Audrey Bennett Mason Pacini

President Vice President

Darelynn Lehto Alan Childs, Sr.

Secretaty Treasurer

3 7ri172

Prairie Island Tribal Council

(A Tribal Government)

RESOLUTION 02-9-16-72

WHEREAS, The Prairie Island Indian Community in the State of Mitmesota (also

known as the Prairie Island Mdewakanton Dakota Community) is a federally recognized

Tribe organized under Section 16 of the Indian Reorganization Act of 1934, 25 U.S.C. §

476, and is governed under the terms of the Constitution and By-Laws adopted by the

tribal members on May 23, 1936, and approved by the Secretary of the Interior on June

20, 1936; and

WHEREAS, the said Constitution and By-Laws provide that the Community Council

(sometimes referred to as the Tribal Council) shall be the governing body for the Prairie

Island Indian Community (Article IV, Section 1); and

WHEREAS, the Tribal Council has the authority under the Constitution and By-Laws to

promulgate ordinances, resolutions, institute regulations, and consider various legal

matters that fall within the authority of a federally recognized Indian tribe; and

WHEREAS, the Tribal Council has the authority under the Constitution and By-Laws to

promote the general welfare of the Community by regulating the conduct of trade and the

use and disposition of property upon the Reservation; and

WHEREAS, the Community owns and operates a gaming enterprise know as Treasure

Island pursuant to the provisions of the Indian Gaming Regulatory Act of 1988, 25

U.S.C. 2701, et seq. (the IGRA); and

WHEREAS, section 2710 of the IGRA at requires the governing body of an Indian tribe

intending to engage in Class III gaming to adopt and submit an Ordinance regulating

gaming on tribal lands; and

WHEREAS, pursuant to the IGRA and the Tribes inherent sovereign authority, the

Community Council has promulgated a Tribal Gaming Ordinance that comprehensively

regulates gaming activities on the Reservation; and

Victoria Winfrey Assistant Secretary/Treasurer

(651) 38~ DO~Ôs%u~ons\~~f2rk ~MN 55089

38~-1 576 TTY 800-627-3529 Deaf or Hearing Impaired
Page Two of Resolution 02-9-16-72

WHEREAS, pursuant to the IGRA and the Tribes inherent sovereign authority, the

Community Council has established the Prairie Island Indian Community Gaming

Commission as the regulatory body of the Tribe that is responsible for regulating the

conduct of gaming on the Reservation and, thereby, to ensure compliance with all

applicable Federal, State and Tribal laws and regulations relating thereto and to ensure

the integrity of gaming activities and to preserve Tribal assets; and

WHEREAS, the Community Council, in consultation with the Prairie Island Indian

Community Gaming Commission, has reviewed the Tribes Gaming Ordinance and has

made necessary and significant amendments to the Gaming Ordinance in order to update

and improve on its efficacy as a governing document.

NOW, THEREFORE, BE IT RESOLVED, that the Community Council hereby adopts

the Prairie Island Indian Community Gaming Ordinance, as amended on September 16,

2002, a true and correct copy of which is attached hereto.

BE IT FURTHER RESOLVED, that the Community Council hereby directs the Prairie

Island Indian Community Gaming Commission to submit the Gaming Ordinance, as

amended, to the Nation Indian Gaming Commission for review and approval and to take

such further steps as are necessary to secure such approval.

FINALLY BE IT RESOLVED, that all prior gaming Ordinances and Bylaws of the

Prairie Island Indian Community are hereby repealed and all prior Resolutions, including

Resolution 02-1-17-8, addressing the regulation of gaming on the Reservation or the

operations of the Prairie Island Indian Community Gaming Commission, are hereby

rescinded.

CERTIFICATION

This resolution was passed at an Executive Meeting of the Prairie Island Tribal Council

with a quorum present with a vote of 3 for, 0 against, 0 abstentions, 2_absent on

September 16, 2002.

VOTE SUMMARY

President Audrey Bennett t,for, _____

against, _____

abstain, ~bsent

Vice President Mason Pacini ____

for, _____

against, _____

abstain, sent

Secretary Darelynn Lehto ____Jar, against, _____

abstain, absent

Treasurer Alan Childs, Sr. ~/for, against, ____

abstain, ____

absent

Assistant Secretary / Treasurer /

Victoria Winfrey V for, _____

against, _____

abstain, _____

absent

R:\LEGALDOC\Resolutions\RESOLUTE\TRIBAL\Gaming Ordinance 02.doc
Page Three of Resolution 02-9-16-72

Darelynn Lehto

Tribal Council Secretary

Mason Pacini

Tribal Council Vice-President

Alan Childs, Sr

Tribal Council Treasurer

1%yttpL~~,

Victoria Wi

Tribal Council Assistant Secretar~ITrea~er

1 President

R:\LEGALDOC\Resolutions\RESOLUTE\TRIBAL\Gaming Ordinance 02.doc
TITLE I. GENERAL PROVISIONS 1J

Section 100. SHORT TITLE.

This Ordinance shall be Imown and may be cited as the Gaming Ordinance of the Prairie Island

Indian Community, as amended.

Section 101. FINDINGS AND INTENT.

The Prairie Island Indian Community Tribal Council finds that:

A. The Community was organized by the membership to form a more perfect union, develop

our natural resources, insure our domestic tranquility, promote the general welfare, to enjoy certain

rights of home rule, to provide education in schools of higher learning including vocational, trade,

high schools, and colleges for our people, and to secure the opportunities offered us under the

Indian Reorganization Act.... Preamble, Constitution and Bylaws of the Prairie Island Indian

Community in Minnesota.

B. The Prairie Island Indian Community desires to be self-sufficient in its internal affairs, as

reliance upon federal and other resources has been adverse to the quality of life within this

Community in both the present and the past.

C. Public gaming operations have been introduced to the Prairie Island Indian Community and

are of vital interest to the public health, safety, and welfare of the people. Instead of prohibiting

such operations, they need to be regulated in a manner commensurate with the interests of the

Prairie Island Mdewakanton Sioux people.

D. By virtue of the treaties between the United States of America and the Prairie Island

Mdewakanton Sioux and the statutes and court decisions of the United States, which together have

established and maintained the doctrine of Indian sovereignty, there remains the federal guarantee

of the perpetual integrity of the Prairie Island Indian Community.

E. The Prairie Island Indian Community requires methods for establishing a base to generate

revenues for self-perpetuation and essential governmental services.

