April 23,2003 

Bessie Hernandez 

TreasurerISecretary 

Kickapoo Tribe of Oklahoma Gaming Commission 

PO Box 406 

McCloud, OK 7485 1 

Re: Tournament Blackjack 

Dear Ms. Hernandez: 

Thank you for your letter of March 11,2003, which enclosed a proposed format 

for a blackjack tournament. We appreciate the Tribe's willingness to work with NIGC on 

this issue. 

As your letter suggested, members of our staff contacted Stephanie Ramsey with 

questions about the proposed tournament format. She provided a revised description of 

4 the format and clarifying comments. Based on the revised description, our view is that 

the proposed tournament format can meet the requirements for Class II gaming under the 

Indian Gaming Regulatory Act and NIGC regulations. 

Description 

The Tribe's proposal calls for "weekly" tournaments at three different tiers. Each 

tier has a different entry fee. Each tier is independent of the other tiers. A minimum of 

four players is required for a tournament to begin at any tier level. The tournaments are 

not held weekly, as the name implies, but are regularly scheduled during the week. After 

paying the entry fee, a player receives tournament point-value chips. The chips do not 

have redeemable cash value. All players start with an equal number of chips. Each 

tournament consists of 10, 15, or 21 hands of blackjack, depending on the tier or entryfee level, using traditional blackjack rules. At the end of each tournament, the player 

with the most point-value chips wins the tournament and is awarded a "jackpot," a prize 

of money or merchandise. This prize is pre-determined and does not vary based on the 

number of players in the tournament. After the prize is awarded to the winner, all player 

chips for that tournament lose their value, cannot be redeemed, and cannot be carried 

forward into a later tournament. Players who do not win may receive a chance to spend 

time in a "money booth" as a consolation. They compete in drawings with other patrons 

at the gaming facility for this opportunity. 

NATIONAL HEADQUARTERS 1441 L St NW, Suite 9100. Washington. DC 2MX)5 Tel. 202 632.7003 Fax: 202.632.7066 www.NlGC.GOV 

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Bessie Hernandez 

April 23,2003 

Page 2 of 4 

Intermediate tournaments are also planned that will feature larger prizes. These 

multi-round elimination tournaments are held monthly, also at three different tiers or 

entry fee levels, as with the weekly tournaments. Qualification for the intermediate 

tournament will be based on success in the weekly tournaments. The first and second 

place winners of each weekly tournament will receive "tournament points" that will 

determine eligibility for the intermediate tournament at that tier level. These points are 

only for use in determining eligibility to participate in the next intermediate tournament. 

The points have no other value and cannot be carried forward to qualifL for a future 

intermediate tournament. A minimum number of weekly "tournament points" will be 

established by the gaming operation to determine eligibility for the intermediate 

tournament. 

There is also an opportunity for a player's name to be drawn for participation in 

the intermediate tournament if the player is present on the day of the intermediate 

tournament and has played in at least one weekly tournament. Under the proposal, six 

players are able to reenter tournament play as wild card players every half hour based on 

this drawing. They will play against each other using the tournament format with the 

eventual winner of this consolation bracket advancing into the championship round along 

with players who won during the regular elimination rounds of the tournament. 

w Players participating in the intermediate tournament will each start with a 

specified number of point-value chips after paying an entry fee. As in the weekly 

tournament, these point-value chips will be used only in playing that particular 

tournament and will not have residual value. Rules for the intermediate tournament are 

the same as for the weekly tournament. The top seven players in the intermediate 

tournament, based on the point-value chip held at the end of tournament will win jackpot 

monies on a graduated scale. 

The final level of play is the advanced tournament. Players who meet the 

minimum requirement by successfully participating in intermediate tournaments are 

invited to play in the next advanced tournament at that entry fee level. These multi-round 

elimination tournaments are held every three months, also at three different tiers or entry 

fee levels, as with the weekly and intermediate tournaments. A minimum number of 

tournament points will be established by the gaming operation to determine eligibility for 

the advanced tournament. 

As with the intermediate tournament, there is also an opportunity for a player's 

name to be drawn for participation in the advanced tournament if the player is present on 

the day of the tournament and has played in at least one intermediate tournament. Under 

the proposal, six players are able to reenter tournament play as wild card players every 

half hour based on this drawing. They will play against each other using the tournament 

format with the eventual winner of this consolation bracket advancing into the 

championship round along with players who won their seats at the championship table by 

playing through the regular elimination rounds of the tournament. 
Bessie Hernandez 

April 23,2003 

Page 3 of 4 

Eligible players also pay an entry fee to participate in the advanced tournament. 

Rules for the advanced tournament are the same as for the weekly and intermediate 

tournaments. The top seven players in the advanced tournament, based on the pointvalue chip held at the end of tournament, will win jackpot monies on a graduated scale. 

Requirements for Blackiack Tournament Play 

The legal basis for concluding that tournament blackjack play constitutes Class 11 

gaming in Oklahoma was set forth in advisory opinions from the NIGC's Office of 

General Counsel in letters dated July 9, 1999, and January 15, 2003. Each letter stressed 

the importance of bona fide tournament play as a condition to invoking an exception, 

founded in Oklahoma law, to the general rule that blackjack and other banking card 

games are a Class 111 gaming activity under the Indian Gaming Regulatory Act. See 25 

U.S.C. § 2703(7)(B) and (8). Class III gaming may only be conducted under a tribalstate compact. 

Discussion 

There are three important factors in the Tribe's proposed format that lead to our 

w conclusion that the tournament can be a Class 11 gaming activity. 

The minimum number of hands that are established for each tier. Because 

"tournament" is not defined in IGRA, in regulations of the NIGC, or in statutes of 

the State of Oklahoma, we rely on a common usage definition of the term. A 

tournament may be defined as a "a contest involving a number of competitors 

who vie against each other in a series of elimination games or trials." (Webster's 

II New College Dictionary, 1995.) Until such time as the Commission establishes 

a different number by formal rule, we are taking the position that the play of 10 

hands is the minimum number to make a single round of tournament play a 

"series" that would allow a demonstration of player abilities envisioned by 

tournament play. 

The design of the prize structure. Fixed prizes are awarded based on which player 

accumulates the most point-value chips during the tournament. The prize does 

not vary based either directly or indirectly on the number of point-value chips in 

the player's possession at the end of the tournament. The house is not paying the 

bet made by a player in the play of the hand and there is not otherwise direct 

compensation for success in a particular hand, or a limited number of hands, 

which disguise the payment of a bet. 

Winning in competition with other players as a condition to advancement. The 

format features an equalized starting point for tournament play. Each player at 

each tournament starts play by paying a fixed entry fee and begins with the same 
Bessie Hernandez 

April 23,2003 

Page 4 of 4 

number of point-value chips. A player cannot gain eligibility for the intermediate 

and advanced tournaments by simply "buying in" or by mere participation in the 

weekly tournament. A player must win or finish second in these weekly 

tournaments to receive the points that qualify that player for the later intermediate 

and advanced play. Allowing a limited number of players who played in a 

"weekly tournament" to enter the intermediate and advanced tournaments by a 

drawing for a "consolation bracket7' does not detract from the basic feature of 

entry by competition. 

The advice in this letter that the tournament format would meet the requirements 

for a Class I1 gaming activity is limited to the description set forth in the enclosure 

provided with your letter dated March 11,2003, as later modified, which is summarized 

above (copy enclosed). A significant change to the format may result in a different 

conclusion. 

Thank you, again, for providing the tournament description for our review. 

Sincerely yours, 

Enclosure 

Penny J. Coleman 

Acting General Counsel