OCT 2 4 I996 

Ms. Joyce C. Dugan, Principal Chief 

Eastern Band of Cherokee Indians 

P.O. Box 455 

Cherokee, NC 28719 

Dear Principal Chief Dugan: 

This letter responds to your request to review and approve 

the amendment to the tribal gaming ordinance of the Eastern Band 

of Cherokee Indians (Tribe). The amendment to the ordinance was 

adopted by the Tribe by Resolution Number 238 on July 24, 1996. 

This letter constitutes such approval under the Indian Gaming 

Regulatory Act (IGRA) . Under the IGRA and the regulations of the National Indian 

Gaming Commission (NIGC), the Chairman is directed to review 

amendments to ordinances with respect to the requirements of the 

IGRA and the implementing regulations. Thus, the scope of the 

Chairman's review and approval is limited to the requirements of 

the IGRA and the NIGC regulations. 

Thank you for submitting the amendment to the tribal gaming 

ordinance of the Eastern Band of Cherokee. The NIGC staff and I 

continue to look forward to working with you and the Tribe in 

implementing the IGRA. 

Sincerely, 

5-Harold"~. Monteau 

Chairman 

cc: Patrick Lambert 

Tribal Gaming Commission Attorney 

141 L STREET. >!.'A 9TH FLCOR WASHINGTCN, D.C. 2C005 TEL.: 202-632-7003 FAX: 202-612-7066 
EASTERN BAND OF 

CHEROKEE INDIANS 

TRIBAL GAMING ORDINANCE 

ORDINANCE # 238 (1996) 

passed 

7/24/96 
TABLE OF CONTENTS 

DEFINITIONS ........................................................................ 1 

Applicant ...................................................................... 1 

Application .................................................................... 1 

CouncilorTribalCouncil .......................................................... 1 

Chairman ..................................................................... 1 

ClassIIGaming ................................................................. 1 

ClassIIIGaming ................................................................ 1 

Compaa ...................................................................... 1 

Commission ................................................................... 1 

Commissioner .................................................................. 1 

Fiscalyear ..................................................................... 1 

Gaming ....................................................................... 2 

GamingDevice .................................................................. 2 

GamingDeviseSupplier ........................................................... 2 

GamingEstablishment ............................................................. 2 

ExecutiveDirector ............................................................... 2 

Gamingoperation ............................................................... 2 

GrossRevenue .................................................................. 2 

KeyEmployee .................................................................. 3 

License ....................................................................... 3 

Licensee ....................................................................... 4 

Managementcontra ct ............................................................. 4 

Management Entity or Controlling Shareholder ........................................... 4 

ManagementFee ................................................................. 5 

NetRevenue ................................................................... 5 

NIGC ........................................................................ 5 

OperatingExpense ............................................................... 5 

Ordinance ..................................................................... 5 

Patron ........................................................................ 5 

Peaon ........................................................................ 5 

Primary Management Officials ....................................................... 5 

Reservation .................................................................... 5 

Rules ......................................................................... 6 

Secretary ...................................................................... 6 

TribeandTribal ................................................................. 6 

Chapter I: Purpose. public Policy. Applicability and Authorizations .............................. 7 

1.01ShonTitle ................................................................. 7 

1.02Purpose ................................................................... 7 

1.03PublicPolicy ................................................................ 7 

1.04 Class I1 Gaming Authorized ..................................................... 7 

1.05 Class III Gaming Authorized ..................................................... 7 

1.06LocationofGaming ........................................................... 8 

1.07 Ownership of Gaming ......................................................... 8 

1.08UseofGamingRevenue ........................................................ 8 

1.09 Unauthorized Gaming ......................................................... 8 

1.10ConduaofGames ............................................................ 8 

1.11 Applicability of Ordinance ...................................................... 8 

Chapter II: Establishment. Administration and Powers of Commission ............................ 9 

2.01 Establishment of Commission .................................................... 9 

2.02 Independence of Commission .................................................... 9 

2.03 Licensing of Commissioners ..................................................... 9 

2.04 Restrictions on Commissioners ................................................... 10 

2.05 No Financial Interest in Gaming .................................................. 10 
2.06 Compensation of Commissioners .................................................. 10 

2.07 Commission Meetings ......................................................... 10 

2.08 Commission Offices ........................................................... 10 

2.09Quorum ................................................................... 11 

2.10 Organization of Commission .................................................... 11 

2.11 Commission Record-Keeping ..................................................... 11 

2.12Reports .................................................................... 12 

2.13Budget .................................................................... 13 

2.14Powers .................................................................... 13 

2.15 Promulgation of Gaming Rules ................................................... 14 

2.16 Promulgation of Auditing and Internal Control Rules ................................... 14 

Chapter IU: ExecutiveDireaor ......................................................... 15 

3.0 1 Qualifications ............................................................... 15 

3.02 Authority of Executive Director .................................................. 15 

3.03 Files and Records to be Maintained by the Executive Director Confidentiality of Information ....... 16 

3.04 Removal of Executive Director from Office .......................................... 16 

Chapter IV: Licenses. Applications and License Procedures ...................................... 17 

4.01 Gaming License Required ....................................................... 18 

4.02 Standard of License ....................... : ................................... 18 

4.03 Application for License ......................................................... 19 

4.04 Required Application Forms ..................................................... 21 

4.05 Fingerprint Cards Required ...................................................... 22 

4.06 Withdrawal of Application ...................................................... 21 

4.07 Continuing Duty to Provide Information ............................................ 22 

4.08 Term of License: License Fees: Parameters of License .................................... 22 

4.09 Conditions of License .......................................................... 23 

4.10 Facility License .............................................................. 24 

4.11 Certification of Gaming Devises .................................................. 24 

4.12 Provisional license ............................................................ 24 

4.13 Provisions Employment Pending Issuance of License and During Temporary License Period ........ 25 

4.14 Assignment or Transfer ........................................................ 25 

Chapter V Background Investigations and License Decisions .................................... 26 

5.01 Required Background Investigations ................................................ 26 

5.02 Standards for Background Investigations ............................................. 26 

5.03 Information Required for Background Investigations .................................... 26 

5.04 Completion of Investigations ..................................................... 28 

5.05 Issuance of License ............................................................ 28 

5.06 Denial of License Application .................................................... 29 

5.07 Cancellation of Suspension ...................................................... 29 

5.08 Eligibility Determination and Procedures of Forwarding Applications and Reports for 

Key Employees and Primary Management Officials to National Indian Gaming Commission ..... 30 

5.09 Granting of Gaming License ..................................................... 31 

5.10 License Revocation and Suspension Following Receipt of Information from NIGC ............... 32 

5.11 Show Cause Hearing for Manager and Primary Management Officials ........................ 32 

Chapter VI Rules of Procedure for Hearings ............................................... 33 

6.01 Scope of Rules of Procedures ..................................................... 33 

6.02Hearings ................................................................... 33 

6.03 Notice of Hearing ............................................................ 33 

6.04 Ex Parte Communications ...................................................... 34 

6.05 Appearance through Counsel .................................................... 35 

6.06 Discovery Procedures for Enforcement Hearings ....................................... 35 
6.07 Confidential Materials ......................................................... 36 

6.08 Subpoenas .................................................................. 37 

6.09 Hearing Procedures ........................................................... 37 

6.10Evidence ................................................................... 38 . 6.1 1 Determinations by the Commission ................................................ 39 

6.12Sanctions .................................................................. 40 

ChapterW Appeals ................................................................ 41 

7.01 Right of Appeal; Appeals Procedures ............................................... 41 

7.02 Sovereign Immunity of the Commission ............................................. 41 

7.03 Limited Waiver of Sovereign Immunity of the Commission ............................... 41 

Chapter Vm Auditing and Internal Controls ................................................ 42 

8.01 Minimum Procedures for Control of Internal Fiscal Affairs ............................... 42 

8.02 Oversight of Internal Fiscal Affairs ................................................ 43 

8.03ConductofAudit ............................................................ 43 

8.04 Prohibition Against Embezzlement ................................................ 44 

8.05 Non-Compliance ............................................................. 44 

Chapter M Exclusion or Rejection of Individuals ............................................ 45 

9.01 Prohibition Against Certain Individuals ............................................. 45 

9.02 Right to Exclude or Remove ..................................................... 45 

Chapter X Prohibited Acts ........................................................... 46 

10.01 Prohibited Acts ............................................................. 46 

10.02 Prohibition Against Electronic Aids ............................................... 48 

Chapter XI National Indian Gaming Commission and Compact ................................. 49 

11.01 National Indian Gaming Commission . Regulations .................................... 49 

11.02 National Indian Gaming Commission . Assessment .................................... 49 

11.03 Compact with the State of North Carolina .......................................... 49 

Chapter XI1 General Requirements ...................................................... 50 

12.01 Security and Surveillance ....................................................... 50 

12.02 Compliance with Other Laws ................................................... 50 

12.03 Amendments ............................................................... 50 

12.04 Severability ................................................................ 50 

12.05WordsandTerms ............................................................ 50 

12.06Repeal .................................................................... 51 

12.07 Unclaimed Winnings ......................................................... 51 

12.08 Patron Disputes ............................................................. 51 

12.09 Patron Rights Regarding Disputes ................................................ 51 

12.10 Gaming Commission Action on Patron Disputes ...................................... 52 

12.11 Agent for Service of Process .................................................... 52 

12.12 Consent to Jurisdiction ........................................................ 52 

12.13 Comity and Concurrent Jurisdiction ............................................... 52 

12.14 Other Powers of Commission ................................................... 52 

12.15 Enforcement Provisions ....................................................... 54 
DRAFT ONE 

EASTERN BAND OF CHEROKEE INDIANS 

TRIBAL GAMING ORDINANCE 

AUG - 1 1996 

DEFINITIONS 

Definitions. Unless a different meaning is set forth below, the terms used in this 

Ordinance shall have the same meaning as defined in the Indian Gaming Regulatory Act, 

Public Law 100-497, 102 Stat. 2467 (Oct. 17, 1988), 25 U.S.C. 2701, et seq. ("IGRA"). 

"Applicant" means any person, partnership, corporation, joint venture or other entity 

applying for, or requesting renewal of, any License described in or required by this 

Ordinance. 

"Avplication" means a request for the issuance or renewal of a License described in or 

required by this Ordinance. 

"Council" or "Tribal Council" means the Tribal Council of the Eastern Band of 

Cherokee Indians. 

"Chairman" means the Chairman of the National Indian Gaming Commission. 

"Class I1 Gaming" means Class I1 gaming as defined at 25 U.S.C. §2703(7)(A), and any 

regulations promulgated thereunder. 

"Class I11 Gaming" means Class I11 gaming as defined in 25 U.S.C. §2703(8), and any 

regulations promulgated thereunder. 

"Compact" means the "Tribal State Compact including all renewals, amendments, 

appendices, exhibits and other attachments thereto between the Eastern Band of Cherokee 

Indians and the State of North Carolina providing for the Conduct of Tribal Class 111 

Gaming by the Eastern Band of Cherokee Indians." 

"Commission" means the Cherokee Tribal Gaming Commission. 

"Commissioner" means an individual member of the Cherokee Tribal Gaming 

Commission. 

"Fiscal Year" means the period beginning at 12:01 am on October 1 of each year and 

ending at midnight, September 30 of the following year. 
"Gaming" means any Class I1 Gaming or Class I11 Gaming activity, either individually or 

collectively, whether authorized or unauthorized. 

" gamin^ Device" means any equipment or mechanical, electromechanical or electronic 

contrivance, component or machine, used remotely or directly in connection with any 

Gaming which affects the result of a wager by determining o; predicting the outcome of 

such game or the odds of winning or losing such game. The term shall be broadly 

construed to promote the purposes of this Ordinance and shall also include any devices, 

machines, components or contrivances which do or are capable of affecting, in any way, 

the playing of any Gaming. 