F. The regulation of public gaming within the Prairie Island Indian Community is in the best

interest of the Prairie Island Mdewakanton Sioux people. Further, the Prairie Island Indian

Community Tribal Council determines that the intent of this Ordinance is to:

1. Completely regulate and control gaming on trust lands located within the Prairie

Island Indian Community, in compliance with applicable law;

Prairie Island Indian Community 1

Gaming Ordinance, As Amended

September 16, 2002
2. Provide, through the revenue generated by and taxes levied on Community licensed

gaming operations, a source of funding for tribal government operations and programs, and

programs for the general welfare of the Community;

3. Foster a spirit of cooperation with the National Indian Gaming Commission in the

regulation of Community gaming;

4. Protect gaming as a means of promoting tribal economic development; and

5. Ensure that Community gaming is conducted fairly and honestly by both the

operator and the players as a genuine means of providing both recreation and entertainment,

entirely free from organized crime and other corrupting influences.

Section 102. DEFINITIONS.

The following words and phrases when used in this Ordinance shall have the meanings respectively

ascribed to them in this Section:

A. Applicant shall mean any person or entity having on file with the Commission an

application for a gaming license.

B. Community shall mean the Prairie Island Mdewakanton Sioux Indian Community in the

State of Minnesota, a federally recognized Indian tribe organized under Section 16 of the Indian

Reorganization Act of 1934, 25 U.S.C. §476.

C. Community Lands or Indian Lands shall mean all lands within the limits of the Prairie

Island Indian Community Reservation, all jands held in trust by the United States for the benefit of

the Community as of October 17, 1988,(~~)all lands which maybe acquired in trust by the United

States for the benefit of the Community after October 18, 1988, over which the Community

exercises governmental power, and which meet the requirements of Section 20 of the Indian

Gaming Regulatory Act, 25. U.S.C. 2719.

D. Community Council or Council shall mean the governing body of the Prairie Island

Indian Community in Minnesota.

E. Gaming Commission or Commission shall mean the Prairie Island Indian Community

Gaming Commission.

F. Gaming Inspectors or Inspectors shall mean the employees of the Gaming Commission

who assist in the regulation of gaming activities.

Prairie Island Indian Community 2

Gaming Ordinance, As Amended

September 16,2002
G. Tribal-State Compacts and Compacts shall mean the agreements between the

Community and the State of Minnesota concerning the operation of video games of chance and

blackjack, and any amendments thereto or any Other Compacts.

H. Gambling equipment shall mean equipment of devices used in gambling, including but

not limited to bingo cards or sheets, devices for selecting bingo numbers, pull-tabs, jar tickets,

paddlewheels, tipboards, bill acceptors, card readers, electronic bingo machines, black jack table

layouts, stacker boxes, cards, chips, tokens and video games of chance and all equipment or devices

associated with such gambling equipment.

I. Gambling and Gaming shall mean the act of paying for the opportunity and

participation in a game or games of chance for money or something of value, where motor skills

play no part or are of no consequence in determining the outcome of the game; to operate, carry on,

conduct, maintain, or expose for play, money, property, or any representative of value wherein the

outcome of a game is decided by chance or in which chance is a material element, but does not

include social games played solely for consumable goods, i.e. foodstuffs, or games played in

private homes or residences for prizes or games operated by charitable and educational

organizations that are approved by the Council.

J. Gaming enterprise shall mean any commercial business owned by the Community and

operated, in part or in whole, for the conduct of bingo, the sale of pull tabs, or the conduct of other

games of chance, including video games of chance.

K. Gaming operator shall mean a person, organization or entity that conducts the

management of gaming at a Community gaming enterprise, including an entity entering into a

management contract with the Community or the Community itself or any subdivision thereof.

L. Gaming test laboratory shall mean, as contemplated by Section 6.1 of the Tribal-State

Compact regarding video Games of Chance, a laboratory agreed to and designated in writing by the

Minnesota State Commissioner of Public Safety and the Tribal Council as competent and qualified

to conduct scientific tests and evaluations of video games of chance and related equipment; a

laboratory operated by or under contract with the states of Minnesota, or Nevada, or New Jersey, or

South Dakota constitutes a designated gaming test laboratory.

M. IGRA shall mean the Indian Gaming Regulatory Act of 1988, Public Law 100-497, 102

Stat. 2467, codified at 25 U.S.C. §270 1 et seq.

N. Key Employee shall mean 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, or Custodian of Gambling equipment,

and any other person whose total cash compensation is in excess of $50,000.00 per year, and the

four most highly compensated persons in the gaming operation. It shall also mean, any person with

the authority to sign checks or create or discharge financial obligations, whether acting alone or

with others.

Prairie Island Indian Community 3

Gaming Ordinance, M Amended

September 16,2002
0. Licensee shall mean any person who has been issued a license by the Gaming

Commission, excluding, specifically, persons who have been granted Temporary Employment

Authorizations while their license applications are under review by the Gaining Commission.

P. Management Official shall mean any person with a direct financial interest in or

management responsibility for the gaming operation and any person who has the authority to hire

and fire employees, to set working policy for the gaming operation or the chief financial officer or

other person with financial management responsibility for the gaming operation.

Q. Other Compacts shall mean such agreements as may in the future be entered into between

the Community and the State of Minnesota, governing Class ifi gaming, as that term is defined by

the Jhdian Gaming Regulatory Act of 1988, codified at 25 U.S.C. §2703 (8).

R. Other games of chance shall mean games similar to traditional bingo in which prizes are

awarded on the basis of a designated winning number or numbers, color or colors, symbol or

symbols determined by chance. Such games may be played using pull tabs, raffles, paddlewheels,

tipboards, punchboards, tip jars, gaming tables, tokens, satellite television transmission, but shall

not include video games of chance defined herein; or shall have the same meaning as the term

Class II gaming as defined by the Indian Gaming Regulatory Act of 1988, codified at 25 U.S.C.

§2703 (7)(A). Any game of chance that is not prohibited by the criminal laws of the State of

Minnesota, or is subject to permissive regulation pursuant to Minnesota law, chapter 349 or

successor legislation shall be included in this definition.

S. Traditional bingo shall mean that game in which each player is supplied a card or board.

containing five adjoining horizontal and vertical rows with five spaces in each row each containing

a number or figure therein and the word free marked in the center space thereof, or in which such

a card or board is represented on a video screen. Upon announcement by the person conducting the

game or the appearance on the video screen of any number or figure appearing on the players card

or board, the space containing said figures or number is covered by the player. When the player

shall have covered all five spaces in any horizontal and vertical row, or shall have covered four

spaces and the free space in a five space diagonal row, or shall have covered the required

combination of spaces in some other preannounced pattern or arrangement, such combination of

spaces covered shall constitute bingo. The player or players to first announce bingo are

awarded money, merchandise, or some other consideration by the person or persons conducting the

game.

T. Vendors shall mean any person, corporation, sole proprietorship, partnership or any

individual, including but not limited to, a merchant, retail dealer, supplier, importer, wholesale

distributor who transfers property, goods, or other services by sale to a gaming facility, whether

gaming or non-gaming related.

