A Tribal-State Compact (the “Compact”) was signed by NC with the Eastern Band of the Cherokee Indians pursuant to IGRA. Since NC cannot regulate gaming on Indian lands (See Cabazon US Supreme Court case (1987)), the $10 cap, no cash payouts and other restrictions did not apply to the Indians. So, the Cherokee were permitted to operate video games “involving the use of skill or dexterity as is permitted by the laws of the State” without the regulatory restrictions and thus could pay cash rewards. For the coin-op industry, video poker was regulated under 14-306(b)(2) and 14-306.1. It is likely that the coin-op industry was paying cash on multiple $10 tickets in violation of the law.
Research Cabazon case (prohibit but not regulate Indians) Tribal State Compact (1994) (1) Tribal State Compact (1996 Amendment) Tribal State Compact (2000 Amendment) Tribal State Compact (2002 Amendment) Tribal State Compact (First A&R Nov 2011) Tribal State Compact (Addendum to First A&R)