NATIONAL INDIAN GAMING COMMISSION 

SETTLEMENT AGREEMENT 

SA-17-03 

This settlement agreement is entered into by and between the Crow Tribe of Montana (Tribe) 

through its duly authorized representatives and the Chairman of the National Indian Gaming 

Commission (NIGC) to resolve the issues related to the notice of violation (NOV-17-03) and 

proposed civil fine assessment (CFA-17-03) issued to the Tribe. 

I. RECITALS 

Whereas, the Indian Gaming Regulatory Act (IGRA), 25 U.S.C. §§ 2705(a)(2) and 

2713(a)(1), and NIGC regulations, 25 C.F.R. § 575.4, authorize the Chairman to issue 

civil fines not to exceed $50,276 per violation against a tribe, management contractor, or 

individual operating Indian gaming for violations of IGRA, NIGC regulations, or tribal 

regulations, ordinances, or resolutions approved by the Chairman. 

2. Whereas, pursuant to 25 C.F.R. § 575.4(a)(2), if the violation continues for more than one 

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

3. Whereas, IGRA authorizes the Chairman to issue an order of temporary closure of an 

Indian gaming operation for substantial violation of IGRA, NIGC regulations, or an 

approved tribal ordinance under 25 U.S.C. §§ 2705(a)(1) and 2713(b)(1). 

4. Whereas, under NIGC regulations, at 25 C.F.R. § 573.3(a), the Chairman may issue a 

notice of violation to any person for violations of any provision of IGRA, NIGC 

regulations, or an approved tribal gaming ordinance or resolution. 

5. Whereas, by letter dated June 15, 2017, the Chairman informed the Tribe of the missed 

compliance date for the submission of the annual audit report, financial statements, and 

agreed-upon procedures reports for each of the Tribe's two gaming operations for fiscal 

year 2016. 

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8. Whereas the Tribe timely appealed the Notice of Violation on September 5, 2017 and is 

awaiting a Commission decision on the matter. 

9. Whereas, the Chairman and the Tribe desire to resolve issues related to the notice of 

violation (NOV-17-03) and the proposed civil fine assessment (CFA-17-03). 

10. Therefore, the Chairman and the Tribe have agreed to execute this Agreement and 

perform in accordance with the following terms: 

II. STIPULATIONS 

'1. The Tribe agrees that the NIGC has jurisdiction over this matter. 

2. The Tribe admits that it was required to submit to the NIGC the annual independent audit 

reports, financial statements, and agreed-upon procedure reports for all gaming 

operations within 120 days of the end of fiscal year 2016, as required by IGRA and 

NIGC regulations. 

3. The Tribe admits that it owned and operated two gaming operations in 2016: Apsaalooke 

Nights Casino and Center Lodge Bingo (aka Edison Real Bird Racing Complex). 

4. The Tribe admits that the documents it provided to the NIGC on October 30, 2017, 

entitled "Apsaalooke Nights Casino Financial Statements and Independent Auditors 

Report, December 31, 2016 and 2015" and "Apsaalooke Nights Casino Report of 

Independent Accountants on Applying Agreed-Upon Procedures to Assist in Evaluating 

Compliance with the NIGC Minimum Internal Control Standards for the year ended 

December 31, 2016 " were submitted after the applicable deadlines and did not 

adequately constitute the annual independent audit reports, financial statements, and 

agreed-upon procedure reports of all tribal gaming operations for the 2016 fiscal year 

required by IGRA and NIGC regulations. 

5. The Tribe admits that its failure to submit to the NIGC the annual independent audit 

reports, financial statements, and agreed-upon procedure reports of Center Lodge Bingo 

is a violation of IGRA, 25 U.S.C. § 2710(b)(2)(C), NIGC regulations, 25 C.F.R. §§ 

571.12, 571.13, and 543.23(d), and the Crow Tribal Gaming Ordinance of 2015. 

6. The Tribe is aware of its right to: 

a. Appeal the notice of violation to the full Commission under 25 C.F.R. part 585; 
7. The Tribe stipulates that this Settlement Agreement shall be deemed a final order of the 

Commission and a final agency action pursuant to 25 C.F.R. § 573.5. 

