For Immediate Release                    

Contact: Shawn Pensoneau

(202) 632-7003

NIGC Participates in Identification of Wide-Spread Cheating Scam

Washington DC, May 24 2007 — The National Indian Gaming Commission (NIGC) has participated in an intense and ongoing investigation of criminal activity being conducted in both tribal and commercial facilities.  The defendants targeted table games using a “false shuffle” technique that allowed the cheaters to know in advance what cards would be dealt to them.  The ongoing law enforcement investigation has already resulted in several arrests (copy of Department of Justice Press Release attached).

The NIGC joined several other federal and state law enforcement agencies to assist in uncovering these crimes against the gaming industry.  In addition, the federal Indian Gaming Working Group (IGWG) and various tribal gaming regulatory agencies contributed to this investigation.

NIGC field investigators were brought into the investigation to identify and illustrate how the criminal network was able to cheat the table games by manipulating decks of cards to affect the outcome of the games.  The cheating activity was easier to identify in facilities where camera surveillance coverage and statistical reporting of table games complied with NIGC Minimum Internal Control Standards (MICS) than at gaming operations which lacked compliance with these standards.  The MICS are a series of procedures designed to identify and minimize criminal activity through documenting and double-checking many aspects of the cash-intensive gaming business.

NIGC Chairman Philip N. Hogen stated, “The NIGC is pleased to have contributed to such a large scale investigation involving a criminal network that cheated Indian casinos out of millions of dollars.”  Hogen continued, “This investigation is a good example of the high-quality work tribal gaming regulators do in protecting fair play at their facilities.  It also exemplifies the benefits of tribal, state, and federal regulators, investigators, and prosecutors coordinating efforts to identify and prosecute crimes against the tribal gaming industry.  In my opinion, this demonstrates the need for MICS as well as strong federal oversight in Class III gaming.”

 The NIGC is an independent regulatory agency established within the Department of the Interior pursuant to the Indian Gaming Regulatory Act of 1988.

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 Copy of the Indictment

 Department of Justice Press Release