U. Video game of chance shall mean electronic or electromechanical video devices that

simulate games commonly referred to as poker, blackjack, craps, hi-b, roulette, line-up symbols

and numbers, or other common gambling forms, which are activated by the insertion of a coin,

token, or currency, and which award game credits, cash, tokens, or replays, and contain a meter or

device to record unplayed credits or replays; or otherwise shall have the same meaning as the term

Prairie Island Indian Community 4

Gaming Ordinance, As Amended

September 16, 2002
Class 111 gaming as defined by the Indian Gaming Regulatory Act of codified at 25 U.S.C. §2703

(8) and all equipment or devices used in association with video games of chance..

Section 103 AUTHORIZATION OF GAMING ACTIVITIES

The Prairie Island Indian Community hereby authorizes all permitted forms of Class I, Class II and

Class ifi gaming on the Prairie Island Indian Co mity lands, subject to the provisions of this

Ordinance and all regulations promulgated pursuant thereto, the Tribal-State Compacts, the IGRA

and the Regulations promulgated pursuant thereto.

Section 104. SEVERABILITY.

The provisions of this Ordinance are severable; and if any part or provision hereof shall be held

void by tribal or federal court or federal agency, the decision of the court or agency so holding shall

not affect or impair any of the remaining provisions of the ordinance.

TITLE H. DEVELOPMENT. ADMINISTRATION, AND ENFORCEMENT

Section 200. ESTABLISHMENT OF PRAIRIE ISLAND INDIAN COMMUNITY

GAMING COMMISSION AND RATIFICATION OF PRIOR ACTIONS.

A. The Prairie Island Indian Community Council hereby establishes the Prairie Island Indian

Community Gaming Commission and delegates to it the authority to regulate the conduct of

gaming activities on lands of the Prairie Island Indian Community consistent with the specific

authorities delegated by Section 201 of the Ordinance, the Tribal-State Gaming Compacts, the

IGRA and the regulations promulgated pursuant thereto, and any other laws and ordinances of the

Prairie Island Indian Community, including any regulations promulgated by the Commission.

B. The Community Council further ratifies all actions taken by the Gaming Commission prior

to the effective date of this amended Ordinance.

Section 201. DELEGATION OF AUTHORITY TO COMMISSION.

A. The Commission is authorized and empowered to exercise authorities including, but not

limited to, the following:

1. To create all necessary forms;

2 To collect license fees and costs;

3. To process all license applications;

Prairie Island Indian Community 5

Gaming Ordinance, As Amended

September 16, 2002
4. To issue, deny, limit, condition, suspend and revoke all licenses, including but not

limited to C and C-i licenses, and to notify the National Indian Gaming Commission of

such action if required by the IGRA;

5. To issue citations for violations of this Ordinance, any regulations promulgated by

the Commission pursuant to this Ordinance, any order of the Commission or any license

condition or other limitation;

6. To impose penalties, including but not limited to licensing action and/or fines of up

to $1000.00 for violations of this Ordinance, any regulations promulgated by the

Commission pursuant to this Ordinance, any order of the Commission or any license

condition or other limitation;

7. To conduct or cause to be conducted audits of gaming activities including but not

limited to all contracts for supplies, services, or concessions for a contract amount in excess

of Twenty-five Thousand Dollars ($25,000.00) annually (except for contracts for

professional legal or accounting services, relating to Class H and Class ifi gaming, as

defined by the Indian Gaming Regulatory Act, 25 U.S.C. §2703);

8. To conduct or cause to be conducted audits to ensure the health, safety and

environmental status of the gaming operations;

9. To retain legal counsel, subject to the approval of the Community Council;

10. To defend this Ordinance before any Tribal, Federal, State, or local tribunal;

11. To conduct or cause to be conducted all background investigations that are

necessary for the issuance of Commission licenses;

12. To conduct hearings as necessary, to issue decisions relative to those hearings and to

impose penalties or sanctions, if necessary;

13. To prepare and submit to the Community Council an annual budget at the beginning

of each fiscal year for the purpose of allocating funds to the Commission for its operations

pursuant to the provisions of this Ordinance. The Commission may in accordance with any

approved budget employ such staff as it deems necessary to fulfill its responsibilities under

this Ordinance;

14 To ensure compliance with this Ordinance, the IGRA, the Regulations promulgated

pursuant to the IGRA, the Tribal-State Compacts, any Regulations promulgated by the

Commission pursuant to this Ordinance and any applicable codes adopted by the

Community Council;

15. To recommend to the Community Council policies and guidelines relating to

gaming, including amendments to this Ordinance; and

Prairie Island Indian Community 6

Gaming Ordinance, As Amended

September 16, 2002
16. To promulgate regulations to fulfill any of the authorities delegated hereby or that

might in the future be delegated to the Commission.

B. The Commission also may exercise any other authority or perform any other duty that might

hereafter be delegated to the Commission by the Community Council.

C. In the event that the Commission lacks sufficient members to conduct business or to

otherwise fulfill the duties delegated hereby, the Community Council will resume the authority

hereby delegated on a temporary, emergency basis.

Section 202. MEMBERSHIP

A. Oualiflcations:The Prairie Island Indian Community Gaming Commission shall be

composed of enrolled members of the Prairie Island Indian Community who have submitted to a

background investigation that demonstrates that they are members in good standing, which is

defined to be a person who has not been convicted of a felony or a misdemeanor involving a

gaming offense or dishonesty (a crime involving dishonesty is defined to be a conviction for fraud,

embezzlement, theft by swindle, and/or theft by misrepresentations) is current in all financial

obligations to the Community, and is duly appointed by the Community Council.

B. Number and Tenure The Gaming Commission shall be composed of five (5) members.

Commissioners shall hold office for six (6) years from the date of their being hired, so long as they

remain qualified as defined in Subsection A, above. The six-year term established by this Section

shall be considered an aggregate term, and shall include time served under prior appointment as a

Commissioner and unpaid leave time. The aggregate term of Commissioners shall not include time

served as a Commission staff person or consultant.

C. Resignation and Removal Commissioners may resign at any time, effective immediately

or at a specified later date, by giving written notice to the Executive Director of the Commission

and the Community Council. Commissioners may be removed for cause by a majority vote of a

quorum of the Community Council. Cause for removal of a Commissioner includes but is not

limited to, commission of a felony or any gaming offense in any jurisdiction, breach of

confidentiality, dereliction of duties, or any other cause as provided by this Ordinance or any other

applicable Prairie Island Indian Community Ordinance or Judicial Code.

If a Gaming Commissioner becomes a duly elected member of the Community Council, the

Gaming Commissioner shall resign their position as Commissioner when the election is certified

pursuant to the Prairie Island Indian Community Election Ordinance.

D. Filling Vacancies Vacancies on the Gaming Commission caused by death, resignation,

removal or other cause, shall be filled by appointment of a new Commissioner by a majority vote of

a quorum of the Community Council.

