St. Regis Mohawk Tribe 

:evens, Chair woman 

National Indian Gaming Commission 

1441 L Street, NW, Suite 9100 

Washington, DC 20005 

VIA Email: re~.review@ni~c.gov 

Re: Notice of Inquiry-Comments on Regulations to Implement IGRA 

Chief Monica M. Jacobs 

Chief Mark H. Garrow 

Chief Randy Hart 

SubChief Pamela D. Brown 

Sub-Chief Stacy A. Skidders 

Subchief Shelley Jacobs 

Dear Chairwoman Stevens, 

The St. Regis Mohawk Tribe is pleased to have the opportunity to assist the Commission in 

developing your regulatory planning and review schesule, as well as establishing the 

Commission's priorities over the next several years. We believe that true consultation only 

occurs when federal agencies be~in the procqss early, and respond to the issues raised by 

Tribes, rather than imposing grlarities upon the Tribes, as has been done by previous 

administrations. The St. Regis Mohawk Tribe sees this consultation process as a show of this - 

Commission's commitment to true consultation and we look forward to working with you as I 

you develop and amend the NIGC's rules and regulations to better respond to the changing 

operational and regulatory environment in lndiyn Gaming. 

As the Commission is aware, the St. Regis Mohawk Tribe currently operates two gaming 

enterprises, the Class Ill Akwesqsne Mohawk Casino and the Class II Mohawk Bingo Palace. * 

These facilities provide a crucial funding source for the St. Regis Mohawk, providing essential 

services for the tribal members. With shrinMng funding from the Federal Government and 

State of New York, gaming revenues --- provide our members with additional health services, 

funding for continued education, policing, heating assistance and many other services. We do 

not currently provide per capita payments to our membership as all gaming revenue is returned 

to the community and members though tribal services. 

The St. Regis Mohawk Tribe has established the St. Regis Mohawk Tribal Gaming Commission. 

With a staff of 28, the St. Regis Mohawk Tribe spends in excess of $2.5 Million per year on 

Helping Build A Better Tomorrow 

41 2 State Route 3 

Akwesasne, New York 1365 

Phone: 518-358-227 
spend over $4 Million this year for state gaming regulators in our Class Ill facility. Both the 

Tribal Gaming Commission and New York State Racing and Wagering maintain a 24 hour 

regulatory presence in our Class Ill gaming operation, while the Tribal Gaming Commission 

alone regulates our Class II facility. Over the years we have developed a professional, well 

trained Tribal Gaming Commission, whose priorities are to protect the assets of the Tribe and 

the regulatory integrity of our operations. 

The St. Regis Mohawk Tribe believes that gaming regulations must be dynamic, and never static 

and that Tribal Gaming Commissions must maintain the ability to adjust control standards to 

meet technical improvements and changes in gaming operations and gaming devices, while 

providing clear rules and regulations that are easily interpreted and implemented by our 

gaming operations. Therefore, the National lndian Gaming Commission's regulations must be 

written such that Tribal Gaming Commissions are able to quickly respond to technical 

developments and improvements in operations, without having to wait for the federal 

regulatory process to play catch up, as we've witnessed in the past. 

The St. Regis Mohawk Tribe supports the Commission's efforts to ensure that the IGRA is 

applied in such a manner that promotes the "principal goal of Federal lndian policy ... to promote 

tribal economic development, tribal self-sufficiency, and strong tribal government." 25 USC 

2701(4). 

