AUG 1 7 199.4 

William Schumacher, President 

Flandreau Santee Sioux Tribe 

P.O. Box 283 

Flandreau, South Dakota 57028 

Dear President Schumacher: 

This letter responds to your request to review and approve the 

class I1 tribal gaming ordinance adopted by the Flandreau Santee 

Sioux Tribe (the Tribe) on August 12, 1994. This letter 

constitutes such approval under the Indian Gaming Regulatory Act 

(IGRA) . Under the IGRA and the regulations of the National Indian Gaming 1 

Commission (NIGC), the Chairman is directed to review ordinances 

with respect to the requirements of the IGRA and the implementing 

regulations. Thus, the scope of the Chairman's review and 

approval is limited to the requirements of the IGRA and the NIGC 

regulations. Provisions other than those required under the IGRA 

or the NIGC regulations that may be included in a tribal 

ordinance are not subject to review and approval. Also, such 

approval does not constitute approval of specific games. 

It is important to note that the gaming ordinance is approved for , gaming only on Indian lands as defined in the IGRA. 

I 

With the Chairman's approval of the Tribe's gaming ordinance, the1 

Tribe is now required to conduct background investigations on its I key employees and primary management officials. The NIGC expect? 

to receive a completed application for each key employee and I 

primary management official pursuant to 25 C.F.R. 556.5(a) and 1 I ' an investigative report on each background investigation before 

issuing a license to a key employee or primary management 

official pursuant to 25 C.F.R. 5 556.5(b). 

I 

1 

Thank you for submitting the ordinance of the Flandreau Santee ' 

S~OUX ~ribe for review and approval. The NIGC staff and I look 

forward to working with you and the Tribe in implementing the 

IGRA. I 

Sincerely yours, 

Anthony J. Hope 

Chairman 

cc: Albert Jones, Esq. . / 

.- -- 1850 M STREET. N W. S'dlTE 250 .,V~\S~~ING~ON 3 C 20036 ?EL 20: ,-us? "- .L,c.2 ' '- , t,,y 2p; 532 .*!.-,66 .. -. 
WHEREAS, the Flandreau Santee Sioux Tribe is a federally 

recognized lndian tribe organized pursuant to 

the lndian Reorganization Act of June 18, 1934 

(48 Stat. 984) and (25 U.S.C. Sec. 6 and a 

Constitution and By-Laws approved March 13, 1936 

by the Secretary of the lnterior and ratified 

by the members of the Flandreau Santee Sioux Tribe 

on April 4, 1936, and 

WHEREAS, the Tribe, in order to establish its Tribal 

organization; to conserve its Tribal property; 

to develop its common resources; and to promote 

the general welfare of its people, has ordained 

and established a Constitution and By-Laws, and 

WHEREAS, The Executive Committee of the Flandreau Santee 

Sioux Tribe is the governing body of the Tribe, 

and 

WHEREAS, Article VIII, Section 1 (f) of the Constitutiom 

of the Flandreau Santee Sioux Tribe grants to 

the Executive Committee the power to promulgate 

and enforce ordinances which shall be subject 

to review by the Secretary of the Interior, and 

WHEREAS, the Indian Gaming Regulatory Act of 1988, 25 U.S.C. 

82710 et.seq. and the regulations of the National 

lndian Gaming Commission (NIGC) 25 C.F.R. part 

501 et .seq, requires that the Tribe conduct gaming 

operations on Indian lands according to the 

requirements of the IGRA, the requlations pursuant 

to 25 C.F.R. part 522 et.seq. and Tribal law, 

and 

WHEREAS, class 11 gaming is defined at 25 C.F.R. part 502.3, 

and 

WHEREAS, the Flandreau Santee Sioux Tribe must submit an 

ordinance for the conduct of class I1 gaming 

pursuant to 25 C.F.R. part 522 et.seq. to the 

National Indian Gaming Commission. 

NOW THEREFORE BE IT RESOLVED, that the Flandreau Santee Sioux 

Tribe pursuant to its sover'eign governmental 

authority and pursuant to its Constitution and 

By-Laws adopts the attached Class I1 Gaming Ordinance 

No. 94-02 for the conduct of class I1 gamillg on 
lndian lands within the Flandreau Santee Sioux 

Tribal Reservation, subject to approval of the 

National Indian Gaming Commission, Washington, 

D.C. 

