PROPOSED CIVIL FINE ASSESSMENT 

Ref. No: CFA-98-01 

Date: February 12, 1998 

To: Seminole Nation of Oklahoma 

Post Office Box 1498 

Wewoka, Oklahoma, 74884 

Jerry Haney, Principle Chief 

Respondent 

1. Under the authority of 25 U.S.C. 2713(a) of the Indian 

Gaming Regulatory Act (IGRA) and 25 C.F.R. Part 575, the Chairman 

of the National Indian Gaming Commission (Commission) hereby 

provides notice of his intent to assess a civil fine against the 

Seminole Nation of Oklahoma, Wewoka, Oklahoma (hereinafter 

referred to as the Respondent), for violations of 25 C.F.R. 

573.6(a) (11) as set forth in detail in Notice of Violation No. 98 

-01 issued on January 13, 1998. 

2. Under 25 U.S.C. 2713(a) and 25 C.F.R. 575.4, the 

Chairman may assess a civil fine, not to exceed $25,000 per 

violation per day, against a tribe, management contractor, or 

individual operating Indian gaming for each violation cited in a 

Notice of Violation issued under 25 C.F.R. 573.3. In the subject *-I" proceeding, the gaming operations are owned by the Seminole 

Nation of Oklahoma and are located on tribal lands in Seminole 

and Wewoka, Oklahoma. The Respondent is the tribal owner and 

operator and has managed the Seminole Nation Bingo and the Wewoka 

Trading Post gaming operations since November 7, 1997 and 

November 18, 1997, respectively. 

In arriving at a proposed civil fine, the Chairman has 

considered the factors prescribed in 25 C.F.R. 575.4, as follows: 

i. Economic benefit of noncompliance. The Chairman 

has determined that there are 30 "Reels of Skill" gaming machines 

operating at the various Seminole facilities identified in Notice 

of Violation 98-01. The Chairman has not been furnished financial 

records by the Tribe which identify the amount of revenue 

generated from these machines. 

ii. Seriousness of the violation. This is a serious 

violation. The Respondent installed the "Reels of Skill" 

machines, which are a form Class 111 gaming, throughout its 

Tribal facilities. There is no compact between the Tribe and the 

State of Oklahoma. By offering Class I11 games in the absence of 

a tribal-State compact the Respondent is disregarding the basic 

regulatory scheme of the IGRA and creating an unfair competitive 

advantage over Oklahoma gaming tribes which have elected not to 

w operate illegal gaming machines in their facilities. 
iii. History of violations. The Respondent has no 

history of previous violations. 

v 

iv. Neqliqence or willfulness. The Respondent has 

offered the "Reels of Skill" gaming machine in its operations 

since November 7, 1997. On January 13, 1998, the Respondent was 

officially notified by the NIGC that these machines had been 

determined to be a form of Class 111 gaming and required a 

compact with the State of Oklahoma in order to be played 

lawfully. The fact that the Respondent knowingly disregarded this 

Notice demonstrates that this was a willful violation. 

v. Good faith. The Chairman of the Commission may 

adjust a fine based on the degree of good faith of the 

Respondents in attempting to achieve rapid voluntary compliance 

after a Notice of Violation has been issued. The Chairman has 

determined that subsequent to the issuance of the January 13, 

1998, Notice of Violation, the Respondent has continued to offer 

the game of "Reels of SkillM at its gaming operation. The 

Respondent, therefore, has not demonstrated a good faith effort 

to come into compliance with the IGRA. 

THEREFORE, the Chairman, having carefully reviewed the above 

factors, has determined that a fine in the amount of $30,000 is 

assessed on the Respondent. This amount represents an 

appropriate balancing of the factors cited above. 

wdp Under 25 C.F.R. 575.4, fines for violations may be assessed 

in an amount up to $25,000 per violation. For purposes of 

assessing this fine, the Chairman has determined that a violation 

occurred in each instance in which the Seminole Nation of 

Oklahoma operated a "Reels of Skill" machine in its gaming 

facilities. The Chairman hereby proposes to issue a fine of 

$1,000 for each of these violations. The Chairman, therefore, 

proposes to assess a fine against the Respondent in the total 

amount of $30,000. 

Under 25 C.F.R. 577.3, the respondent may appeal the 

proposed fine to the full Commission within 30 (thirty) days 

after service of this Notice of Proposed Civil Fine Assessment, 

by submitting a notice of appeal to the National Indian Gaming 

Commission, 1441 L Street, N.W., Suite 9100, Washington, D.C. 

20005. The respondent has a right to assistance of counsel in 

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

Proposed Civil Fine Assessment. Within ten (10) days after 

filing a notice of appeal, the 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 the respondent wishes to present oral testimony 

or witnesses at the hearing, the respondent must include a 

request to do so with the supplemental statement. The request to 

-1 

present oral testimony or witnesses must specify the names of 

proposed witnesses and the general nature of their expected 
Fi12-1938 11;17 FKQ't NIGC 

testimony, and whether a closed hearing is requested. The 

respondent may waive hi~l or her right to an oral hearing and 

inetead elect to have the matter determined by the Commiesion 

solely en the basis of written submiseiens. 

TOT6 P.816 

02/12/98 11:36 TX/W NO. 1136 P.016 I