October 31, 2016

Mr. Leslie Moonves

Chairman and CEO

CBS Corporation Headquarters

51 W. 52nd St

New York, NY  10019-6188

Re:           CBS Morning Interview with John Grisham

Mr. Moonves:

On behalf of the National Indian Gaming Association I write to inform you of our strong concerns with the CBS Morning Team's October 25th interview of author John Grisham, who was there to promote his recently released book, "The Whistler."  As Chairman and Chief Spokesperson for National Indian Gaming Association, I was astonished by the blatant falsehoods offered by Grisham and extremely disappointed that the CBS Morning Team played along with him, implicitly lending credence to the untruthful and/or misleading statements he fed to the American public.

At the top of the segment, for example Grisham declared that, "Ninety percent of all the money that comes in is in cash, and it's unregulated, nobody's watching, they don't pay taxes.  He adds, "There's no oversight. I'm not saying there's corruption, but it's a perfect storm for corruption. No one knows how much they make; they don't have to report to anybody."  Grisham is wrong: recklessly and inexcusably so.

While Grisham's book is a work of fiction, that the story is based on these allegations as facts, operates to smear the reputation of an entire industry, the thousands of men and women who dedicate their lives to regulating Indian gaming, and the hundreds of thousands of American families that rely on Indian gaming for jobs and benefits.  It would be socially and ethically wrong for CBS to let stand Grisham's false and/or misleading statements.

Grisham's misstatements and falsehoods have been debunked as a blatant lie for decades. The true story of Indian gaming reveals the falsehoods in Grisham's misrepresentations.  To correct the record, here are the well known facts about Indian tribes and tribal government gaming. 

Throughout the 1800s and first half of the 1900s, federal policies of genocidal Indian wars, forced Removal (which led to dozens of "Trails of Tears"), Allotment and Assimilation (which stole Native homelands and took Native children from their homes, forcing them into federal boarding schools), Termination and Relocation (which stole additional Indian lands and shipped individual Indians to inner-cities with one-way bus tickets) resulted in untold destruction to Indian nations and tribes, the tribal government land base, economies, culture and way of life.  

In the late 1960's and early 70's, a new federal policy supporting Indian Self-Determination was announced by Presidents Johnson and Nixon and affirmed by Congress, so Indian Tribes are once again empowered to determine our own destiny by carrying out our own governing powers.  This policy was the beginning of some of these conditions starting to change. 

During this same time, tribal governments embraced the policy of Self-Determination and took measures to rebuild their communities by opening the first modern Indian gaming operations. Tribes used the revenue generated from early Indian bingo operations to fund essential tribal government programs and services to meet the basic needs of their communities.

These acts of Indian self-determination were met with legal and legislative challenges, which led to a 1987 U.S. Supreme Court ruling that upheld the right of Indian tribes, as governments, to conduct gaming on their lands free from state interference.  This Court victory then led to the enactment of the Indian Gaming Regulatory Act (IGRA). The Act seeks to: strengthen tribal governments; establishes a federal framework to regulate Indian gaming that includes federal, tribal and state regulators.

Grisham falsely claims that Indian gaming is "unregulated" and is subject to "no oversight".  He ignores the basic fact that IGRA established the National Indian Gaming Commission (NIGC), the only federal agency to regulate gaming in the United States.  In addition, IGRA mandates significant state and tribal government regulation.  This comprehensive system of regulation is expensive and time consuming, but tribal leaders know what is at stake and know that strong regulation is the cost of a successful operation.  In addition, the Justice Department, the FBI, the Interior Department, Treasury's Financial Crimes Enforcement Network, the Secret Service and the IRS have established the Federal Indian Gaming Working Group to safeguard Indian gaming.  As a result of our strong regulatory systems, the Department of Justice and the FBI have repeatedly affirmed that there is no systemic organized crime infiltration of Indian gaming.

Yes, gaming takes place in a highly cash intensive environment and that is why gaming is such a highly regulated activity.  To be clear, Grisham's claims that tribal government gaming is "unregulated" and is subject to "no oversight" are completely false.  The Indian Gaming Regulatory Act (IGRA) of 1988 created the National Indian Gaming Commission (NIGC) to provide regulatory oversight for tribal gaming operations, the only federal agency to regulate gaming in the United States.  In July 2016, the NIGC issued a press release, the first sentence of which reads as follows:  "Today the National Indian Gaming Commission released data showing [gross] revenues generated by the Indian gaming industry in 2015 totaled $29.9 billion dollars."  Grisham's assertions that no one knows, no one is looking and no one has to report is irrefutably wrong.

Moreover, IGRA mandates significant state and tribal government regulation, while in contrast commercial gaming operations, including Las Vegas and Atlantic City, are subject primarily to state regulation only.  Tribal and federal regulations account for every dollar that comes in and out of Indian gaming operations. Every Indian tribe complies with both tribal law and federal regulations that require operators to follow internal control standards or MICS, which enable tribal regulators to protect our resources, and to protect the integrity of our games. The MICS generally prescribe methods for removing money from games and counting it so as best to prevent theft; methods for the storage and use of playing cards so as best to prevent fraud and cheating; standards for maintaining security of electronic games access and requiring investigations under certain circumstances; and minimum resolutions and floor area coverage for casino surveillance cameras, among other areas. 

