NOTICE OF VIOLATION 

NOV- 06 -17 

To: Troy Little Axe, Chairman (Agent for Service of Process) 

Kaw Nation Gaming Commission 

107 North Main 

Newkirk, OK 74647 

Fax: (580) 362-2530 

Guy Monroe, Chairman 

Kaw Nation of Oklahoma 

Drawer 50 

Kaw City, OK 74641 

Fax: (580) 269-2301 

Jennifer McBee 

Andrews Davis Legg Bixler Milsten & Price 

100 North Broadway, Suite 3300 

Oklahoma City, OK 73 102 

Fax: (405) 235-8786 

1. Notification of Violation 

The Chairman of the National Indian Gaxning Commission (NIGC) hereby gives notice 

that the Kaw Nation of Oklahoma (hereinafter referred to as Respondent or Tribe), 

located in Kaw City, Oklahoma, is in violation of the Indian Gaming Regulatory Act 

(IGRA), NIGC regulations and its gaming ordinance for failure to submit an Agreed 

Upon Procedures (An) Report prepared by independent Certified Public Accountants 

verifying compliance with 25 C.F.R. Cj 542 Minimum Internal Control Standards (MICS). 

2. Authority 

Under regulations of the National Indian Gaming Commission, the Chairman of the 

NIGC (Chairman) may issue a Notice of Violation (NOV) to any person for violation of 

any provision of IGRA, NIGC regulations, or any provision of a tribal gaming ordinance, 
regulation or resolution approved by the Chairman. 25 U.S.C. 4 2713(a); 25 C.F.R. 4 

573.3. 

3. Applicable Federal and Tribal Laws 

A. IGRA provides that the MGC shall monitor Class I1 gaming conducted on 

Indian lands on a continuing basis. 25 U.S.C. 9 2706(b)(1). 

B. IGRA provides that the NIGC may demand access to and inspect, 

examine, photocopy, and audit all papeks, books, and records respecting 

gross revenues of Class I1 gaming conducted on Indian lands and other 

matters necessary to carry out the duties of the NIGC under this chapter. 

25 U.S.C. 4 2706(b)(4). 

IGRA provides that the NIGC shall promulgate such regulations and 

guidelines as it deems appropriate to implement the provisions of this 

chapter. 25 U.S.C. 8 2706(b)(10). 

MGC regulations require that each Class I1 Tribal gaming authority, 'in 

accordance with the Tribal gaming ordinance, establish and implement 

tribal internal control standards (TICS) that equal or exceed the level of 

... I, m control set forth in the NIGC MICS. 25 C.F.R. § 542.3(c). 

E. NIGC regulations require that each Class I1 gaming operation develop and 

implement an internal control system that, at a minimum, complies with 

TICS. 25 C.F.R. 8 542.3(d). .,. . 

F. MGC regulations require that a tribe cause an independent certified public 

accountant (CPA) to perform Agreed Upon Procedures (AUP) to verify 

that the gaming operation is in compliance with the NIGC MICS and 

submit two copies of the report to the NIGC within 120 days of tb'e 

gaming operation's fiscal year end. 25 C.F.R. $542.3(f). 

The Kaw Nation of Oklahoma Gaming Ordinance (Ordinance) was 

enacted to set the terms for Class I1 gaming on lands over which the ~nbe 

exercises jurisdiction pursuant to applicable federal law. Kaw Nation of 

Oklahoma Gaming Ordinance, Section 1-02 and Section 1-1 1. 

The Ordinance authorizes Class I1 gaming as defined in IGRA and by 

regulations promulgated by the NIGC. Kaw Nation of Oklahoma Gaming 

Ordinance, Section 1-04. 
The Ordinance provides that the Tribe has sole proprietary interest in and 

responsibility for the conduct of any gaming operation authorized by it. 

Kaw Nation of Oklahoma Gaming Ordinance, Section 1-07. 