A. Part 502-Definitions of this Chapter 

11) Net Revenues. We agree that Net Revenues, as defined by the lndian Gaming Regulatory 

Act is inconsistent with Generally Accepted Accounting Principles and, has at times created 

confusion to both our auditors and our lenders. However, the St. Regis Mohawk Tribe cautions 

the Commission that any proposed changes to regulatory definitions must be consistent with 

the definitions contained in the IGRA. 

la) Net Revenues - management fee. To the greatest extent possible, the NlGC should keep all 

financial terms and definitions consistent with Generally Accepted Accounting Principles. When 

the NlGC is required to apply terminology or accounting principles not in keeping with the 

norm, (as is the IGRA definition of "net revenues") then the agency must properly define what 

the deviation is and should point out the deviation from GAAP. This is a definition that must 

receive consideration. 

jb) Net Revenues - allowable uses. We believe the existing law clearly sets forth the allowable 

uses of Net Revenues and oppose any definitional change that goes beyond that set out in the 

IGRA. Changes, such as those proposed, which would further limit a Tribe's sovereign right to 

determine their own spending priorities goes beyond the National lndian Gaming Commission's 

regulatory oversight responsibilities. Adoption of such additional restrictions on a Tribe's ability 
to make business decisions clearly oversteps the regulatory parameters set forth by Congress in 

the Indian Gaming Regulatory Act and as such, an amendment to include such additional 

parameters should not be considered. 

121 Management Contract. The definition of management contracts should not be expanded to 

include contracts based on a percentage of gaming revenues. Contracts should be evaluated on 

the basis of what the contract itself provides. The majority of slot machine lease agreements 

simply provide gaming devices. Particularly in the Class II area, gaming device lease agreements 

are the norm, as many tribes choose not to invest the capital necessary to purchase machines 

that could be rendered obsolete by the next Class I1 gaming opinion issued by the National 

Indian Gaming Commission. Imposition of additional federal regulatory requirements on both 

Tribal Gaming Operations and on gaming device vendors, would likely result in a reduction the 

number of available vendors, due to the expense of complying with the management contract 

approval process and an increase of leasing costs to Tribes. Further, the ability to lease gaming 

devices, rather than purchasing them, allows a Tribal Gaming Operation greater flexibility in 

determining their capital budgets and limits the requirement to obtain financing to purchase 

machines. It also gives smaller gaming operations the ability to maintain state of the art gaming 

devices on their gaming floor, without the capital outlay necessary to purchase these devices. 

To expand the definition of "management contract" would, in our opinion expand the authority 

of the NlGC into business decision-making that is clearly the responsibility of the Tribe and its 

Gaming Operation management. 

The NlGC also requests comment on whether a definition for acceptable compensation to a 

manager contractor is necessary. It has been the experience of the St. Regis Mohawk Tribe, in 

negotiating such agreements, that a clear definition of what is an "acceptable management 

fee" is necessary. However, the NlGC should also recognize that some management 

contractors provide additional services, such as financing and development services, which 

should be taken into consideration when developing such a definition. Further, the types of 

reimbursement and compensation should be more clearly defined, and to the extent 

practicable, upper limits set on these as well. 

B. Part 514 - Fees 

We believe that the NlGC should change the fee reporting period to the Tribe's gaming 

operation fiscal year, and require payment based on the fiscal year. 

Furthermore, in the NlGC Notice of Inquiry and Request for Information; Notice of Consultation, 

comments are made regarding a possible late payment system. We must point out at 514.1 

(c)(8) states The Commission may assess a penalty for failure to file timely a statement 

(emphasis added), also 514.l(e) that states Failure to pay fees, any applicable penalties, and 
interest related thereto may be grounds for: (1) Closure, or (2) Disapproving or revoking the 

approval of the Chairman of any license, ordinance, or resolution required under this Act for the 

operation of gaming (emphasis added). Clearly the NlGC has discretion in this matter and we 

believe that no further changes be made. The NlGC must realize any issuance of a Notice of 

Violation (NOV) may increased borrowing costs when a tribe is looking for financing. 

We wish to make comment on 514.l(f) that states To the extent that revenue derived from fees 

imposed under the schedule established under this paragraph are not expended or committed 

at the close of any fiscal year, such funds shall remain available until expended to defray the 

costs of operations of the Commission, we are concerned with these fees that are not 

expended. If the NlGC has collected fees from tribes, and these collective fees are greater than 

the NlGC expenses for the year, then there should be an agreed upon dollar limit to what is 

carried forward, and such carry forward unexpended fees must be used for the good of the 

tribes, not committed to many NlGC programs or projects. We must remind the Commission 

that anv fees not expended should be returned to Tribes. IGRA was created to benefit Tribes by 

creating a means of raising revenues for Tribal programs, not to sit unused in an account at the 

NIGC. 

