Seneca-Cayuga Tribe v. National Indian Gaming Commission

327 F.3d 1019, 2003 U.S. App. LEXIS 7284, 2003 WL 1889944
CourtCourt of Appeals for the Tenth Circuit
DecidedApril 17, 2003
Docket01-5066
StatusPublished
Cited by59 cases

This text of 327 F.3d 1019 (Seneca-Cayuga Tribe v. National Indian Gaming Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seneca-Cayuga Tribe v. National Indian Gaming Commission, 327 F.3d 1019, 2003 U.S. App. LEXIS 7284, 2003 WL 1889944 (10th Cir. 2003).

Opinion

HENRY, Circuit Judge.

This case requires us to interpret the Johnson Act, 15 U.S.C. §§ 1171-1178, and the Indian Gaming Regulatory Act (“IGRA”), 25 U.S.C. §§ 2701-2719. Appellants are the federal agencies and officials who threatened to prosecute three Native American tribes for use of a device called the Magical Irish Instant Bingo Dispenser System, which we will call “the Machine.” Appellees are the three tribes, as well as the corporation that manufactured and supplied the Machine.

In response to the threat of prosecution, the appellees filed a complaint in federal district court. Subsequently, the district court granted the appellees’ motion for a declaratory judgment stating that the Machine (1) is not an illegal “gambling device” under the Johnson Act; and (2) is a permissible technologic aid to Class II gaming under IGRA. This appeal followed.

Our opinion proceeds in four steps. Part I summarizes the applicable statutory framework. Part II summarizes the background of this dispute. Part III assesses, and rejects, the two threshold arguments raised by appellees: mootness and collateral estoppel. Part IV evaluates the dis *1022 trict court’s judgment on the merits in two sections. The first section analyzes the relationship between IGRA and the Johnson Act and concludes that if the Machine is properly classified as an IGRA Class II technologic aid, then the Machine is necessarily both authorized by IGRA and protected from Johnson Act scrutiny. The second section, following the D.C. Circuit, concludes that the Machine is indeed an IGRA Class II technologic aid. Accordingly, although our reasoning differs somewhat from the district court, we affirm the district court’s decision.

I. THE STATUTORY FRAMEWORK

We begin by summarizing the applicable statutory framework. We discuss the Johnson Act and then IGRA.

The Johnson Act

The Johnson Act, as amended in 1962, makes criminal, both outside and inside “Indian country,” 1 the possession, use, sale, or transportation of any “gambling device.” 15 U.S.C. § 1175(a). The Johnson Act defines a “gambling device” as any

slot machine ... and other machine or mechanical device (including but not limited to, roulette wheels and similar devices) designed and manufactured primarily for use in connection with gambling, and (A) which when operated may deliver, as the result of the application of an element of chance, any money or property, or (B) by the operation of which a person may become entitled to receive, as the result of the application of an element of chance, any money or property.

Id. § 1171(a)(1), (2). Courts have construed the Johnson Act broadly, concluding that the statute’s “gambling device” language was enacted to “anticipate the ingeniousness of gambling machine designers” in “separating the public from its money on a large scale,” Lion Mfg. Corp. v. Kennedy, 330 F.2d 833, 836-37 (D.C.Cir. 1964), and therefore to cover a wide variety of machines. See James L. Rigel-haupt, Jr., What Constitutes Gambling Device Within Meaning of 15 U.S.C.A. Sec. 1171(a) So as to be Subject to Forfeiture Under Gambling Devices Act of 1962 (15 U.S.C.A. secs. 1171-1178), 83 A.L.R. Fed. 177, 1987 WL 419639 (1987 & Supp.2000) (collecting cases).

The Indian Gaming Regulatory Act (IGRA)

Following the Supreme Court’s decision in California v. Cabazon Band of Mission Indians, 480 U.S. 202, 107 S.Ct. 1083, 94 L.Ed.2d 244 (1987), which “authorized gaming on federally recognized Indian *1023 country, Congress enacted the Indian Gaming Regulatory Act ... also known as IGRA.” United States v. 162 MegaMania Gambling Devices, 231 F.3d 713, 717 (10th Cir.2000) (internal citations omitted). IGRA “provides a comprehensive regulatory framework for gaming activities on Indian country which seeks to balance the interests of tribal governments, the states, and the federal government.” Pueblo of Santa Ana v. Kelly, 104 F.3d 1546, 1548 (10th Cir.1997) (internal quotation marks omitted). Towards that end, IGRA authorized the creation within the United States Interior Department of a three member National Indian Gaming Commission. See 25 U.S.C. § 2704. The NIGC’s broad powers include inspecting tribes’ books and records, approving tribal-state pacts, levying and collecting civil fines, monitoring and shutting down unauthorized tribal games, and promulgating regulations and guidelines to implement IGRA. See 25 U.S.C. §§ 2705-06, 2713. IGRA divides Native American gaming into three mutually exclusive categories: Classes I, II, and III. 25 U.S.C. § 2703. The three classes differ as to the extent of federal, tribal, and state oversight. See United Keetoowah Band of Cherokee Indians v. Oklahoma, 927 F.2d 1170, 1177 (10th Cir.1991).

Class I

Class I gaming includes traditional Native American “social games played in connection with ‘tribal ceremonies or celebrations.’ ” Id. (quoting 25 U.S.C. § 2703(6)). These traditional games include “ ‘stick or bone’ games, rodeos, and horse races played in conjunction with tribal celebrations, ceremonies, pow wows, or feasts.” 2 Tribes possess “exclusive jurisdiction” to regulate Class I gaming. Keetoowah, 927 F.2d at 1177 (quoting 25 U.S.C. § 2710(a)(1)) (emphasis supplied).

Class II

Class II gaming includes “the game of chance commonly known as bingo (whether or not electronic, computer or other technologic aids are used in connection therewith) ... including (if played in the same location) pull-tabs, lotto, punch boards, tip jars, instant bingo, and other games similar to bingo_” 25 U.S.C. § 2703(7)(A). IGRA excludes from the definition of Class II gaming “electronic or electromechanical facsimiles of any game of chance or slot machines of any kind.” Id. at § 2703(7)(B)(ii). Class II gaming may be conducted in Indian country without a tribal-state compact.

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Bluebook (online)
327 F.3d 1019, 2003 U.S. App. LEXIS 7284, 2003 WL 1889944, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seneca-cayuga-tribe-v-national-indian-gaming-commission-ca10-2003.