HI. TERMS OF SETTLEMENT 

1. The Tribe agrees to cease and desist from any gaming activity at Apsaalooke Nights 

Casino and any other locations within the Crow Reservation by December 28, 2017. 

2. The NIGC Chairman agrees to suspend assessment of the $75,000 proposed civil fine 

and forego issuing a temporary closure order for failure to correct the violation (nonsubmission of Center Lodge Bingo audit) by the date provided in the Notice of Violation. 

3. The Tribe agrees that it will not engage in or permit gaming within the Crow Reservation 

for five years or until it satisfies the pre-opening conditions set forth below. 

4. The Tribe agrees that gaming within the Crow Reservation is subject to the post-opening 

conditions set forth below. 

5. The Chairman agrees upon execution of this Agreement to waive the right to impose any 

further civil fine against the Tribe for the notice of violation, NOV-17-03. 

6. The Tribe waives all rights to further pursue an appeal of NOV-17-03 or CFA-17-03 

before the Commission, waives all rights to pursue an appeal to a presiding official, and 

waives all rights to judicial review of such proceedings. 

7. In exchange for the terms, conditions, and understandings set forth in this Agreement, 

the Tribe waives its right to any administrative review of this settlement, under 25 

C.F.R. §§ 584 and 585, to submit information prior to the issuance of a civil fine 

assessment, under 25 C.F.R. § 575.5, to seek reduction or waiver of a civil fine, under 25 

C.F.R. § 575.6, and the right to seek judicial review, under 25 U.S.C. § 2714, including 

the right to have the Chairman provide his written analysis of the factors to be 

considered in assessing a civil fine set forth under 25 C.F.R. § 575.4. 

8. The Tribe agrees that this Agreement does not restrict the NIGC Chairman from issuing 

new notices of violations and other enforcement actions for new violations of IGRA, 
the $75,000 fine under proposed CFA-17-03; assess additional civil fines or penalties for 

the stipulated violation(s); and/or direct the Tribe to cease its gaming activities(s). 

a. If the NIGC Chairman directs the Tribe to cease its gaming activities, the Tribe 

agrees that it will close the operation(s) at issue within 10 calendar days of 

receiving written notice to do so from the NIGC Chairman or his designee. 

b. Unless the Chairman or his designee specify a re-opening date for the operation(s) 

in the notice describing the violations, the Tribe must follow the procedure 

described in Section V of this Agreement to re-open the operation(s). 

IV. PRE-OPENING CONDITIONS 

1. At least 60 days prior to recommencing gaming activities within the Crow Reservation, 

the Tribe, through its tribal gaming commission, shall submit to the NIGC its approved 

tribal internal control standards (TICS) that are at least as stringent as the standards set 

forth in the NIGC Minimum Internal Control Standards found at 25 C.F.R. Parts 542 and 

Part 543. For purposes of this Agreement, references to 25 C.F.R. Part 542 include any 

related guidance documents the Commission may publish regarding Class III Minimum 

Internal Control Standards. 

2. At least 60 days prior to recommencing gaming activities within the Crow Reservation, 

management of the gaming operation shall submit to the NIGC its written system of 

internal controls (SICS) implementing the TICS. The SICS should, at a minimum, 

include: 

a. An organizational chart depicting segregation of functions and responsibilities; 

b. A detailed narrative description of the administrative and accounting procedures 

designed to satisfy the requirements of the tribal internal control standards; 

c. A written statement signed by the gaming operation's chief financial officer, 

general manager, or comparable position attesting that the organization's internal 

controls satisfy the requirements of the tribal internal control standards adopted 

by the tribal gaming regulatory authority. 

3. Within 45 days of receipt of the TICS and SICS, the NIGC Audit Division will review 

the submission and provide a written response to the Tribe. The response will either 

approve the submission or note the sections of the submission that do not comply with 
gaming until it has received written confirmation from the NIGC that the critical 

exception(s) were remedied. 

b. Less significant exceptions shall require the Tribe to demonstrate correction 

within 60 days of receipt of the Audit Division's review. If the deficiencies 

remain after the 60-day correction period, the NIGC Chairman may reinstate all 

or any portion of the $75,000 civil fine assessment proposed by CFA-17-03; 

assess additional civil fines or penalties for the stipulated violation(s); and/or 

direct the Tribe to cease all gaming activities on the Crow Reservation until the 

Tribe provides documentation that all exceptions have been resolved. 

