Nllfional Indian Gaming C(lmmillsion 

Settlement Agre11me11t # 14-1 

Thia settlement agreement (Agreement:) is entered into by and between Gary Watkins (Watkins), 

president of G2, Inc. (02), and the National lndian Gaming Commission.(NIGC), and is related 

to the allegation Iha! Wat:kins/G2 managed the Ponca Tribe of Oklahoma's (Tribe), a federally 

recognized tribe, Two Rivers Casioo (Casino) wl:lhoul an approved management contract, in 

violation of the Indian Gaming Regulatory Act of 19&!! (IGRA), 25 U.S.C. § 2701, et seq., and 

NIGC regulations, 25 C.F.R. § 501, et seq. 

I. On or about September l, 2011, the NIGC initia~ an inveatigation into the management 

of the Casino, a wholly-owned enterprise of the Tnbe, to dete1-nilire whether the mcility 

was being managed in the absence of a management contract approved by the NIGC Chair, 

ln violation ofIGRA and NIGC regulations. 

2. A management contract dated July 27, 2010, between 1he Tribe and Watkins, was 

submitted to the NIGC for review ou August 4, 20 IO, before the Casino was opened. 

3. On or about October 19, 2010, Walkins and G2 began managing the Casino without a 

management contract approved by the NIGC Chair. On tha~ same date, the Tribe and 

Watkins enter<Xl into a General Manager Agreement. 

4. Watkins was not an employee of the Tribe. The General l\1arutgllr Agreement entered into 

between the Tribe and Watkins provided that Watkins would receive $950.00 per week. 

However, from October 20 I 0 to Febniary 20l 1, Watkins di.d net receive any pay i;he.cks 

from the Casino. The General Manager Agreement did not bestow any tribal employee 

t,enefits on Watkins. in addltlon, the Tribe never provided Watkins wi:lh an IRS 1099Fonn 

but did provide him with a W2. 

5. On December 17, 201 0, W atkina issued a reinlbursement check to G2 amotrating to 2.5% of 

the net gaming revenue and distributed 75% of the net gaming revenue to 1he Tribe. These 

distribll:tions were based on the Casino's November 2010 profit/loss statement reflecting a 

net revenue of$43,029.93. 

6. On December 31, 20!0, Watkins used llllll-tribal funds to inerease the vault by $48,000. 

The Casino general ledger notes that on January 2, 201 i, the vault was increas<;d by 02, 

stating "raise vault to help with new year" in the memo line. Watkins increased these funds 

to stay in compliance with the Tribe's compact with the State of Oklahoma. 

7. Payments of$35,000 were made from the Casino operating account to 02 on March 5, 

2011, Apnl 1, 20H, May 1, 2011, .Juire 7, 2011, and July 1, 2011. Payments of $7,500 

Wllre made from the Casino operating account to the Tribe on February 11!, 2011, March 

Hi, 2011, April 20, 20!1, and May lll, 2011. 
8. During his time managing the Casini), as a representative of the Tribe, Watkins entered Into 

electronic gaming machine ag1:eemen1a and signed all but one of the agreements as 

,;President." 

9, A Mutua! Confidentiality and NondiscloiilUre Agreement was made effective on March 17, 

2010, between Video Gaming Technologies and Watkins, as a representative of the Tribe. 

The agreement was signed by Watkins, individually, and the Tribe's Chairman, Douglas R. 

Rhodd, on March 17, 20lll , 

IO. During the time Watkins managed the Tribe's casino he entered nnmerous agreements, 

such as equipment leases, parllcipatioo agreements, wide area network services agreements 

and ren!ll1 agreements, with slot machine providers. 

1 L As General Manager, Watldns had tbe authority to hire, supervise, and fire Casino 

employees. 

!2. The Tribe terminated its relationship with Watkins on August 31, 2011, and withdrew the 

management contract from NJGC review. 

13. From approximately October 19, 2010, through August 3!, 2011, Watkins and G2 

managed !ho Casino "'~th.out a management CQnlfal,rt approved by the Nl.OC Chair, in 

violation of!ORA, 25 U.S.C. § 271 l, l!l'ldNIGC regulations, 25 CFJl. par! 57'.t 

14. On or about May 23, 2014, Watkins and the NIGC hegan negotiations to attempt to settle 

this alleged violation. 

Recitals 

15. The NIOC Chairman has the au!h.orley to levy .and collect appropriate civil fines, not to 

exeeed $25,000 per violation, against the tribal operator of an Indian game or a 

mjlllllgement contrai;tor engaged in gaming for the violation of any provision of IORA and 

NlGC regulations, 25 U.S.C. § 2713(a){1); 25 C.F Jt § 575.4. "If noncompliance contimies 

for more than one day, the. Chairman may treat each daily act or omission as a separate 

violation." 25 C.F.R. § 575,4 (a)(2). 

l 6. Watkins hereby admits to the facts as set forth in the "Circumstances of Violation" section 

of this Agreement, aod wishes to settle this matter with the NlGC Chair 10 avoid the 

issuance of a notice of violation. 

17. Watkins agrees that the NlOC possesses jurisdiction over this mai'ter and agrees to comply 

with the terms of this Agreement. 

Terms. nf Settlemet1t Agr!!'lment 

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18. l11 exchange for the terms, conditions, and understandings set forth in this Agreement, 

Walkins waives his right: to any administrative review of this settlement (25 C.F.R. pa11s 

5ll4, 585); to submit iuformatim1 prior to tbe issuanee of a civil fine assessment (25 C.F.R. 