"Supplier of Gamin9 Goods and Services" means any Person who manufactures, sells, 

leases, distributes, supplies or makes modifications to, any Gaming Device of the Tribe and 

all Persons holding any direct or indirect financial interest in such Gaming Device 

Supplier. 

"Gamin? Establishment" means any premises where Gaming is operated or conducted on 

the Tribe's Reservation, and includes all buildings, improvements, appurtenances, 

equipment and facilities used or maintained in connection with such gaming. 

"Gamin9 Operation" means any business enterprise owned by the Tribe, the revenues of 

which are ~rimaril~ derived from Gaming or from any Gaming Establishment. 

"Gross Revenue" means the total of all of the following, less the total of all cash paid out 

as losses to patrons and any items made deductible as losses by calculation of Gross 

Revenues: 

(i) cash received as winnings; 

(ii) cash received in payment for credit extended by a licensee to a 

patron for the purposes of gaming; and 

(iii) compensation received for conducting any game in which the 

licensee is not a part to a wager. 

For the purposes of this definition, cash or the value of noncash 

prizes awarded to patrons in a contest or tournament are not losses. 

The term does not include: 

(i) counterfeit money or tokens, 

(ii) coins of other countries which are received in gaming devices 

or gaming devises; 
(iii) cash taken in fraudulent acts perpetrated against a licensee for 

which the licensee is not reimbursed; or 

(iv) cash received as entry fees for contests or tournaments in 

which the patrons compete for prizes. 

Calculation of Gross Revenues. Certain expenses not deductible. 

(1) In calculating gross revenue, any prizes, premiums, drawings, benefits or 

tickets which are redeemable for money or merchandise or other 

promotional allowance, except money or tokens paid at face value directly to 

a patron as the result of a specific wager and the amount of cash paid to 

purchase an annuity to fund winnings must not be deducted as losses from 

winnings. 

(2) In calculating gross revenue from gaming devices, the actual cost to the 

licensee of any personal property distributed to a patron as the result of a 

legitimate wager may be deducted as a loss, but not travel expenses, food, 

refreshments, lodging or services. For the purposes of this section, "as the 

result of a legitimate wager" means that the patron must make a wager prior 

to receiving the personal property, regardless of whether the receipt of the 

~ersonal property is dependent on the outcome of the wager. 

"Key Employee" means: 

(a) a person who performs one or more of the following functions 

(1) bingo caller, 

(2) counting room supervisor, 

(3) chief of security, 

(4) custodian of gaming supplies or cash, 

(5) floor manager, 

(6) pit boss, 

(7) dealer, 

(8) croupier, 

(9) approver of credit, or 

(10) custodian of gambling terminals or other devices operated by the 

management of any Gaming Operation, including persons with access to cash and 

accounting records for such devices; 

(b) if not otherwise included, any other person whose total cash compensation 

from employment in any Gaming Operation exceeds $50,000 per year; 
(c) if not otherwise included, the four most highly compensated persons in any 

Gaming Operation; or 

(d) any other employee of any Gaming Operation that the Commission 

designates by its Rules as a Key Employee. 

"License" means any authorization granted by the Commission, pursuant to this 

Ordinance, to any Person which is required for such Person to perform certain acts or 

engage in certain activities. The issuance of a License shall not create a property or liberty 

interest in such License for the benefit of the Licensee. 

"Licensee" means any Person who has been issued a valid and current License pursuant to 

the provisions of this Ordinance. 

"Mana~ement Contract" means any contract, agreement or other document, including all 

collateral agreements, establishing a relationship between the Tribal government and any 

Person, pursuant to which such Person has managerial responsibilities in or for any 

Gaming Operation. 

"Manapement Entity" or "Controlling Shareholder" means: 

(a) any Person having a direct financial interest in any Management Contract, 

including those Persons who own five (5) percent or more of any 

Management Entity's outstanding capital stock; 

(b) when a trust is a party to a Management Contract, any beneficiary or trustee 

of such trust; 

(c) when a partnership is a party to a Management Contract, any partner, 

general or limited, in such partnership; 

(d) when a corporation is a party to a Management Contract, any Person who is 

an officer or director of such corporation, or who holds five (5) percent or 

more of the issued and outstanding capital stock of such corporation either 

alone or in combination with a spouse, parent, child or sibling; or 

(e) with respect to any non-natural Person with an interest in a trust, 

partnership or corporation that has an interest in a Management Contract, all 

beneficiaries, trustees, partners, or directors of, and five (5) percent 

stockholders of, such non-natural Person. 

"Mana~ement Fee" means any monies paid from Gaming revenue to any Person pursuant 

to an NIGC approved contract to operate a Gaming Establishment. Such term shall not 

include monies paid for the operating expenses of such Gaming Establishment. 
"Net Revenue" means Gross ;Revenue of any !Gaming Operation minus amounts paid for, 

or paid out as prizes, winnings, and related operating expenses, excluding Management 

Fees. 

-- 4 , l#, a ' " A*. - 

"NIGC" means the National Indian Gaming dommission. 

"Operatine Expense" means any expense incurred in the operation of Gaming that is 

specifically designated as an Operating Expense in any Management Contract or which by 

operation of Generally Accepted Accounting Principles, consistently applied, is so treated 

"Ordinance" means this Tribal Gaming Ordinance of the Eastern Band of Cherokee 

Indians, as amended from time to time, and any Rules promulgated hereunder. 

"Patron" means any Person who participates in Gaming, or who is physically present on 

premises wherein or whereon Gaming is conducted. 

"Person" means any association, partnership, corporation, firm, trust or other form of 

business association or entity, as well as a natural person. 

"Primary Management Officials" means: 

(a) the Person(s) having management responsibility over all or any part of any 

Gaming Operation; 

(b) any Person who has authority; 

(i) to hire and fire employees of a Gaming Operation, or 

(ii) to establish working policy for a Gaming Operation; 

(c) the chief financial officer or other Person who has financial management 

responsibility for any Gaming Operation; 

(d) any Person who is considered a Controlling Shareholder; 

or 

(e) any Person the Commission designated by Commission Rules as a Primary 

Management Official. 

"Reservation" means any lands, title to which is either held in trust by the United States 

for the benefit of the Eastern Band of Cherokee Indians, or held by the Eastern Band of 

Cherokee Indians subject to restriction against alienation by the United States and over 

which the Eastern Band of Cherokee Indians exercise governmental authority. 
"Rules" means any Rules governing the conduct of games or the control of internal fiscal 

affairs of Gaming Operations as may be promulgated by the Commission established 

pursuant to this Ordinance. 

"Secretary" means the Secretary of the United States Department of the Interior. 

"Tribe" means, and "Tribal" shall refer to, the Eastern Band of Cherokee Indians. 
CHAPTER I 

PURPOSE, PUBLIC POLICY, 

APPLICABILITY AND AUTHORIZATIONS 

Section 1.01 Short Title. This Ordinance shall be known and may be cited as the 

"Eastern Cherokee Gaming Ordinance." 

Section 1.02 Purpose. The Tribal Council of the Eastern Band of Cherokee Indians 

enacts this Ordinance in order to regulate all forms of Gaming on the 

Tribe's Reservation. 

Section 1.03 Public Policy. 

(a) All Gaming which is conducted within the Tribe's Reservation and 

which is otherwise authorized by law shall be regulated and licensed 

pursuant to the provisions of this Ordinance. 

(b) The Tribal Council hereby finds, and declares it to be the public 

policy of the Tribe, that: 

(1) Regulation of licensed Gaming is important in order that 

licensed Gaming is conducted honestly and that Gaming is free 

from criminal and corruptive elements. 

(2) Public confidence and trust can only be maintained by strict 

regulation of all Persons, locations, practices, associations and 

activities related to the operation of licensed Gaming 

Establishments and the manufacture or distribution of Gaming 

Devices. 

(3) All Management Entities or Controlling Shareholders, Primary 

Management Officials, Key Employees, Gaming Establishments 

and Suppliers of Gaming Goods and Services must therefore be 

licensed and controlled to protect the public health, safety, 

morals, good order and general welfare of the Tribe. 

Section 1.04 Class I1 Garnin~ Authorized. Class I1 Gaming is hereby authorized to be 

conducted on lands within the Tribe's Reservation; provided, however, that 

such Class I1 Gaming shall be conducted only in accordance with the 

provisions of this Ordinance, the Rules, and IGRA. 

Section 1.05 Class I11 Gaming Authorized. Class I11 Gaming is hereby authorized on 

lands within the Tribe's Reservation; provided, however, that Class 111 
Gaming shall be conducted only in accordance with the provisions of this 

Ordinance, the Rules, and IGRA. 

Section 1.06 Location of Gaming. The Commission shall ensure that (i) such Gaming as 

it authorizes and licenses pursuant to this Ordinance is conducted on lands 

within the Tribe's Reservation, and (ii) such gaming is not otherwise 

specifically prohibited by Federal law. 

Section 1.07 Ownershiv of Gaming. The Tribe shall have the sole proprietary interest 

in any Gaming Operation authorized by this Ordinance. The Tribe shall 

receive, at a minimum, not less than seventy (70) percent of the Net 

Revenues from any Gaming Operation. 

Section 1.08 Use of gamin^ Revenue. 

(a) Net Revenues from any form of Gaming authorized under this 

Ordinance shall be used only for the following purposes: to fund 

Tribal government operations and programs; to provide for the 

general welfare of the Tribe and its members; to promote Tribal 

economic development; to make donations to charitable organizations; 

or to help fund operations of local government agencies. 

(b) The Tribe shall make per capita payments of 50% of net revenues to 

Tribal members from both Class I1 and Class I11 gaming and it shall 

authorize such payments only pursuant to Tribal Ordinance No. 582 

(1995) which was submitted to and approved by the Secretary 

pursuant to 25 U.S.C. §2710(b)(3). 

Section 1.09 Unauthorized Gaming. Any person who commits any act of unauthorized 

Gaming on the Reservation or any other Tribal land shall be guilty of a 

crime and shall be ~rosecuted in Tribal Court or any other court of 

competent jurisdiction. 

Section 1.10 Conduct of Games. All Gaming shall be conducted by persons duly 

Licensed by the Commission. No Person licensed by the Commission shall 

engage in, conduct or condone any Gaming that is not conducted in 

accordance with such Rules governing the conduct of games as may be 

promulgated by the Commission under this Ordinance. 

Section 1.1 1 Applicability of Ordinance. Unless specifically indicated otherwise, all 

provisions of this Ordinance shall apply to both Class I1 Gaming and Class 

I11 Gaming including, but not limited to, all licensing and background 

investigation procedures. 
CHAPTER I1 

ESTABLISHMENT, ADMINISTRATION AND POWERS OF COMMISSION 

Section 2.01 Establishment of Commission. The Cherokee Tribal Gaming Commission 

having been previously established under prior Gaming Ordinances shall 

continue to consist of three (3) enrolled Tribal members. The Commission 

members currently serving in those positions shall upon ratification of this 

Ordinance continue in their capacity and shall then be subject to all terms, 

conditions, duties and responsibilities promulgated hereunder. All three (3) 

members of the Commission shall be enrolled Tribal members. A 

Commissioner shall serve for seven (7) years and may be removed from 

office prior to the end of the Commissioner's term by the Tribal Council 

only for cause and by a majority vote of the Council. Vacancies on the 

Commission shall be filled within thirty (30) days by nominations and a 

majority vote of the Council. The Commission shall select annually, from 

its membership, a Commission Chair. 

Section 2.02 Independence of Commission. In all matters within its purview and 

responsibilities, the Commission shall be and shall act independently and 

autonomously from the Principal Chief and Tribal Council. No prior or 

subsequent review by the Principal Chief or Tribal Council of any actions of 

the Commission shall be required or permitted, except as otherwise explicitly 

provided in this Ordinance. 

Section 2.03 Licensing: of Commissioners. Nominees for the position of Commissioner 

must meet the requirements of Chapters 4 and 5 of this Ordinance and must 

first obtain a License from the Council prior to assuming office. A 

Commissioner shall complete a License Application and shall be subject to 

the same background investigation as a Key Employee under this Ordinance. 

