In the footsteps of the recently created Navajo Nation Gaming Enterprise, Navajo Nation President, Joe Shirley Jr., vetoed  two additional pieces of gambling legislation that sought to create gaming chapters in Shiprock and To'Hajiilee. While the Navajo Nation Council still has the power to override Shirley's veto, the Navajo President warned the council that by enacting more chapter gaming enterprises, the Navajo Nation would be in violation of state casino gaming compacts with Arizona and New Mexico.

President Shirley urged the council to direct their energies into supporting the newly formed Navajo Nation Gaming Enterprise, which was created to handle and oversee all casino gaming enterprises in the Navajo Nation, as well as establish multiple casinos. The Enterprise would deal directly with the National Indian Gaming Commission, State gaming regulators and the Navajo Nation Council - hence Shirley's recommendation to the council.

Citing a letter addressed by Arizona Department of Gaming Director, Paul Bullis, President Shirley said the Navajo Nation is limited to "utilizing a single gaming facility" to conduct all Class III licensed casino gambling activity. The creation of the To'hajiilee Gaming Enterprise, which would be authorized to conduct casino gaming operations anywhere within the Navajo Nation (including the State of Arizona), would then clearly be in violation of the Arizona tribal gaming compact.

The basis for President Shirley's concern then, is that by enacting legislation obviously in violation of compacts (even if the Navajo Nation does not intend to construct casinos in Arizona), the Nation will be putting themselves at risk of being denied to construct casinos later down the road. Shirley says his office is currently awaiting a statement from New Mexico gambling officials of their take on the matter.