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February 9, 2022

Mr. E. Sequoyah Simermeyer, Chair
National Indian Gaming Commission
1849 C. Street NW

Mail Stop #1621

Washington, D.C. 20240

Dear Chair Simermeyer and Commissioners,

This letter is a response from Cherokee Nation to the topics raised by the National Indian
Gaming Commission (“NIGC”) Tribal Consultation Series C, December 13, 2021 — February 11,
2022. Cherokee Nation greatly appreciates the opportunity to comment on these items and the
NIGC’s practices inviting tribal participation and input on its potential rulemaking under the
Indian Gaming Regulatory Act.

ib 25 C.F.R. Parts 543 and 547 — Minimum internal control standards (“MICS”) and
minimum technical standards.

Cherokee Nation agrees with the NIGC that gaming technology has changed significantly
since the last publishing of its current MICS and technical standards. Cherokee Nation
also agrees that the threats to the technological environment of tribal gaming operations
have increased as well. In light of this environment, Cherokee Nation would like a
refinement of those computer systems and applications that are considered to be “integral
to the gaming environment” in 25 C.F.R. §543.20(b) and would like to urge caution in
defining standards for anything regarding cyber-security in the NIGC MICS and/or
minimum technical standards.

Cherokee Nation realizes that tribal gaming operations have greatly increased their level
of technology and system integration since the current MICS and minimum technical
standards were issued. In that time, non-gaming areas have also seen technical
advancements. Cherokee Nation believes that the current standard as defined in 25
C.F.R. 543.20(b) is too broad and lends itself to be interpreted to include non-gaming
systems and normal, off-the-shelf business systems and applications. In order to focus
resources on the integrity of gaming and gaming systems, Cherokee Nation requests that
this definition be narrowed to exclude any non-gaming items.

Cherokee Nation also understands that its gaming operations’ systems are under constant
danger from cyber threats. Like many other tribal nations, Cherokee Nation has devoted a
great number of financial and human resources to mitigating these threats. Cherokee

P.O. Box 627 * Tahlequah, OK 74465-0627 + (918) 453-5000 » cherokee.org


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Nation also understands that the nature and type of threats are constantly changing and
evolving and that the response to these threats needs to be flexible and able to evolve as
well. Vendors are constantly updating their systems and applications to meet new threats
and tribal IT personnel are consistently implementing new measures to meet these threats
as well. In light of these facts, Cherokee Nation would like to caution the NIGC from
instituting any standards that would limit the ability and flexibility of tribal [T personnel
and gaming vendors in these areas. While Cherokee Nation respects the guidance of the
NIGC through its regulations, the federal rule-making process limits the ability of any
federal regulation to be changed quickly if the need arises. Therefore, Cherokee Nation
believes that the NIGC requiring gaming operations to implement practices for cyber
security would be prudent, but it strongly cautions against any specific requirements that
may become quickly outdated in the ever-changing landscape of cyber security.

25 C.F.R. § 522.4(b)(7) — Approval requirements for class I] ordinances: 25 C.F.R.
573.4(a)l_ — When may the Chair issue_an order of temporary closure—extension to

issues related to cyber-security.

While Cherokee Nation recognizes there are extreme and necessary circumstances that
require the Chair to issue an order of temporary closure of a tribal gaming operation,
Cherokee Nation would express caution involving cyber-security as reason for such an
order. As stated in Part I of this letter, tribal gaming operations and vendors are
consistently working to address cyber-security and cyber-threats are consistently
evolving and changing. Cherokee Nation feels that it would better serve tribal interests
and the interests of the NIGC if, instead of taking a punitive approach, NIGC worked
with tribes and industry leaders on education and the development of cyber-security
mitigation efforts.

25 C.F.R § 573.4(a) — When may the Chair issue an order of temporary closure: Adding
misuse of net gaming revenues to the list of substantial violations for which the NIGC
Chair may issue a temporary closure order.

Cherokee Nation believes that any closure order should only occur in the most extreme
circumstances such as when the health and safety of the tribe, its employees, or the public
is at stake. For many tribal nations, tribal gaming operations are the economic lifeblood
of the community where they are located. This is not just true for the revenue they
produce, but also for the employment provided to tribal and non-tribal people. Cherokee
Nation believes that by adding misuse of net gaming revenues as a basis for a temporary
closure order would ultimately punish frontline employees who could least afford it and
more than likely were not involved in any misuse of net gaming revenues. Net gaming
revenues are usually received and handled by upper management and tribal officials and
the NIGC already has tools at its disposal for the enforcement of its rules regarding the
use of net gaming revenues, including fines and/or the forwarding of any case of misuse
to possible federal criminal prosecution. Closing a casino because of the actions of a few
bad actors would unfairly impact many employees that depend on their tips and wages for
their families’ livelihood.

25 C.F.R. Part 537 — Background investigations for person or entities with a financial
interest in, or having management responsibility for, a management contract:


Cherokee Nation has no comments on this issue at this time.

Sincerely,

John Hunt Sparks, Chairman

Cherokee Nation Gaming Commission
200 N. Water Avenue
Tahlequah, OK 74464

Janice Purcell, Executive Director
Cherokee Nation Gaming Commission
Cherokee Nation Gaming Commission
200 N. Water Ave.

Tahlequah, OK 74464

Martin Madewell, General Manager
Hard Rock Hotel and Casino Tulsa
777 W. Cherokee St.

Tulsa, OK 74015