4. At least 60 days prior to recommencing gaming activity, the Tribe shall provide evidence 

that the Tribe has established and the gaming operation is in compliance with a minimum 

bankroll formula which ensures the gaming operation maintains cash or cash equivalents 

(on hand and in the bank, if readily accessible) in an amount sufficient to satisfy 

obligations to the gaining operation's customers as they are incurred. This condition is 

satisfied only if the NIGC Chaiiman or his designee approves the submission in writing. 

5. Prior to recommencing gaming activity, the Tribe and casino management shall draft a 

cash management policy for the operation and submit it to NIGC for review and 

comment. For purposes of this agreement, a cash management policy is a plan for 

utilizing cash in a manner that is consistent with the needs and strategic goals of the 

operation. 

6. Prior to recommencing gaming activity, the Tribe shall provide to the NIGC Chairman a 

copy of the executed letter of engagement with a certified public accounting firm to 

conduct the audit of the operation's financial statements and issue an Agreed Upon 

Procedures Report for the fiscal year gaming recommenced. 

V. RECOMMENCING GAMING ACTIVITY 

1. The Tribe agrees that it will only permit gaming to recommence at Apsaalooke Nights 

Casino or anywhere else on the Crow Reservation upon the NIGC Chairman's written 

authorization. 

2. The NIGC Chairman's authorization to recommence gaming on the Crow Reservation is 

exclusively limited to a letter issued by the NIGC Chairman or an authorized designee 

(the "NIGC Letter") stating that the Tribe has fully complied with the provisions of 

Section IV, including correcting any critical exceptions noted in the TICS and SICS 

review by NIGC auditors. The Tribe may not presume agreement in the absence of the 
4. The NIGC Chairman agrees that he will issue the NIGC Letter within 30 days of the date 

that the Tribe provides evidence reasonably demonstrating that it has satisfied the preopening conditions described in Section IV of this Agreement. 

5. If the evidence provided by the Tribe does not demonstrate satisfactory compliance with 

the pre-opening conditions, the NIGC Chairman or his designee will provide written 

notice of the deficiencies. Once the Tribe has corrected the deficiencies, it may submit 

additional documentation to the NIGC Chairman or his designee showing that it has 

satisfied this Agreement the NIGC Chairman or his designee will then review the 

additional evidence. 

VI. POST-OPENING CONDITIONS 

1. The Tribe agrees to the following post-opening conditions for a five year period from the 

date a gaming activity recommences. This five year heightened monitoring period begins 

on the date gaming activity recommences on the Crow Reservation. 

2. The NIGC will monitor the Tribe's operation(s) and regulation of its gaming activities 

with heightened scrutiny for a period of five years for the purpose of determining that the 

Tribe, in the operation and regulation of its gaming activities, is in material compliance 

with IGRA; NIGC regulations, including 25 C.F.R. Parts 542 and 543; the Tribe's 

gaming ordinance; and this Agreement. 

3. In the event the NIGC Chairman or his designee determines that any post-opening 

condition has been violated, the NIGC shall provide the Tribe a letter describing the 

violation(s) and setting forth a reasonable time period to correct the violation(s), which 

for purposes of this Agreement, the parties agree will be no less than 30 days following 

the date of the Chairman's letter, unless otherwise agreed or unless the violation is a 

"substantial violation" as that term is used in 25 C.F.R. § 573.6, in which case the NIGC 

Chairman or his designee may establish a shorter period or order closure without 

allowing a timer period for correction. 

4. The Tribe shall at no time operate gaming activities without approved TICS that are at 

least as stringent as the MICS in 25 C.F.R. Parts 542 and 543. 

