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1 

1 

IN THE MATTER OX;: 1 

CHICKASAW NATION 1 

) 

1 

Ref: NOV-02-01 

SETTLEMENT AGIRJEEMENT 

This agreement is entered into by and between the Cluckasaw Nation (Nation) through its duly 

authorized representative and the Chairman of the National Indian Gaming Commission NGC) 

to resolve various matters in dispute between the Nation and NIGC's Chairman regarding the 

play of cerrain games in the Nation's gaming facilities. 

Findings 

1. The Nation operates tribal gaming facilities at 16 locations in the State of Oklahoma, 

including facilities at Goldsby and Newcasrle, Oklahoma. The Nation does not have a 

compact with the State of Oklahoma authorizing Class ID gaming activity in its facilities 

except for a compact that authorizes off-track pari-mutuel wagering. 

2. On June 14, 2002, rhe NIGC Tulsa, Oklahoma, Regional Office, relying on an advisory 

game opinion from the NIGC Deputy General Counsel, Wed to Oklahoma gaming tribes, 

including the Chickasaw Nation, a memorandum advising that the disputed games were 

considered to be class III and that all tribes in the state were immediately to cease operation 

of the games. 

3. On June 16, 2002, a NXGC Field Investigator visited the Nation's Goldsby Gaming Center 

and Newcastle Gaming Center. She observed approximately 60 (sixry) MegaNanza 

machines ("Disputed Games") in play at the Goldsby ficility and 100 (one hundred) 

Disputed Games in play at the Newcastle faciliry. The Nation admits that the Disputed 

Games were being operated at other of its gaming hcilities as well. 

4. -On June 17, 2002, the Chairman issued a Notice of Violation to the Natio-n for play of IIX 

Disputed Gamcs. In issuing rhe Notice of Violation, the Chairman notified the Nation rhat he 

had derermined that play of the Disputed Games was Class LU gaming, which required a 

Tribal-State compact. 
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5. Within 24 hours alter receiving the Notice of Violation, the Nation stopped play of thc 

Disputed Games in all of its gaming facilities. 

6. A dispute exists between the Nation and the NGC in that the Nation contends that the 

Disputed Games constitute class II gaming under IGRA, whereas the NIGC contends that 

such gaming fills within class l?I of 1GR.A. 

7. The Nation timely filed a Notice of Appeal of the Chairman's Notice of Violation, 

assemng that the games at issue were Class TI and that during the play of the games the 

Nation in good faith had believed rhar rhe games were Class II. 

8. In addition to a dispute as to the classification of the Disputed Games, a dispute exisrs as 

to whether or not the Nation's action suspending and removing the Disputed Games from its 

premises should conclude this matter. The Nation contends that it should, whereas the MGC 

contends that despite the Nation's discontinuance and removal of the Disputed Games zhe 

Chairman may issue a Civil Fine Assessment under these Eacts. 

9. The Chairman has not issued a Civil Fine Assessment in this matter but contends that he 

has retained the option to do so after further consideration of this marter. The Nation disputes 

that contention. 

10. The Nation and Chairman wish to resolve their disputes and avoid further litigation 

regarding the Notice of Violation and potential Civil Fine Assessment. The NGC agrees to 

the terms of this settlement in lieu of any further proceedings. 

Terms of Settlement 

11. The Nation is aware of its right to a hearing under 25 C.F.R. Part 577. In consideration 

for this Settlement Agreement (Agreement) and in order to resolve this dispute, the Nation, 

without admiring that there was jusr cause to issue the Notice of Violation or the vaIidity of 

anything alleged therein, hereby waives its right to appeal and agrees to withdraw its appeal 

of the Notice of Violation and hereby enters into this Settlement Agreement. 

12. Without admitting that such action itself constitutes an admission of any kind, the Nation 

stipulates that the Notice of Violation shall be deemed a final order of the Commission and a 

final agency action pursuant to 25 C.F.R. 577.9(d). This Agreement is intended to resolve 

and end all matters in dispute. 

13. Wirhour admitting any wrongdoing or classification of the Disputed Games, the Nation 

agrees that it will not in the fuge play the Disputed Games, unless and until there is a final 

determination by a court that is binding on the MGC, or a final determination by the NIGC 

itself, that the Disputed Games are within class II of IGRA, ox the Nation enters into a 

compact with the State of Oklahoma that includes play of the games as class IU gaming. 
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14. The Nation hereby waives all fkrther procedural steps before rhe Commission and any 

riat to challenge or contest the validity of the order and decision entered into in accordance 

wirh this Agreement. 

15. The panies agree this Agreement will be submitted to rhe Presiding Official in this matter 

for her certification under 25 C.F.R. 4 577.9(c). 

16. This Agreement may be executed in one or more counterparts and each shall constitute an 

original. A signature produced by facsimile shall be deemed to be an original sipture and 

shall be effective and binding for the purposes of this Agreement. 

For the Chickasaw Nation of Oklahoma 

Date l~/a-o3 

Date //7 /03 

For the National Indian G