CERTIFICATION 

The foregoing Resolution ws duly enacted and adopted by the 

Flandreau Santee Si~yx Executiv~ Committee at which a quorum 

was present by 3 9 for, tj against, -, not voting., on 

the _/,l day of &?:, 1.- 1994. 

, ,i / /: ,' 

'7- 2, / // ,; /' / ,' 2 ,: ~TLCJ 7- ,$,~,cb,~ , T;:: I< ..- - .L .cz7;,<- 

Gordon E. &nes, &. William Schumacher 

Tribal Secretzry Tribal President 
FLANDREAU SANTEE SIOUX TRIBAL CLASS I1 

GAMING ORDINANCE NO. 94-02 

I. Purpose. 

The Flandreau Santee Sioux Tribe, a federally 

recognized Indian Tribe, organized pursuant to the Indian 

Reorganization Act of June 18, 1934 (48 Statute 984) and 

(25 U.S.C. Section 76) and a Constitution and By-Laws 

approved on March 13, 1936 by the Secretary of the 

Interior and ratified by the members of the Flandreau 

Santee Sioux Tribe on April 4, 1936, through the Executive 

Committee of the Tribe (hereinafter "Tribe") empowered by 

the Constitution and By-Laws pursuant to Article VIII, 

Section l(f) to enact ordinances, hereby enacts this 

ordinance in order to set the terms for class I1 gaming 

operations on tribal lands. 

11. Gamins Authorized. 

Class I1 gaming as defined in the Indian Gaming Regulatory 

Act, P.L. 100-447, 25 U.S.C. Section 2703 (7) (A) ("IGRA") 

and by the regulations promulgated by the National Indian 

Gaming Commission at 25 C.F.R. Section 502.3 (as published 

in the Federal Register at 57 FR 12382-12393 April 9, 

1992) is hereby authorized. 

111. Ownership of Gaming. 

The Tribe shall have the sole proprietary 

interest in and responsibility for the conduct of any 

gaming operation authorized by this ordinance. 

IV. Use of Gamins Revenue. 

A. Net revenues from Class I1 gaming shall be 

used only for the following purposes: 1) to fund tribal 

government operations and programs; 2) to provide for the 

general welfare of the Tribe and its members; 3) to 

promote tribal economic development; donate to charitable 

organizations; 4) or to help fund operations of local 

government agencies. 

B. If the Tribe elects to make per capita 

payments to tribal members, it shall authorize such 

payments solely upon approval of a plan submitted to the 

Secretary of the Interior under 25 U.S.C. Section 2710 (b) 

(3) - 

V. Audit. 

A. The Tribe shall cause to be conducted annually 

an independent audit of gaming operations and shall submit 

the resulting audit reports to the National Indian Gaming 
Commission. 

B. All gaming related contracts that result in the 

purchase of supplies, services, or concessions in excess 

of $25,000.00 annually, except contracts for professional 

legal and accounting services, shall be specifically 

included within the scope of the audit that is described 

in subsection A. above. 

VI. Protection of the Environment and Public Health and 

Safety. 

Class I1 gaming facilities shall be constructed, 

maintained and operated in a manner that adequately 

protects the environment and the public health and safety. 

VII. Licenses for Key Employees and Primary Manaqement 

Officials. 

The Tribe shall ensure that the policies and 

procedures set out in this section are implemented with 

respect to key employees and primary management officials 

employed at any class I1 gaming enterprise operated on 

Indian lands: 

A. Definitions. 

For the purposes of this section, the following 

definitions apply: 

1. KEY employee means: 

(a) A person who performs one or more of the following 

functions: 

bingo caller 

counting room supervisor 

chief of security 

custodian of gaming supplies or cash 

floor manager 

pit boss 

dealer 

croupier 

approver of credit, or 

custodian of gaming devices including persons 

with access to cash and accounting records with 

such devices, 

(b) if not otherwise included, any other person whose 

total cash compensation is in excess of $50,000.00 

per year, or 

(c) if not otherwise included, the four most highly 

compensated persons in the gaming operation. 
2. Primary Management Official Means 

(a) The person having management responsibility for a 

management contract. 