Such background investigation shall be performed at the direction of the 

Council by a duly appointed agent of the Council. Upon completion of the 

background investigation, the Council shall, by majority vote, either (i) issue 

a License, or (ii) notice the Commissioner for a hearing before the Council. 

All investigations and hearings under this Section shall be conducted as 

provided in Chapter 6 of this Ordinance, except that all hearings shall be 

conducted by and before the Council. 

(a) Failure to Meet License Reauirements or License Violations. If the Tribal 

Council has reason to believe that a Licensed Commissioner fails at any time 

to meet the License requirements under this Ordinance or that the 

Commissioner has violated this Ordinance, the Rules, the Compact, or the 

IGRA and regulations promulgated thereunder or any other applicable law, 

the Tribal Council shall direct an investigation to be conducted and may 
notice the Commissioner for a hearing before the Council. All investigations 

and hearings under this Section shall be conducted as provided in Chapters 5 

and 6 of this Ordinance and a Commissioner shall have all of the rights and 

obligations given to a Licensee or Applicant therein, except that all hearings 

shall be conducted by and before the Council. 

Section 2.04 Restrictions on Commissioners. No person shall serve on the Commission 

if that: 

(a) person's other employment or responsibilities conflict or could 

potentially conflict with the duties and responsibilities of a member of 

the Commission; 

(b) person is an employee of the Gaming Operation or the person's other 

employment or responsibilities create an impression or appearance of 

impropriety in the fulfillment of the duties and responsibilities of a 

member of the Commission; or 

(c) person is a: 

(1) Member or officer of the Tribal Council; or 

(2) Judge in any Tribal Court. 

Section 2.05 No Financial Interest in Gaming. No Commissioner shall have any direct 

or indirect financial interest in any Gaming Operation. For purposes of this 

section, indirect financial interest shall not include ownership of any mutual 

funds which holds stock in a publicly traded company but shall include 

direct ownership of such stock. No Commissioner may accept gratuities or 

any other thing of value from any Licensee or Applicant. Commissioners 

may not gamble in any Tribal Gaming Establishment. 

Section 2.06 Comvensation of Commissioners. Commissioners shall be compensated at 

a rate to be established annually by the Council. Commissioners shall be 

reimbursed for actual expenses incurred on Commission business, including 

necessary travel expenses. 

Section 2.07 Commission Meetings. 

(a) Re~ular Meetin~s. The Commission shall meet at least once a 

month at the Commission's main office or at any other designated 

meeting place. 
(b) Special Meetin~s. Special meetings shall be convened by the 

Commission Chair as necessary to carry out the official duties of the 

Commission. Notice of each special meeting shall be given by the 

Commission Chair by telephone or mail to each Commissioner. 

Notice shall be received at least 24 hours in advance of such meeting 

and shall include the date, time and place of the proposed meeting. 

(c) Emergency Meetings. An emergency meeting may be called by the 

Chair of the Commission with less than 24 hours notice; provided, 

however, that the Chair of the Commission shall use best efforts to 

assure that all Commissioners are notified of such meeting, with as 

much prior notice as possible under the circumstances. 

(d) Meetings Oven to the Public. All meetings of the Commission shall 

be open to the public; provided, however, the Commission may, in 

its discretion, close any portion of any meeting to the public when 

discussing any information which the Commission deems confidential 

pursuant to the provisions of this Ordinance. 

Section 2.08 Commission Offices. The Commission shall maintain an administrative 

office. Such office shall serve as the Commission's main business office and 

shall be the site at which Commission records and documents are maintained 

and stored on a permanent basis. No individual except a Commissioner or 

other authorized employee or agent of the Commission may possess a key to 

or may enter any Commission office without the permission of the 

Commission. No person may access such records except a Commissioner, a 

person duly authorized by the Commission or an attorney for the 

Commission. 

Section 2.09 Quorum. A quorum of the Commission shall consist of three (3) 

Commissioners. All decisions shall be made by a majority vote of a quorum 

of the Commission, unless indicated otherwise in this Ordinance. 

Section 2.10 Organization of Commission. The Commission may organize itself into 

any functional division it deems necessary, and may alter such plan of 

organization as it deems expedient. 

Section 2.11 Commission Record-Keeving. The Commission shall maintain complete 

records regarding the following: 

(a) Applications, financial statements, fingerprints, contracts, Licenses, 

suspension and cancellation notices and correspondences of all 

Applicants, including Management Entities or Controlling 
Shareholders, Key Employees, Primary Management Officials, 

Gaming Establishments and Suppliers of Gaming Goods and Services; 

(b) Commission Licenses; 

(c) Meeting minutes from all Commission meetings; 

(d) Compact compliance; 

(e) Reports relating to customer disputes, complaints or other issues that 

affect the integrity of the Gaming Operation; 

(f) Commlssion budget and expenditures; 

(g) Council communications and correspondences; 

(h) Gaming Device list pursuant to Section 4.11 of this Ordinance; and 

(i) Any other records or documents the Commission deems necessary or 

appropriate. 

Section 2.12 Revorts. The Commission shall make quarterly reports to the Council 

within thirty (30) days after the end of each quarter. Such Reports shall 

contain the following information: 

(a) number and types of Licenses issued during the previous quarter; 

(b) information regarding License denials, suspensions or revocations; 

(c) report of any events of non-compliance, breach or violations of this 

Ordinance, the Rules, the Compact, IGRA, License or any other law 

or regulation; provided, however, that these reports are not the 

subject of or relating to a pending investigation being conducted by 

the Commission, or hearing before the Commission; 

(d) a report of Commission expenditures for the prior quarter; 

(e) a summary of any Commission travel and training; 

(g) all other information which the Commission deems relevant in order 

to keep the Council informed and current on all Gaming regulatory 

matters. 
Nothing in this Section shall authorize or permit the Commission to provide 

the Council with any information pertaining to a pending investigation being 

conducted by the Commission or hearing before the Commission. All such 

information shall be kept confidential. Any willful or careless breach of this 

provision shall present due cause for removal of the person from office and a 

penalty of up to $5,000 (FIVE THOUSAND DOLLARS) for each offense. 

Claims of such disclosure shall be presented to the Commission within 60 

days of the act complained of, or within 60 days the disclosure becomes 

known, whichever is later. 

Section 2.13 Budget. The Commission shall establish a budget for its operations. It shall 

acquire such furnishings, equipment, supplies, stationery, books arid other 

items as it deems necessary or desirable to carry out its functions, and incur 

such other expenses, within the limit of funds available to it, as it deems 

necessary. Such Commission budget shall be funded as an operating expense 

of the Gaming Enterprise with one third of one percent (0.33%) of the Gross 

Gaming Revenue (win) but not more than $600,000 in any twelve (12) 

month period to be paid to the Commission. Any surplus remaining in the 

Commission's budget at the end of any budget year shall be refunded to the 

Gaming Enterprise. The Commission shall establish an internal budget which 

shall not exceed the cap earlier listed. If the Commissioner's budget needs 

exceed $600,000 for any year, the Commission shall seek or obtain additional 

funds from the Council. 

Section 2.14 Powers. The Commission shall exercise all powers necessary to effectuate 

the purposes of this Ordinance and all other powers provided for in this 

Ordinance. The Commission shall have the power to promulgate Rules 

pursuant to this Ordinance, for the operation of games and the control of 

internal fiscal affairs of Gaming Operations and the conduct of all business 

properly brought before the Commission. In all decisions, the Commission 

shall act to promote and ensure the integrity, security, honesty and fairness 

of the operation and administration of all Gaming. In accordance with this 

Ordinance, the Commission shall have the power and authority to deny any 

application for License, to limit, cancel, revoke, terminate, condition, 

modify, suspend, or restrict any License, to make findings of suitability, and 

to impose fines or sanctions for any cause deemed reasonable by the 

Commission upon any Licensee. The Commission shall conduct, or cause to 

be conducted, background investigations on all Applicants and Licensees. 

The Commission shall hold administrative licensing hearings under this 

Ordinance. The Commission shall have the power, upon duly recorded 

vote, to grant limited waivers of the Commission's sovereign immunity 

status, including the limited waiver of sovereign immunity contained in 

Section 7.03 of this Ordinance. Within the limits of its budget, the 
Commission shall employ and fix the salaries of, or contract for the services 

of, such professional, technical and operational personnel and consultants as 

the execution of the Commission's duties may require. 

Section 2.15 Promulgation of Gaming Rules. The Commission may promulgate Rules 

governing the conduct of all games authorized by the Compact or IGRA, 

including Rules governing the equipment, (chips, cards, tiles, etc.), used in 

such games. The Rules of each authorized game offered at any duly licensed 

Gaming Establishment shall be posted in a conspicuous location in such 

Gaming Establishment. 

Section 2.16 Promul~ation of Auditin? and Internal Control Rules. The Commission 

may promulgate Rules governing the control of internal fiscal affairs of 

Gaming Operations as provided in Chapter 8 of this Ordinance. 
CHAPTER I11 

EXECUTIVE DIRECTOR 

Section 3.01 Qualifications of Executive Director. Salarv 

(1) The position of Executive Director of the Commission is hereby created. 

The Commission shall appoint the Executive Director, and the Executive 

Director shall serve at the will and pleasure of the Commission. 

(2) No member of the Tribal Council, no person holding any elective office, nor 

any officer or official of any political party is eligible for the appointment of 

Executive Director. 

(3) The Executive Director must have at least five (5) years of responsible 

administrative experience in public or business administration or possess 

broad management skills and have a MBA, J.D. or higher degree of 

education. 

(4) The Executive Director shall devote his or her entire time and attention to 

the duties imposed under this Chapter and the business of the Commission 

and shall not pursue any other business or occupation or hold any other 

office of profit. 

(5) The Executive Director shall not be pecuniarily interested in any businesses 

or company holding a license under this Chapter or doing business with any 

person licensed under this Chapter. 

(6) The Executive Director is entitled to an annual salary in the amount 

specified by the Tribal Council. 

Section 3.02 Authority of Executive Director. 

(1) The Executive Director shall furnish to the Commission such administrative 

and clerical services and such furnishings, equipment, supplies, stationery, 

books and all other things that the Commission may deem necessary or 

desirable in carrying out its functions. 

(2) The Executive Director shall employ division directors that possess at least 

two (2)( years of training and experience in the fields of accounting, 

investigation, law enforcement, law or gaming. 
(3) The Executive Director in pursuit of the attainment of the objectives and the 

purposes of this Chapter may 

(a) Direct and supervise all administrative actions of the Commission. 

(b) Sue on behalf of the commission. 

(c) Make, execute and effectuate any and all agreements or contracts, 

including contracts for the purchase of good and services as are 

necessary' 

(d) Employ the services of such person as is considered necessary for the 

purposes of consultation or investigation and fix the salaries of or 

contract for the services of such legal, professional, technical and 

operational personnel and consultants. 

(e) Perform such other duties which he or she may deem necessary to 

effectuate the purposes of this Chapter. 

Section 3.03 Files and Records to be Maintained by the Executive Director. 

Confidentiality of Information. 

(1) The Executive Director shall maintain a file of all applications for licenses 

under this Ordinance, together with a record of all actions taken with 

respect to those applications. 

(2) The Commission and Executive Director may maintain such other files or 

records as they deem desirable. 

(3) All information and data: 

(a) Required by the Commission or the Executive Director to be 

furnished to them under this Ordinance or which may otherwise be 

obtained relative to the finances, earnings or revenue of any applicant 

or licensee; 

(b) Pertaining to an applicant's criminal record, antecedents and 

background which have been furnished to or obtained by the 

Commission or the Executive Director from any source; 

(c) Provided to the members of the Commission or the Executive 

Director of his employees by a governmental agency or an informer 

or on the assurances that the information will be held in confidence 

and treated as confidential; or 
(d) Obtained by the Executive Director or the Commission from a 

supplier relating to the manufacturing of gaming devices or gaming 

goods; 

are confidential and may be revealed in whole or in part only in the course of the 

necessary administration of this Ordinance or upon the lawful order of a court of 

competent jurisdiction. 