C. Part 518 - Self-Regulation of Class II 

The St. Regis Mohawk Tribe has not utilized Part 518. Additional information should be given to 

demonstrate the benefits of obtaining certification of self-regulation. This is not a regulatory 

priority for the St. Regis Mohawk Tribe. 

D. Part 523 - Review and Approval of Existing Ordinances or Resolutions 

We would have no objection to elimination of this Part, if there are no tribes affected. This is 

not a regulatory priority for the St. Regis Mohawk Tribe. 

E. Management Contracts 

(1) Part 531 - Collateral Agreements 

We believe that the current definition of management contracts, which includes collateral 

agreements only if they provide for the management of all or part of a gaming operation is 

sufficient and additional regulation in this area is unnecessary. In the example given in the 

NlGC preamble, we believe that if a tribe enters into a management contract and collateral 

agreements that pay in excess of 80% of gross gaming revenue resulting in a net loss for a tribe, 

then the tribal officials responsible for this agreement should be dealt with by the tribe itself. 

Tribes have the right to govern their own affairs. Our comments in Section A (2) above would 

address the concerns addressed above. Our main concern with expanding NlGC authority over 
additional, non-management business relationships of the Tribe is the additional costs that will 

be incurred should the definition be expanded to include any contract entered into by the 

Tribe. These include not only the costs incurred to obtain "management contract" approval, 

including licensing of companies and individuals, but also the financing, legal and other costs 

involved in requiring the submission of documents that are not, in any way management 

contracts. 

(2) Part 533 -Approval of Management Contracts 

Although offensive to our belief in tribal sovereignty, the "trustee standard" of review is 

required by the IGRA. Additional guidance on the application of this standard of review would 

be helpful. As it stands, undefined, we believe that it allows for very broad discretion for the 

NlGC to disapprove Management Contracts without providing adequate substantiation for the 

decision, resulting in an unfair situation where an affected Tribe would find it difficult to 

challenge such a decision. It has been the experience of the St. Regis Mohawk Tribe that the 

dialogue between the NlGC staff and tribes regarding acceptable and unacceptable provisions 

in management contracts is often made much more difficult by a lack, on the part of NlGC staff 

to provide clear substantiation for decisions they make that a certain provision is unacceptable; 

particularly when that same provision has been approved in previously approved management 

contracts. This often results in an unproductive back and forth between the NIGC, the Tribe 

and the Management Contractor that results in delays and additional costs to Tribes pursuing 

approval of Management contracts. 

(3) Part 537 - Background Investigations for Persons or entities with a Financial Interest 

in, or Having Management Responsibility for, a Management Contract 

The NlGC preamble mentions if a contractor (a management contractor) should be required to 

submit the Class II background information when the contract is only for Class Ill gaming. 

Clearly, the IGRA in Section 2705 provides the power of the Chairman to approve management 

contracts for Class II gaming and Class Ill gaming as provided in sections 2710 (d)(9) and 2711 of 

this title. 

The NlGC promulgated regulations found at 25 CFR Part 533.1 that states Subject to the 

Chairman's approval, an lndian tribe may enter into a management contract for the operation 

of a class I1 or class 111 gaming activity. Clearly the Indian Gaming Regulatory Act gives the 

Chairman of the NlGC the authority to approve management contracts for Class II and Class Ill 

gaming, found in Section 2705(a)(4). What is also clear, the NlGC did not include Class Ill 

gaming in promulgating regulations regarding the conduct of background investigations in 

section 537.1(a). We believe this should be of a low priority for the NlGC and could be rectified 

through the standard notice and comment process for amendment. 
F. Proceedings Before the Commission 

We consider the existing NlGC regulations mentioned in the preamble, 25 CFR part 519; 25 CFR 

part 524; 25 CFR part 539; 25 CFR part 577 to be adequate in governing proceedings before the 

NIGC. We do not recommend the NlGC make the process more comprehensive, detailed and 

formal. We believe this will only add to the complexity of the process and to the length of time 

required to complete the process, and we also believe it only would require a Tribe utilize legal 

counsel or outside counsel, ultimately adding to a Tribe's expenses. 