(b) Any person who has authority: 

1. to hire and fire employees; or 

2. to set up working policy for the gaming 

operation; or 

(c) The chief financial officer or other person who has 

financial management responsibility. 

Application Forms. 

1. The following notice shall be placed on the 

application form for a key employee or a primary 

management official before that form is filled out by an 

applicant: 

In compliance with the Privacy Act of 

1974, the following information is 

provided: Solicitation of the 

information on this form is authorized 

by 25 U.S.C. 2701 at. seq. The purpose 

of the requested information is to 

determine the eligibility of individuals 

to be employed in a gaming operation. 

The information will be used by National 

Indian Gaming Commission members and 

staff who have need for the information 

in the performance of their official 

duties. The information may be disclosed 

to appropriate Federal, Tribal, State, 

local, or foreign law enforcement and 

regulatory agencies when relevant to 

civil, criminal or regulatory 

investigations or prosecutions or when 

pursuant to a requirement by a tribe or 

the National Indian Gaming Commission in 

connection with the hiring or firing of 

an employee, the issuance or revocation 

of a gaming license, or investigations 

of activities while associated with a 

tribe or a gaming operation. Failure to 

consent to the disclosures indicated in 

this notice will result in a tribe's 

being unable to hire you in a primary 

management official or key employee 

position. 

The disclosure of your Social Security Number (SSN) id 

voluntary. However, failure to supply a SSN may result in 
errors in processing your application. 

2. Existing key employees and primary management 

officials shall be notified in writing that they shall 

either: 

a. complete a new application form that contains a 

Privacy Act notice; or 

b. sign a statement that contains the Privacy Act 

notice and consent to the routine uses described in that 

notice. 

3. The following notice shall be placed in the 

application form for a key employee or a primary official 

before that form is filled out by an applicant. 

A false statement on any part of your 

application may be grounds for not hiring 

you, or for firing you after begin work. 

Also, you may be punished by fine or 

imprisonment. (U.S. Code, Title 18, Section 

1001). 

4. The Tribe shall notify in writing existing key 

employees and primary management officials that they shall 

either: 

a. complete a new application form that contains a 

notice regarding false statements; or 

b. sign a statement that contains the notice regarding 

false statements. 

C. Backsround Investisations. 

1. The Tribe shall request from each primary 

management official and from each key employee all of the 

following information: 

a. full name, other names used (oral or written), 

social security nurnber(s) , birthdate, place of birth, 

citizenship, gender, all languages (spoken or written); 

b. currently and for the previous five years: 

business and employment positions held, ownership 

interests in those businesses, business and residence 

addresses, and driver's license numbers; 

c. the names and current addresses of at least 

three personal references who were acquainted with the 

applicant during each period of residence listed under 

paragraph (I) (b) of this section; 
d. current business and residence telephone 

numbers ; 

e. a description of any existing and previous 

business relationships with the gaming industry generally, 

including ownership interests in those businesses; 

f. the name and address of any licensing or 

regulatory agency with which the person has filed an 

application for a license or permit related to gaming, 

whether or not such license or permit was granted; 

g. for each felony for which there is an ongoing 

prosecution for a conviction, the charge, the name and 

address of the Court involved, and the date and 

disposition if any; 

h. for each misdemeanor conviction or ongoing 

misdemeanor prosecution (excluding minor traffic 

violations), within (ten) 10 years of the date of the 

application, the name and address of the Court involved 

and the date and disposition. 

i. for each criminal charge (excluding minor 

traffic charges), whether or not there is a conviction, if 

such criminal charge is within ten (10) years of the date 

of the application and is not otherwise listed pursuant to 

paragraph (1) (h) or (1) (i) of this section, the criminal 

charge, the name and address of the court involved and the 

date and disposition; 

j. the name and address of any licensing or 

regulatory agency with which the person has filed an 

application for an occupational license or permit, whether 

or not such license or permit was granted; 

k. a -current photograph; 

1. any other information the Tribe deems 

relevant; and 

m. fingerprints consistent with procedures 

adopted by the Tribe according to 25 C.F.R. Section 522.2 

(h) . 