Section 3.04 Removal of Executive Director from Office. 

The Executive Director being hired by the Commission may be removed from 

office by the commission upon a majority vote of the Commission after a showing of 

cause. 
CHAPTER IV 

LICENSES, APPLICATIONS 

AND LICENSE PROCEDURES 

Section 4.01 gamin^ License Required. The Commission is hereby authorized to issue 

all Licenses for the conduct of all Gaming authorized under this Ordinance 

or any other License related to Gaming which the Commission may, by 

Rule require. 

(a) Persons. The following Persons must obtain Licenses as a precondition to 

employment in or management of any Gaming Operation: 

(1) any Management Entity or Controlling Shareholder. Any Person 

deemed a Controlling Shareholder must comply with the same 

licensing requirements as if such Person were a Primary Management 

Official; however, if any Controlling Shareholder is a non-natural 

person, such Controlling Shareholder shall be subject to Management 

Entity licensing procedures; 

(2) all Primary Management Officials; 

(3) all Key Employees; 

(4) Suppliers of Gaming Goods and Services. Any Person who is a 

Supplier of Gaming Goods and Services must comply with the same 

licensing requirements as if such Person were a Primary Management 

Official; however, if any Supplier is a non-natural person, such 

Supplier shall be subject to Management Entity licensing procedures; 

and 

(4) any other employee or class of employees as determined by 

Commission Rules. 

(b) Gamine Establishments. Each place, facility, or location where 

Gaming is conducted must obtain a separate facility License 

from the Commission. 

Section 4.02 Standard for License. Licenses issued hereunder shall be issued according to 

requirements at least as stringent as those set forth at 25 C.F.R parts 556 and 

558, and any amendments thereto, and also according to requirements at least 

as stringent as those set forth in the Compact. 
Section 4.03 Application for License. 

(a) No License shall be issued under this Ordinance except upon a sworn 

Application filed with the Commission, in such form as may be prescribed 

by the Commission, containing a full and complete showing, at a minimum, 

of the following: 

(1) satisfactory proof that the Applicant is of good character and 

reputation, and is financially responsible; 

(2) if applicable, a complete description of the premises at which Gaming 

will be conducted; 

(3) agreement by the Applicant to abide by all conditions of the License, 

this Ordinance, the Rules, the Compact and IGRA; 

(4) a separately sworn statement that the Applicant has never been 

convicted of, or entered a plea of guilty or no contest to, any of the 

following criminal offenses, 

a. any felony, other than a felony conviction for an offense under 

b, c, or d, within the preceding ten (10) years; provided, 

however, that this record limitation to the preceding ten (10) 

years shall not apply to any Applicant which is a Management 

Entity or Controlling Shareholder, 

b. any gaming-related offense, 

c. fraud, misrepresentation or any other crimes of moral 

turpitude in any context, or 

d. a violation of any provision of this Ordinance, the Rules, or 

any other ordinance or rules of the Tribe or any state agency 

regulating or prohibiting gaming; and 

(5) the Applicant's fulfillment of all applicable requirements of IGRA, all 

provisions of this Ordinance, including, but not limited to, those in 

Chapter 5, and the Compact. 

(b) No License shall be issued to any Applicant who is determined 

by the Commission to be a Person whose prior activities, 

criminal record, reputation, habits or associations pose a threat 

to the public interest or to the effective regulation and control 

of Gaming, or create or enhance the dangers of unsuitable, 
unfair, or illegal practices, methods, or activities in the 

operation of Gaming or the carrying on of the business and 

financial arrangements incidental thereto. 

(c) The issuance of Licenses shall also be subject to the provisions 

of Chapter 5 of this Ordinance regarding background 

investigations. 

(d) The following notices shall be placed on the application form 

for a Key Employee, Management Entity, Primary 

Management Official or Supplier of Gaming Goods and 

Services before such form is completed by an Applicant: 

"In compliance with the Privacy Act of 1974, the 

following information is provided: Solicitation of the 

information on this form is authorized by Chapter 25 

U.S.C. 2701 et seq. The purpose of the requested 

information is to determine the eligibility of individuals 

to be employed in a gaming operation. The 

information will be used by the Commission, the State 

of North Carolina, and/or the National Indian Gaming 

Commission members and staff who have need for the 

information in the performance of their official duties. 

The information may be disclosed to appropriate 

Federal, Tribal, State, local, or foreign law enforcement 

and regulatory agencies when relevant to civil, criminal 

or regulatory investigations or prosecutions or when 

pursuant to a requirement by a tribe or the National 

Indian Gaming Commission in connection with the 

hiring or firing of an employee, the issuance or 

revocation of a gaming License, or investigations of - activities while associated with a tribe or a gaming 

operation. Failure to consent to the disclosures 

indicated in this notice will result in a tribe's being 

unable to hire you in a Primary Management Official 

or Key Employee position. 

(ii) "The disclosure of your Social Security Number (SSN) 

is voluntary. However, failure to supply a SSN may 

result in errors in processing your application. 

(iii) "A false statement on any part of your application may 

be grounds for not hiring you, or for firing you after 
you begin work. Also, you may be punished by fine or 

imprisonment. (U.S. Code, title 18, Section 1001)." 

Section 4.04 Required Application Forms. 

(a) Each individual applying for a License, whether as a Primary Management 

Official or Key Employee, and any person who is subject to a background 

investigation in connection with an &tity application for a License, shall be 

required to complete the following forms: 

(I) Application for Gaming License by Individual, if applicable; 

(2) Personal History Record, with attached Personal Financial 

Questionnaire, including Statement of Assets and Statement of 

Liabilities; 

(3) Two Complete Fingerprint Cards; 

(4) Request to Release Information - Individual; and 

(b) Each individual in subsection (a) of this Section applying for a 

License renewal shall supplement the Personal History Record 

and shall also be required to complete the following forms: 

(1) Application for Gaming License by Individual, if 

applicable; 

(2) Request to Release Information - Individual 

(c) Each entity, including a Management Entity and Supplier of 

Gaming Goods and Services, applying for a License must 

complete the following forms: 

(1) Application for Gaming License by Entity; 

(2) Request to Release Information - Entity 

(d) The Commission may request any additional forms or 

information from an Applicant as it deems necessary or 

appropriate. 

(e) Pursuant to the Compact the Commission shall create an 

individual file for each applicant which includes the 
Applicant's Personal History Record and all background 

information compiled by the Commission. 

Section 4.05 Fin~ervrint Cards Required. All Applicants for a License are required to 

submit fingerprint cards. The Tribal Gaming Commission is hereby 

identified as the enforcement agency to take fingerprints. Pursuant to 25 

C.F.R. §522.2(h), the Commission shall forward an Applicant's fingerprint 

cards to the NIGC to be processed by the Federal ~ukau of ~nvesti~ation 

National Criminal ~nforiation center. The Commission may submit an 

Applicant's fingerprint card to any additional tribal, local or state criminal 

history check system or center as the Commission or the Executive Director 

deem necessary or appropriate. Reports obtained from such fingerprint 

processing shall be incorporated into the Applicant's personnel file. 

Section 4.06 Withdrawal of Avvlication. An Application may not be withdrawn 

without the permission of the Commission. An Applicant may request to 

withdraw an Application by submitting to the Commission a written request 

for withdrawal. The Commission retains the right, in its sole discretion, to 

grant or deny a request for withdrawal. 

Section 4.07 Continuing Duty to Provide Information. Applicants and Licensees shall 

have a continuing duty to provide any materials, assistance or other 

information required by the Commission, and to fully cooperate in any 

investigation conducted by or on behalf of the Commission. If any 

information provided on the Application changes or becomes inaccurate in 

any way, the Applicant or Licensee shall promptly notify the Commission 

or Executive Director of such changes or inaccuracies. 

Section 4.08 Term of License; License Fees; Parameters of License. 

(a) Licenses, except Provisional Licenses (see $4.12 Provisional License), shall be 

for a term of one year, and shall expire on the anniversary of the effective 

date of such License(s). 

(b) In order for the Tribe to recover the costs of complying with federal, 

Tribal, and state regulatory processes applicable to Class I1 Gaming and Class 

I11 Gaming, annual License fees shall be imposed: 

(1) in the amount of $ 7,500 annually on each party, other than the 

Tribe, to a Management Contract; 

(2) on any Person(s) required to obtain a License, in accordance with a 

fee schedule to be established by the Commission; and 
(3) in addition to the License fees imposed pursuant to subsection @)(I) 

and (2) of this Section, the Commission may impose such fees on 

Licensees as are reasonably related to costs of enforcement, including 

investigations and proceedings before the Commission, and which will 

in the aggregate be sufficient to enable the Tribe and the Commission 

to recover its reasonable costs of enforcing this Ordinance. Such costs 

may be estimated by the Commission and imposed prior to a final 

Commission action regarding a particular Licensee or Applicant. 

(c) Violations of any provision of this Ordinance or the Rules, or relevant 

License provision(s), by a Licensee shall be deemed contrary to the public 

health, safety, morals, good order and general welfare of the Tribe and the 

inhabitants of the Reservation, and shall be deemed grounds for refusing to 

grant or renew a License, suspension or revocation of a License. Acceptance 

of a License, or renewal thereof by a Licensee, constitutes an agreement on 

the part of the Licensee to be bound by the provisions of this Ordinance and 

the Rules as they are now, or as they may hereafter be amended or restated, 

and to cooperate fully with the Commission. It is the responsibility of the 

Licensee to remain informed of the contents of this Ordinance, the Rules and 

all other applicable regulations, amendments, provisions, and conditions, and 

ignorance thereof will not excuse violations. A license issued hereunder is a 

privilege license and no right shall attach thereto. 

Section 4.09 Conditions of License. All Licensees shall comply with such reasonable 

conditions as may be fixed by the Commission, including but not limited to 

the following conditions: 

(a) Facility Licensees- 

(1) the Licensee shall at all times maintain an orderly, clean and neat 

Gaming Establishment, both inside and outside the premises of the 

Gaming Establishment; 

(2) the Gaming Establishment shall be subject to patrol by the Tribe's 

security and law enforcement personnel and, when authorized, local 

and state law enforcement, and the Licensee shall cooperate at all 

times with such security and law enforcement officials; 

(3) the Gaming Establishment shall be open to inspection by authorized 

Tribal officials at all times during business hours; 

(4) there shall be no discrimination in any Gaming Operations by reason 

of race, color, sex or creed; provided, however, that nothing herein 
shall prevent the Licensee from granting preferences to Native 

Americans as permitted by law; and 

(b) Persons, Management Entities and Suppliers of Gaming Goods 

and Services licensed by the Commission shall comply with 

such conditions of the License as the Commission, in its 

reasonable discretion, may require. 

Section 4.10 Facility License. The Commission may issue an annual Facility License to a 

Gaming Establishment, if the Gaming Establishment: 

(a) is a sound physical structure with adequate and safe plumbing, electrical, 

heating,moling and ventilation systems in place and operational; 

(b) has been inspected and approved for safety by a building and fire inspector 

designated by the Commission; 

(c) is adequate in all respects to accommodate the Gaming intended to be carried 

on within the structure; 

(d) is equipped with security and surveillance equipment meeting or exceeding 

provisions set forth in regulations established by the Commission; 

(e) meets all requirements of applicable federal, tribal and state law; and 

(f) has paid all applicable License fees and costs. 

Section 4.1 1 Certification of Gamin? Devices. All Gaming Devices purchased, leased 

or otherwise acquired by the Tribe must, pursuant to Section 6 of the 

Compact, meet the technical equipment standards set forth therein. The 

Commission shall maintain a complete list of all Gaming Devices 

(whether or not such devices are in use) located at any Gaming 

Establishment. 