Prairie Island Indian Community 7

Gaming Ordinance, As Amended

SeptembeT 16, 2002
Section 203. OFFICERS AND STAFF.

A. Executive Director Selection and Duties

1. Every two (2) years, the Gaming Commission shall elect an Executive Director by a

majority of a voting quorum of the Commission.

2. Duties - Executive Director: The Executive Director of the Gaming Commission

shall preside at all meetings of the Gaming Commission and perform such duties and

exercise such powers as are necessary or incident to the supervision and management of the

business and affairs of the Gaming Commission. In the absence of the Executive Director,

a presiding officer will be appointed by a majority vote of a quorum of the Commission

B. Staff and Consultants: The Commission may employ staff and consultants as follows:

1. Staft7lEmployees may include, but is not limited to the following:

a. Regular. Regular Employees are those individuals working in excess of

thirty-two (32) hours per week.

b. Part Time. Part Time Employees are those individuals working less than

thirty-two (32) hours per week.

c. Temporary. Temporary Employees are those individuals who are

employed for a finite term irrespective of the number of hours worked per

week.

2. The Commission may hire professional consultants that may include, but are not

limited to, the following:

a. Auditor. Auditor includes any person or entity performing accounting or

auditing services pursuant to the requirements of the Tribal State Compacts,

the IGRA and the Regulations promulgated pursuant thereto, this Ordinance

and any Regulations promulgated pursuant thereto.

b. Investigator. Investigator includes any person or entity that provides

investigative services in fulfillment of the requirements of the Tribal State

Compacts, the IGRA and the Regulations promulgated pursuant thereto, this

Ordinance and any Regulations promulgated pursuant thereto. An

investigator may also be hired as a regular, part-time or temporary employee.

c. Lawyer. Lawyer includes any person or entity which provides services

under a contract with the Community Council that has been approved by the

Secretary of the United States Department of the Interior, or his designee at

Prairie Island Indian Community 8

Gaming Ordinance, As Amended

September 16,2002
the Bureau of Indian Affairs, Minneapolis Area Office, pursuant to Article

V, Section 1(b) of the Constitution of the Prairie Island Indian Community to

advise the Commission on implementing and fulfilling its regulatory duties

under the requirements of the Tribal State Compacts, the IGRA and the

Regulations promulgated pursuant thereto, this Ordinance and any

Regulations promulgated pursuant thereto.

3. The hiring of Staff and Consultants by the Commission is subject to approval by the

Community Council.

Commission Staff are subject to all of the conditions of employment imposed by the Communitys

Personnel Handbook, including but not limited to, the prohibition against employee fraternization

imposed by that Handbook.

Section 204. MEETINGS.

A. Regular meetings Regular meetings of the Gaming Commission shall be held weekly

on Wednesday at 9:00 a.m., in the Gaming Commission offices or such other designated location

agreed upon by the Gaming Commission. Notice is not necessary for regular meetings.

B. Special Meetings Any Commission member can call a Special Meeting of the Gaming

Commission. Notice of a Special Meeting shall be a specific agenda delivered to each

Commissioner at least twenty-four (24) hours prior to the special meeting.

C. Special or Emergency Meetings Without Notice Special or Emergency Meetings may be

conducted by the Gaming Commission without notice required by Section 204.B. if the

Commission determines that such a meeting is necessary. All Commissioners must be contacted

when a special or emergency meeting is called. Any Commissioner may, in writing or orally, either

before, at, or after any meeting of the Gaming Commission, waive notice thereof and, without

notice, any Coniniissioner by attendance at such meeting, and participation therein, shall be deemed

to have waived notice of the action taken at any meeting of the Gaming Commission.

Proceedings and decisions of all Gaming Commission at a Special or Emergency meeting shall be

recorded and distributed to all Gaming Commissioners.

D. Ouoruni and Transaction of Commission Business A majority of three (3) of five (5)

members of the Gaming Commission shall constitute a quorum for the transaction of business at

any meeting of the Gaming Commission.

E. Presence at Meetings Members of the Gaming Commission must attend Commission

meetings. If a Commission member is unable to attend a meeting in person, that Commissioner

may participate in the meeting by means of telephonic conference or similar communications

equipment by which all persons participating in the meeting can simultaneously hear each other,

and such participation shall constitute presence of the Commissioner at the meeting for the purpose

of transacting Commission business.

Prairie Island Indian Community 9

Gaming Ordinance, As Amended

September 16, 2002
F. Voting Each member of the Gaming Commission shall have the power to exercise

one (1) vote on all matters to be decided by resolution of the Commission. The affirmative vote of a

majority of a quorum of the Commissioners shall constitute a duly authorized action of the

Commission.

Section 205. CONFLICT OF INTEREST.

Commissioners and Commission employees may not participate in any Commission decision

involving a gaming business, enterprise, or Gaming Vendor in which the Commissioner or

Commission employee has a financial interest. Commission members and employees may not

accept any gift or thing of value from a Gaming Vendor or from the Gaming Establishment or any

of its officers, employees or agents. For the purpose of this Section, a Community members

interest in per capita payments made pursuant to the Communitys Gaming Revenue Allocation

Ordinance shall not constitute a financial interest in a gaming business or enterprise.

Section 206. COMPENSATION.

Commissioners shall be compensated in accordance with an annual budget that has been adopted

and approved by the Community Council.

Section 207. COMMISSION STRUCTURE.

A. The Commission shall include departments for Compliance and Enforcement, Employee

Licensing, Vendor Licensing and Surveillance. One Commissioner shall oversee each Department.

The Commission may further organize itself as it deems necessary to fulfill its responsibilities

under this Ordinance, including the creation of committees or divisions as may be necessary.

B. The Compliance and Enforcement Department is primarily responsible for making

recommendations on the application and implementation of the regulatory functions as provided in

this Ordinance and any regulations promulgated pursuant thereto, the Compacts, the IGRA and all

regulations promulgated pursuant thereto. Members of the Compliance and Enforcement

Department will observe for infractions of applicable laws or regulations, document the infractions

on the appropriate multiple part form and submit the form to management for corrective action. If

the situation warrants immediate action, the Commissioner will notify management and the

Community Council and document the incident afterwards. If appropriate corrective action is not

taken within the deadline established by the Department, the Commissioner of Compliance and

Enforcement will report the non-compliance to the full Commission which may take enforcement

action, including but not limited to, imposing fines and suspending or revoking gaming licenses.

C. The Licensing Department is primarily responsible for reviewing all employee license

applications, including Primary Management Officials, Key Employees, completing appropriate

background investigations, making recommendations to the full Commission regarding whether to

approve, deny, suspend, revoke or condition licenses in order to ensure compliance with the

Prairie Island Indian Community 10

Gaming Ordinance, As Amended

September 16, 2002
prescribed suitability standards and making all necessary reports to the Commission, the

Community Council, the State of Minnesota and the National Indian Gaming Commission.

