Feb
27
2010
Revenue sharing provisions in tribal-state compacts are a legal "grey" area. IGRA is very clear that states can't tax tribal gaming, or charge tribes a fee to engage in Class III gaming. But the Interior Secretary has taken the position that tribes and states can negotiate revenue sharing provisions, in which the state gets, well, a fee -- but the tribe gets something from the state, too. Typically, what the tribe gets is some form of exclusivity (like the state's promise not to legalize commercial casinos) or some additional benefit (like new games, or additional machines). The limits on this approach are less than clear.