Section 4.12 Provisional License The Commission may issue Provisional Licenses 

pending the satisfactory completion of all background investigations and 

other requirements of this Ordinance, IGRA, or the Compact, and, if 

applicable, pending expiration of the thirty (30) day NIGC review period 

provided for at 25 C.F.R part 558. In no event shall a Provisional 

License be valid for greater than ninety (90) days, subject to the issuance 

of another Provisional license if such background investigations are not 

completed so long as no information to date has been received which 

would otherwise disqualify the applicant for a License. 
Section 4.13 Provisional Emplo~ment pen din^ Issuance of License and During 

Temporary License Period. As provided in Section 4.12, Primary 

Management Officials and Key Employees may be employed in Gaming 

Operations prior to the issuance of a License hereunder and during the 

period that a License shall be effective on a provisional basis, but such 

employment shall be provisional only and subject to the requirements of -. 

this Section. ~m~lofment may begin prior to issuance of a-license only 

if the Commission has made a preliminary finding of eligibility for 

employment in Gaming Operations, which shall require a preliminary 

determination that the Primary Management Official or Key Employee in - - - question is not a person whose prior activities, criminal record or 

reputation, habits or associations pose a threat to the public interest or to 

the effective regulation and control of Gaming, or create or enhance the 

dangers of unsuitable, unfair, or illegal practices, methods, or activities in 

the operation of Gaming or the carrying on of the business and financial 

arrangements incidental thereto. Provisional employment shall be 

terminated upon the occurrence of any of the following: 

(a) denial of a relevant License by the Commission; 

(b) unsatisfactory completion of a background investigation or NIGC review 

resulting in nullification of a provisional License, as described in Section 

5.10; or 

to the extent required under 25 C.F.R part 558 and, at the end of thirty 

(30) days after the starting date of provisional employment, if at the end 

of such period no License has been issued hereunder or if a License issued 

hereunder remains effective only on a provisional basis, as provided in 

Section 4.12; provided, however, that provisional employees terminated 

for the reason described in this subsection shall be qualified for 

reemployment upon the satisfactory completion of background 

investigations and NIGC reviews. 

Section 4.14 Assignment or Transfer. No License issued under this Ordinance may 

be assigned or transferred unless the proposed assignee or transferee 

would independently be qualified to hold the License proposed to be 

assigned or transferred and the Commission approves of such assignment 

or trarisfer. 
CHAPTER V 

BACKGROUND INVESTIGATIONS AND 

LICENSE DECISIONS 

Section 5.01 Required Background Investi~ations. Background investigations shall 

be conducted by the Commission, or other agent retained by the 

Commission, under the supervision and direction of the Commission, on 

all Persons specified in Section 4.01 of this Ordinance. 

Section 5.02 Standards for Background Investiyations. All background 

investigations shall be conducted to ensure that Gaming Operations shall 

not employ or contract with persons whose prior activities, or 

reputation, habits and associations pose a threat to the public interest or 

to the effective regulation of Gaming, or create or enhance the dangers of 

unsuitable, unfair or illegal practices and methods and activities in the 

conduct of such Gaming. Such investigations shall be conducted 

according to requirements at least as stringent as those set forth at 25 

C.F.R. parts 556 and 558, the Compact, and this Chapter 5. Background 

investigations shall be conducted in a manner which takes all reasonable 

steps to ensure the confidentiality of the information generated by the 

investigation as well as that submitted by the Applicants. Any willful or 

careless breach of this requirement may result in a penalty ranging from 

censure, suspension removal from office and a fine of up to a $5,000. 

The Commission shall have jurisdiction to hear and decide upon any such 

claims. 

Section 5.03 Information Required for Back~round Investigations. 

(a) Each Person subject to a background investigation under Section 

5.01 of this Ordinance shall be required to provide, subject to the 

Privacy Act of 1974, at a minimum, and in such form as 

designated in Section 4.04, or as may be prescribed by the 

Commission or the Executive Director, all of the following 

information: 

(1) full name, other names used, social security number(s), 

birth date, place of birth, citizenship, gender, all languages 

(spoken or written); 

(2) currently and for the previous 10 years, all business and 

employment positions held, ownership interests in those 
businesses, business and residence addresses, and driver's 

license numbers; 

the names and current addresses of at least three (3) 

personal references, including one personal reference who 

was acquainted with the Applicant during each period of 

residence listed under subsection (a)@) of this Section; 

current business and residence telephone numbers; 

a description of any existing and previous business 

relationships with any Native American Indian tribe, 

including but not limited to a description of the amount 

and type of ownership interest in those businesses; 

a description of any existing and previous business 

relationships with gaming, including but not limited to a 

description of the amount and type of ownership interest 

in those businesses; 

the name and address of any licensing or regulatory agency 

with which the Person has filed an application for a license 

or permit related to any gaming or gambling, whether or 

not such license or permit was granted; 

for each felony for which there is an ongoing prosecution 

or conviction, the charge, the name and address of the 

court involved, and the date and disposition, if any; 

for each misdemeanor conviction or ongoing misdemeanor 

prosecution (excluding minor traffic violations), within ten 

(10) years of the date of the application, the name and 

address of the court involved and the date and disposition; 

for each criminal charge (excluding misdemeanor traffic 

charges, but including any DWI, reckless or careless driving 

charges), whether or not there is a conviction, if such 

criminal charge is within ten (10) years of the date of the 

application and is not otherwise listed, the type of criminal 

charge, the name and address of the court involved and the 

date and disposition of such charge; 

the name and address of any licensing or regulatory agency 

with which the person has filed an application for an 
occupational license or permit, whether or not such license 

or permit was granted; 

(12) a current photograph; 

(13) any other information the Commission deems relevant; and 

(14) fingerprints consistent with the provisions of Section 4.05. 

(b) Background investigations conducted by the Commission must be 

sufficient to make the determination described in Section 5.08(a). 

In conducting a background investigation, the Commission or its 

agents, shall make every reasonable effort to maintain the 

confidentiality of the identity of each Person interviewed in the 

course of the investigation. Willful or careless violations of this 

requirement are subject to penalty ranging from censure, 

suspension,removal from office and a fine of up to a $5,000. - 

Section 5.04 Comvletion of Investi~ation. Upon completion of the investigation, the 

Commission may either (i) grant a License to the Applicant, or (2) notice 

the Applicant for a hearing under Chapter 6 of this Ordinance. The 

Commission may notice the Applicant for a hearing at any time during 

the investigation. 

Section 5.05 Issuance of License. The Commission after a hearing conducted under 

Chapter 6 of this Ordinance, may, subject to the requirements of Section 

5.09, issue a License only after it has determined that the following 

minimum requirements have been met: 

(a) the Applicant has fully completed all required Application forms 

and has provided the Commission with all other information that 

the Commission has requested; 

(b) the Applicant meets all of the licensing requirements of this 

Ordinance; 

(c) the Applicant meets all of the licensing requirements and criteria 

contained in the Compact; 

(d) the Commission has reviewed the Applicant's criminal history 

record and deems the Applicant's criminal history to be 

satisfactory to hold a License; and 
(e) all applicable License fees and costs have been paid. 

Section 5.06 Denial of a License Application. The Commission, after a hearing 

conducted pursuant to Chapter 6 of this Ordinance, may deny an 

Applicant a License only after it has determined that the minimum 

requirements contained in Section 5.05 have not been met by the 

Applicant or the Applicant's Application, or if the Commission 

determines that the Applicant is a Person whose prior activities, criminal 

record, reputation, habits or associations pose a threat to the public 

interest or to the effective regulation and control of Gaming, or create or 

enhance the dangers of unsuitable, unfair, or illegal practices, methods, or 

activities in the operation of Gaming or the carrying on of the business 

and financial arrangements incidental thereto. 

Section 5.07 Cancellation or Suspension. Licensees and Applicants shall be legally 

responsible for any violation of this Ordinance, any relevant License 

provisions, the Rules, the Compact or IGRA. Any License issued 

hereunder may be canceled, limited, revoked, suspended, terminated or 

modified by the Commission, after a hearing as provided in Chapter 6, 

for the breach of any of the provisions of the License, this Ordinance, or 

Rules. In addition: 

(a) unless otherwise stated in this Ordinance or the Rules, a 

Licensee's attorney has the right to be present and to 

participate in any proceeding -concerning the cancellation, 

limitation, revocation, suspension, termination or 

modification of a License; 

(b) a License may be summarily suspended, without a prior 

hearing, only upon notice to that effect from the NIGC; 

and 

(c) all decisions of the Commission regarding the cancellation, 

limitation, revocation, suspension, termination or 

modification of Licenses shall be final, unless appealed as 

provided in Chapter 6 of this Ordinance. No Gaming shall 

be conducted by the Licensee after cancellation, even 

during the pendency of an appeal. 
Section 5.08 Eligibilitv Determination and Procedures for forward in^ Applications 

and Re~orts for Key Em~loyees and Primary Mana~ement Officials to 

the National Indian Gaminp Commission. 

(a) The Commission shall review an Applicant's prior activities, 

criminal record, reputation, habits and associations to make a 

finding concerning the eligibility of a Key Employee or Primary 

Management Official for employment in a Gaming Operation. If 

the Commission determines that employment of the Person poses 

a threat to the public interest or to the effective regulation of 

gaming, or creates or enhances dangers of unsuitable, unfair, or 

illegal practices and methods and activities in the conduct of 

Gaming, the Gaming Operation shall not employ that Person. 

(b) When a Key Employee or Primary Management Official 

commences work at a Gaming Operation, the Commission shall 

within a reasonable period of time forward to the NIGC a 

completed application for employment for such Key Employee or 

Primary Management Official, and shall conduct all necessary 

background investigations. The Commission shall make the 

eligibility determination referred to in subsection (a) of this 

Section. 

(c) A report shall be submitted to the NIGC within sixty (60) days 

after a Key Employee or Primary Management Official 

commences work at a Gaming Operation or within sixty (60) days 

of the approval of this Ordinance by the Chairman. Such report 

shall, at a minimum, include all of the following: 

(I) steps taken in conducting the background investigation; 

(2) results obtained; 

(3) conclusions reached by the Commission; 

(4) the Commission's basis for those conclusions; and 

(5) a copy of the eligibility determination made pursuant to 

Section 5.08(a). 

(d) Subject to the provisions of $4.12 No Gaming Operation shall 

continue to employ as a Key Employee or Primary Management 
Official any Person who does not have a License within ninety 

(90) days of commencing work at a Gaming Operation. 

(e) If a License is not issued to an Applicant, the Commission: 

(1) shall notify the MGC; and 

(2) may forward copies of its eligibility determination and any 

relevant report regarding a background investigation of the 

Applicant to the NIGC for inclusion in the Indian Gaming 

Individuals Records System. 

(f) With respect to Key Employees and Primary Management 

Officials, applications for employment and reports of background 

investigations shall be retained by the Commission for inspection 

by the Chairman or his designee for no less than three (3) years 

from the date of termination of employment of each Key 

Employee or Primary Management Official. 

Section 5.09 grant in^ - a Gaming License. 

(a) If, within a thirty (30) day period after the NIGC receives all 

required Applications and reports, the NIGC notifies the Tribe 

that it has no objection to the issuance of a License pursuant to a 

License Application filed by a Key Employee or a Primary 

Management Official, the Commission may issue a License to such 

Applicant. 

(b) The Commission shall respond in a timely manner to requests for 

additional information from the Chairman concerning Key 

Employees or Primary Management Officials who are the subject 

of any report filed with the NIGC by the Commission. Any such 

request by the Chairman shall suspend the thirty (30) day period 

referred to in this Section until the Chairman receives the 

additional information requested. 

(c) If, within a thirty (30) day period after the NIGC receives all 

required applications and reports, the MGC provides the Tribe 

with a statement itemizing objections to the issuance of a License 

to a Key Employee or to a Primary Management Official for 

whom the Commission has submitted an application and all 

required reports to the NIGC, the Commission shall reconsider 

the application, taking into account the objections itemized by the 
NIGC. The Commission shall make the final decision whether to 

issue a License to such Applicant. 

Section 5.10 License Revocation and Suspension follow in^ Receipt of Information 

from NIGC. 