D. The Vendor Licensing Department is primarily responsible for reviewing all license

applications from Gaming and Non-Gaming Vendors, completing appropriate background

investigations, making recommendations to the full Commission regarding whether to approve,

deny, suspend, revoke or condition licenses to assure compliance with the proscribed suitability

standards and making all necessary reports to the Commission, the Community Council, the State

of Minnesota and the National Indian Gaming Commission. The Vendor Licensing Department

also is responsible for maintaining a current list of approved Gaming and Non-Gaming Vendors

and for ensuring that the Communitys gaming operations only conduct business with approved

vendors.

E. The Surveillance Department is primarily responsible for overseeing Surveillance activities,

reporting incidences that have been detected by surveillance activities to the full Commission and

recommending to the Commission the appropriate response, and ensuring that surveillance

activities and equipment are in full compliance with all applicable laws and regulations.

Section 208. ADDRESS.

The address of the Prairie Island indian Community Gaming Commission is:

5734 Sturgeon Lake Road

Welch, MN 55089

TITLE Ill. LICENSING

Section 300. LICENSE REQUIRED.

Any person, organization or entity conducting gaining activities on land that is subject to the

jurisdiction the Prairie Island Indian Community, or any person, organization or entity selling,

leasing, or otherwise distributing gambling equipment or video games of chance to the Community,

shall be required to have and display prominently a valid, and current Community gaming license

issued pursuant to the provisions of this Ordinance. Any other forms of public gaming operations

being conducted within the jurisdiction of the Community without the lawful written approval of

the Commission are prohibited.

Section 301. APPLICATION REQUIRED.

All persons or organizations who may seek to engage in gaming activities within the jurisdiction of

the Community must apply for the appropriate license prior to the scheduled activities or as

Prairie Island Indian Community 11

Gaming Ordinance, As Amended

September 16, 2002
otherwise allowed in the discretion of the Commission. The application must be made in writing

on a form that has been approved for use by the Commission.

Section 302. PAYMENT OF FEES AND COSTS.

A. Each application for an initial or renewal license shall be accompanied by payment of the

appropriate license fee, unless the license fee has been exempted by Section 314.C.. All license

fees shall be non-refundable and made payable to the Prairie Island Indian Community do the

Prairie island indian Community Gaming Commission. An application that is not accompanied by

the appropriate license fee will be deemed incomplete and will not be processed by the

Commission until the fee is received.

B. The Commission may also impose such additional fees that are reasonably related to the

cost of enforcement of the Ordinance, including but not limited to cost of background

investigations.

Section 303. LiCENSE AS A REVOCABLE PRIVILEGE.

A Commission license is a revocable privilege. A licensee shall not be deemed to have any vested

right in or to a Commission license and a Commission license does not convey any property or

liberty interest to the Licensee. The burden of proving qualifications to hold a Commission license

rests at all times on the licensee.

Section 304. CLASSES OF LICENSES.

A. Upon proper application and approval, the following classes of licenses may be issued by

the Commission:

1. Class A license for a gaming enterprise in which a gaming operator wishes to

conduct traditional bingo and other games of chance at a Community gaming enterprise;

2. Class B license for a gaming enterprise in which a gaming operator wishes to

conduct video games of chance or other gaming subject to other compacts at a Community

gaming enterprise;

3. Class C license for any management official or key employee of either a gaming

operation or the Community and a Class C-i license for any other employee, not licensed as

a management official or key employee, of a gaming operation or the Community who is

employed in a gaming enterprise licensed under the provisions of this Ordinance. The fee

for Class C and C-i licenses shall be $50.00;

Prairie Island Indian Community 12

Gaming Ordinance, As Ammded

September 16,2002
4. Class D license to any distributor or manufacturer of gambling equipment and/or

video games of chance to be used in a community gaming enterprise. The fee for a Class D

license shall be $100.00;

5. Class E license for each video game of chance to be used in a Community gaming

enterprise; and

6. Class F license for each person or entity that provides a Community gaming

enterprise with non-gaming related supplies, services or concessions. The fee for a Class F

license shall be $100.00.

B. All Commission licenses shall be valid for a period of one year from the date of issuance.

Section 305. APPLICATION FOR GAMING ENTERPRISE.

The application for a gaming enterprise shall contain the following information:

A. the name and address of the gaming operator;

B. the name(s) and address(es) of all interested parties (including those with direct or indirect

financial interests) and their interest and connection with the applicant;

C. the name and location of the gaming enterprise for which the gaming operator license is

being sought, the number and types of games to be played, a detailed plan of any proposed

construction with an environmental impact study, the number of planned employees, and a business

plan which includes a pro-forma projection;

D. explicit and detailed infonnation of any criminal record of any party of interest whose name

appears on the application to determine whether any party of interest:

1. has committed a felony or gaming offense in any jurisdiction;

2. has engaged in prior activities or maintains habits or associations affecting his

present conduct which would:

a. pose a threat to the public and Community interests;

b. threaten the effective regulation and control of Community gaming;

c. enhance the dangers of unsuitable, unfair, or illegal methods, or activities in

the conduct of gaining.

3. the name and address of all proposed or actual ancillary contractors who provide

supplies, services, concessions or property to the proposed gaming operator;

Prairie Island Indian Community 13

Gaining Ordinance, As Amended

september 16, 2002
4. the social security number of all parties of interest whose names appear on the

application;

5. a description of any previous experience which the proposed operator has had with

the gaming industry generally, and Indian gaming in particular, including specifically the

name and address of any licensing or regulatory agency with which such applicant has had

contact relating to gaming;

6. a financial statement of the applicant; and

7. any additional information as may be deemed necessary by the Commission, the

State of Minnesota Department of Public Safety of the National Indian Gaming

Commission.

Section 306. APPLICATION AND INVESTIGATION OF CLASS II AND III GAMING

LICENSE APPLICANTS.

A. The application for Class 11 and III Gaming licenses shall contain:

1. The following statement:

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 et 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 prosecution or when pursuant to a requirement by

the Prairie Island Indian Community Gaming Commission 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 the Prairie Island Indian Community Gaming Commission or a

gaming operation. Failure to consent to the disclosures indicated in this notice

will result in the Prairie Island Indian Community being unable to hire you in a

primary management official or key employee position. The disclosure of your

Social Security Number (SSN) is voluntary. However, failure to supply a SSN

may result in errors in processing your application.

2. The following notice:

A false statement on any part of your application may be grounds for refusing you

a license or revoking your license or for not hiring you, or for firing you after you

Prairie Island Indian Community 14

Gaming Ordinance, As Amended

September 16,2002
begin work. Also, you may be punished by fine or imprisonment (18 U.s.c.

§1001).

