National Indian Gaming Commission 

- - - - 

NOTICE OF PROPOSED CIVIL FINE ASSESMENT 

To: Winnebago Tribe of Nebraska 

Attn: Matthew Pilcher, Chairman 

(Agent for Service of Process) 

P.O. Box 687 

Winnebago, Nebraska 6807 1 

FAX: (402) 878-2963 

1. Under the authority of25 U.S.C. 5 2713(a) of the Indian Gaming Regulatory Act (IGRA) 

and the regulations of the NationaI Indian Gaming Commission (NIGC) at 25 C.F.R. part 

575, the Chairman of the NIGC hereby gives notice of his intent to assess a civil fine 

against the Winnebago Tribe of Nebraska (Tribe or Respondent), located in Winnebago, 

Nebraska for violations of IGRA, 25 U.S.C. $27 17, and NIGC regulations, 25 C.F.R. 5 

5 14.1(a),(c), as set forth in detail in Notice of Violation No. NOV 08-25, issued on 

November 4,2008. NOV 08-25 was issued for failure to submit quarterly statements and 

the requisite fees for two gaming operations and failure to submit timely fees for one 

gaming operation. 

2. Pursuant to 25 U.S.C. § 2713(a) and 25 C.F.R. 9 575.4, the Chairman of the NIGC may 

assess a civiI fine, not to exceed $25,000 per vioIation, against a tribe, management 

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

violation issued under 25 C.F.R. 5 575.3. If noncompliance continues for more than one 

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

purposes of the total civil fine assessed. 25 C.F.R. $3 575.3, 575.4(a$(2$. 

3. The N1GC regulations at 25 C.F.R. 5 575.5 provide that, within 15 days after service of a 

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

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

consider my information so submitted in determining the facts surrounding the vioIation 

and the amount of the civil fine. In this case, the Respondent did not submit ktformation 

regarding the violation under 25 C.F.R. 5 575.5. 

4. The Chairman has considered the factors set forth in 25 C.F.R. § 575.4 and finds the 

following: 

i. Economic benefit of noncompliance. Respondent obtained limited economic 

benefit from the untimely filing of the quarterly statements and requisite fees. By 

not paying the requisite fees in a timely manner, the Tribe was able to collect 

interest on money that otherwise should have been paid to the NIGC. 
Specifically, the quarterly statement and fee payment for the quarter ending March 

3 I, 2008 for Winnavegas Casino was received by the NIGC on October 2, 2008, 

185 day Iate. The Tribe was able to collect interest on the $3,262.00 fee payment 

that was due to the NIGC on or before March 3 1,2008. 

The quarterly statement and fee payment for the quarter ending June 30,2008 for 

Winnavegas Casino was received by the NIGC on October 2,2008,94 days late. 

The Tribe was able to collect interest on the $3,262.00 fee payment that was due to 

the NIGC on or before June 30,2008. 

The quarterly statement and fee payment for the quarter ending September 30,2008 

for Winnavegas Casino was received by the NlGC on October 2,2008,2 days late. 

The Tribe was able to collect interest on the $3,262.00 fee payment that was due to 

the NIGC on or before September 30,2008. 

ii. Seriousness of the violation. NIGC operations are funded entirely from the annual 

fees it receives from gaming tribes; therefore, the prompt payment of such fees is of 

critical importance to the NIGC. The mual fees collected by the NIGC are 

necessary in order to fund the agency's oversight and regulation of Indian gaming 

and are based up on the quarterly statements submitted by gaming operations. 

NIGC must set a fee sate sufficient to fund its annual budget, yet may not exceed 

the fee cap set by Congress. Thus it is imperative that the NIGC receive quarterly 

statements from the gaming operations in a timely manner so that the NIGC is able 

to set accurate preliminary and find fee rates. 

iii. Histow of violations. The Tribe has not had a prior notice of violation within the 

past five (5) years. 

iv. Negligence or wiIIfulness. NIGC regulations clearly state the due dates of the 

quarterly statements and requisite fee payments. Furthermore, NIGC posted the 

notice of the fee rate in its online reading room and mailed a copy of the notice to 

each gaming operation. The Tribe's failure to submit quarterly statements and the 

requisite fee payments and untimely submission of quarterly statements and fee 

payments was therefore negligent. 

v. Good Faith. A civil fine may be reduced based upon the degree of good faith of a 

respondent in attempting to achieve rapid compIiance after notice of a violation. 

The Tribe did submit the untimely quarterly statements and requisite fee payments 

for the Winnavegas gaming operation after they were contacted by a NIGC Field 

Investigator about them and submitted the quarterly statements for the Iron Horse 

and Native Star on November 14,2008, ten (1 0) days after the notice of violation 

was issued. The quick submission of Iron Horse and Native Star's documents does 

show a good faith attempt to rectify the failure to submit. This does not, however, 

excuse the late submission of quarterly statements for the gaming operations. 
5. WHEREFORE, the Chairman, having carefully reviewed the above factors, has 

determined that a fine in the amount of $35,000 (thirty-five thousand dollars) is assessed 

on the Respondent for failure to submit quarterly statements for two gaming operations, 

Iron Horse Casino and Native Star Casino, and untimely submission of quarterly 

statements and fee payments for one gaming operation, Winnavegas. 

6. After balancing the factors reference above, the Chairman believes a $35,000 fine is 

appropriate for the reasons stated above. 

7. Interest shall be assessed at rates established from time to time by the Secretary of the 

Treasury on amount remaining unpaid after their due date. 3 1 U.S.C. 3 37 17,25 C.F.R. 3 

5 13.5(a). 

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

Proposed Civil Fine Assessment, Respondent may appeal the proposed fine to the h1I 

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

Commission, 144 1 L Street NW, Suite 9 100, Washington, D.C. 20005. Respondent has a 

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

Notice of Proposed Civil Fine Assessment. Within ten (1 0) days after fiIing a notice of 

appeal, Respondent must file with the NIGC a supplementaI statement that sets forth with 

particularity the relief desired and the grounds therefore and that includes, when 

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

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

with the suppIementaI statement. The request to present oral testimony or witnesses must 

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

testimony, a,mh% a closed hearing is requested and why. Respondent may waive 

its rightj&m oral g and instead elect to have the matter determined by the 

~odssion sole Y on the basis of written submissions. 

Chairman 

Heather L. McMillan 

Staff Attorney