G. MlCS & Technical Standards 

(1) Part 542 -Class Ill Minimum Internal Control Standards 

The decision of the United States District Court for the District of Colombia, in Colorado River 

Indian Tribe v. National Indian Gaming Commission, made the determination that the NlGC 

does not have the statutory authority to regulate Class Ill gaming. IGRA clearly limits the 

NIGC's oversight of Class Ill Gaming to the approval of tribal gaming ordinances and 

management contracts for tribal Class Ill facilities. While we understand the necessity of 

minimum internal control standards in the gaming industry, we believe the NlGC must change 

the MlCS to a recommended guideline. Updates to the recommended guidelines could 

continue to be maintained through a Tribal Advisory Committee, or independently through the 

various regional tribal gaming associations. 

As the primary regulator of Class Ill gaming, the St. Regis Mohawk Trial Gaming Commission is 

fully capable of effectively regulating the Class Ill gaming enterprise of the St. Regis Mohawk 

Tribe. It is time that the NlGC recognize this and take steps to remove Part 542. 

This should be addressed through the notice and comment. 

(2) Part 543 - Class II Minimum Internal Control Standards 

We strongly encourage the NlGC continue to move all Class II control standards from part 542 

into 543. This should be a priority of this administration and it should proceed utilizing a Tribal 

Advisory Committee, as it has so far. 

(3) Part 547 - Minimum Technical Standards for Gaming Equipment Used with the Play of 

Class II Games 

We believe that the Technical Standards have greatly assisted our Tribal Gaming Commission in 

regulating Electronic Class II gaming machines. However, we do believe that some of the 

sections, specifically 547.5(c), are over reaching and go beyond what IGRA defines and requires 

for a Class II game. 
The St. Regis Mohawk Tribe has participated in the Tribal Advisory Committee process in the 

past and has found it to be a successful way of beginning the tribal consultation process. 

Participants could be nominated from the industry and the Commission should choose 

participants looking for representation from a cross-section of the industry and from each 

region of the country, as well as various size gaming operations. 

H. Backgrounds and Licensing 

(1) Part 556 - Background Investigations for Licensing 

The St. Regis Mohawk Tribal Gaming Commission has taken part of the NIGC1s pilot program for 

at least the last 6 years. We believe that it is a better way of conveying licensing information 

between the Tribal Regulatory Authorities and the NlGC and encourage the NlGC to formalize 

the program through the normal notice and comment rulemaking. 

(2) Fingerprinting for Non-Primary Management Officials or Key Employees 

The St. Regis Mohawk Tribal Gaming Commission began background investigations of the Class 

II gaming vendors doing business at the Mohawk Bingo Palace in 2009, formalizing the 

application, background procedure and contracting with a company to provide criminal 

background checks. Should other Tribal Regulatory Authorities see the need to investigate 

Class II gaming vendors, and we encourage them to, they have the ability to conduct such 

backgrounds without the need of the NIGC. Tribal Regulatory Authorities are the primary 

regulators of lndian Gaming, as promulgated in the lndian Gaming Regulatory Act, if they see a 

need for Class II Vendor Licensing, they should be encouraged, through NlGC training, to 

perform this task to properly regulate gaming in their jurisdiction. 

Part 559 - Facility License Notifications, Renewals, and Submissions 

The St. Regis Mohawk Tribe has adopted and enforces building code requirements, as well as its 

own health and safety standards, that meet or exceed state and federal standards. These 

requirements are unnecessary and redundant. No further regulations are necessary in this 

area. 