§ 575.5); lo seek the reduction or waiver of a civil fine (25 C.F.R. § 575.6); and to seek 

judicial review (25 U.S.C. § 2714). 

J 9. ln exchange for the terms, conditions, and undtirntandlngs set forth herein, Watkins hereby 

waives the rights specified in paragraph 26 of this Agreement and any other right to seek 

judicial review or otherwise challenge or contest the NIGC Chairman's actions under this 

Agreement~ including the right to have the NlGC Cliairman provide rus or her written 

ru:ialysis of the fa~-tors to be considered in assessing a civil :fine, as set forth under 25 C.F.R. 

§ 575.4. 

20. Upon execution of this Agree.men!, the NIGC Chairman agrees !hat the NIGC shall not 

institute further proceedings or actions or assess any additional sanctions against W a!kins 

or G2 for any actions as alleged in the "Circnmstances of Violation" section of this 

Agreement, nnless Watkins fails to comply with this Agreement. If Watkins or G2 Jail to 

comply with this Agreement, Watkins agrees that it will pay a fine of $75,000.00, as 

ontllned in pa:ragmph 23 herein. 

2 l. For a period of four (4) years begim1ing from the date .that the parti~ began settlement 

negotiations, as stated in paragraph 15, Watkins and G2, and/or any other entity owned in 

whole or part or otherwise associated with Walkins, including any entity in which Watkins 

or an entity owned by hhn is a shareholder, agrees not to enter into any type of husiness 

arn;ngement or to have any further bUJliness association or relationship of any kind with the 

Casino, or any other Indian gaming operation regulated pursuant to IGRA and N!OC 

regu.la!ions. These business arrangements, associations, and/or relationships include, but 

are not limited ro: (i) operating, managing. consulting, or providing any type of materials, 

machin~, or services related directly or indirectly to .the operation or management of any 

existing or ftiture Indian gaming facility; (ii) develcping, finlllleing, or otherwise having a 

direct or h1direct financial interest in any existing or futμre Indian gaming operation; (iii) 

receiving from the Tribe, or any other federally recognized Indian tribe, either directly or 

indirectly, a sum of money and/or future sums of money as consideration for Walkins' and 

G2's past gaming-related services provided to the Tribe, .or any other tribal entity, ru:id/or as 

consideration for the prohibition of sneh Indian gaming-related services in the future. 

However, nothing in this agre<ement shall be ronstmed to prohibit Walkins, through .his 

company A TMONE, from entering llgreements tn provide ATM services to aay Tribe. 

22 Watkins shall pay a civil fine of Seventy Five Thousand dollars ($75,000.00). However, 

this fine shall be suspended as long as Watkins and G2 comply with the terms of the 

Agreement. 

23. If Watkins or G2 breaches any of (he provisions of this Agreement, Watkins agrees and 

consents iliat a civil fine of $75,000.00 will become ful!y due and payable on the date of 

the breach. In such circumstaaee, the NIGC shall issue a written notice (demand letter) to 

Watkins pursuant to NIGC debt collection regulations at 25 C.F.R .. part 513. Watkins 

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lwreby agrees that the NIGC and/or U.R Department of Treasul'y may proceed with the 

debt collection of the $75,000.00 civil fine {less llinounts already paid) against Watkins, 

and may assess interest, penalties, and administrative costs froin the date of breach of this 

Agreement, as provided in 25 C.ER. § 513.5. such circumstance, Watkins hereby 

waives any rights to an oral hearing under 25 C.F.R. § 513.6, bui !he NIGC shal.! 

never!heless provide Watkins with a reasaaabie opportunity to sμbmil written material 

supporting a request to reconsider the de!ennilll!tion !hat Watkins is in breach of !his 

Agreement or to challenge the method by which the NIGC calculated the debt 

24. If Watkins breaches this Agreement, the. NIGC Chair reserves the right to initiate an 

enforcement action, as provided for in 25 C,F.R. § 573.6. 

25. This Agreement shall not become public unless and nntil itis accepted and signed by the 

NlOC Chaittnall, }Jowever, upon its execution .by the NlGC Chairrmm, this Ag,-eemeut will 

become publlc, 

Additronal Coverumts 

26. The parties stipulate that this Agreement shat! be deemed a final order of the Commission 

and a final agem:y action pllJ.'Sllallt to 25 C.F.R. § 580,10. 

27. This Agreement constitutes the entire agreement between the N!GC Chai-rman and 

Watkins/G2 and supersedes all prior verbal or Written agreements and understandh1gs 

between the parties related to the subject matter hereof. No warranties, representations, 

covenants, or agreements shall be binding upon any party except as provided herein. Any 

modification or waiver of any term of this Agreement must .be in writiag and signed by the 

parties. 

28. The NIGC Cbaim1an agrees that nothing in. this agreement or the settlen1ent agreement 

entered into between the NIGC and the Tribe ($A~irto d&ted 06/12113, paragraph 38) 

related to those matters enjoins the Trlbe from remming any. property to Watkins, 02, 

andfor ATMONE. Nothli1g in this agreement prohibits Watkins from recovering any 

personal or carporate property, ofG2 and.or ATMONE that he is otherwise legally entitled 

to possess or recover fi;om the Tribe. 

29. The N!GC Chairman and Watkins expressly agree and acknowledge thnt time is of the 

essence in this Agreement. The recitals herein shall be binding upon the parties, their 

agents, heirs, personal representatives, successors, and assigns. 

JO. A signature produced by facsimile shail be deemed to be.an original signatme and. shall be 

effective and binding for p11tpose ofthis Agreement 

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For Gary Watkins and GZ, foe. For Nation~l Indian .Gaming Commission 

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