma tribes to shut down illegal Las Vegas-style video slot machines at their casinos or face closure and fines.

According to a copyright story in The Daily Oklahoman, Indian tribes were warned in a stern three-page letter that the use of Class III gaming devices would not be tolerated.

"The bottom line is that all of these Class III devices must be promptly removed from tribal gaming facilities in Oklahoma," wrote Philip Hogen, the new chairman of the National Indian Gaming Commission.

"My intention is to stop this activity by first seeking the assistance and cooperation of the tribal regulators and, second, by bringing enforcement actions against those operations that continue to operate these machines."

Federal regulators are taking the get-tough stance after years of clashes with the tribes over the legitimacy of machines in casinos.

Tribes have insisted the casinos are offering only legal, Class II machines.

The warning has the potential of curtailing gaming at the state's 60 or so Indian casinos. A similar warning issued in January prompted tribes to shut down blackjack games.

The newest warning comes at a time when tribes are pushing for a deal with the state that would exempt certain machines from federal regulation. Such deals are known as compacts.

The tribes in turn would provide the state a cut of their gaming revenues. The state's share could be as much as $20 million to $30 million a year under a proposed agreement now before the Legislature.