NOTICE OF PROPOSED CIVIL FINE ASSESSMENT 

To: 

1. 

U>lW 

2. 

3. 

4. 

Ref: CFA-00-6 

Jerry G. Haney, Principal Chief 

Seminole Nation of Oklahoma 

P.O. Box 1498 (% mile E ofjunction 59 & 270) 

Wewoka, OK 74884 

Under the authority of 25 U.S.C. 5 2713 (a), of the Indian Gaming Regulatory Act 

(IGRA), and the regulations of the National Indian Gaming Commission (NIGC) at 

C.F.R. $ 575,), the Chairman of the NIGC hereby provides notice of his intent to assess a 

civil fine against the Seminole Nation of Oklahoma, Wewoka, Oklahoma (Respondent), 

for violations of 25 C.F.R. $8 502.4 and 573.6 (a)(l l), as set forth in detail in Notice of 

Violation No. NOV-00-6 and Closure Order No. CO-00-6, issued on May 30,2000, a 

copy of which is attached hereto (Exhibit 1). NOV-00-6 and CO-00-6 required the 

immediate cessation of play of "Red Hot Respin" and "other such gambling devices" at 

all gaming facilities operated by the Seminole Nation of Oklahoma. 

Pursuant to 25 U.S.C. $2713 (a) and 25 C.F.R. 5 575.4, the Chairman of the NIGC may 

assess a civil fine, not to exceed $25,000 per violation, against a tribe, management 

contractor, or individual operating Indian gaming for each violation cited in a notice of 

violation issued under 25 C.F.R. 4 573.3. If noncompliance continues for more than one 

day, the Chairman may treat each daily illegal act or omission as a separate violation. 

25 C.F.R. 9 575.4 (a)(2). 

The NIGC regulations at 25 C.F.R. 5 575.5 provide that, within 15 days after service of a 

notice of violation, or such longer period as the Chairman may grant for good cause, the 

respondent may submit written information about the violation. The Chairman shall 

consider any information so submitted in determining the facts surrounding the violation 

and the amount of the civil fine. Respondent did not submit any information under 

25 C.F.R. 5 575.5 about the violation. 

The Chairman has considered the factors set forth in 25 C.F.R. 5 575.4, as follows: 

i. Economic benefit of noncompliance. Respondent has obtained an economic 

benefit from its continued operation of Class I11 gambling devices, in the absence 

of a compact with the State of Oklahoma. The NIGC requested detailed financial 

data about the number of Class I11 gambling devices, the total number of all of 

Respondent's devices, the revenue generated by each type of machine, and the 

date the Class I11 gambling devices were first offered for play. Respondent did 
not comply fully with this request. While Respondent indicated that its 32 "Red 

Hot Respin" machines generated well in excess of $198,000, it did not indicate 

the date that Class I11 gambling devices were first offered for play nor did it 

provide the information requested about revenue generated by each type of 

machine. 

. . 

11. Seriousness of the violations. Respondent offered for play in its gaming facility 

several Class I11 gambling devices that may be operated within the State of 

Oklahoma only under a tribal-state compact. Respondent and the State of 

Oklahoma, however, have not entered a compact allowing the operation of these 

Class I11 gambling devices. Offering Class I11 gambling devices in the absence of 

a tribal-state compact is a serious violation because it undermines the delicate 

balance between tribal sovereignty and state public policy struck by Congress in 

the Indian Gaming Regulatory Act. Moreover, Respondent's actions give 

Respondent an unfair competitive advantage over other tribes that have elected 

not to operate illegal gambling devices in their facilities. Accordingly, the 

violations are serious. 

. . . 111. History of violations. The Chairman has issued two prior Notices of Violation to 

Respondent: one similar to the present one, for operating Class I11 gambling 

devices in the absence of a tribal-state compact, and the other for failure to 

conduct background investigations and submit required documents to the NIGC. 

The Chairman has issued the following Notices of Violation, Closure Orders, and 

Civil Fines to Respondent: 

a. Notice of Violation No. NOV-98-01 and Order of Temporary Closure No. 