2. The Tribe shall conduct an investigation 

sufficient to make a determination under subsection D. 

below. In conducting a background investigation, the 

Tribe, or its agent shall keep confidential the identity 

of each person interviewed in the course of the 

investigation. 

Elisibility Determination. 
The Tribe shall review a person's prior activities, 

criminal record, if any, and reputation, habits and 

associations to make a finding concerning the eligibility 

of a key employee or primary management official for 

employment in a gaming operation. If the Tribe determines 

that employment of the person poses a threat to the public 

interest or to the effective regulation of gaming, or 

creates or enhances dangers of unsuitable, unfair, or 

illegal practices and methods and activities in the 

conduct of gaming, a tribal gaming operation shall not 

employ that person in a key employee or primary management 

official position. 

E. Procedures for Forwardins Applications and Reports for 

Key Employees and Primary Manasement Officials to the 

National Indian Gamins Commission. 

1. When a key employee or primary management official 

begins work at a gaming operation authorized by this 

Ordinance, the Tribe shall forward to the National Indian 

Gaming Commission a completed application for employment 

and conduct the background investigation and make the 

determination referred to in subsection D. of this 

sect ion. 

2. The Tribe shall forward the report referred to in 

subsection F. of this section to the National Indian 

Gaming Commission within sixty (60) days after an employee 

begins work or within sixty (60) days of the approval of 

this ordinance by the Chairman of the National Indian 

Gaming Commission. 

3. The gaming operation shall not employ as a key 

employee or primary management official a person who does 

not have a license after ninety (90) days. 

F. Report to the National Indian Gamins Commission: 

1. Pursuant to the procedures set out in subsection E 

of this section, the Tribe shall prepare and 

forward to the National Indian Gaming Commission 

an investigative report on each background investigation. An investigative report shall include all 

of the following: 

a. steps taken in conducting a background investigation; 

b. results obtained; 

c. conclusions reached; and 

d. the basis for those conclusions. 
2. The Tribe shall submit, with the report, a copy of 

the eligibility determination made under section D 

of this section. 

3. If a license is not issued to an applicant, the 

Tribe : 

a. shall notify the National Indian Gaming Commission; and 

b. may forward copies of is eligibility determination and investigative report (if any) to the 

National Indian Gaming Commission for the 

inclusion in the Indian Gaming Individuals 

Records System. 

4. With respect to key employees and primary management officials, the Tribe shall retain applications for employment and reports (if any) of 

background investigations for inspection by the 

Chairman of the National Indian Gaming Commission 

or his or her designee for no less than three (3) 

years from the date of termination of employment. 

G. Grantinq a Gaminq License. 

If, within a thirty (30) day period after the National Indian Gaming Commission receives a report, 

the National Indian Gaming Commission notifies the 

Tribe that it has no objection to the issuance of 

a license pursuant to a license application filed 

by a key employee or a primary management official 

for whom the Tribe has provided an application and 

investigative report to the National Indian Gaming Commission, the Tribe may issue a license to 

such applicant. 

2. The Tribe shall respond to a request for additional information from the Chairman of the National 

Indian Gaming Commission concerning a key employee 

or a primary management official who is the subject of a report. Such a request shall suspend the 

thirty (30) day period under paragraph G. 1. of 

this section until the Chairman of the National 

Indian Gaming Commission receives the additional 

Information. 

3. If, within the thirty (30) day period described 

above, the National Indian Gaming Commission 

provides the Tribe with a statement itemizing 

objections to the issuance of a license to a key 

employee or to a primary management official for 

whom the Tribe has provided an application and 

investigative report to the National Indian Gaming 
Commission, the Tribe shall reconsider the application, taking into account the objections 

itemized by the National Indian Gaming Commission. 

The Tribe shall make the final decision whether 

to issue a license to such applicant. 

H. License Suspension. 

If, after the issuance of a gaming license, the 

Tribe receives from the National Indian Gaming 

Commission reliable information indicating that 

a key employee or a primary management official 

is not eligible for employment under subsection 

D. above, the Tribe shall suspend such license 

and shall notify in writing the licensee of the 

suspension and the proposed revocation. 