(a) If, after the issuance of a License, the Tribe receives information 

from the NIGC indicating that a Management Entity or 

Controlling Shareholder, Key Employee, or Primary Management 

Official is not eligible for employment under Section 4.02 of this 

Ordinance, the Commission shall suspend such License, shall 

notify the Licensee in writing of such suspension and the potential 

revocation of the Licensee's License, and shall conduct a hearing in 

accordance with the Rules regarding the proposed License 

revocation. 

(b) After a hearing, the Commission shall revoke or reinstate a 

License suspended pursuant to subsection (a) of this Section. The 

Commission shall notify the NIGC of its decision. A decision of 

the Commission to revoke a License after the hearing called for by 

subsection (a) of this Section shall be final and there shall be no 

appeal. A Management Entity whose License has been revoked or 

suspended pursuant to this Section may not operate a Gaming 

Operation. 

Section 5.1 1 Show Cause Hearing for Mana~er and Primaw Management 

Officials. 

Excepting the provisions of $5.10 and notwithstanding the foregoing, in 

the event that the Tribal Gaming Commission obtains reliable 

information that the duly licensed Manager and/ or a Primary 

management Official may have breached any provision of this Ordinance, 

the Compact, IGRA, or its license, the Tribal Gaming Commission shall 

issue a Notice for Show Cause to the licensee prior to any action of 

suspension or the giving of notice of a revocation hearing with respect to 

its / their license(s). The Notice for Show Cause shall describe the 

alleged breach, shall describe the steps necessary to effect a cure and shall 

provide the licensee with an opportunity to meet with the Tribal Gaming 

Commission to discuss the matter. The discontinuance or correction of 

the alleged breach shall constitute a cure thereof, except where such 

alleged breach constitutes a criminal violation by the Manger or the 

Primary Management Official. If the alleged breach is not corrected or 

discontinued as required herein, then the Tribal Gaming Commission 

shall institute the notice and hearing procedure set forth above. 
CHAPTER VI 

RULES OF PROCEDURE 

FOR HEARINGS 

Section 6.01 Scope of Rules of Procedure. All License hearings, enforcement 

hearings and exclusion hearings conducted pursuant to this Ordinance 

shall be governed by this Chapter. 

Section 6.02 Hearin~s. 

(a) The Commission shall afford an Applicant an opportunity for a hearing 

prior to any final action by the Commission on a Application, other than 

an unconditional grant of a License. 

(b) The Commission shall afford a Licensee the opportunity for a hearing 

prior to taking final action resulting in the revocation of the License or 

the imposition of any penalties which the Commission is authorized to 

impose pursuant to these Rules and the Ordinance. 

(c) Nothing in this Section shall limit the Commission's authority to 

summarily suspend or revoke a License without a hearing pursuant to 

Section 5.07(b) of this Ordinance. 

Section 6.03 Notice of Hearing. 

(a) The Commission shall provide written notice to the Applicant or 

Licensee of the hearing at least seven (7) days prior to the date set for the 

hearing. The day the Applicant or Licensee receives the notice shall be 

considered a full day's notice under this Section. The notice shall be sent 

by registered or certified mail, or may be personally served upon the 

Applicant or Licensee. The notice shall state the date, time and place of 

the hearing. The notice shall also contain an indication of the action(s) 

being considered by the Commission, including, but not limited to: 

(1) whether the Commission is holding the hearing for the purpose of 

obtaining further information from the Applicant; 

(2) whether the Commission will be considering the grant or denial 

of the License Application; 
(3) whether the Commission will be examining any alleged violations 

of the Ordinance, the Compact, the IGRA, the conditions of any 

License issued by the Commission, any order by the Commission, 

or any other applicable laws, regulations or agreements; or 

(4) whether any other sanctions or penalties will be considered. 

The notice shall also contain a short, plain statement of the reasons the 

Commission determines the hearing is necessary. 

Section 6.04 Ex Parte Communications. 

(a) No ex parte communication relative to the aaion(s) being considered by 

the Commission, or a threat or offer of reward shall be made, before a 

decision is rendered, to any member of the Commission by or on behalf 

of the Applicant or Licensee, or any legal representative or counsel of the 

Applicant or Licensee. 

(b) Nothing in this Section shall prohibit the Applicant, Licensee or its 

authorized agent from communicating with the Commission's legal 

counsel, its investigators or other authorized agents. 

(c) Any member of the Commission who receives an ex parte 

communication shall immediately report such communication to the 

Commission's legal counsel. 

(d) For purposes of this Section only, the action(s) being considered by the 

Commission shall be those matters identified in the written notice as 

provided in Section 6.03(a) of this Ordinance, as well as any other 

matters that are actually considered by the Commission during a hearing, 

All matters identified in the written notice shall be subject to the 

prohibition against ex parte communications. All matters not identified 

in the written notice that are considered by the Commission during a 

hearing become subject to the prohibition against ex parte 

communications as soon as they are discussed during the hearing. 

(e) The Commission shall have the power to impose any sanction pursuant 

to this Chapter upon its determination that an Applicant or Licensee has 

made an ex parte communication in violation of this Section. 
Section 6.05 

(a) 

Section 6.06 

(a) 

Appearance through Counsel. 

Parties to all hearings governed by this Chapter may appear personally or 

through an attorney, except that a party must personally attend any 

hearing on the merits unless his attendance has been waived, in writing, 

by the Commission. 

When a party has appeared through an attorney, service of all notices, 

motions, orders, decisions and other papers shall thereafter be made upon 

the attorney, unless the party requests otherwise in writing. 

When a party is represented by an attorney, the attorney shall sign all 

motions, notices, requests, and other papers on behalf of the party, 

including a request for subpoenas. 

Upon the establishment of a Eastern Band of Cherokee Indians Bar, any 

attorney appearing before the Commission must be duly admitted and 

licensed by the Eastern Band of Cherokee Indians Bar to practice law on 

the Tribe's Reservation or before this Commission. Until such Bar is 

established any attorney appearing before the Commission must be duly 

admitted and licensed by the State of North Carolina Bar to practice law. 

Discoverv Procedures for Enforcement Hearin~s. 

The Commission's legal counsel and the Licensee shall exchange a list of 

persons that each party intends to call as witnesses no later than five (5) 

business days before a scheduled enforcement hearing. The day the list is 

received shall be considered a full day's notice under this Section. Each 

witness shall be identified by name, if known, position, and business 

address. If no business address is available, a home address for the 

witness shall be provided. Any witness not identified in accordance with 

this Section may be prohibited from testifying at a hearing in the 

Commission's discretion. 

The Commission's legal counsel and the Licensee shall exchange a copy 

of all documents or tangible things that they intend to offer as evidence 

in support of the party's case in chief. This exchange shall be made to 

the opposing party no later than five (5) business days before a scheduled 

enforcement hearing. The day the documents are received shall be 

considered a full day's notice under this Section. Failure to make 

available any document or tangible thing in accordance with this section 

may, in the Commission's discretion, be grounds to deny the admission 

into evidence of such document or tangible thing. 
Section 6.07 Confidential Materials. 

(a) Prior to making any documents available to the Commission's legal 

counsel or designated agent, the Applicant or Licensee may designate any 

document it believes to contain confidential information as "Subject to a 

Confidentiality Claim" by so marking the document prior to providing a 

copy of the document to the Commission's legal counsel. 

(b) Documents provided to the Commission's legal counsel or designated 

agent which have been marked in accordance with Paragraph (a) above, 

and any non-public information contained within the document, shall not 

be made a part of the public record of the Commission proceedings 

otherwise disclosed by the Commission to any person (except as may be 

required under any applicable law, rule, regulation, court or 

administrative order, or the Compact), without first providing the 

applicant or licensee with the opportunity to seek a ruling by the 

Commission that the document or non-public information contained 

therein should not be made public. The request for such a ruling and 

any discussions relating to the document shall be heard and ruled upon 

by the Commission in an Executive Session meeting. If the request for 

such a ruling is made during a public hearing session, the hearing session 

shall be adjourned and the Commission shall conduct an Executive 

Session meeting in order to hear and rule upon the applicant's or 

respondent's request. The Applicant or Licensee may present to the 

Commission in Executive Session written and oral argument regarding 

the confidentiality claim, along with any facts the Applicant or Licensee 

believes to be relevant to such argument. 

(c) In determining whether a document marked in accordance with 

subsection (a) above should be made part of the public record of the 

Commission proceedings on the Application, the Commission will 

balance the Applicant's claimed confidentiality concerns against the 

materiality of the information to the Application, the public's right to be 

made aware of the information, and the Commission's need to make the 

information part of the public record in order to remain fully 

accountable for the licensing decision. In making this determination, the 

Commission shall consider all facts and circumstances relevant to making 

a proper ruling. 

(d) In the event that the Commission rules during executive session that the 

document in question and/or information contained therein should be 

made part of the public record of the Commission's proceedings on the 

Application, the document and/or information contained therein will be 

made part of the public record unless the Applicant withdraws the 
document from the Commission's possession. In the event the Applicant 

chooses to withdraw the document from the Commission's possession, 

the Commission will then weigh the withdrawal along with the other 

evidence in making its determination on the Application. Withdrawal of 

documents from the application process shall be looked upon by the 

Commission with disfavor, and, depending on the facts and 

circumstances, the Commission may deem the withdrawal of any 

document to be sufficient cause in and of itself for denial of the License. 

(e) In the event that the Commission rules during Executive Session that the 

document and/or information contained therein should not be made part 

of the public record, the document shall be designated "Confidential" and 

will not be made part of the public record. The Commission may 

consider the document and information contained therein camera in 

making its determination on the Application. 

(f) At the conclusion of the Commission proceedings on the License 

application, the Commission will return to the Applicant all documents 

marked as "Subject to a Confidentiality Claim" pursuant to Paragraph (c) 

above that were not (i) made part of the public record of the gaming 

License application or (ii) designated as "Confidential" and considered by 

the Commission in camera. 

Section 6.08 Subpoenas. 

(a) The Commission has the power and discretion to issue subpoenas and to 

impose such reasonable penalties for noncompliance. 

(b) Subpoenas may be issued to compel any person to appear at the hearing 

on the merits of the case, to give oral testimony, or to produce 

documents or other tangible things. 

Section 6.09 hear in^ - Procedures. 

(a) The Chair of the Commission shall preside over all hearings, and shall 

call the proceedings to order, control the presentation of evidence, the 

appearance of witnesses, and the order of the proceedings. 

(b) The Commission may require any person, including, but not limited to, 

any Applicant or Licensee, or any agent, employee or representative of 

any Applicant or Licensee, to appear and testify before it with regard to 

any matter within its jurisdiction at such time and place as it may 

designate. Such testimony shall be under oath and may include any 

matters which the Commission deems relevant to the discharge of the 
Commission's official duties. Testimony shall be recorded by a duly 

certified court reporter and may be used by the Commission as evidence 

in any proceeding or matter before the Commission. Failure to appear 

and testify fully at the time and place designated shall result in sanctions. 

Failure to appear may constitute grounds for: 

(1) the refusal to grant a License to the person summoned, and /or 

that person's principal, or employer; 

(2) the revocation or suspension of a License held by the person 

summoned, and/or that person's principal, or employer; or 

(3) the inference that the testimony of the person summoned would 

have been adverse to that person and/or that person's principal or 

employer. 

(c) Any party to the hearing may call and examine witnesses. The 

Commission shall exercise its discretion to limit the testimony of 

witnesses where that testimony is argumentative or repetitive. 

(d) The Commission shall have the authority to eject from the hearings any 

person who is disruptive, disorderly, or who shows a lack of proper 

respect for the Commission or the nature of the proceedings. 

(e) Persons shall be permitted to speak only when recognized by the Chair. 

(9 Any member of the Commission may ask questions of witnesses, and 

may request or allow additional evidence at any time. 

(g) Any party to the hearing may conduct cross-examinations reasonably 

required for a full and true disclosure of the facts. 

(h) All hearings held under this Ordinance shall be open to the public. 

