SAC AND FOX NATION OF MlSSlOUR IN KANSAS AND NEBRASKA TESTIMONY AND COMMENITS IN 

REGARD TO f HE NOTICE OF INQUIRY ISSUED BY THE NATIONAL INDIAN GAMING COMMlSijlON 

RIVERWIND CASINO, NORMAN OK, JANUARY 18,2011 

The Sac and Fox Nation would like to express our thanks for being provided the opportunity to offer our 

Tribes comments in regard to the issues identified in the NOTICE OF INQUIRY. The Sac and Fau Nation 

would also like to express our thanks for the approach that the NlGC has undertaken in relationship to 

seeking comment and input from the Tribes. 

Many of the issues that were specified in the Federal Register are of concern to Sac and Fox, but the 

following comments are based upon our Tribe's experiences and its familiarity with said issues. In 

addition the Sac and Fox would like to preface our comments with a citation from the lndian Garning 

Regulatory Act at 25 USC 2701 which states: 

"The Congress Finds That - (5) lndian tribes have the exclusive right to regulate gaming activity 

on lndian lands if the gaming activity is not specifically prohibited by Federal law and is 

conducted within a State which does not, as a matter of criminal law and public policy, prohibit 

such gaming activity." 

Hopefully Sac and Fox's experiences will assist with the formulation of revised and/or amendment to 

the NlGC's Regulations and will encourage an enhanced review of the Regulations from a day to day 

regulatory perspective: 

BART 502.16 - DEFINlTlON OF MET REVENUES 

The Sac and Fox is of the opinion that the definition of "net revenues" be revised to be consistent with 

GAAP and or conform calculations to GAAP. This would provide more uniformity in determining how 

"net revenues" are calculated. The Indian Gaming Regulatory Act at Section 270319) defines "net 

revenues" and any revision to "net revenues* in the Regulations must maintain conformity to the above 

language in IGRA, 

PART 559 - FACILITY LICENSE NOTIFICATIONS, RENEWALS, AND SUBMISSIONS 
The Sac and Fox recommend that this entire section be reviewed and that the following be considered in 

regard to said regulatory review: 

1 The Tribes are already subject to various EPA requirements and Indian Health 

requirements in relation ta Federal programs that they participate in. The Gaming Facility 

Licensing requirements allow Federal agencies ta subject the Tribes to additional ilitrusive 

monitoring; 

2 The Gaming Facility License Requirements seem to have overstepped its bounclaries in 

regard to requiring Tribal Governments to adopt specific ordinances and regulations that may 

impact areas outside of gaming. For Example: Sac and Fox has a wetlands which is in close 

proximity to our Casino which is subject to the jurisdiction of Tribe and subject to EPA 

requirements. As a result of flooding, the area was found to be in non-compliance with an 

€PA requirement concerning inappropriate discharge into a wetlands area. This finding, if 

proved to be accurate, would also result in the Tribe being in non-compliance with the Gaming 

Facility Licensing requirements. The Tribe found that EPA was in error in its findings, and the 

Tribe now has the burden of proving that it is in compliance with both the EPA regulations and 

the Gaming Facility Licensing requirements. 

This type of situation could occur more often than not with other Federal Agency regulations. Said 

Gaming Facility Licensing Regulations are proving to be duplicative and burdensome, as well as costly to 

the Tribes. 

Regulatory review of the above regulation is being recommended as a priority. The Tribe has prioritized 

it as one of the top four to be reviewed. A Tribal Advisory Group should review this a~nd it is 

recommended that many of the requirements of the present Regulation be placed into a bulletin, 

MKS & TECHNICAL STANDARDS 

(1) Part 542 - Class Ill Minimum Internal Control Standards 

This particular area is a primary concern to Sac and Fax. The Sac and Fax recognize that Internal 

Control Standards are extremely important to the Indian Gaming Industry and more particularl)~ to our 

Tribe, due to its intent to provide the protection of Tribal assets as well as providing for the intflgrity of 
the Tribe's Gaming Operations. In addition, Sac and Fox also recognizes and supports the need for 

consistency in the auditing process of lnternal Control Standards in Indian Gaming. 

Experience has shown that many Tribes that offer Class Ill Gaming have used the NIGC's Bulletins as 

guidelines and have used said Bulletin's as primary guidelines for purposes of regulating Indian Gaming. 

Sac and Fox believes that Tribes that offer gaming are as technically knowledgeable and professional as 

commercial gaming operations, and are aware that if they did not implement their own Tribal lnternal 

Control Standards that they would be opening up their gaming operations to illegal activity. 'sac and 

Fox looks to industry standards in the gaming area and if it does not have the expertise or technical 

ability in key gaming areas, it retains someone or some entity to carry out what is needed to priltect its 

gaming operation for the benefit of its Tribal Members. It is my Tribe's belief that it petforms the due 

diligence required in relation to following industry standards, whether or not a Regulation requires it. 