3. The full name, other names used (oral or written), social security number(s), birth

date, place ofbirth, citizenship, gender, all languages (spoken or written);

4. Currently and for the previous 5 years: Business and employment positions held,

ownership interest in those businesses, business and residence addresses, and drivers license

numbers;

5. The names and current addresses of at least three personal references, including one

personal reference who was acquainted with the applicant during each period of residence

listed under paragraph (4) of this Section;

6. Current business and residence telephone numbers;

7. A description of any existing and previous business relationships with Indian tribes,

including ownership interests in those businesses;

8. A description of any existing and previous business relationships with the gaming

industry generally, including ownership interests in those businesses;

9. 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;

10. For each felony for which there is an ongoing prosecution or a conviction, the

charge, the name and address of the court involved, and the date of disposition;

11. For each misdemeanor conviction or ongoing misdemeanor prosecution (excluding

minor traffic violations) within 10 years of the date of the application, the name and address

of the court involved and the date and disposition;

12. For each criminal charge (excluding minor traffic charges) whether or not there is a

conviction, if such criminal charge is within 10 years of the date of the application and is

not otherwise listed in response to the provisions of this section, the charge, the name and

address of the Court in which the charge was filed and the date and form of the disposition

of the charge;

13. The name and address of any license 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;

14. A photograph;

15. A financial statement; and

Prairie Island Indian Community 15

Gaming Ordinance. As An~ended

September 16.2002
16. Any additional information, including the fingerprints of the applicant, as may be

determined by the Commission.

B. The Commission shall conduct an investigation sufficient to make a determination that

employment of a person under investigation poses or does not pose a threat to the public interest or

to the effective regulation of or control of gaming, or creates or enhances the dangers of unsuitable,

unfair, or illegal practices and methods or activities in the conduct of gaming. In conducting a

background investigation, the Commission shall keep confidential the identity of each person

interviewed in the course of the investigation. The Commission shall perform the following:

1. conduct the background investigation;

2. review and approve the investigative work done;

3. report the results of the background investigation to the National Indian Gaming

Commission;

4. obtain fingerprints;

5. make suitability determinations;

6. verify by written andlor oral communication information submitted by the applicant;

7. inquire into the applicants prior activities, criminal record, if any, and reputation,

habits and associations;

8. interview a sufficient number of knowledgeable people such as former employers,

personal references, and others referred in order to provide a basis for the Commission to

make a finding concerning the eligibility for employment in a gaming operation;

9. prepare an investigative report that includes the following:

a. steps taken in conducting the background investigation;

b. results obtained including the documentation of all potential problem areas

noted and disqualifying information obtained;

c. conclusions reached; and,

d. the basis for those conclusions.

C. If the National Indian Gaming Commission and the Commission possess an investigative

report for an employee, the Commission may update that report instead of performing an entirely

new investigation.

Prairie Ls!and lndiaii Community 16

Gaming Ordinance, As Amended

September 16,2002
Section 307. REPORT TO NATIONAL INDIAN GAMING COMMISSION FOR CLASS H

AND CLASS Ill GAMING APPLICATIONS AND INVESTIGATION

REPORTS FOR KEY EMPLOYEES AND PRIMARY MANAGEMENT

OFFICIALS.

A. The Commission shall provide to the National Indian Gaming Commission a copy of a

completed application and Commission investigation report regarding all primary management

official or a key employee applicants.

B. The Commissions investigative report to the National Indian Gaming Commission shall

include, at a minimum, the following information:

1. Steps taken in conducting a background investigation;

2. Results obtained;

3. Conclusions reached;

4. The basis for those conclusions; and

5. Whether a license was issued or denied.

C. In the event that the Commission has determined to issue a license to a primary

management official or key employee, then the Commissions report to the National Indian Gaming

Commission must also include a copy of the Commissions determination that the applicant does

not pose a threat to the public interest or to the effective regulation of gaming, or create or enhance

the danger of unsuitable, unfair, or illegal practices, methods or activities in the conduct of gaming,

and such submission must be made no later than 120 days from the date that the applicant was

hired.

D. During a 30-day period beginning when the National Indian Gaming Commission receives a

report submitted under paragraph (C) of this Section, the Chairman of the National Indian Gaming

Commission may request additional information from the Commission concerning an employee

who is the subject of such a report. Such a request shall suspend the 30-day period until the

Chairman receives the additional information.

E. If, at the conclusion of the 30-day period described under paragraph (D) of this Section, the

National Indian Gaming Commission has not notified the Commission that it has any objections,

the Commission may issue the license.

Section 308. NON-GAMING LICENSE APPLICATIONS.

A. The Commission may use applications for non-gaming license applicants that require the

same disclosure as Class H and ifi gaming license applications.

Prairie Island Indian Community 17

Gaming Ordinance, As Amended

September 16, 2002
I.

B. The background investigation process for non-gaming license applicants will be narrower in

scope that that for Class II and HI gaming licenses. At minimum, the investigation will include the

following:

1. review of application for completeness;

2. verification of all information submitted by applicant;

3. search of law enforcement records for any outstanding warrants and court records

for any outstanding judgements or liens;

4. sufficient inquiry into the applicants prior work record, personal and criminal

record, if any, to develop an understanding of the applicants reputation, habits and

associations. This inquiry may include interviewing, by phone or in person, personal and

professional references, former employers and others in order to provide a basis for the

development of an eligibility determination, and to assess the applicants chance for

deveLopment of a successful working relationship with the Communitys gaming enterprise;

and

5. documentation of any potential problem areas and disqualifying information

obtained.

Section 309. LICENSE SUSPENSION FOR PRIMARY MANAGEMENT OFFICIALS

AN]) KEY EMPLOYEES.

A. If, after the issuance of a gaming license, the National Indian Gaming Commission receives

reliable information indicating that an employee is not eligible for licensing under Section 306 (B)

of this Ordinance, it will notify the Commission.

B. Upon receipt of notification by the National Indian Gaming Commission as set out in

Section 309(A), the Commission shall suspend the license at issue and provide written notice to the

Licensee of the suspension and proposed revocation as well as the licensees right to request a

hearing before the Commission pursuant to the provisions of the Commissions hearing procedures

as detailed in the Commissions Regulations.

C. In the event the licensee makes a timely request for a hearing, the Commission shall make a

determination whether to revoke or to reinstate a gaining license and shall provide written notice of

its decision to the Licensee and the National Indian Gaming Commission.

Prairie Island Indian Community 18

Gaming Ordinance, As Amended

September 16,2002
Section 310. APPLICATION FOR DISTRIBUTORS OF VIDEO GAMES OF CHANCE

AND GAMBLING EQUIPMENT.