(i) The Commission, in its discretion, has the power to sequester witnesses. 

Section 6.10 Evidence 

(a) In hearings governed by this Chapter, the Commission shall not be 

bound by technical rules relating to evidence and witnesses. The 

Commission shall admit all testimony having reasonable probative value, 

but shall exclude immaterial, irrelevant or unduly repetitious testimony. 

The Commission shall give effect to the rules of privilege unless such 
privilege is waived. Basic principles of relevancy, materiality and 

probative force shall govern the proof of all questions of fact. Objections 

to evidentiary offers and offers of proof of evidence not admitted may be 

made and shall be noted in the record. 

(b) All evidence, including records and documents in the possession of the 

Commission or which the Commission desires to avail itself, shall be 

duly offered and made a part of the record in the case. Every party shall 

be afforded adequate opportunity to rebut or offer countervailing 

evidence. 

(c) The Commission may take official notice of any generally recognized fact 

or any established technical or scientific fact; but parties shall be notified 

either before or during the hearing or by full reference in preliminary 

reports or otherwise, of the facts so noticed, and they shall be afforded an 

opportunity to contest the validity of the official notice. 

(d) Documentary evidence may be received in the form of copies or excerpts, 

if the original is not readily available. Upon request, parties shall be 

given an opportunity to compare the copy to the original. 

(e) The record in a hearing governed by these Rules shall include: 

(1) All Applications, intermediate rulings and exhibits and appendices 

thereto. 

(2) Evidence received or considered, stipulations and admissions, 

including but not limited to confidential evidence received 

pursuant to Section 6.07 of this Ordinance. 

(3) A statement of matters officially noticed. 

(4) Questions and offers of proof, objections, and rulings thereon. 

(5) Any decision, opinion, findings or report by the Commission. 

(6) The transcript prepared by a duly certified court reporter. 

Section 6.11 Determinations by the Commission. 

(a) The Commission shall make all determinations of issues before it by a 

majority vote of the Commission. 
(4 

Section 6.12 

All determinations made by the Commission involving the grant, denial, 

cancellation or revocation of a License, a finding of a violation of this 

Ordinance, the Rules, the Compact, IGRA, the conditions of any License 

issued by the Commission, any order by the Commission, or any other 

applicable laws, regulations or agreements, and the imposition of any 

sanctions or penalties shall be made by motion and on the record. 

A copy of any resolution reached pursuant to Section 6.11(b) of this 

Ordinance shall be served upon the Applicant or Licensee by registered 

or certified mail, or may be served personally. 

Sanctions. If any party or its attorney fails to comply with any 

provision of this Ordinance, the Rules, the Compact, IGRA, the 

conditions of any license issued by the Commission, any order by the 

Commission, or any other applicable laws, regulations or agreements, 

including, but not limited to any agreement, regarding any matter, 

including, but not limited to, discovery matters and the failure to appear 

at a hearing at the scheduled time, the Commission upon motion or upon 

its own initiative, may in its discretion impose upon such party or 

attorney, or both, appropriate sanctions in regard to the failure(s) as are 

just, including, but not limited to, the following: 

An order prohibiting the use of any witness, document or tangible thing 

which should have been disclosed, produced, exhibited or exchanged 

pursuant to these Rules or any order of the Commission; 

An order that designated facts shall be taken to be established; 

An order that the disobedient party may not support or oppose 

designated claims or defenses; 

An order striking any pleadings or parts thereof, or staying further 

proceedings or dismissing the proceeding or any part thereof, or entering 

a judgment by default against the disobedient party; 

A finding against the disobedient party; or 

Any sanction otherwise set forth in this Ordinance. 
CHAPTER VII 

APPEALS 

Section 7.01 Right of Avveal: Avveals Procedures. A Person directly affected by 

any finding of the Commission pursuant to Section 6.11 of this 

Ordinance, or any licensing decision of the Commission under this 

Ordinance, .shall have the right to appeal such finding by filing for a 

rehearing before the Commission. Any such appeal must be filed with 

the Commission in writing on or before the tenth (10th) day following 

receipt by such affected Person of the written finding of the Commission. 

The Commission shall certify the hearing record within thirty (30) days 

of the date of the filing of the appeal. In any case which come before the 

Commission for final action, the Commission may determine to review 

all findings of fact and of law, or proceed pursuant to a de novo standard. 

The Commission's decision on rehearing shall be final, and no further 

appeal may be had. 

Section 7.02 Sovereign Immunity of the Commission. The Eastern Band of 

Cherokee Indians, acting through the Tribal Council, confers on the 

Commission all of the Tribe's rights, privileges, immunities and sovereign 

immunity from suit, to the same extent that the Tribe would have such 

rights, privileges, if it engaged in the activities undertaken by the 

Commission. 

Section 7.03 Limited Waiver of Sovereipn Immunity of the Commission. The 

Commission hereby expressly waives its sovereign immunity from suit: in 

any suit against the Commission wherein relief is limited to injunctive or 

declaratory relief against the Commission. Jurisdiction for suit against 

the Commission for review of Commission rulings or decisions by the 

Tribe's Class I11 gaming Manager shall be as set forth in section 16.1 of 

the Class I11 Gaming Management Agreement with the Tribe as approved 

by the NIGC. 
CHAPTER VIII 

AUDITING 

AND INTERNAL CONTROL 

Section 8.01 Minimum Procedures for Control of Internal Fiscal Affairs. The 

Commission shall promulgate Rules governing the control of internal 

fiscal affairs of all Gaming Operations. At a minimum, such Rules shall 

require the consistent application of Generally Accepted Accounting 

Principles, and shall: 

(a) prescribe minimum procedures for the safeguarding of a Gaming 

Operation's assets and revenues, including recording of cash and 

evidence of indebtedness, and mandatory count procedures. Such 

Rules shall establish a controlled environment, accounting system, 

and control procedures that safeguard the assets of the Gaming 

Operation, assure that operating transactions are properly 

recorded, promote operational efficiency, and encourage adherence 

to prescribed policies; 

(b) prescribe minimum reporting requirements to the Commission; 

(c) provide for the adoption and use of internal audits conducted in 

accordance with generally accepted accounting principles by 

internal auditors licensed or certified to practice public accounting 

in the State of North Carolina; 

(d) formulate a uniform code of accounts and accounting 

classifications to assure the consistency, comparability and effective 

disclosure of financial information. Such a code shall require that 

records be retained that reflect statistical drop (amount of cash 

wagered by Patrons), statistical win (amount of cash won by the 

Gaming Operation), and the percentage of statistical win to 

statistical drop, or provide similar information for each type of 

game in each Gaming Operation; 

(e) prescribe the intervals at which such information shall be 

furnished; 

(f) provide for the maintenance of documentation, (i.e., checklists, 

programs, reports, etc.), to evidence all internal work performed 

as it relates to the requirements of this Section; and 
(g) provide that all financial statements and documentation referred to 

in this Section be maintained for a minimum of five (5) years. 

Section 8.02 Oversi~ht of Internal Fiscal Affairs. The Commission shall require 

independent audits of the financial statements of all Gaming Operations. 

Such independent audits must apply and require the consistent application 

of Generally Accepted Accounting Principles, and shall: 

(a) be conducted by independent accountants, knowledgeable in 

casino audits and operations and licensed or certified to practice 

public accounting in the State of North Carolina; 

(b) include an opinion, qualified or unqualified, or if appropriate, 

disclaim an opinion on the financial statements taken as a whole 

in accordance with standards of the accounting profession 

established by rules and regulations of the North Carolina State 

Council of Accountancy and the American Institute of Certified 

Public Accountants; 

(c) disclose whether the accounts, records and control procedures 

maintained by the Gaming Operation conform with this 

Ordinance and the Rules; and 

(d) provide a review of the internal financial controls of the audited 

Gaming Operation to disclose any deviation from the 

requirements of this Ordinance and the Rules and report such 

findings to the Commission and the management of the audited 

Gaming Operations; and 

(e) provide such other information as the Commission deems 

necessary or appropriate. 

Section 8.03 Conduct of Audit. 

(a) The Commission shall cause to be conducted annually an 

independent audit of Gaming Operations and shall submit the 

resulting audit reports to the NIGC. 

(b) All Gaming related contracts that result in the purchase of 

supplies, services, or concessions in excess of $25,000.00 annually, 

except contracts for professional legal and accounting services, and 

any other information the Commission deems necessary or 
appropriate shall be specifically included within the scope of the 

audit described in Section 8.03(a). 

Section 8.04 Prohibition A~ainst Embezzlement. Any delay or action of any kind 

which, in the opinion of the Commission, is effectuated by any Licensee 

to unlawfully or improperly divert Gaming or other proceeds properly 

belonging to the Tribe, shall constitute grounds for taking disciplinary 

action against that Licensee. If the Commission finds an unlawful 

diversion was attempted, it may sanction the Licensee, report the matter 

to appropriate law enforcement and gaming regulatory agencies for 

further action and take such other action as it deems necessary or 

appropriate. Sanctions may include the imposition of fines, and/or the 

revocation, suspension, or limitation of, or refusal to renew, any License. 

Section 8.05 Non-Compliance. Failure to comply with any of the requirements of 

this Chapter, or the Rules promulgated hereunder may be found to 

constitute a violation of this Ordinance. 
CHAPTER 

EXCLUSION OR 

REJECTION OF INDIVIDUALS 

Section 9.01 Prohibition A~ainst Certain Individuals. It shall be a violation of this 

Ordinance for any Licensee to knowingly fail to exclude or eject from 

the gaming area of a Gaming Establishment any individual who: 

(a) is visibly under the influence of liquor, a drug or other 

intoxicating substance; 

(b) is under the age of eighteen years; 

(c) is displaying disorderly conduct; 

(d) is a person known to have committed a gaming related felony; 

(e) is known to have a reputation for cheating or manipulation of 

games; or 

(f) has been personally excluded, or is a member of any group or 

type of persons which has been excluded, for cause from Gaming 

Establishments by a resolution of the Commission. 

Section 9.02 Right to Exclude or Remove. If the Commission deems it in the best 

interest of the Tribe, the Commission may exclude or remove any 

persons from the premises of any Gaming Operation. Any person so 

excluded shall be entitled to a hearing as provided for by Chapter 6 and 

shall have the rights provided to an "Applicantn therein. The Manager of 

any Gaming Operation shall also have the authority to exclude or 

remove any person from the Gaming Establishment, and all such actions 

shall be reported to the Commission within 24 hours of the taking of 

such action. 
CHAPTER X 

PROHIBITED ACTS 

Section 10.01 Prohibited Acts. In addition to other civil and criminal acts that may be 

regulated or prohibited by this Ordinance, the Compact, other Tribal law 

or applicable federal law, the following shall constitute prohibited 

activities and unauthorized Gaming under this Ordinance and shall 

subject any perpetrator to Commission action, including, but not limited 

to, the imposition of civil penalties, referral to appropriate law 

enforcement authorities for criminal proceedings, and License suspension 

or revocation: 

(a) altering or misrepresenting the outcome of Gaming or other event 

on which wagers have been made after the outcome of such 

Gaming or event has been determined but before such outcome is 

revealed to the players; 

(b) placing or increasing a bet or wager after acquiring knowledge of 

the outcome of the Gaming or event which is the subject of the 

bet or wager, including past-posting and pressing bets; 

(c) aiding anyone in acquiring such knowledge referred to in 

subsection (b) of this Section for the purposes of increasing or 

decreasing any bet or wager, or for the purpose of determining the 

course of play; 

(d) claiming, collecting or taking, or attempting to claim, collect or 

take, money or anything of value in or from a game with intent 

to defraud or claiming, collecting or taking an amount greater 

than the amount actually won in such game; 

(e) knowingly to entice or induce another to go to any place where 

Gaming is conducted or operated in violation of the provisions of 

this Ordinance, with the intent that the other person play or 

participate in such Gaming; 

(0 reducing the amount wagered or canceling a wager after acquiring 

knowledge of the outcome of the game or other event which is 

the subject of the bet or wager, including pinching bets; 