CO-98-01, January 13, 1998, for operating "Reels of Skill," a Class I11 

gambling device, in the absence of a tribal-state compact (Exhibit 2). The 

Chairman agreed to defer the closure order to allow Respondent to 

continue to operate the game until the issuance of a final Commission 

decision. Respondent appealed (Exhibit 3). Following an administrative 

hearing, the Presiding Official issued a decision on June 29, 1998 (Exhibit 

4), finding that the Chairman appropriately issued NOV-98-01 and CO98-01 and recommending that the Commission uphold them. The 

Commission subsequently issued a Notice of ~ecision and Order on 

July 24, 1998, finding that "Reels of Skill" was a Class I11 gambling 

device and that its operation by Respondent was a violation of IGRA 

(Exhibit 5). 

b. Proposed Civil Fine Assessment No. CFA-98-01, February 12, 1998, in 

the amount of $30,000 (Exhibit 6). The Chairman and Respondent agreed 

to stay enforcement of the civil fine pending the outcome of the decision 

in NOV-98-01 (Exhibit 7). Following issuance of the Commission's final 

decision in NOV-98-01 (see "a" above), the Chairman and Respondent 

entered into an Agreement on November 30,1998, whereby Respondent 
agreed to pay a civil fine in the reduced amount of $7500 (Exhibit 8), 

which was paid. 

c. Notice of Violation No. NOV-99-03, March 2, 1999, for failure to conduct 

background investigations on primary management officials and key 

employees and to submit employee applications, investigative reports, and 

suitability determinations to the Commission (Exhibit 9). 

d. Civil Fine Assessment No. NOV-99-03, June 3, 1999, in the amount of 

$4500 for the violations identified in NOV-99-03 (Exhibit 10). 

Respondent did not pay the fine. 

iv. Negligence or willfidness. As noted above, Respondent has offered "Red Hot 

Respin" or "other such gambling devices" in its gaming facilities since at least 

March 1,2000, when an NIGC official observed "Red Hot Respin" gambling 

devices in operation at the Wewoka Trading Post, the Seminole Nation Rivermist, 

and the Seminole Nation Travel Plaza. On March 14,2000, the NIGC issued 

three Potential Notices of Violation (PNOV) concerning the operation of these 

gambling devices and requested that play of these gambling devices cease at all 

facilities. The purpose of a PNOV is to make Respondent aware of the violation 

and provide an opportunity for voluntary compliance. At a meeting with 

Respondent's attorney and other tribal officials on April 19,2000, the NIGC 

reiterated its determination that these gambling devices are Class I11 gambling 

devices. Nevertheless, NIGC representatives observed Class I11 gambling devices 

being offered for play at the Rivermist facility on May 1 1,2000. Further, by 

virtue of the above-referenced NOV-00-6 and CO-00-6, Respondent understood 

that it was to cease operating illegal Class 111 gambling devices at all of its 

facilities within twenty-four hours of its receipt of that order on May 30,2000. 

Although Respondent indicated that "Red Hot Respin" gambling devices were 

shut down at 6:30 A.M. on May 3 1,2000, it has continued to offer similar Class 

I11 gambling devices at all of its facilities. Despite these warnings, Respondent 

continued to offer these gambling devices at all of its facilities. That Respondent 

knowingly disregarded these notices and continued to offer these gambling 

devices for play demonstrates that this is a willfhl violation. 

v. Good faith. Respondent continues to offer Class III gambling devices for play 

despite the issuance of multiple PNOVs and an NOV. Therefore, Respondent has 

not demonstrated a good faith effort to achieve compliance with IGRA and NIGC 

regulations. 

5. WHEREFORE, the Chairman, having carehlly reviewed the above factors, has 

determined that a fine in the amount of $400,000 (four hundred thousand dollars) is 

assessed on the Respondent for operation of illegal gambling devices fiom March 14, 

2000, the date of the PNOVs, through August 17,2000. 
6. Respondent further will be assessed a continuing fine of $2000 (two thousand dollars) per 

%@ day beginning on the date of service of this civil fine assessment for each day that 

Respondent continues operation of these gambling devices. 

7. The above-described amounts represent an appropriate balancing of the other factors 

cited above. 

8. Pursuant to 25 C.F.R. 5 577.3, within 30 (thirty) days after service of this Notice of 

Proposed Civil Fine Assessment, Respondent may appeal the proposed fine to the full 

Commission by submitting a notice of appeal to the National Indian Gaming 

Commission, 1441 L Street, NW, Suite 9100, Washington, DC 20005. Respondent has a 

right to assistance of counsel in such an appeal. A notice of appeal must identify this 

Notice of Proposed Civil Fine Assessment. Within ten (10) days after filing a notice of 

appeal, Respondent must file with the Commission a supplemental statement that sets 

forth with particularity the relief desired and the grounds therefore and that includes, 

when available, supporting evidence in the form of affidavits. If Respondent wishes to 

present oral testimony or witnesses at the hearing, Respondent must include a request to 

do so with the supplemental statement. The request to present oral testimony or 

witnesses must specify the names of proposed witnesses and the general nature of their 

expected testimony, and whether a closed hearing is requested and why. Respondent 

may waive its right to an oral hearing and instead elect to have the matter determined by 

the Commission solely on the basis of written submissions. 

%!# 

Dated this 1 7th day of August 2000. 

Montie R. Deer 

Chairman 

Sandra J. Ashton 

Staff Attorney 

202-632-7003