The Ordinance established the Kaw Nation Tribal Gaming Commission 

(Gaming Commission) to regulate gaming on Tribal land. Kaw Nation of 

Oklahoma Gaming Ordinance, Section 2-01. 

The Ordinance provides that the Gaming Commission is fully empowered 

to comply with all regulations promulgated by the NIGC, including 

reporting requirements relating to ordinances. Kaw Nation of Oklahoma 

Gaming Ordinance, Section 9-01. 

The Ordinance provides that the Gaming Commission may promulgate 

rules and regulations governing the conduct of all games authorized by 

IGRA, including rules governing the equipment (chips, cards, tiles, etc.) 

used in such games. Kaw Nation of Oklahoma Gaming Ordinance, 

Section 2-07. 

The Ordinance provides that the Gaming Commission may promulgate 

rules governing the control of internal fiscal affairs of gaming operations. 

Kaw Nation of Oklahoma Gaming Ordinance, Section 2-08. 

The Kaw Nation Gaming Commission has established and implemented 

tribal internal control standards (TICS) equaling or exceeding those set 

forth in 25 C.F.R. 5 542. Kaw Nation Gaming Commission Resolution No. 

04-02. 

4. Role of the AUP Report 

Submission of the AUP report by a firm of certified public accountants is critical to the 

NIGC's mission to protect the integrity of Indian gaming. A firm's ability to conduct 

CPA testing and render an opinion on the AUP provides a certain level of assurance as to 

the security of tribal gaming revenues. Since gaming transactions are based on cash or 

cash equivalents, gaming operations are generally considered to possess a high level of 

inherent risk. The AUP report prepared and submitted on a timely basis is evidence of, 

among other things, the integrity of the gaming operation and, more specifically, of the 

adequacy of the internal control standards associated with gaming and gaming related 

transactions and activities. 
5. Circumstances of the Violation 

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

in Kaw City, Oklahoma. 

B. Respondent operated its gaming facility, Kaw Nation South Wind Casino, 

during all or part of fiscal year 2005. 

C. Respondent's gaming facility, Kaw Nation South Wind Casino, is 

predominantly a Class I1 facility, including during fiscal year 2005. 

D. On December 5, 2006, the NIGC received an AUP report for the Kaw 

Nation South Wind Casino for the fiscal year ending December 31,2005. 

The AUP report was due to the NIGC on May 1,2006, within 120 days of 

the gaming operation's fiscal year end. 

NIGC regulations require that tribes submit AUP reports for each gaming 

facility within 120 days after the gaming operation's fiscal year end. 25 

C.F.R. § 542.3(f). Respondent is therefore in violation of this regulation, 

as well as Section 9-01 of its Ordinance, for failure timely to submit an 

AUP report. 

6. Measures Reauired to Correct this Violation 

Late submission of an AUP report cannot be corrected. NIGC regulations require that 

AUP reports be received within 120 days of the gaming operation's fiscal year end. 25 

C.F.R. § 542.3(f). 

7. Appeal 

Within 30 (thirty) days after service of this NOV, Respondent may appeal to the full 

Commission under 25 C.F.R. $ 577 by submitting a notice of appeal and, if desired, 

request for hearing to the National Indian Gaming Commission, 1441 L Street, NW, 

Ninth Floor, Washington, DC 20005. Respondent has a right to assistance of counsel in 

such an appeal. A notice of appeal must reference this NOV. 

Within ten (10) days after filing a notice of appeal, Respondent must file with the 

Commission a 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 waive its right to an oral hearing and instead elect to have the 

matter determined by the Commission solely on the basis of written submissions. 

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. 5 575.5(a), 

Respondent may submit written information about the violation to the Chairman within 

15 days after service of this NOV (or such longer period as the Chairman of the 

Commission may grant for good cause). The Chairman shall consider any information 

submitted in determining the facts surrounding the violation and the amount of the civil 

fine, if any. 

National Indian Gaming Commission 

Staff Attorney L