5. The Tribe shall conduct and regulate gaming activities at each authorized operation in 
regulated in material violation of any provisions of the IGRA, NIGC regulations, the 

Tribal gaming ordinance or gaming regulations, the TICS, or this Agreement, the Tribe 

shall promptly notify the NIGC Region Office in Rapid City, South Dakota of the 

violation(s) and take immediate steps to correct the violation(s). 

7. The Tribe acknowledges that the NIGC may conduct unannounced audits of the books 

and records of the Tribe's Class II and Class III gaming operation(s) and review and 

observe the facilities. The Tribe shall cooperate fully with such audits and site visits. 

8. Within nine months of recommencing gaming activity or longer at the sole discretion of 

NIGC---the Tribe shall cooperate with NIGC in an internal control assessment of both 

Class II and Class III gaming for the gaming operation(s). 

a. NIGC intends the audit primarily as a training tool for the Tribe. 

b. Unless the assessment reveals an immediate and material risk to the interest of the 

public or Tribe, NIGC Chairman will allow the Tribe six months to correct any 

exceptions, and may, at its option, conduct a follow-up assessment at any time 

during or subsequent to the correction period. 

c. The Tribe shall correct all exceptions found in the assessment within six months 

of receiving written notice of them. 

9. The Tribe shall maintain the approved minimum bankroll foimula for the duration of the 

heightened monitoring period set forth in this Agreement, unless it receives written 

approval from the NIGC Chairman or his designee of a modified formula. The Tribe 

agrees that failure to maintain compliance with the minimum bankroll folinula poses an 

immediate and material risk to the interest of the public and could result in a closure 

order by the NIGC Chairman without allowing a time period for correction. 

10. The Tribe shall provide internal controls training for all employees who are directly 

involved in the conduct of the games or the support thereof (i.e., surveillance, cage, drop 

and count, dealers, internal audit, etc.). The Tribe will submit documentation of the 

training sessions and attendees' names and titles to the NIGC within 60 days after 

recommencing gaming activity. 
12. The Tribe shall send at least one gaming commission representative, and shall cause the 

gaming operation management to send at least one internal auditor, revenue auditor, 

cage/vault supervisor, gaming machine supervisor, table game supervisor, and 

surveillance supervisor to an NIGC-hosted training on internal controls within six months 

of opening. The Tribe acknowledges that the NIGC training schedule may not allow for 

this training to take place on the Crow Reservation and travel may be required. 

13. The five year post-opening condition monitoring period will be tolled for the duration of 

any closure of any of the Tribe's gaming facilities. 

VII. TERM OF THE AGREEMENT 

1. This Agreement will be considered fulfilled if no Class II or III gaming occurs on the 

Crow Reservation within five years of the execution of this Agreement. 

2. If the Tribe does undertake or authorize gaming on the Crow Reservation within five 

years of the execution date of this Agreement, the Agreement will continue through the 

entire five year period of heightened monitoring described in Section VI. Thus, the 

Agreement will be fulfilled upon the final day of the gaming operation's fifth full fiscal 

year following the execution of this Agreement (excluding any periods of tolling for 

closure). 

3. If more than one operation begins gaming after execution of this Agreement, the 

Agreement will be fulfilled at the earliest conclusion of five full fiscal years for a single 

operation. 

4. Notwithstanding the provisions above, in no event will this Agreement continue beyond 

January 1, 2026. 

VIII. ADDITIONAL COVENANTS 

1. This Agreement constitutes the entire agreement between the Chairman and the Tribe 

relating to NOV-17-03 and CFA-17-03 and supersedes all prior verbal or written 

agreements and understandings between the parties related to the subject matter. No 

warranties, representations, covenants, or agreements shall be binding upon any party 

except as set forth herein. Any modification or waiver of any term of this Agreement, 

including the modification or waiver of term, must be in writing and signed by the parties. 

2

The Tribe agrees that this Agreement shall be deemed a final order of the Commission 
By: Date: 

For the National Indian Gaming Commission: 

odev O. audh 

airman, National Indian Gaming Commission 

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

be effective and binding for purpose of the Agreement. 

For the Crow Tribe of Montana 

By: Date: / 0/007 

A.J. Not Afrai , Jr. 

Chairman, Crow Tribe of Montana 

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