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Tribes have the authority to conduct Class III games if the state where the reservation or other tribal land is located permits these games for any purpose, and if the tribe has reached an agreement with the state with approval from the US Secretary of the Interior.

Only tribes have the authority to regulate Class I games, while Class II games are regulated by tribes with oversight from the NIGC.

Class III: all other games, such as casino games, slot games, and horse racing.

Class II: bingo games and similar games.

Class I: traditional games associated with tribal ceremonies or celebrations.

The IGRA created the National Indian Gaming Commission (NIGC) and divided gaming into three categories: Any gaming activities that are specifically prohibited by federal laws are also forbidden. This law codified the rule that Native American tribes have the exclusive right to regulate gaming on their lands, unless the state in which the gaming operation is located prohibits this type of gaming activity under criminal laws.

Responding to the Supreme Court decision, Congress enacted the Indian Gaming Regulatory Act. As a result, Native Americans generally have welcomed the boost to their economies, despite the social problems that can accompany gambling. Other tribes allocate revenues to tribal members through direct payments.

Revenues from gaming often are allocated to infrastructure, education, and other critical features of life on tribal lands. Gaming creates employment opportunities for Native Americans and provides tribes with an important funding channel. Hundreds of tribes now manage gaming operations, generating billions of dollars each year. As long as a state allows a certain type of gaming in any form, state regulations controlling that type of gaming do not apply on tribal lands. Thus, if a state completely prohibited a type of gaming, this law would prevent tribes from offering that type of gaming. Activities on tribal lands may be subject only to criminal (prohibitory) state laws. Courts ruled that Native American gaming operations were not subject to state regulations because these laws were civil (regulatory), rather than criminal (prohibitory).

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