The Wall Street Journal first reported that the administration was considering altering its policy to allow gambling far from reservations.
"It's an important issue. It's a controversial issue and they're rethinking it," George Skibine, a deputy assistant secretary at the Bureau of Indian affairs, told the Wall Street Journal.
Skibine said in an interview with the Journal that he expected a decision on whether to change the policy "fairly soon."
A shift in policy could pose more competition for large casino operators such as MGM Mirage, Las Vegas Sands and Wynn Resorts.