The application for any person, organization or entity wishing to sell, lease or otherwise distribute

gambling equipment andlor video games of chance to the Community shall contain, at a minimum,

the following information:

A. the name(s) and mailing address of the person or entity making the application;

B. the names and addresses of all interested parties (including those with direct or indirect

financial interests) and their interest and connection to the applicant;

C. the nature of the license applied for; the type of activity to be engaged in under the license;

D. explicit and detailed disclosure of any criminal record, including any delinquent taxes owed

to the State of Minnesota, of the applicant, any person involved in the organization, and any party

of interest whose name appears on the application;

E. any additional information necessary to allow the Community or the State of Minnesota to

investigate the applicant or any person included on the application;

F. whether the applicant has been properly licensed by the State of Minnesota pursuant to

Minnesota Statute Section 349.151; and proof of being the holder of a current and valid distributor

or manufacturer license from the State of Minnesota; or properly licensed and holding a current and

valid license from either the State of New Jersey, or Nevada, or South Dakota;

G. whether the applicant has ever had a distributor or manufacturer license revoked or

suspended by the state that issued the license and, if so, the circumstances surrounding the states

action;

H. a statement of waiver allowing the Community and the State of Minnesota to conduct a

background investigation of the applicant and any person whose name is required to appear on the

application; and

I. whether the applicant or any person whose name is required to appear on the application

maintains any involvement in the business of wholesale distribution of alcoholic beverages.

Prairie Island Indian Community 19

Gaming Ordinance. As Amended

September 16,2002
I

Section 311. LICENSING MANUFACTURERS AND DISTRIBUTORS OF VIDEO

GAMES OF CHANCE.

The following requirements shall apply to management and conduct of all video games of chance

within any gaming enterprise licensed pursuant to the provisions of this Ordinance:

A. Licensing of manufacturers No gaming enterprise may own, lease, or operate video games

of chance that have been manufactured by a manufacturer that has not received a license from the

Commission pursuant to the provisions of this Ordinance. The Commission shall issue licenses

only to manufacturers of video games of chance holding a valid license from the States of

Minnesota, New Jersey, Nevada, or South Dakota.

B. Licensing of distributors No gaming enterprise may own, lease, or operate video games of

chance that have been distributed by a distributor that has not received a license from the

Commission pursuant to the provisions of this Ordinance. The Commission shall issue licenses

only to distributors of video games of chance holding a valid license from the States of Minnesota,

New Jersey, Nevada, or South Dakota.

C. Suspension, revocation, or non-renewal of manufacturer or distributor license In the event

that the State of Minnesota, New Jersey, Nevada, or South Dakota, suspends, revokes, or refuses to

renew a license of a manufacturer or distributor of video games of chance similarly licensed by the

Commission, such action shall be grounds for similar action by the Commission, which may

suspend, revoke, or refuse to renew the license issued by the Commission to such manufacturer or

distributor.

D. Technical standards (testing and approval of video games of chance) No video game of

chance may be purchased, leased or otherwise acquired by a gaming enterprise unless:

1. the video game of chance is purchased, leased, or acquired from a manufacturer or

distributor licensed to sell, lease, or distribute video games of chance by the Commission

pursuant to the provisions of this Ordinance; and

2. the video game of chance, or a prototype thereof, has been tested, approved or

certified by a gaming test laboratory as meeting all requirements and standards of the

compact on video games of chance or other applicable compacts.

F. Any gaming activity involving video games of chance shall be conducted in strict

compliance with the compact on video games of chance and any other compacts between the

Prairie Island Indian Community and the State of Minnesota.

Prairie Island Indian Community 20

Gaming Ordmance, As Amended

September 16, 2002
Section 312. MACHINE LICENSES.

An entity with whom the Community enters into a lease or sales agreement regarding video games

of chance must obtain from the Commission an annual non-transferable license for each video

game of chance to be placed in a gaming enterprise.

A. An application for a license for a video game of chance shall contain the following

information:

1. the name and address of the applicant with proof of a current and valid distributor or

manufacturer license issued by a state and the Community;

2. identification numbers or codes for each video game of chance placed in a

Community gaming enterprise, including the manufacturer, the serial number and the model

number;

3. proof of approval and certification of the machine by an approved gaming test

laboratory or proof that the video game of chance confonns precisely to the exact

specifications of the video game of chance prototype tested and approved by the gaming test

laboratory;

4. all other information as required by the Tribal-State Compact on Video Games of

Chance; and

5. proof of a current and valid video game of chance license issued by the State of

Minnesota pursuant to Minnesota Statute Section 349.52.

B. Upon issuance, the Commission shall have attached to each video game of chance licensed

under the provisions of this Ordinance, an unremovable identification plate on the exterior cabinet

which contains the information as required by the Tribal-State Compact on Video Games of

Chance and the Prairie Island Indian Community Minimal Internal Control Standards, as those

controls may be amended from time to time.

Section 313. FRAUD ON APPLICATION.

It shall be unlawful for any applicant to lie, falsif~ or willfully deceive the Commission in the

submission of a license application. Fraud on an application will result in the denial or revocation

of the license at issue and may also result in other sanctions that the Commission deems

appropriate in its discretion.

Praine island Indian Community 21

Gaming Ordinance. As Amended

September 16, 2002
Section 314. EXEMPTIONS.

A. The following activities do not require a license under this title:

1. Gaming not for gain Gaming in which no cash or valuable prizes are won, other

than points for cumulative competitive ratings or places for immediate competitive

rankings, is not subject to the provisions of this ordinance. However, gaining for gain that is

conducted by a non-profit organization is subject to the requirements of this ordinance if

cash or valuable prizes are awarded. Valuable prize means an object or service worth One

Hundred Dollars ($100.00) or more in fair market value.

2. Traditional Indian Gaming Traditional Indian gaming activity, (i.e. nature of hand

games) are not subject to the provisions of this Ordinance. The Commission is hereby

authorized to determine on a case-by-case basis, upon request, whether a particular

traditional gaming activity qualifies for exemption.

B. The Communitys Gaming Establishments shall be automatically licensed with the adoption

of this Ordinance and shall be issued a Class A and Class B license. These licenses shall be

renewed each year until otherwise directed by the Community Council by written resolution or

amendment to this Ordinance.

C. Class A, B and E Licenses shall be exempt from license fees.

Section 315. RETENTION OF APPLICATIONS FOR EMPLOYEES OF A GAMING

OPERATION OTHER THAN KEY EMPLOYEES AND PRIMARY

MANAGEMENT OFFICIALS.

The Commission shall retain applications for licensure and reports (if any) of background

investigations for inspection by the Chairperson of the National Indian Gaming Commission or his

or her designee for not less than three (3) years from the date of hire.

Section 316. LICENSE DISPLAY.

Every licensed gaming operator shall display in a prominent place a current and valid Commission

license for that location.

Prairie Island Indian Community 22

Gaming Ordinance, As Amended

September 16, 2002
Section 317. GENERAL LICENSE CONDITIONS.