2. The Tribe shall notify the licensee of a time and 

a place for a meeting on the proposed revocation 

of a license. 

3. After a revocation hearing, the Tribe shall decide 

to revoke or to reinstate a gaming license. The 

Tribe shall notify the National Indian Gaming 

Commission of its decision. 

VIII. Procedures for Resolvinu Disputes Between the 

Gaminu Public and the Tribe or the Manauement 

Contractor. 

The Flandreau Santee Sioux Tribe recognizes the 

possibility of disputes concerning gaming 

activities with the public. To resolve these 

disputes and promote the best interest of the 

Royal River Casino, the Tribe shall implement the 

following procedures for dispute resolution 

between the public and the Tribe or the Management 

Contractor. 

A. Any person who has any dispute or disagreement 

that involves currency, tokens, coins, jackpot 

wins or any other thing of value may pursue 

resolution in the following order if the issue 

is unresolved: 

1. Submit the dispute in writing to the 

Manager, Royal River Casino. 

2. Submit the dispute with a copy of the 

Manager's decision to the FSST Gaming 

Commission. 

3. Submit the written dispute, with both 

written decisions, to the Flandreau Santee 
Sioux Tribal Court, pursuant to the Tribal 

Law and Order Code. 

B. The Complainant shall submit a written dispute to 

the General Manager, Royal River Casino. The 

General Manager is hereby given the authority to 

resolve the dispute. A record of all proceedings, 

meetings or negotiation shall be preserved in 

written form by the General Manager. The General 

Manager shall file a written report detailing the 

resolution of any matter at this level. 

Should any dispute not be resolved at level one, 

the General Manager shall inform the Complainant 

of their right to appeal the complaint to the 

Flandreau Santee Sioux Tribal Gaming Commission at 

level two. The Manager shall provide the Gaming 

Commission all necessary and pertinent information 

regarding the complaint. The Gaming Commission 

shall utilize Section 10.3 of the FSST Gaming 

Regulations to attempt to informally resolve the 

complaint. If there is no informal resolution of 

the complaint, the Gaming Commission shall proceed 

to a formal resolution pursuant to Section 10.5 of 

the Gaming Regulations. 

The above two sections of the Gaming Regulations 

are utilized only for the dispute resolution and 

within this context shall not be utilized as 

disciplinary proceedings pursuant to Chapter 10 of 

the Gaming Regulations. The Gaming Commission 

shall have the authority to overrule any decision 

of the General Manager of the Royal River Casino 

for dispute resolution. 

The Gaming Commission shall document and maintain 

each dispute resolution matter presented for 

resolution and shall notify in writing the 

Complainant and the General Manager of the Gaming 

Commission's decision on the respective dispute. 

The complainant may appeal to level three if 

dissatisfied with the resolution at level two. 

The Complainant may appeal the decision of the 

Gaming Commission to the Flandreau Santee Sioux 

Tribal Court. The Complainant shall be required 

to follow the rules of civil procedure as 

established within the Flandreau Santee Sioux 

Tribal Law annd Order Code. 

IX. Desisnation of Asent Per Service of Process. 

The Flandreau Santee Sioux tribal agent for 

service of process of any official determination, 
order, or notice of violation from the National 

Indian Gaming Commission shall be the President of 

the Flandreau Santee Sioux Tribe, PO Box 283, 

Flandreau, SD 57028 

Identification of Law Enforcement Aqencv for 

Finqer~rints and Procedures for Criminal History 

Check. 

The Flandreau Santee Sioux Tribe has entered into 

a contract with the Moody County Sheriff whereby 

the Moody County Sheriff will provide law 

enforcement duties for the Flandreau Santee Sioux 

Tribe within Indian country on the Flandreau 

Santee Sioux Reservation. The contract is 

negotiable and renewable on an annual basis. 

Pursuant to and in addition to the Tribal Gaming 

Ordinance No. 89-03 and the Tribal Gaminq 

Regulations, the following procedures shall apply 

for fingerprints and criminal history 

investigation. 

A. The Sheriff or his designated agent will be 

the responsible official to perform 

fingerprints for all persons applying for a 

gaming license with the Royal River Casino. 