Should Part -542 Class Ill MlCS be eliminated and replaced with Guidelines, it is Sac and Fox's opinion 

that the Tribes will continue to institute industry standard internal controls in the area of Class 111. As to 

those Tribes who have incorporated 542 Class Ill MlCS in their Ordinance or it is a part of their Compact, 

there may be resulting challenges, but we believe that most Tribes have appropriate internal controls in 

place and that the lnternal Control Guidelines, would be used to supplant what is in previously adopted 

Ordinances. 

Sac and Fax believes that the Class Ill MlCS should be developed by a Tribal Advisov Group process 

because of the ongoing changes in the Gaming Industry and the differences in Tribal gaming operations, 

and the importance of considering Tribal experiences in lnternal Control Guidelines developed. More 

importantly Sac and Fox would recommend that said lnternal Control standards be issued as Guidelines 

and that they would be provided to the Tribes in a Bulletin format and be updated on regular basis. 

Technology is changing so quickly that a governmental notice and the rulemaking process is not only too 

slow to keep up with said changes. Possibly "internal control standards" could be referred to in 

recommended changes to Gaming Ordinances. For instance, revised Ordinances may include a 

statement that identifies the requirement, "that internal control standards be implemented by the 

Tribal Gaming Regulatory Agency that meet or exceed industry standards." 

Therefore, Sac and Fox recommends that the Class Ill MlCS issue should be considered one of the top 

four areas to have NlGC Regulatory Review, and that said review include the use of a Tribal Advisory 

Group, with the resulting document issued as a Bulletin. 

3 
PART 522 - SUBMlSSlON OF GAMING ORDINANCES OR RESOLUllON 

Sac and Fox believes that this section does not need revision, but that perhaps a Bulletin could be issued 

that addresses recommended changes in an Ordinance if a Tribe chooses to update their Ordinance, for 

instance the issue of internal control standards could be identified. 

PART 514 FEES 

The Sac and Fox Nation is of the opinion that the past practice by the NlGC to issue an NOV if Fees are 

paid late was an extreme measure to impose upon Tribes unless there is negligence by the Tribes that 

can 'be shown as a pattern. It would seem more reasonable to develop some type of schedule of fines 

or penalties, either based upon passage of time and/or number of times of being late to pay. 

This is a priority issue to be reviewed (one of the top four issues) that could be revised by the regular 

notice and rulemaking process. 

KANSAS COMPACT - SAC AND FOX 

A situation in Kansas has become visible within the past three to four years which is causing coricern to 

the Sac and Fox Nation. This is being brought to your attention because it could develop into more than 

an exchange of memos between the NIGC, the State of Kansas and the Tribe. 

The NlGC Regulations require tribes to submit investigative reports with each licensing determination 

made by the tribes for primary management officials and key employees, 25 C.F.R. Section 558.3(b). Sac 

and Fox is a part of the NIGC's pilot program therefore, based upon its MOU with the NlGC it would 

ordinarily only submit a synopsis and the results of the background investigation for a primary 

management official and key employee. The Kansas Compacts however place the responsibility to 

conduct background investigations for Class 111 employees on the State and the Kansas State Oilersight 

Act prohibits Tribes from disclosing most of the information contained in an investigative report, 

including to the NlGC (This is the view point of the Kansas Officials). 

As a result of the above, there is a conflict in laws and the Sac and Fox are caught in the middle of 

potential enforcement action by possibly the State as well as the NIGC. The NlGC General Counsel has 

disagreed with the State's belief that the information cannot be shared. In an opinion letter dated June 

18, 2008 From the former NlGC Acting General Counsel, Penny Coleman, to the Deputy P,ttorney 

4 
General, Mike Leitch, she stated "...that under the supremacy clause, where such a conflict exirits, state 

law must give way to federal law." This issue has not yet been resolved. The Sac and Fax would like to 

thank the NlGC Director of Enforcement, John Peterson for attempting to rectiv the situation in an 

amicable manner but it appears, that Kansas is unwilling to change its opinion. There may be no 

resolution short of litigation, but the fact remains, the Sac and Fox Nation remains in the micldle of a 

conflict of laws that could result in enforcement action against our Nation. 

In conclusion Sac and Fox would like to thank you for this opportunity to provide input into the 

regulatory review process. Thank you for listening and if you have questions, please feel free to ask now 

or contact myself and/or the Sac and Fox Gaming Commission