A. No credit extended All gaming shall be conducted on a cash basis. Except as herein

provided, no person shall be extended credit for gaining by any gaming enterprise. This restriction

shall not apply to credits won by players who activate play on video games of chance after inserting

coins or currency into the game, and shall not restrict the right of a gaming enterprise to offer check

cashing or to install or accept bank card or credit card transactions in the same manner as would be

normally permitted at any retail business within the State of Minnesota.

B. Minimum age for players No person below the age of eighteen (18) years on the date of

gaming shall be permitted to participate in the gaming in any gaming enterprise licensed under the

provisions of this ordinance. If any person below the age of eighteen (18) years plays and otherwise

qualifies the win any prize, the prize shall not be paid, and the estimated amount wagered during

the course of the game shall be returned to the player.

C. Prohibition on firearms It shall be unlawful for any person to possess a firearm or

dangerous weapon on premises where licensed gaming is allowed, with the exception of firearms

possessed by duly authorized peace officers.

D. Change of Address of Licensee When a licensee changes a location of public gaming

activities within the Prairie Island Indian Community Reservation Indian Lands, the Commission

shall, after notification by the licensee or such changes, issue a corrected license for the balance of

the current period reflecting the new address upon reasonable proof of change of address and

without imposition of an additional license fee.

E. It shall be unlawful for a licensee to engage in pawnbroking or to take goods or materials in

hock or to lend money or engage in similar activity with persons solely for the purpose of enabling

the person to gamble.

F. It shall be unlawful for any licensee to fail to notify the Commission of any new prospective

key employee, new ancillary contractor, or new operator. The Commission shall investigate and

provide approval or disapproval of the applicant or new key employee, contractor, or operator

within thirty (30) days. Any information received by the Commission shall be confidential.

G. It shall be unlawful for any licensee to begin, without the approval of the

Commission:

1. the employment of a new key employee or primary management official; or

2. the performance of any new contract; or

3. the control of any new operator.

Prairie Island Indian Community 23

Gaming Ordinance. As Amended

September 16,2002
H. A licensee is required during normal business hours, to maintain his premises open for

inspection by the Commission or any other authorized government agency and keep its books and

financial records open for similar inspection.

Section 318. NON-TRANSFERABiLITY.

The license issued pursuant to the provisions of this ordinance is valid only for the person(s) or

organization(s), or entities at the place of business shown on the face thereof. The license is not

assignable or otherwise transferable to any other person or organization or for any other location

without the written approval of the Commission. Any request for transferring or assignment of a

License must be made in writing to the Commission for its consideration.

Section 319. RULES OF PLAY DISPLAYED OR MADE AVAILABLE UPON REQUEST.

The gaming operation must either prominently display in writing all rules and regulations

pertaining to all gaming activities, including but not limited to traditional bingo, other games of

chance and video games of chance, near to where the gaming activity is conducted or must make

available on request by any person a written list of all such rules and regulations.

The gaming operation shall utilize gaming rules and regulations that are in compliance with the

laws arid regulations of the Community, all Compacts between the State of Minnesota and the

Community, the Indian Gaming Regulatory Act of 1988 and all regulations promulgated pursuant

thereto.

Section 320. VIOLATIONS.

A. A Violation of any provision of this Ordinance or any of the Commissions Regulations by

a licensee, the licensees agent, or employee may:

1. be deemed contrary to the public health, safety, morals, good order, and general

welfare of the Community and its members;

2. be subject to refusal to grant or renew a license, or for suspension or revocation of a

license;

3. be subject to the filing of criminal charges and/or a civil action in a court of

competent jurisdiction on behalf of the Commission; and

4. be subject to the imposition of a fine pursuant to Section 321.

Prairie Island Indian Community 24

Gaming Ordinance, As Amended

September 16,2002
B. Acceptance of a license or renewal thereof or condition imposed thereon by a licensee

constitutes agreement on the part of the licensee to be bound by all the regulations and/or

conditions of the Commission and by the provisions of this Ordinance as the same are now or may

hereafler be amended or promulgated. It shall be the responsibility of the licensee to keep informed

of the contents of all such regulations, provisions, and conditions, and ignorance thereof will not

excuse the violations.

Section 321. CIVIL PENALTY PROVISIONS.

Any licensee violating any provision of this Ordinance, any regulation promulgated by the

Community Council or this Commission any provision of the IGRA or the regulations promulgated

pursuant thereto or any provision of the Compacts between the Community and the State of

Minnesota may be subject to action by the Commission including but not limited to adverse

licensing action andlor the imposition of a civil penalty of not more than One Thousand Dollars

($1,000.00) or other penalty alternative under Community law.

TITLE IV. RULES OF GENERAL APPLICABILITY

Section 400. NOTICE OF AMENDMENT.

The Community Council will provide notice to the Commission and to Community members of its

intention to amend, repeal or otherwise alter any provision of this Ordinance

Section 401. COMPLIANCE WITH THE IGRA.

It shall be the policy of the Community to fully comply with all applicable federal law, to include

the provisions of the Indian Gaming Regulatory Act (25 U.S.C. §2701 et. seq.), and the Tribal-State

Compact on Video Games of Chance and other Compacts, if any, in the conduct of all gaming

activity within the jurisdiction of the Community including, but not limited to, the requirement in

the IGRA and the Federal Regulations promulgated pursuant thereto that the Community will

construct, maintain and operate its gaming facilities in a manner that adequately protects the

environment and the public health and safety.

Section 402. SOLE PROPRIETARY INTEREST.

The Prairie Island Indian Community shall have the sole proprietary interest and responsibility for

the conduct of any gaming activity, Class H or Class Ill, as those terms are defined by the Indian

Gaming Regulatory Act of 1988, 25 U.S.C. §2703 (7),(8) within the jurisdiction of the Community.

Prairie Island Indian Community 25

Gaming Ordinance, As Amended

September 16, 2002
Section 403. USE OF GAMING NET REVENUES.

Net revenues derived from gaming activity shall be utilized for the following purposes:

A. To fund Community government operations or programs;

B. To provide for the general welfare of the Community and its members;

C. To promote Community economic development;

D. To donate to charitable organizations; or

E. To help fund operations of local government agencies.

Section 404. PER CAPITA PAYMENTS.

Net revenues from any gaming activity (as defined by the Indian Gaming Regulatory Act, 25

U.S.C. §2703) may be used to make per capita payments to Community members only if the

payment is made pursuant to a gaming revenue allocation ordinance that has been approved by the

Secretary of the United States Department of the Interior, or the Secretarys designee.

Section 405. NO CONTINUING OPERATIONS PERMITTED.

No licenses will be issued to allow the continuing operation of individually owned gaming

establishments since none were in operation on September 1, 1986 and Section 302 of this

Ordinance does not permit individually owned gaming establishments.

Prairie Island Indian Community 26

Gaming Ordinance, As Amended

September 16,2002