As noted above, federal policies devastated Native economies.  Indian gaming has been the single best source of revenue for tribal governments and programs and services delivered to Native communities.  As a result, tribal leaders have made it a top priority to protect the integrity of our operations and the revenues generated that serve our people. 

In 2015, tribal governments spent $426.4 million on tribal, state, and federal regulation, including: $320.2 million to fund independent tribal government gaming regulatory agencies; $85.6 million to reimburse states for state regulatory activities negotiated and agreed to pursuant to approved tribal-state class III gaming compacts; and $20.6 million to fully fund the operations and activities of the National Indian Gaming Commission.  This funding employs over 6,500 tribal, state, and federal regulators working together to maintain the integrity of Indian gaming.

Grisham also falsely claims Indian tribes "print money". Tribes work with the FBI and U.S. Attorneys offices to investigate and prosecute anyone who would cheat, embezzle, or defraud an Indian gaming facility - this applies to management, employees, and patrons. Tribal regulators also work with the Treasury Department's Internal Revenue Service to ensure federal tax compliance and the Financial Crimes Enforcement Network (FinCEN) to prevent money laundering.  Finally, tribes work with the Secret Service to prevent counterfeiting.  Congress' authorization of the Bureau of Engraving and Printing the exclusive authority to print U.S. currency in 1874 remains the law to this day.

Regarding taxation, Grisham is either ignorant of or ignored the fact that IGRA mandates tribal governments to use 100% of tribal government gaming revenues to promote the general welfare of reservation residents in the form of funding tribal government programs and services and other charitable purposes. In other words, tribal government gaming is governmental gaming as a matter of federal law.  This fact sets tribal government gaming apart from commercial gaming operations, such as Las Vegas and Atlantic City casinos.  Most succinctly, commercial gaming profits shareholders:  tribal gaming revenues fund tribal governments and tribal governmental programs, services and activities.  For four short decades; tribal gaming revenues have helped improve basic health, education and public safety services on Indian lands.

Tribal governments also use gaming dollars to improve tribal infrastructure, including the construction of roads, hospitals, schools, police buildings, water projects, and many others. Tribal government gaming also provides jobs.  In 2014 alone, Indian gaming operations and regulation delivered 310,438 direct American jobs. When indirect jobs are added to the mix, Indian gaming generated over 684,000 jobs in 2014 alone.  These American jobs go to both Indians and non-Indians alike. Tribal government gaming resources are making our reservation homelands livable once again as promised in hundreds of treaties and at the same time are benefitting neighboring communities in much the same way.

While Indian tribes are recognized in the U.S. Constitution as sovereign nations, not subject to direct taxation by another sovereign, the Indian gaming industry does generate billions of dollars in indirect taxes.  Indian gaming generated $2.5 billion dollars in state sales, employer and other taxes and provided states more than $1.5 billion in the form of revenue sharing agreements in 2015. Indian gaming also contributed $6.4 billion dollars in federal employment taxes, social security and Medicare taxes in 2015.  This data and more, including gross gaming revenue totals, is readily available on-line to even the most novice researcher.

While we recognize that Grisham placed the CBS Morning Team in an extremely awkward situation, their acceptance of Grisham's reckless and untrue representations amounts to a complete failure of your organization's obligation to report information to the public in and ethical and socially responsible manner.  We strongly believe that CBS and its Morning Team have a responsibility to set the record straight, especially given how much CBS prides itself in its Corporate Responsibility.  CBS represents that "...it strives to use its power and reach for the public good."  We urge CBS to use its power and reach to do the right thing here.

Given CBS' national stature there is a real danger that the Grisham segment has created a threat to American Indian tribal communities across the U.S. by creating false impressions in the minds of CBS' viewers as to the integrity of an industry that provides desperately needed revenue for the delivery of governmental services that most Americans take for granted.  We urge CBS to issue a statement setting the record straight by providing accurate facts and having the statement read aloud by the CBS Morning Team.

In addition, I urge you to consider adding an employee or consultant to call on in instances like this, to help your organization avoid similar situations in the future.   Finally, we noted on your website that you provide CBS Cares, an on-air Public Service Announcement page covering a number of socially responsible causes.  We ask you to consider developing a PSA on tribal government gaming and its uniqueness as a governmental enterprise generating the revenues needed to address the economic, social, cultural and environmental problems facing Native American communities across this country.  My staff and I would be more than happy to assist you with such a production and it would go a long way in rebuilding good will with the Native American community.

I respect Mr. Grisham's work as an author of fiction and the CBS organization as a worldwide leader in disseminating vital public information. I simply ask that both Grisham and CBS respect the tireless work of the thousands of men and women that dedicate their careers to regulate and protect the integrity of Indian gaming operations throughout Indian Country. Revenues generated from Indian gaming represent the greatest source of funding for basic yet vital Native community programs and services. To protect this funding, the integrity of our operations, and the health and safety of our customers, tribal governments devote more than $400 million annually on state of the art regulation and surveillance to monitor and protect every inch of our facilities. These significant commitments of time and resources have earned respect, and deserve much more than the unfounded and thoughtless claims put forth by Mr. Grisham. 

NIGA is a nonprofit trade association comprised of 184 American Indian Nations and other nonvoting Associate Members.  Though I represent the entirety of our membership, each Tribal nation is a government unto itself and they may choose to contact you in this regard as well. 

Thank you in advance for your consideration of the requests noted above and the views put forth in this letter.  I look forward to your response to these concerns.

Sincerely,