(g) manipulating, with intent to cheat or defraud, any component or 

part of a game in a manner contrary to the designed and normal 

operational purpose for such component or part, with knowledge 
that such manipulation will affect the outcome of the game, or 

with knowledge of any event that affects the outcome of the 

game; 

defrauding the Tribe, any Licensee or any participant in any 

Gaming; 

participating in any Gaming not authorized under this Ordinance 

and the Compact; 

knowingly providing false information or making any false 

statement with respect to an application for employment or for 

any License, certification or determination provided for in this 

Ordinance; 

knowingly providing false or misleading information or making 

any false or misleading statement to the Tribe, the Commission or 

the Executive Director in connection with any contract for 

services or property related to Gaming; 

knowingly making any false or misleading statement in response 

to any official inquiry by the Commission or its agents; 

offering or attempting to offer any thing of value, to a Licensee in 

an attempt to induce the Licensee to act or refrain from acting in 

a manner contrary to the official duties of the Licensee under this 

Ordinance, the Rules, Tribal and Federal law or IGRA; 

acceptance by a Licensee of any thing of value with the 

expectation that receipt of such thing of value is intended, or may 

be perceived as intended, to induce the Licensee to act or refrain 

from acting, in a manner contrary to the official duties of the 

Licensee under this Ordinance, the Rules, Tribal and Federal law 

or IGRA; 

falsifying, destroying, erasing or altering any books, computer 

data, records, or other information relating to a Gaming 

Operation in ways other than is provided in approved internal 

control procedures; 

taking any action which interferes with or prevents the 

Commission or the Council from fulfilling its duties and 

responsibilities under this Ordinance, the Rules, or IGRA; and 
(q) entering into any contract, or making payment on any contract 

for the delivery of goods or services to a Gaming Operation, 

when such contract fails to provide for or result in the delivery of 

goods or services of fair value for the payment made or 

contemplated. 

Section 10.02 Prohibition Against Electronic Aids. Except as specifically permitted 

by the Commission, no person shall possess, with the intent to use in 

connection with Gaming, either individually, or in concert with others, 

any calculator, computer, or other electronic or mechanical device to 

assist in projecting the outcome or odds of such Gaming, to keep track of 

or analyze cards, or to change probabilities of any game or the playing 

strategies regularly utilized in such Gaming. 
CHAPTER XI 

NATIONAL INDIAN GAMING COMMISSION 

AND COMPACT 

Section 11.01 National Indian gamin^ Commission-Regulation. Notwithstanding 

any provision in this Ordinance or the Rules, the Commission is hereby 

fully empowered to comply with all regulations promulgated by the 

NIGC, including, but not limited to, reporting requirements relating to 

ordinances, contracts, license applications, background checks, and other 

information. 

Section 11.02 National Indian Gaming Commission-Assessment. Notwithstanding 

any provision in this Ordinance or the Rules, the Commission is hereby 

fully empowered to comply with all assessments authorized by the 

NIGC. Such assessments shall be payable solely from funds of Gaming 

Operation revenues as an operating expense. 

Section 11.03 Comvact with the State of North Carolina. Notwithstanding any 

provision in this Ordinance or the Rules, the Commission is hereby fully 

empowered to comply with the provisions the Compact, including, but 

not limited to, any licensing, approval, or monitoring requirements 

contained in the Compact. 
CHAPTER XI1 

GENERAL REQUIREMENTS 

Section 12.01 Security and Surveillance. Each Gaming Establishment must provide for 

full security and surveillance within the Gaming Establishment at all 

times. All security personnel in a Gaming Establishment must be 

licensed by the Commission. The security and surveillance departments 

shall interact when necessary to carry out their official duties and to 

coordinate their activities in order to effectuate the best protection for 

the gaming patrons and the Tribal and management interests and assets of 

the enterprise. 

Section 12.02 Compliance with Other Laws. The construction, maintenance and 

operation of any Gaming Operation shall be in a manner which protects 

the environment, public health and safety, and shall comply with all 

applicable Tribal and federal laws relating to environmental protection 

and public health and safety including, but not limited to, 25 C.F.R. 

§522.4(b)(7). 

Section 12.03 Amendments. All provisions of this Ordinance are subject to 

amendment by the Council. All Rules promulgated by the Commission 

are subject to proper revision, repeal, or amendment by the Commission. 

All amendments to this Ordinance shall be effective upon the date of 

passage by the Council. 

Section 12.04 Severability. If any provision of this Ordinance, or any portion of any 

provision to this Ordinance, is found to be invalid by any court of 

competent jurisdiction, the full remainder of such provision(s) shall not 

be affected. 

Section 12.05 Words and Terms. Tense, number and gender. In interpreting the 

provisions of this Ordinance, save when otherwise plainly declared or 

clearly apparent from the context: 

(a) words in the present tense shall include the future tense; 

(b) words in masculine, feminine and neuter genders shall include all 

genders; and 

(c) words in the singular shall include the plural, and words in the 

plural shall include the singular. 
Section 12.06 Repeal. To the extent that they are inconsistent with this Ordinance, all 

prior gaming laws, rules, ordinances or regulations of the Tribe are 

hereby repealed. 

Section 12.07 Unclaimed Winnin~s. 

(a) Any winnings, whether property or cash, which are due and 

payable to a participant in any Gaming Activity, and which 

remain unclaimed at the end of a Gaming session, shall be held in 

safekeeping for the benefit of such participant if his or her 

identity is known. Such winnings shall be held for twelve months 

or such longer period as the Commission deems reasonable in 

consideration of all relevant facts and circumstances. The 

Commission shall make such efforts as are reasonable under the 

circumstances to locate such participant. At the end of the 

safekeeping period, such winnings shall revert to the ownership of 

the Tribal Casino Gaming Enterprise and shall be transferred to 

the account or place designated by the Enterprise. 

(b) In the event the identity of a participant entitled to unclaimed 

winnings is unknown, the Commission shall use its best efforts to 

learn the identity of such individual and shall follow the 

procedure set forth in Section 12.08 if the Commission is able to 

identify such individual with reasonable certainty; provided, 

however, if after six months from the time the winnings were 

payable, the Commission has been unable to identify the 

individual entitled thereto, such winnings shall revert to the 

ownership of the Tribal Casino Gaming Enterprise. 

Section 12.08 Patron Disputes. Any Person who has any dispute, disagreement or 

other grievance with the Gaming Operation that involves currency, 

tokens, coins, or any other thing of value, may seek resolution of such 

dispute from the following persons and in the following order: (a) a 

member of the staff relevant of the Gaming Operation, (b) the supervisor 

in the area of the relevant Gaming Operation in which the dispute arose, 

(c) the manager of the relevant Gaming Operation, and (d) the 

Commission. 

Section 12.09 Patron Rights Reparding Disputes. When a Person brings a dispute for 

resolution pursuant to Section 12.10, the complainant has the right to 

explain his or her side of the dispute, and to present witnesses in 

connection with any factual allegations. At each level, if the dispute 

remains unresolved, the complainant shall be informed of the right to 

take the dispute to the next higher level as set forth in Section 12.10. 
Resolution of any dispute by the personnel of a Gaming Operation shall 

always involve two or more staff members. All disputes, whether 

resolved or not, shall be reported in detail by the staff persons involved 

to their supervisor, or, in the case of the general manager of the Gaming 

Operation, to the Commission. 

Section 12.10 Gamin9 Commission Action on Patron Disputes. All disputes which 

are submitted to the Gaming Commission shall be decided by the 

Commission based on information provided by the complainant, 

including any witnesses for, or documents provided by or for, the 

complainant. The decision of the Commission shall be in writing, shall 

be issued within fourteen (14) days of submission of the matter to the 

Commission, and shall be provided to the general manager of the Gaming 

Operation and to the complainant. 

Section 12.11 A~ent for Service of Process. The Commission Chairman shall be 

designated agent for service of process for the Tribal Gaming 

Commission of the Eastern Band of Cherokee Indians. The Chairman 

shall promptly report any such service to the Commission, and shall 

promptly provide the Commission with a copy of any complaints or 

other documents served. 

Section 12.12 Consent to Turisdiction. Any person who applies for a License under 

this Ordinance, applies for employment in any Gaming Establishment, 

enters into any contract or agreement related to Gaming, or participates 

in any Gaming on the Reservation, shall be deemed to consent to the 

civil jurisdiction of the Tribe, the Commission and the Tribal Court. 

Nothing in this Section shall limit the jurisdiction of the Tribe, the 

Commission or the Tribal Court under any circumstances not explicitly 

contemplated in the Section. 

Section 12.13. Comitv and Concurrent Turisdiction. The Commission is empowered 

to seek comity and enforcement of the orders of the Commission by the 

courts of any other jurisdiction whose assistance may be required to give 

effect to the orders of the Commission. The Commission is also 

empowered to issue orders to enforce the lawful orders of other gaming 

regulatory agencies and the courts of foreign jurisdictions. 

Section 12.14. Other Powers of Commission. In addition to and in conjunction with 

the powers and responsibilities listed in this Ordinance, Rules and other 

applicable laws and regulations the Commission shall have power to: 

(a) issue orders of temporary closure of gaming activities for 

violations of this gaming ordinance or of contractual obligations 
to the Tribe, the IGRA or the approved class I11 compact or 

orders of permanent closure of gaming activities for violations of 

this gaming ordinance, tribal gaming regulations or contractual 

obligations to the Tribe; 

initiate civil and criminal actions in court to enforce provision of 

this ordinance, tribal gaming regulations or the IGRA; 

negotiate and approve management agreements for class I1 gaming 

to be submitted to the Tribal Council for approval by Tribal 

Council resolution; 

approve, deny or revoke gaming licenses for class I1 or class I11 

gaming; 

monitor all gaming activities conducted on Eastern Cherokee 

lands on a continuing basis; 

insure that background investigations are conducted as required by 

this ordinance and the IGRA as well as conduct such additional 

investigations as the Commission may deem necessary; 

demand access to and inspect, examine, copy and audit all papers, 

books and records concerning activities and revenues of any 

gaming activity conducted on Eastern Cherokee lands and any 

other matters necessary to carry out their duties under this 

ordinance; 

conduct such hearings as the Commission may deem appropriate 

in carrying out its duties, including administering oaths or 

affirmations to witnesses and issuing subpoenas to compel 

witnesses to appear at such hearings; 

when information is received through audits or other 

investigations that indicates a violation of tribal, federal or 

applicable state ordinances, laws or regulations, to treat as 

confidential and provide such information to the appropriate law 

enforcement officials; 

adopt regulations deemed necessary to clarify or enforce provision 

of this ordinance or tribal rights and interests established in 

approved management agreements or an approved class I11 

compact; and 
(k) adopt an Eastern Band of Cherokee Indians class I1 and class 111 

gaming license application. 

Section 12.15. Enforcement Provisions. 

(a) All matters and occurrences which indicate that a criminal act 

under the Tribe Code, Federal Law or State Law may have 

occurred in or around any gaming establishment shall be 

immediately reported to the appropriate law enforcement agency 

and the Commission. 

(b) All matters and occurrences contrary to this Ordinance, rules or 

regulations promulgated by the Commission which are not 

covered under a Criminal Code shall be deemed to be a Civil 

violation. The Commission is hereby authorized to establish a 

civil violations list of penalties and fines which shall be imposed 

by the Commission for all such civil violations with the violator 

afforded the rights to a hearing as provided in Chapter 6 herein. 

NOW THEREFORE, BE IT ORDAINED, by the Tribal Council of the Eastern Band of 

Cherokee Indians, in Annual Council assembled, with a quorum present, that 

the foregoing Eastern Cherokee Gaming Ordinance is hereby enacted into tribal 

law in ordinance form, with the ordinance to be henceforth incorporated into 

the Cherokee Code as set forth above immediately upon ratification by the 

Principal Chief and by the National Indian Gaming Commission. 

Submitted by: Tribal Gaming Commission