B. The Sheriff or his designated agent will 

submit the following information to the Gaming 

Commission for the State of South Dakota for a 

criminal history or background investigation: 

1. a completed application for employment at 

the Royal River Casino; 

2. applicable fees - paid by check, money 

order or cashier's check; 

3. original fingerprint card. 

XI. Criminal History/Backqround Information. 

The Flandreau Santee Sioux Tribe entered into a 

Compact with the State of South Dakota pursuant to 

the Indian Gaming Regulatory Act. The Tribe has 

authorized the South Dakota State Gaming 

Commission to perform all background 

investigations on behalf of the Tribe and the 

Tribal Gaming Commission. The State has agreed to 

conduct investigations upon receipt of an executed 

release of information from an applicant, a 

completed application for employment with the 

tribal gaming facility and payment of applicable 
fees, all as provided in the South Dakota 

Commission on Gaming Rules for such 

investigations. The State shall provide the 

Commission with a written report regarding each 

applicant within thirty (30) days of the receipt 

of the request and fee or as soon thereafter as 

practical. 

The Commission shall not issue a license to any 

unsuitable applicant. A suitable applicant is one 

who is determined suitable by the Tribal Gaming 

Commission a according to Tribal Ordinance and by 

the South Dakota Gaming Commission pursuant to 

SDCL Ch. 42-7B and the South Dakota Gaming 

Commission Rules and Regulations. 

Should the Tribal Gaming Commission disagree with 

the State's determination on suitability, the 

Tribal Gaming Commission may invoke the following 

arbitration procedure. 

The dispute shall be determined by a three person 

binding Arbitration Board. One member of the 

Board shall be selected by the Tribal Gaming 

Commission, one member shall be selected by the 

State Gaming Commission, and one member shall be 

jointly selected by the State Gaming Commission 

and the Tribal Gaming Commission. Within thirty 

(30) days of the signing of this Agreement, the 

parties hereto shall appoint the members to the 

Arbitration Board for a three year term. In the 

event of death, resignation, or expiration of a 

term, new members shall be appointed on the same 

basis as the original members. The Arbitration 

Board shall determine whether the applicant is 

deemed suitable, taking into consideration the 

Ordinance and regulations adopted by the Tribal 

Gaming Commission and the statutes and rules 

adopted by the Tribal Gaming Commission and the 

statutes and rules adopted by the State of South 

Dakota. The Arbitration Board shall further 

decide the suitability issue in the best interest 

of the public. If permitted by law, either the 

State or the Tribe may appeal the arbitration 

decision to Federal District Court. 

D. Elisibility Determination. 

The Tribe shall review a person's prior 

activities, criminal record, if any, and 

reputat ion, habits and associations to make a 

finding concerning the eligibility of a key 

employee or primary management official for 

employment in a gaming operation. If the 
XII. 

Tribe determines that employment of the person 

poses a threat to the public interest or to 

the effective regulation of gaming, or 

practices and methods and activities in the 

conduct of gaming, a tribal gaming operation 

shall not employ that person in a key employee 

or primary management official position. 

Procedures for Forwardins A~vlications and Reports 

for Key Emvloyees and Primary Manauement Officials 

to the National Indian Gamins Commission. 

When a key employee or primary management 

official begins work at a gaming operation 

authorized by this Ordinance, the Tribe shall 

forward to the National Indian Gaming 

Commission a completed application for 

employment and conduct the background 

investigation and make the determination 

referred to in subsection D. of this section. 

2. The Tribe shall forward the report referred to 

in subsection F. of this section to the 

National Indian Gaming Commission within sixty 

(60) days after an employee begins work or 

within sixty (60) days of the approval of this 

Ordinance by the Chairman of the National 

Indian Gaming Commission. 

3. The gaming operation shall not employ as a key 

employee or primary management official a 

person who does not have a license after 

ninety (90) days. 

XIII. License Locations. 

The Tribe shall issue a separate license to each 

place, facility, or location on Indian lands where 

class I1 gaming is conducted under this Ordinance. 

XIV. Reveal. 

To the extent of inconsistency with this 

Ordinance, all prior gaming ordinances are hereby 

repealed. 

RESOLUTION NO. : Yb