1. Sections 571.1 - 571.7 - Inspection and Access 

The lndian Gaming Regulatory Act provides the NlGC with clear authority to examine all papers, 

books and records respecting gross revenues of class II gaming conducted on lndian lands and 

any other matters necessary to carry out the duties of the Commission under this chapter [25 

U.S.C. 2706(b)(4)]. The NlGC also has the enforcement powers necessary to require 

cooperation of the Tribes in accessing these records. We do not believe further clarification is 

necessary. 
K. Part 573 - Enforcement 

We believe that since the NlGC has the ability to issue a Notice of Violation (NOV) then the 

NIGC also has the ability to withdraw such NOV. However, we believe that any such withdrawal 

of a NOV must be documented, recognized as setting precedence in such matter, so that a 

withdrawal may be exercised for similar circumstances in the future. We do not see this as a 

priority and will hope the NIGC would not deem this as an issue and the NIGC should withdraw 

an NOV at their discretion. 

V. Potential New Regulations 

A. Tribal Advisory Committee 

As stated above, the St. Regis Mohawk Tribe has participated directly in the Tribal Advisory 

Committee process. However, that participation was marred by the Commission's attempt to 

utilize the Tribal Advisory Committee's participation in development of regulations as an 

alternative to tribal consultation. The St. Regis Mohawk Tribe believes that the Tribal Advisory 

Committee process should be utilized by the NlGC whenever proposed changes to existing 

regulations or adoption and development of new regulations would have more than a minimal 

affect on Tribes, Tribal Gaming Operations or Tribal Gaming Commissions, both from a cost 

perspective and a tribal sovereignty perspective. 

We believe that it should be clear that the Tribal Advisory Committee does not replace tribal 

consultation as required by Executive Order, nor do the Committee members represent the 

tribal governments they work for in any official capacity, other than as a representative to the 

Committee. Most often, the best Committee representative is, in fact, not a tribal leader, but 

an experienced operator or regulator. 

While we do not believe that a formal regulation must be adopted regarding the roles and 

responsibilities of the Tribal Advisory Committee, we do believe that the Commission should 

provide clarification as to the goals and purposes of each Tribal Advisory Committee and the 

method by which participants will be chosen. 

B. Sole Proprietary Interest Regulation 

As discussed above in our comments regarding Part 553, the NIGC, over time and at times, over 

a short period of time, has changed its position on various issues. While the St. Regis Mohawk 

Tribe does not believe additional regulation is necessary, we do believe that the NlGC should 
develop a process whereby Tribes have access to all determinations made by the NlGC that a 

certain provision, or contractual relationship constitutes a violation of the sole proprietary 

interest requirement and, when requested by a Tribe, provide a written opinion as to the basis 

of this determination. This would greatly assist Tribes, Management companies, banks and 

other commercial institutions in drafting agreements that would both protect the Tribe's 

interest in maintaining sole proprietary interest and the commercial partner from legal 

challenge later. 

C. Communication policy or regulation identifying when and how the NlGC 

communicates with Tribes 

The St. Regis Mohawk Tribe has a government to government relationship with the United 

States. As an agency of the United States, all formal communications directed to the St. Regis 

Mohawk Tribe from the NlGC should be addressed to the St. Regis Mohawk Tribal Council. 

D. Buy lndian Act Regulation 

We can only encourage the NlGC to "Buy Indian" and ask why the agency has not made this a 

practice as of yet? We do not believe this should rise to the level of a regulation and is better 

handled in the NIGC1s actions. 

VI. Other Regulations 

We have no comments to provide on Parts 501,503,513,515,517,522, 531,535,571 and 575 

mentioned at the end of your preamble. 

In summary, we welcome the opportunity to assist the National lndian Gaming Commission in 

your regulatory review. We look forward to working with all of the new Commission members 

to ensure the continued success of the lndian gaming industry. 

Sincerely, 

Chief Monica M. Jacobs Chief hark H. Ga row t Chief R& Hart