NATIONAL INDIAN GAMING COMMISSION 

NOTICE OF VIOLATION 

TO: Lurnmi Indian Business Council 

Attn: Henry Cagey, Chair 

26 1 6 Kwina Road 

Bellfngharn, WA 98226 

FAX: (360) 384-1489 

Nicole Jefferson, Interim Chairperson 

(AGENT FOR SERVICE OF PROCESS) 

Lummi Tribal Gaming Agency 

4876 Haxton Way 

Fcrndale, WA 98248 

FAX (3 60) 3 I 2-05 3 8 

I. Notification of Violation 

The Chaiman of the National Indian Gaming Commission INJGC) hereby gives 

notice that the Lummi Tribe (Respondent or Tribe), located in Bellingham, 

Washington, has violated NIGC regulations by failing to submit timely quarterly 

statements and fce payments for the quarters ending Masch 3 1, June 30, and 

September 30 for the calendar year 2008. 

2. Authority 

Undcr the Indian Gaming ReguIatory Act (LGRA) and NIGC regulations, the 

Chaiman of the NIGC (Chairman) may issue a Notice of Violation (NOV) to any 

person for violation of any provision of the IGRA, NIGC regulations, or any 

provision of a tribal gaming ordinance or resolution approved by the Chairman. 

25 U.S.C. 9 2713; 25 C.F.R. 9 573.3. 

3. Applicable Federal Laws and Tsibal Ordinance Provisions 

A. IGRA requires the NIGC to establish a schedule of fees to be paid ta the 

Commission annually by each gaming operation that conducts a class I1 or 

class TI1 gaming activity. 25 U.S.C. tj 271 7. 
B. NIGC regulations require that each gaming operation under the 

jurisdiction of the Commission shall pay to the Commission annual fees as 

established by the Comrnissjon. 25 C.F.R. 8 5 14.1 (a). 

C. Each gaming operation subject to the jurisdiction of the Commission and 

not exempt from paying fees pursuant to the self-reguIation provisions 

shall file with the Gomission a quarterly statement showing its 

assessable gross revenues for the previous calendar year. 25 C.F.R. $ 

514.1(c). 

D. The quarterly statements are due March 31, June 30, September 30, and 

December 3 1 of each calendar year the gaming operation is subject to the 

jurisdiction of the NIGC. 25 C.F.R. § 5 14.1 (c)(2). The quarterly 

statements shall be transmitted to the Commission and anive no later than 

the due date. 25 C.F.R. § 5 14. I (c)(4). 

E. NIGC regulations require each gaming operation to remit to the 

Commission the fees due each quarter with the quarterIy statement. 25 

C.F.R. 5 5 14.1 (c)(5). 

F. NIGC regulations defme "gaming operation" as "each economic entity 

that is licensed by a tribe, operates the games, receives the revenues, 

issues the prizes and pays the expenses." A gaming operation may be 

operated by a tribe directly; by a management contractor; or, under certain 

conditions, by another person or other entity. 25 C.F.R. $ 502.10. 

4. Role of Quarterlv Fees and Quarterly Statements 

The annual fees coIFected by the NlGC are necessary in order to fund the agency's 

oversight and regulation of Indian gaming and are based upon the quarterly 

statements submitted by Indian gaming operations. NIGC must set a fee rate 

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 final fee rates. 

5. Circumstances of the Violation 

A. Respondent is a federally recognized Indian Tribe with tribal headquarters 

in Bef Eingham, Washington. 
I3 The Tribe operated its gaming operation, Silver Reef Hotel. Casino and 

Spa, during all of 2007 and 2008 through December 8,2008. 

C. The NIGC received untimely quarterly statements and fee payments as 

follows: 

Far the quarter ending March 3 1 on ApriI 18,2008, 18 days late 

For the quarter ending June 30 on July 9,2008,9 days late 

For the quarter ending September 30 on November 3.2008. 33 

days late 

D. These untimeIy submissions are a vioIation of NIGC regulations. 

6. Measures Resuired to Correct the Violation 

While there is no remedial action that can correct the untimely submission of 

quarterly statements and fees, improved contsols to ensure timely submission of 

future quarterly statements and fees should be put in place. 

7. Appeal 

Within thirty (30) days after service of this Notice of Violation. Respondent may 

appeal to the hll Commission under 25 C.E.R. Part 577 by submitting a notice of 

appeal, and, if desired, request for hearing to the National Indian Gaming 

Commission, 144 1 L Street N W, Ninth Floor, Washington, DC 20005. 

Respondent has a right to assistance of counsel in such an appeaI. A notice of 

appeal must reference this Notice of Violation. 

Within ten (1 0) days after filing a notice of appeal, Respondent must file with the 

Commission n supplemental statement that states with particularity the relief 

desired and the grounds therefore and that includes, when available, supporting 

evidence in the form of affidavits. If Respondent wishes to present oral testimony 

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

supplemental statement. The request to present oral testimony or witnesses must 

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

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

waives its right to an oral hearing and instead elect to have the matter determined 

by the Commission solely on the basis of written submissions. 

8. Fine-Submission of Information 

The violation cited above may result in the assessment of a civil fine against 

Respondent in an amount not to exceed $25,000 per violation per day. Under 25 

C.F.R. 5 575 .S(a), Respondent may submit written information about the violation 

to the Chairman within fifteen (1 5) days after service of this notice of violation 

(or such longer period as the Chairman may grant for good cause). The Chairman 
shalE consider any infomation submitted in determining the facts surrounding the 

violation and the amount of the civil fine, if any. 

14~~~fl1.3~ L. MCMILLAN 

Staff Attorney 
Certificate of Service 

I certify that this Notice of Violation was sent by facsimile transmission and certified 

U.S. mail, return rcceipt requested, on this 12'~ day of Dcccrnbcr, 2008 to: