MAY-25-01 10~34 FROM:M.B.S.5. IO~97O 247 9827 PAGE 2/6

S RESOLUTION NO. 01-60

RESOLUTION

OFTh.E

COUNCIL OF THE SOUTHERN U1~ INDIAN TRIBE

March 26, 2001

WHEREAS, authority is vested in the Southern Ute Indian Tribal Council (Th1a1

Council) by the Constitution adopted by the Southern the Indian Tribe~ and approved

November 4, 1936, and amended October 1, 1975, to act fbr the Southern Ute Indian Tribe

(Tribe); and

WHEREAS, pursuant to said constitutional authority the Tribal Council is empowered to

govern the conduct of gaming activities on land within the Southern Ute Indian Reservation in

accordance with the Indian Gaming Regulatory Act, Pub. L 100-497, codi~ed at 25 U.s.c.

2701, etseq.; and

WHEREAS, on August 11, 1992, the Tribal Council approved and adopted a Class ifi

Gaming Code to govern and regulate Class 111 gaming activities, and on Januaiy 9, 1995, the

Tribal Council amended said Class Iii Gaming Code; and

WHEREAS, the Tribe again desires to amend its existing Class ifi Gaming Code

(Gaming Code); and

WHEREAS, pursuant to the Indian Gaming Regulatory Act, said Gaming Code is

subject to approval by the National Indian Gaming Commicsion (NIGC); and

WHEREAS, the NIGC reviewed the proposed amended Gaming Code and noted certain

deflcienc~es which required flirther revisions to the Gaming Code; and

WHEREAS, the Southern Ute Indian Gaming Commission has reviewed and approved

revisions to the amended Gaming Code, as reflected in the attached amended Gaming Code; and

WHEREAS, pursuant to the Southern Ute Indian Tribe-State of Colorado Gaming

Compact, revisions to the Class HI Gaming Code are to be submitted to the State of Colorado

Division of Gaming for comment; and

WHEREAS, the State of Colorado Division of Gaming has reviewed the attached

revisions) and has responded that it has no additional comments; and

WHEREAS, the amended Gaming Code, as revised, must be submitted to the NIGC for

review and approval;

NOW, THEREFORE, BE U RESOLVED that the Southern the Indian Tribal Council

hereby approves the revisions made in response to NIGC review and approves the amended

Class III Gaming Code, as revised, a copy of which is attached hereto and incorporated herein by

reference.

M~Y-2~2c1cji 17:~P 7~d?PP7? qcrz
MAY-25-01 10:34 FROM.~M.8.S.S ID:970 247 8827 PAGE 3/6

Resolulion No. 01-60

Page 2

BE fF FURThER RESOLVED that a copy of this Resolution and attachments be

submitted expeditiously to the NIGC for approvaL

BE iT YUR1RER RESOLVED that the Chairman of the Southen~ Ute Indian Tribal

Council is authorized to execute any additional documents that may be needed to carry out the

purpose ofthis Resolution.

BE iT FURTHER RESOLVED that the amended Class Ill Gaming Code, as revised,

will become effective upon approval by the NIGC and that the existing Class HI Gaming Code

will be repealed as ofthat same date.

This resolution was duly adopted on the 26th day ofMarch, 2001.

Southern Ute Indian Tribal Council

CERTIFICATION

S This is to certify that there were (4) ofthe regularly elected Southern Ute Indian Tribal

Council members present at the above meeting at which (3) voted fbr, and (0) against, it being

a quorum and the above resolution was passed, the Chairman not being permitted to vote in this

instance due to a Constitutional provision.

Southern Ute Indian Tribal Council

I : ~
SOUTHERN UTE INDIAN TRIBE

CLASS III GAMING CODE

TITLE 16 APR 4 200)

ARTICLE 1. GENERAL PROVISIONS

16-1-10 1. Short Title This title shall be known and may be cited as the Gaming

Code.

16-1 -102. Legislative Declaration

(1) This Code is adopted by the Southern Ute Indian Tribal Council of the Southern

Ute Indian Tribe governing the establishment and operation of Class III Gaming on the Southern

Ute Indian Reservation pursuant to the authority provided by the Indian Gaming Regulatory Act,

P.L. 100-497, 25 U.S.C. §~ 2701-2721, and as may be amended, the Southern Ute Indian Tribe -

State of Colorado Gaming Compact, and the Constitution of the Southern Ute Indian Tribe.

(2) The Southern Ute Indian Tribal Council hereby finds, determines and declares it

to be the public policy of the Southern Ute Indian Tribe that:

(a;) The success of gaming is dependent upon public confidence and trust that

licensed gaming is conducted honestly and competitively and that gaming is free from

criminal and corruptive elements;

(b) Public confidence and trust can be maintained only by strict regulation of

all persons, locations, practices, associations, and activities related to the operation of

licensed gaming facilities and the manufacture of gaming devices and equipment;

(c) All gaming facilities and all manufacturers and sellers of certain gaming

devices and equipment must be licensed and regulated to protect the public health, safety,

good order, and general welfare, to foster the stability and success of gaming and to

preserve and promote the economy of the region; and

(d) No applicant for a license or other Southern Ute Indian Tribal Gaming

Commission approval has any right to a license or to the granting of the approval sought.

Any license issued or other Southern Ute Indian Tribal Gaming Commission approval

granted pursuant to the provisions of this Code is a revocable privilege, and no holder

acquires any vested right therein.

(3) It is the intent of the Southern Ute Indian Tribal Council that, to achieve the goals

set forth in subsection (2), the Southern Ute Indian Tribal Gaming Commission should place
great weight upon the policies expressed in subsection (2) in construing the provisions of this

Code.

16-1-103. Definitions As used in this Code, unless the context otherwise requires:

(I) Act means the Indian Gaming Regulatory Act, (IGRA), P.L. 100-497, 25

U.S.C. §~ 2701-272 1, and as may be amended.

(2) Adjusted Gross Proceeds or AGP means the total amount of all wagers or

buy-ins made by players on gaming, plus the rake on non-banking card games, less all payments

to players. Payment to players shall include all payments of cash, chips, tokens, or merchandise.

(3) Applicant means any person who has applied for a license under this Code or

who has applied for permission to engage in any act or activity which is regulated by this Code.

(4) Association means two or more persons united and acting together without a

corporate charter.

(5) Background investigation means the security, criminal history, and financial

checks of an applicant for a license, plus any other information deemed relevant by the Southern

Ute Indian Tribal Gaming Commission or Division of Gaming, to establish the suitability of the

applicant to become a licensee.

(6) Bet means an amount placed as a wager in a game of chance.

(7) Blackjack means a banking card game, also known as 21, played by a

maximum of seven players in which each player bets against the dealer. The object is to draw

cards whose value will equal or approach twenty-one without exceeding that amount and to win

amounts bet, payable by the dealer, if the player holds cards more valuable than the dealers

cards.

(8) Career offender means any person engaged in behavior in an occupational

manner for the purpose of economic gain, utilizing methods deemed criminal violations of the

public policy of the Tribe.

(9) Career offender cartel means any group of persons who operate together as

career offenders.

(10) Chip means a nonmetal or partly metal representative of value, redeemable for

cash, issued and sold for use in gaming.

(11) Class III Gaming means all forms of gaming that are not Class I or Class II

Gaming, as defined by the Act.

(12) Code means the Southern Ute Indian Class III Gaming Code.

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(13) Commission means the Southern Ute Indian Tribal Gaming Commission.

(14) Compact means the Southern Ute Indian Tribe - State of Colorado Gaming

Compact.

(15) Consultant means a person retained by the Southern Ute Indian Tribe as an

independent contractor who is not an employee of the gaming operation.

(16) Division means the Southern Ute Indian Tribal Division of Gaming.

(17) Drop means the total face value of money, chips, coupons and tokens removed

from the drop boxes.

(18) Drop box means a locked container permanently marked with the game, shift

and a number corresponding to a permanent number on the blackjack table. For slot machines, a

container in a locked portion of the machine or its stand used to collect the money and tokens

retained that is not used to make automatic payouts from the machine.

(19) Financial institution means a bank, savings and loan association, credit union,

trust company, or other similar entity chartered by the United States, an Indian tribe, a state, or a

territory or commonwealth of the United States.

(20) Free play in relation to promotional items, means the use of a coupon that is

issued to a patron by an establishment for play for which no bet is required.

(21) Gaming means those gaming activities which are authorized by this Code and

the Class 11 Gaming Code and regulated by the Commission.

(22) Gaming coupon means an encoded credit certificate which, when inserted into a

slot machine, is validated by a computerized system which causes redeemable credits in the face

amount to be placed on the machine. A gaming coupon has no value unless inserted into a slot

machine or redeemed by the gaming operation in any other manner. Gaming Coupon does not

include a marketing or promotional coupon used for gaming purposes which cannot be inserted

into a slot machine.

(23) Gaming device or gaming equipment means any equipment or mechanical,

electromechanical, or electronic contrivance, component, or machine used remotely or directly in

connection with gaming. The term includes a system for processing information which can alter

the normal criteria of random selection, which affects the operation of any game or which

determines the outcome of a game. The term includes a slot machine, blackjack table, the cards

used to play blackjack and a poker table and the cards used for poker, when played as a banking

card game.

(24) Gaming employee means any person employed by the Tribe or management

company of a gaming operation or gaming facility on the Southern Ute Indian Reservation to

work with gaming, which person shall be twenty-one years of age or older. Gaming employees

3
shall include, but shall not be limited to, the following: dealers; change and counting room

personnel; cashiers; floormen; cage personnel; slot machine repairmen or mechanics; persons

who accept or transport revenue from a slot or blackjack table drop or drop box; security

personnel; shift or pit bosses; floor managers; supervisors; slot machine and slot booth personnel;

any person involved in the handling, counting, collecting, or exchanging of money, property,

checks, credit or any representative of value, including any coin, token, chip, cash premium,

merchandise, redeemable game credits, or any other thing of value or payoff from any game, any

gaming, or any gaming device; and such other persons as the Commission shall by rule or

regulation determine.

(25) Gaming facility means the buildings, rooms or areas in which gaming is

conducted, and any other place or location on Indian lands where the Tribe allows gaming or

elects to allow gaming.

(26) Gaming license means any license issued by the Commission pursuant to this

Code which authorizes any person to engage in gaming within the Southern Ute Indian

Reservation.

(27) Gaming operation means any enterprise operated on the Southern Ute Indian

Reservation for the conduct of any form of Tribal gaming.

(28) Gaming-related contract means an agreement under which a person does

business with a gaming operation licensed under this Code.

(29) Gaming services contract means an agreement for the providing of any goods or

services to be used directly in connection with the operation of gaming, including equipment,

maintenance or security services.

(30) Gaming station means an individual gaming table.

(31) Hopper ticket means an encoded credit ticket produced by a slot machine ticket

printer system when cashing out redeemable credits.

(32) House banked game means any game of chance that is played with the house as

a participant in the game, where the house takes on all players, collects from all losers, and pays

all winners, and the house can win.

(33) Immediate family means a persons spouse, children, brother, sister and/or

parent residing in the same household.

(34) Imprest bank means an area in which a predetermined dollar amount of chips,

tokens, or cash are kept by the licensee.

(35) Internal Control Minimum Procedures(ICMP s) means detailed procedural

controls designed to protect the assets of the gaming operation, ensure the accuracy and

reliability of accounting records, and protect the integrity of gaming.

4
(36) Jackpot verification mode means the period of time between the progressive

jackpot activation of a progressive slot machine and the resetting of the device which caused its

activation.

(37) Key employee means (a) an employee of a gaming operation defined as a key

employee in the IGRA or subsequent legislation, including federal regulations pertaining to

gaming; and (b) any other person so designated by the Division.

(38) Key licensee means an employee of the gaming operation who has the power to

exercise significant influence over decisions concerning the gaming operation.

(39) Licensed gaming facility means any facility licensed pursuant to this Code for

the conduct of gaming.

(40) Licensee means any person licensed under this Code.

(41) Licensing authority means the Commission.

(42) Link means one or more progressive slot machines that are connected to a

progressive controller and that may be played in order to achieve the stated progressive amount.

(43) Local law enforcement agency means any federal, tribal or state law

enforcement agencies in the immediate vicinity of the gaming operation and which have

jurisdiction to enforce federal, tribal or state laws within the Southern IJte Indian Reservation, or

are subject to the terms of a cross-deputization agreement.

(44) Management company means any person that has entered into, or proposes to

enter into, a management contract with the Tribe for the operation and management of some or

all gaming.

(45) Matched play, in relation to promotional items, means the use of a coupon that

is issued to a patron by a gaming operation for play that must be accompanied by a bet.

(46) Moral turpitude means an act done contrary to honesty and good morals.

(47) Net revenues means the gross gaming revenues of a gaming operation less

amounts paid out as, or paid for, prizes and total gaming-related operating expenses, excluding

management fees.

(48) Normal mode means the mode of a slot machine at all times other than when it

is in the jackpot verification mode.

(49) Operator licensee means the management company, which manages a tribal

gaming operation pursuant to a management contract approved by the Southern Ute Indian Tribe

and the National Indian Gaming Commission (NbC), or a successor federal regulatory

authority, and which holds an operator license.

5
(50) Past-Posting means the act of making a wager on an event after the outcome has

already been determined. This is most commonly used to refer to the act of making a wager on a

sporting event or other such event after the event has already occurred, or of making a wager on

an event after it has already started (such as to make a wager on a football game or horse race

after it has already begun).

(51) Person means an individual, partnership, business trust, government or

governmental subdivision or agency, estate, association, trust, for profit corporation, nonprofit

corporation, organization, or any other legal entity or a manager, agent, servant, officer or

employee thereof.

(52) Pinching a Bet means the act of decreasing a bet after the outcome of the event

or the probable outcome of an event can be determined. This is the opposite of pressing a bet

and usually refers to the act of removing part of a bet on a game such as blackjack, so as to

decrease a players loss, when it appears likely that the players wager will probably lose.

(53) Pressing a Bet means the act of increasing a bet after the outcome of the event

has been determined, or after the event has already begun. This is most commonly used to refer

to the act of increasing a bet on a game such as blackjack after the cards have already been dealt,

and the probable outcome, such as the strength of the hand, can be judged.

(54) Primary management official means:

(a) The general manager or a person having management responsibility for a

management contract; or

(b) Any person who has authority:

(i) To hire and fire employees; or

(ii) To set up working policy for a gaming operation; and

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

responsibility.

(55) Progressive controller means the hardware and software that controls all

communications among the machines within a progressive slot machine link and its associated

progressive meter.

(56) Reservation means the Southern Ute Indian Reservation as defined in Pub. Law

98-290.

(57) Slot machine means any mechanical, electrical, video, electronic, or other

device, contrivance or machine which, after insertion of a coin, token, or similar object, or upon

payment of any required consideration by a player, is available to be played or operated, and

which, whether by reason of the skill of the player or application of the element of chance, or

6
both, may deliver or entitle the player operating the machine to receive cash premiums,

merchandise, tokens or redeemable free games, whether the payoff is made automatically from

the machine or in any other manner.

(58) SEot machine malfunction means a slot machine, in an active and valid play

mode, which fails to automatically respond correctly or to meet the standards required by the

Gaming Devices Regulations, whether or not due to software failures, hardware failures, human

errors, human intervention or other causes.

(59) Slot machine manufacturer means any person who designs, assembles,

fabricates, produces, constructs or otherwise prepares a complete or component part of a slot

machine, other than tables or cabinetry; slot machine manufacturer does not include licensees

performing incidental repairs on machines owned by the Tribe.

(60) Substantial interest means the lesser of: as large an interest in a corporation,

partnership, or association as that of any other shareholder, partner, or principal; or any financial

or equity interest equal to or greater than five percent.

(61) Suitability or suitable means, in relation to a person, the ability to be licensed

by the Commission and, in relation to acts or practices, lawful acts or practices.

(62) Support licensee means a gaming employee licensed by the Commission other

than operator licensees and key licensees.

(63) Token means a metal, paper or other approved material representative of value,

redeemable for cash, issued and sold for use in gaming.

(64) Tribal Council means the Tribal Council of the Southern Ute Indian Tribe of the

Southern Ute indian Reservation.

(65) Tribe means the Southern Ute Indian Tribe.

(66) Tribes building official means the person designated by the Tribe to enforce

building codes.

(67) Tribes fire official means the person designated by the Tribe to enforce fire

safety codes.

(68) Vendor means a person who supplies any goods or services that are used in

conjunction with any gaming operation.

(69) Wager means a sum of money or thing of value risked on an uncertain

occurrence.

16-1-104. Construction Nothing contained in this Code shall be so construed as to

conflict with any provision of the Compact or any applicable federal law.

7
16-1-105. Authorized Games Gaming permitted pursuant to this Code shall include

all games that are authorized by federal law to be conducted on the Reservation, including but

not limited to: blackjack, horse racing, dog racing, off-track betting, keno, lottery, poker (as a

banking card game), sports book, craps, roulette and slot machines. All such games shall be

conducted by licensees only in accordance with this Code. Pending the outcome of the litigation

concerning the types of games which are contemplated in the Compact, the types of authorized

games pursuant to this Code shall be limited to those provided for in the Compact.

16-1-106. Unauthorized Games No licensee shall conduct or permit on its licensed

premises any wagering or gambling, except gaming which is conducted according to this Code or

the Class II Gaming Code.

16-1-107. Proprietary Interest The Tribe shall have the sole proprietary interest and

responsibility for the conduct of gaming on the Reservation or on Indian lands, as defined by the

Act.

16-1-108. Gaming Authorization -

Regulation Gaming is hereby authorized and

may be operated and maintained subject to the provisions of this Code. All gaming authorized

by this Code shall be regulated by the Commission.

16-1-109. Enforcement It shall be the duty of the Division to enforce the provisions

of this Code, which may be accomplished with the cooperation of other law enforcement

agencies.

16-1-110. Severability If any provision of this Code may be found unlawful, it shall

not be considered to invalidate any of the other provisions of this Code.

16-1-11 1. Effective Date The effective date of this Code shall be the first day

following its approval by the Tribal Council and the NIGC or a successor federal regulatory

authority.

16-1-112. Repeal Upon the effective date of this Code, any previously enacted

Class III Gaming Codes shall be deemed repealed and re-enacted as contained or modified in this

Code.

ARTICLE 2.

DIVISION OF GAMING

16-2-101. Division of Gaming -

Creation There is hereby created the Division of

Gaming, the head of which shall be the director of the Division, who shall be hired in accordance

with the Personnel Policies and Procedures of the Tribe. Notwithstanding any such

administrative relationship to the Tribe, the Division, the Commission and the director of the

Division shall exercise their respective powers and perform their respective duties and functions

as specified in this Code.

8
16-2-102. Function of Division The primary function of the Division is to

implement, regulate and supervise the conduct of gaming on the Reservation as authorized by

this Code, the Class II Gaming Code, the Compact, the ICMPs, and the rules and regulations

of individual games. Additionally, at the direction of the Tribal Council, the Division oversees

the management activities of the operator licensee and/or primary management officials on an

ongoing basis to ensure compliance with the requirements of this Code.

16-2-103. Director -

Qualifications -

Powers and Duties The director shall be

qualified by training and experience to direct the work of the Division. The director shall be

subject to the same suitability criteria as a key licensee. The director shall not be engaged in any

other profession or occupation that could present a conflict of interest with the directors duties.

The director, as administrative head of the Division, shall direct and supervise its administrative

and technical activities, including the following:

(1) To supervise and administer the operation of the Division in accordance with the

provisions of this Code and the orders of the Commission.

(2) To attend meetings of the Commission or to appoint a designee to attend in the

directors place;

(3) Subject to the approval of the Tribal Council and in accordance with Tribal

Personnel Policies and Procedures, to employ and direct such personnel as may be necessary to

carry out the purposes of this Code, but no person shall be employed who would be denied a

license under the disqualification criteria of this Code. The director, with the approval of the

Tribal Council, may enter into agreements to secure services which the director deems necessary

and to provide for the payment for such services.

(4) To make available for inspection by the Commission or any member of the

Commission, upon request, all books, records, files and other information and documents kept by

the Division.

(5) To advise the Commission and recommend to the Commission rules, regulations,

amendments to this Code, and such other procedures as the director deems necessary to improve

the operation of the Division and the conduct of gaming.

(6) To establish ICMPs for licensees, including accounting and reporting procedures.

(7) To take any other lawful action which the Commission may direct in order to

carry out the purposes and provisions of this Code.

16-2-104. Investigator Qualifications Investigators shall be of good moral character,

shall meet all qualifications of a certified peace officer, and shall be subject to the suitability

criteria of a key licensee. In addition, they must be at least 21 years of age and not be involved in

any activity which could present a conflict of interest.

9
16-2-105. Investigator - Peace Officers

(1) All investigators of the Division shall have all the powers of any peace officer, as

defined in the Southern Ute Indian Tribal Code, to:

(a) Make arrests for any violation of the provisions of this Code, the orders of

the Commission made pursuant to this Code, any other laws or regulations pertaining to

the conduct of gaming, or any criminal law of the Tribe, if, during an investigators

exercise of powers or performance of duties under this section, probable cause is

established that a violation of any said law or order has occurred.

(b) Inspect, examine, investigate, hold or impound any premises where

gaming is conducted, any devices or equipment designed for or used in gaming, and any

books and records in any way coimected with any gaming activity.

(c) Require any person licensed pursuant to this Code, upon demand, to

permit inspection of the licensed premises, gaming equipment and devices, or books or

records; and to permit the testing and the seizure for testing for examination purposes of

all such devices, equipment, books and records.

(d) Serve all warrants, notices, summonses or other processes relating to the

regulation of gaming.

(e) Inspect and examine without notice all premises where gaming is

conducted or devices or equipment used in gaming are located, manufactured, sold or

distributed, and to summarily seize, remove and impound from such premises, without

notice or hearing, any equipment, devices, supplies, books or records for the purpose of

examination or inspection.

(f) Conduct investigations into the character, record and reputation of all

applicants for gaming licenses, all licensees and such other persons as the Commission

may determine pertaining to gaming.

(g) Investigate violations of all laws, regulations and rules of individual games

pertaining to gaming, including ICMPs.

(h) Assist or aid any other peace officer in the performance of his duties upon

request.

(2) Criminal violations of this Code discovered during an authorized investigation or

discovered by the Division may be referred to the appropriate law enforcement and prosecution

authorities.

(3) Nothing in this section shall be construed to prohibit other law enforcement

agencies having jurisdiction, or other personnel of the Division, from performing their duties to

the full extent permitted by law.

10
16-2-106. Division of Gaming - Access to Records The Division, for purposes of

this Code, shall have full authority to procure, at the expense of the Division, any records

furnished to or maintained by any entity for the purposes of carlying out its responsibilities

pursuant to this Code.

ARTICLE 3

SOUTHERN UTE INDIAN TRIBAL GAMING COMMISSION

16-3-101. Gaming Commission -

Appointment and Terms The Commission shall

consist of five members appointed by the Tribal Council for staggered three-year terms;

provided, however, that each member shall serve until reappointed or a successor is appointed.

16-3-102. Commission Member Oualifications Members of the Commission shall

be of good character and shall be subject to the same suitability criteria as a key licensee. In

addition, members must meet the following specific qualifications:

(1) Be at least 21 years of age.

(2) Possess a basic knowledge and understanding of gaming activities authorized on

the Southern Ute Indian Reservation.

(3) Have regulatory experience or expertise in regulatory matters, or in administrative

hearing procedures.

(4) Have the ability to observe restrictions concerning conflict of interest and

confidentiality.

16-3-103. Removal A Commission member may be removed by a majority vote of

the Tribal Council for neglect of duty, failure to attend meetings, failure to maintain eligibility

requirements or other good cause demonstrating a members unfitness for continued

membership.

16-3-104. Powers and Duties In addition to any other powers and duties set forth in

this Code, the Commission shall have the following powers and duties:

(1) To adopt rules and regulations governing the licensing, conducting and

operating of gaming as it deems necessary to carry out the purposes of this Code.

(2) To conduct hearings upon complaints charging violations of this Code.

(3) To formulate and recommend changes to this Code for the purpose of

preventing abuses and violations; and ensuring proper administration of this Code.

(4) To issue temporary, permanent and/or conditional licenses to those

involved in the conduct of gaming.

11
(5;) To levy fines and to suspend or revoke gaming licenses.

(6;) To establish and collect gaming fees and collect any gaming taxes.

(7) To obtain all information from licensees and other persons which the

Commission deems necessary.

(8) To issue subpoenas for the appearance of persons, or the production of

records and other evidence, in connection with applications before the Commission or in

connection with other matters under consideration by the Commission.

(9) To apply for injunctive or declaratory relief to enforce the provisions of

this Code and Tribal gaming rules and regulations.

(10) To demand access to and inspection, examination, photocopying and

auditing of all papers, books and records of applicants and licensees, on the licensed

premises or elsewhere, pertaining to the gaming operation and to require verification of

income, expenses and all other matters affecting the enforcement of the policies of the

Commission or any provision of this Code; and to impound and remove all papers, books

and records of applicants and licensees for inspection or examination.

(11) To promulgate tribal gaming regulations.

(12) To approve specific rules for Class III games.

(13) To issue licenses to each place, facility, or location where the Tribe allows

gaming or elects to allow gaming.

(14) To ensure that the Tribe constructs, maintains and operates gaming

facilities in a manner that adequately protects the environment and the public health and

safety.

(15) To obtain annual independent outside audits and submit these audits as

required by federal law.

(16) To ensure that net revenues from gaming are used for the limited purposes

set forth in this Code and federal law.

(17) To resolve patron disputes pursuant to this Code.

(18) To exercise such other incidental powers as may be necessary to ensure the

proper regulation of tribal gaming.

16-3-105. Delegation The Commission shall delegate to the Division the authority

for the following:

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(1) To issue temporary licenses.

(2) To issue gaming-related staff licenses.

(3) To conduct criminal investigations and law enforcement oversight relating to

violations of this Code.

(4) To inspect or examine the licensed premises, equipment, books, records or other

written material maintained in accordance with this Code.

(5) To develop and collect information with regard to organized crime, in an effort to

identify criminal elements or enterprises which might infiltrate and influence gaming, in

cooperation with other law enforcement organizations, and report such information to

appropriate law enforcement organizations and the Commission.

(6) To prepare reports concerning any activities in, or movements into, the

Reservation of organized crime for use by the Commission in their efforts to prevent and thwart

criminal elements or enterprises from infiltrating or influencing tribal gaming.

16-3-106. Commission Meetings

(1) Three members of the Commission shall constitute a quorum for taking official

action.

(2) The Commission may hold executive or closed meetings for any of the following

purposes:

(a) Considering applications for licensing when discussing background

investigations or personal information;

(b) Meeting with gaming officials of other jurisdictions or law enforcement

officials in connection with possible criminal violations;

(c) Consulting with employees or agents of the Tribe concerning possible

criminal violations or any security issues;

(d) Deliberations after hearing evidence in an informal consultation or in a

contested case;

(e) Considering information deemed confidential or proprietary.

(3) Any meeting of the Commission may be recessed to consider matters which were

duly noticed as items on the agenda of that meeting to such time and place as the Commission

may designate. Notice of a recessed meeting to consider matters which were duly noticed as

items on the agenda may be given by announcement at the meeting.

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16-3-107. Communications -

Privileged and Confidential Communications among

the Commission and within the Division relating to licensing, disciplining of licensees, or

violations by licensees are privileged and confidential, if made lawfully and in the course of or in

furtherance of the business of the Commission. The Commission or the Division may claim this

privilege.

16-3-108. Appointment of Task Forces

(1) The Commission may appoint task forces to study and report to the Commission

any matter appropriate to the administration of this Code.

(2) The Commission may delegate any act required to be performed by the

Commission to the director of the Division.

ARTICLE 4.

CONFLICT OF INTEREST

16-4-101. Conflict of Interest

(1) Members of the Tribal Council, members of the Commission, and employees of

the Division are declared to be in positions of public trust. In order to ensure confidence in the

integrity of gaming, the following restrictions shall apply:

(a) No member of the Tribal Council, member of the Commission or

employee of the Division, and no member of the immediate family of such persons, as

defined in this Code, shall have a direct or indirect interest in, or be employed by, any

person who has entered into a gaming-related contract with the Tribe, who is an operator

licensee or who is licensed as a vendor.

(b) No member of the Tribal Council, member of the Commission or

employee of the Division, and no member of the immediate family of such persons, as

defined in this Code, shall receive any gift, gratuity, employment or other thing of value

from any person that contracts with or that offers services, supplies, materials or

equipment used by the Tribe in the normal course of its gaming operations, or which is

licensed by the Commission; except that persons may accept on an infrequent basis, in the

normal course of business, nonpecuniary items of insignificant value.

(c) No member of the Tribal Council, member of the Commission or

employee of the Division shall participate in gaming on the Reservation.

(d) No member of the Commission may vote on licensing/hearing/disciplinary

matters involving a member of their immediate family.

14
(e) No member of the Tribal Council, member of the Commission or

employee of the Division shall participate in any promotional activities, such as player

tracking systems or drawings for prizes sponsored by the gaming operation.

(2) For purposes of investigating violations of this Code, the provisions of paragraphs

(b) and (c) of subsection (1) of this section shall not apply to an employee of the Division acting

in his official capacity while on duty.

16-4-102. Financial Interest Restrictions

(1) No vendor shall:

(a) Have any interest, directly or indirectly, in an operator licensee;

(b) Allow any of its officers, or any other person with a substantial interest in

such business, to have any interest in an operator licensee;

(c) Employ any person in any capacity or allow any person to represent the

business in any way, if such person is also employed by an operator licensee; or

(d) Allow any operator licensee or any primary management official to have

an interest, directly or indirectly, in the business.

(2) The word interest includes stock or other type of ownership, as well as leases.

joint ventures and other business relationships.

16-4-103. Persons Prohibited from Interest in Gaming

None of the following persons shall have any direct interest in any management contract

or management company:

(a) Officers, agents or employees of any law enforcement agency of the Tribe;

(b) Employees of the Division;

(c) Tribal judges; and

(d) Elected officials of the Tribe;

(e) Gaming Commission members.

ARTICLE 5

LICENSING

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16-5-101. Licenses The Commission may issue gaming and gaming related licenses

to include the following:

(1) Gaming Licenses.

(a) Slot Machine Manufacturer or Distributor License A slot machine

manufacturer or distributor license is required for all persons who import, manufacture or

distribute slot machines, or who otherwise act as a slot machine manufacturer or

distributor.

(b) Operator License An operator license is required for all persons who

engage in the business of managing a tribal gaming operation pursuant to a management

contract approved by the Tribe and the NIGC, or a successor federal regulatory authority.

(c) Support License A support license is required for all gaming employees;

however, key licensees need not obtain support licenses.

(d) Key License A key license is required for all gaming employees who

have the power to exercise significant influence over decisions concerning the gaming

operation.

(e) Facility License A facility license is required for each separate gaming

facility located on the Reservation and must be issued by the Commission before gaming

may take place thereon.

(2) Gaming Related Licenses.

(a) Vendor License A vendor license shall be required for persons supplying

goods, equipment or services, except accounting and legal services, to the gaming

operation, who are not otherwise required to have a gaming license.

(b) Consultant License A consultant license is required for any consultant

who has access to restricted areas of the gaming facility or to confidential information

belonging to the gaming operation, except for persons licensed by the Colorado Division

of Gaming.

(c) Staff License A staff license is required of all employees of a gaming

operation, including those employed in non-gaming areas who are not otherwise required

to have a support or key license.

16-5-102. Gaming License Term Each gaming license issued pursuant to this Code,

with the exception of a temporary license, shall expire one year from the date of its issuance, but

may be renewed upon the filing and approval of an application for renewal.

16-5-103. Gaming Related License Terms

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(1) Vendor License Each vendor license shall expire one year from the date of its

issuance, but may be renewed upon the filing and approval of an application for renewal.

(2) Consultant License A consultant license may be issued for any term dependent

on the scope of work required and the access needed; however, no consultant license shall be

valid in excess of one year. Consultant licenses may be renewed upon the filing and approval of

an application for renewal.

(3) Staff License A staff license shall not expire but shall be void upon separation

from employment with the gaming operation.

16-5-104. Key Licensee - Determination of Status If, in the determination of the

Commission, an employee is performing key licensee functions and as such is subject to key

licensing requirements, the Commission shall serve notice of such determination upon the

employee. In determining whether or not an employee is subject to key licensee requirements,

the Commission is not restricted by the title of the job performed by such employee but may

consider the functions and responsibilities of such employee in making its decision. The

employee shall, within 30 days following receipt of the notice of the Commissions

determination, present the application for a key license. Failure of the employee to respond as

required by this section is grounds for disciplinary action. A person subject to application for key

licensing may make a written request to the Commission to review its determination of such

persons status within the gaming operation. If the Commission determines that the person does

not require a key license, such person shall be allowed to withdraw his application.

16-5-105. Suppliers and Vendors on a Percentage Basis - Licensure Requirements

(1) Except as otherwise provided in subsection (2) of this section, any person

supplying goods, equipment, devices or services to a gaming operation in return for payment of

a percentage, or calculated upon a percentage, of gaming activity or income must obtain an

operator license.

(2) A licensed slot machine manufacturer or distributor need not obtain an operators

license for purposes of establishing and administering a fund associated with a multiple-property,

linked, progressive slot machine system as defined by the Code, so long as all of the following

conditions are met:

(a) The manufacturer or distributor shall deposit in the fund and shall account,

subject to supervision by the Division, for those monies derived from wagering in

machines linked to the system which are due to the manufacturer or distributor pursuant

to its agreement with the gaming operation.

(b) The manufacturer or distributor shall maintain a separate account for the

fund associated with each progressive system.

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(c) The manufacturer or distributor shall retain as compensation only a flat,

predetermined fee per machine. Operating costs of the system, including payment of

prizes, may be disbursed from the fund.

(d) Machines linked to the system shall be placed only in licensed premises.

16-5-106. Temporary Licenses

(1) The Division may issue temporary licenses with respect to all types of licenses

authorized under this Code.

(2) A temporary license may only be issued where the Division is satisfied that the

investigation of the applicant conducted thus far, and the application in its entirety, indicate that

the applicant meets all the requirements of this Code; meets all the requirements contained in the

Compact; does not present any danger to the public or to the reputation of gaming; further

investigation most likely will not uncover any derogatory information about the applicant; and

issuance of a temporary license is of economic necessity to the gaming operation. The temporary

license shall become void upon the issuance of a regular license, upon notice of

recommendation of denial or upon separation from employment with the gaming operation.

(3) The Division may require the surrender of any temporary license issued pursuant

to this Code, if the Division discovers any information which would preclude the issuance of a

license or if an applicant fails to supply information, documentation or assurances, as required, in

a timely manner.

16-5-107. Conditional Gaming Licenses The Commission may issue conditional

gaming licenses with respect to all types of gaming licenses authorized under this Code.

16-5-108. Qualifications for Licensure Prior to a persons licensure, such person

shall, in addition to meeting any other requirements imposed by this Code or the Commission,

show that he is of good moral character. An applicant for a license has the burden of proving his

qualifications to the satisfaction of the Commission.

16-5-109. Considerations for Licensure In considering whether a person is of good

moral character for purposes of issuing any license, or for any other purposes, the Commission

may, in addition to all other information, consider whether that person:

(1) Has been denied a gaming license by any jurisdiction;

(2) Has ever had a gaming license suspended or revoked in this or any other

jurisdiction; or

(3) Has ever withdrawn an application for any type of gaming license anywhere and

the reasons for such withdrawal.

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16-5-1 10. Licenses - Revocable - Nontransferable Every license issued pursuant to

this Code is revocable and nontransferable. No licensee acquires any vested interest or property

right in a license. The revocable privilege for any license issued or other approval granted is

conditioned upon the proper and continuing qualification of the licensee and upon the discharge

of the affirmative responsibility of each licensee to provide to the regulatory, investigatory and

law enforcement authorities any assistance and information necessary to assure that the policies

and requirements of this Code are achieved.

16-5-111. Gaming Facility - Floor Plan

(1) For purposes of this section, floor plan means a physical layout of the inside of

the building in which gaming will take place, which shall show the location of the gaming

devices within the facility and the closed circuit television system for surveillance of the gaming

facility. The floor plan is subject to approval of the Commission and those standards pertaining

to the public health, safety, and general welfare of the Tribe. All gaming devices shall be located

within the licensed premises.

(2) Within the gaming facility, an operator licensee or primary management official

has the discretion to arrange gaming equipment or devices upon notice to the Division; provided,

however, their arrangement does not interfere with the approved floor plan or affect adequate

surveillance.

16-5-1 12. Gaming Facilities -

Health and Safety Standards

(1) The Tribe shall construct, maintain and operate all gaming facilities in a manner

which adequately protects the environment and the public health and safety.

(2) The gaming facility shall meet safety standards and conditions for the protection

of life and property as determined by the Tribes fire official and the Tribes building official. In

making such determinations, the following uniform codes are hereby adopted by the Tribe as

minimum safety standards for gaming facilities:

(a) The Uniform Building Code, 1988 edition; and

(b) The Uniform Fire Code, 1988 edition.

(3) A report evidencing compliance shall be issued annually by the Tribes fire and

building officials to the Division.

(4) In advance of any structural or significant change to a gaming facility, the plans

for such change shall be submitted to the Tribes fire official and the Tribes building official for

their review. No changes may be made to a gaming facility until the plans are approved by the

Tribes fire official, the Tribes building official and the Commission.

(5) All gaming facilities shall be accessible to and functional for the physically

handicapped.

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16-5-113. Gaming License Disqualification Criteria The Commission shall deny a

gaming license to any applicant who is disqualified for licensure on the basis of any of the

following criteria:

(I) Failure of the applicant to prove by clear and convincing evidence that the

applicant is qualified in accordance with the provisions of this Code;

(2) Failure of the applicant to provide information, documentation and

assurances required by this Code or requested by the Commission;

(3) Failure of the applicant to reveal any fact material to qualification, or the

supplying of information which is untrue or misleading as to a material fact pertaining to

the qualification criteria; or

(4) Conviction of the applicant, or any of its primary officers or directors, or

any of its general partners, or any of its stockholders, limited partners, or other persons

having a financial or equity interest of five percent or greater in the applicant, of any of

the following:

(a) A gaming-related felony;

(b) A felony involving fraud, misrepresentation or theft by deception;

(c) Any felony within 10 years prior to the date of the application;

(d) A gaming-related misdemeanor offense within 10 years prior to the

date of the application; or

(e) Any misdemeanor involving fraud, misrepresentation or theft by

deception within ten years prior to the date of the application.

(5) Current prosecution or pending charges in any jurisdiction against the

applicant, or against any person listed in paragraph (4) of this section, for any of the

offenses enumerated; except that, at the request of the applicant or the person charged, the

Commission may defer decision upon such application during the pendency of any

prosecution.

(6) The identification of the applicant or any person listed in paragraph (4) of

this section as a career offender or a member of a career offender cartel or an associate of

a career offender or a career offender cartel in a manner which creates a reasonable belief

that the applicants association would pose a risk to the integrity of the gaming operation.

(7) Refusal to cooperate by the applicant with any investigatory body of any

Indian tribe, state or of the United States, when such body is engaged in the investigation

of crimes relating to gaming, official corruption or organized crime activity.

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16-5-1 14. Gaming Related License Disqualification Criteria

(1) The Division shall deny a gaming related license to any applicant whose

background reveals a criminal conviction for an offense which bears upon the applicants

suitability for a specific position or for access to restricted areas or confidential information.

(2) The Division shall deny a gaming related license to any applicant whose financial

background investigation reveals information which bears upon the applicants suitability as a

vendor, for a specific position or for access to restricted areas or confidential information.

16-5-115. Deferred Prosecution, Judgment or Sentence If the prosecution or

judgment and imposition of sentence is deferred by the court in conjunction with criminal

charges, conviction of which would constitute a license disqualification factor under § 16-5-

113(4), the Commission may consider the pertinent circumstances in determining the applicants

suitability for licensing. The Division shall fully investigate such circumstances by conducting,

at a minimum, an interview of the applicant concerning the charges and a full review of the

documentation in the relevant case file, including the arrest reports. A deferred prosecution or

judgment and sentence shall not be considered pending charges for the purpose of determining

suitability for a gaming license.

16-5-1 16. Applicants and Licensees -

Providing Information

(1) All applicants for licenses issued by the Commission and all licensees, including

all persons interested, directly or indirectly, in the gaming operation or license held by an

applicant or licensee, shall upon request by the Division provide fingerprints and handwriting

exemplars, and each such person shall allow himself or herself to be photographed in accordance

with procedures established by the Division.

(2) Upon issuance of a formal request or subpoena by the Commission to answer or

produce information, evidence or testimony, each applicant and licensee shall comply with the

request or subpoena. Where an applicant or licensee, or any person interested, directly or

indirectly in either, refuses or fails to comply with a Commission request or subpoena, then that

persons license or application may be suspended, revoked or denied, based solely upon such

failure or refusal.

(3) Failure to provide information requested by the Division within 10 days after the

request has been made may result in a recommendation of denial, based on the disqualification

criteria.

(4) An applicant may claim any right or privilege afforded by the Indian Civil Rights

Act, 25 U.S.C. §~ 1301-1341, the Constitution of the United States, or of the Tribe in refusing to

answer questions by the Commission. However, such a claim of privilege with respect to any

testimony or evidence pertaining to an application may constitute sufficient grounds for denial.

16-5-117. Gaming Related License Applications and Investigations for Licensure

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(1) An applicant for a vendor license must apply to the Division for licensure when

the dollar amount of business conducted annually with the gaming operation meets the level

required for licensure. The information required on the application and the level of investigation

conducted shall be dependent on the level of business with the gaming operation.

(2) An applicant for a consultant license must apply to the Division for licensure prior

to doing business with the gaming operation. The information required on the application and

the level of investigation conducted shall be dependent upon the nature and level of access.

(3) An applicant for a staff license must apply to the Division for licensure

immediately upon hiring by the gaming operation. The information required on the application

and the level of investigation conducted shall be dependent on the position applied for; however,

the level of investigation conducted shall include, at a minimum, a criminal history check and a

wants and warrants check.

16-5-118. License Fees The Commission may establish investigation and

application fees for the purpose of paying for the administrative costs of the Commission and

Division and for paying for any background investigations of applicants and others. These fees

may vary depending on the type of application, the complexity of the investigation, or the costs

of the Division. The fee for the initial license and all renewals thereof shall be determined by

the Commission.

16-5-119. Application - Authorization for Background Investigation -Waiver of

Confidentiality

(1) By signing and filing an application for a license, which is subject to applicable

perjury laws, the applicant authorizes the Division to obtain information from any source, public

or private, in this or any other jurisdiction, regarding the background or conduct of the applicant,

and, if the applicant is a partnership or corporation, any of its shareholders, officers, directors,

partners, agents or employees.

(2) The application form approved by the Commission shall include a waiver of any

right of confidentiality and a provision which allows the information contained in the application

to be accessible to the Tribe, the State of Colorado, the United States, and the NIGC or a

successor federal regulatory authority. The waiver of confidentiality shall extend to any financial

or personal record, wherever maintained.

16-5-120 Waiver of Liability - Disclosures or Publications All applicants and

licensees shall waive liability as to the Tribe, its instrumentalities, employees and agents for any

damages resulting from any disclosure or publication in any manner, other than a willfully

unlawful disclosure or publication, of any material or information acquired during inquiries,

investigations or hearings.

16-5-121. Confidentiality of Records

22
(I) Information and records of the Commission and the Division, listed below, are

confidential and may not be disclosed except pursuant to an order of a court of competent

jurisdiction, an order from the Commission, or a request from the Colorado Division of Gaming,

the NIGC or a successor federal regulatory authority. No person may by subpoena, discovery or

statutory authority obtain such information or records. Information and records considered

confidential include:

(a) Tax returns;

(b) Credit reports;

(c) Audit work papers, worksheets and auditing procedures used by the Tribe,

its agents or employees; and

(d) Investigative reports concerning violations of law or concerning the

backgrounds of licensees, applicants or other persons, prepared by tribal investigators or

investigators from other agencies working with the Division, and any work papers related

to such reports; except that the Commission or Division may in its sole discretion

disclose so much of said reports or work papers, as it deems necessary and prudent, to

authorized persons showing a legitimate need for the information.

(2) This section does not apply to requests for such information or records from any

tribal, federal or state law enforcement agency, or for the use of such information or records by

the Commission or Division for official purposes, or by employees of the Division in the

performance of their authorized and official duties.

16-5-122. Renewal of Licenses

(1) Subject to the power of the Commission to deny, revoke or suspend licenses, any

license in force shall be renewed by the Commission for the next succeeding license period upon

proper application for renewal and payment of license fees as required. The license period for a

renewed license shall be one year. The Commission shall act upon any such application prior to

the date of expiration of the current license. In addition, the Commission shall reopen licensing

hearings at any time upon request of the Division.

(2) An application for renewal of a license shall be filed with the Division no later

than 60 days prior to the expiration of the current license, and all license fees as required shall be

paid to the Division on or before the date of expiration of the current license.

(3) Upon approval of the renewal of any license by the Commission, the Division

shall issue a new license.

(4) Renewal of a license may be denied by the Commission for any violation of this

Code or of applicable gaming regulations, for any reason which would or could have prevented

its original issuance, or for any good cause shown.

23
16-5-123. Duplicate Licenses Upon the loss, mutilation or destruction of any license

issued, application for a duplicate must be made on a form provided by the Division. A

statement signed by the licensee which details the circumstances under which the license was

lost, mutilated or destroyed and certifies that such license was, in fact, lost, mutilated or

destroyed shall accompany such application. A mutilated license shall be surrendered to the

Division upon issuance of a duplicate license. A lost license, when found, must be immediately

surrendered to the Division.

16-5-124. Reapplication Any applicant, including a person who has an ownership

interest of five percent or more in any management contract:

(1) Whose application has been denied by the Commission may not reapply for

licensure until at least one year from the date of denial;

(2) Who has been denied a license for a second time may not reapply until at least

three years from the date of the second denial.

(3) Whose request to withdraw an application has been granted may not reapply for

licensing until at least one (1) year from the date of such withdrawal.

16-5-125. Appeal of Final Action of Commission Any person aggrieved by a final

action of the Commission may appeal the final action to the Southern Ute Indian Tribal Court.

ARTICLE 6

GAMING LICENSE APPLICATIONS, INVESTIGATIONS AND LICENSURE

16-6-101. QuaEifications for Licensure To qualify for a gaming license an applicant

must:

(1) Beat least 21 years of age;

(2) Possess a suitable character as determined by the Commission; and

(3) If for a facility, the premises to be used for gaming must be deemed suitable by

the Commission and must satisfy all health and safety requirements; and

(4) Comply with all specific laws, rules and regulations pertaining to gaming on the

Reservation.

16-6-102. Gaming License Applications

(1) An applicant for any type of license must apply on forms provided by the

Division.

24
(2) Except for facility license applicants, the Division shall require, at a minimum, the

following information from a gaming license applicant:

(a) Full name, other names used (oral or written), social security number(s),

birth date, place of birth, citizenship, gender, and all languages (spoken or written);

(b) Currently and for the previous 5 years: business and employment

positions held, ownership interests in those businesses, business and residence addresses,

and drivers license numbers;

(c) The names and addresses of at least three personal references, including

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

residence listed under the above subsection (b);

(d) Current business and residence telephone numbers;

(e) A description of any existing and previous business relationships with

Indian tribes, including ownership interests in those businesses;

(f) A description of any existing and previous business relationships with the

gaming industry generally, including ownership interests in those businesses;

(g) 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;

(h) 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 and disposition if

any;

(i) For each misdemeanor conviction or ongoing misdemeanor prosecution

(excluding minor traffic violations), within 10 years of the date of the application and not

otherwise listed above, the criminal charge, the name and address of the court involved

and the date and disposition;

U) For each criminal charge (excluding minor traffic charges), whether or not

there is a conviction, and not otherwise listed above, the criminal charge, the name and

address of the court involved and the date and disposition;

(k) 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;

(I) A current photograph;

25
(m) Any other information that the Tribe deems relevant or that is required by

the Compact; and

(n) Fingerprints consistent with procedures adopted by the Tribe in

accordance with federal law.

(3) The application, in addition to those items in section (2) above, will contain:

(a) A privacy notice as required by federal law; and

(b) A notice regarding false statements as required by federal law.

16-6-103. Gaming Background Investigations - Procedures

(1) Applicants for support licenses and tribal member applicants for key licenses will

be subject to background investigations. The completed application will be forwarded to the

NIGC or a successor federal regulatory authority, if required by federal law. Background

investigations will be processed through the Division and an investigative report will be

generated, which will be sent to the Colorado Division of Gaming, if requested pursuant to the

Compact. The background investigation will include, but not be limited to, the following: a

criminal history and warrants check through the Colorado Crime Information Center/National

Crime Information Center; a fingerprint check, through either the Colorado Bureau of

Investigation or the NIGC or a successor federal regulatory authority and the Federal Bureau of

Investigation; a credit history check, personal reference checks, and past employment

verifications and checks. The investigative report shall include all of the following: the steps

taken in conducting the investigation; the results obtained; the conclusions reached; and the bases

for those conclusions. Upon completion of the background investigation, the Division will

recommend licensing or denial of licensing to the Commission. The licensing decision of the

Commission, along with the investigative report will be forwarded to the NIGC or its successor

federal regulatory authority for review, if required by federal law.

(2) Non-tribal member key license and operator license applicants, including primary

management officials, will have, at a minimum, the same level of background investigation

described above. The Division will then forward a copy of the completed application, together

with the required fee, to the Colorado Division of Gaming, who will conduct any additional

background investigation necessary to determine licensing suitability and eligibility. Upon

receipt of the report from the Colorado Division of Gaming, the Division will recommend

licensing or denial of licensing to the Commission. The licensing decision of the Commission,

along with the investigative report, will be forwarded to NIGC or a successor federal regulatory

authority for review, if required by federal law.

(3) The application forms shall be accompanied and supplemented by such

documents and information as may be required.

(4) If the Commission, in applying the standards adopted in this tribal

26
ordinance, determines that employment of a person poses a threat to the public interest or to the

effective regulation of gaming, or creates or enhances the dangers of unsuitable, unfair, or illegal

practices and methods and activities in the conduct of gaming, a management contractor or

gaming operation shall not employ that person in a key employee or primary management official

position.

(5) if, within 30 days of its receipt of an investigative report, the NIGC notifies

the Commission 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 Commission

has provided an application and investigative report to the NIGC, the Commission may go

forward and issue a license to such applicant.

(6) If, within 30 days of its receipt of an investigative report, the NIGC provides

the Commission with a statement itemizing objections to the issuance of a license to a key

employee or to a primary management official for whom the Commission has provided an

application and investigative report to the NIGC, the Commission shall reconsider the

application, taking into account the objections itemized by the NIGC. The Commission shall

make the final decision whether to issue a license to such applicant.

(7) If, after the issuance of a gaming license, the NIGC receives reliable information

indicating that a key employee or a primary management official is not eligible for employment

as described in paragraph (4) of this part, the NIGC shall so notify the Commission. Upon

receipt of such information described in paragraph (a) above, the Commission shall suspend such

license and shall notify the licensee of the suspension and the proposed revocation in writing.

The Commission shall notify the licensee of a time and place for a hearing on the proposed

revocation of a license. After a revocation hearing, the Commission shall decide to revoke or to

reinstate a gaming license. The Commission shall notify the NIGC of its decision.

(8) For primary management officials and key employees, the Commission shall

retain applications for employment and reports (if any) of background investigations for

inspection by the Chairman of the NIGC for no less than three (3) years from the date of

termination of employment.

16-6-104. Fees.

(1) License Fees A yearly license fee, if required, must accompany an application for

I icen sure.

(2) Application Fees In addition to a yearly license fee, applicants for a slot machine

manufacturer license or an operator license shall pay non-refundable application fees at the time

their applications are first submitted to the Commission.

(3) Investigation Fees

(a) All applicants for licenses shall pay the costs of investigations into their

backgrounds, suitability and qualifications for licensure. The cost of such investigations

27
shall be at the rate established by the Commission. All such applicants shall also pay the

Commission for the following actual costs incurred in conducting the background

investigations: transportation, lodging, meals and document reproduction costs. Before

any such investigations are conducted, each applicant shall pay the required investigation

fee or deposit.

(b) Upon the Commissions approval or denial, or upon withdrawal, of an

application, any deposit balance shall be promptly returned to the applicant.

(c) Where an applicant disputes any investigative charges, or the necessity for

further deposits, the applicant may request a hearing before the Commission regarding the

matters in dispute.

(d) No license shall be issued until payment for the full amount of any

negative deposit balance has been received from the applicant.

16-6-105. Regulation of Ownership Interests The Commission may, in its dis

cretion, require any person having any financial interest in a management contract to undergo a

full background investigation. The Commission may further require the operator licensee to pay

for that background investigation.

16-6-106. Untrue Statements The Commission may revoke or deny a license to an

applicant or licensee who makes deliberate misstatements, deliberate omissions, misrepresenta

tions or untruths in the application or in coimection with the applicants or licensees background

investigation. Such conduct may also form the basis for criminal charges against the applicant or

licensee.

16-6-107. Withdrawal of Application

(1) A request for withdrawal of an application may be made at any time prior to final

action upon the application by the Commission by filing a written request to withdraw the

application with the Commission.

(2) The Commission may, in its discretion, deny the request or grant the request.

16-6-108. Recommendation and Order After completion of its investigation, the

Division will issue a recommendation to the Commission for the approval or denial of the

application. If the Division recommends that an application be denied, the recommendation will

include written reasons upon which the recommendation is based.

16-6-109. Approval The Commission shall approve an application for any license

that meets all requirements imposed by this Code, including payment of all fees and costs.

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ARTICLE 7

RIGHTS AND DUTIES OF OPERATOR LICENSEES

AND PRIMARY MANAGEMENT OFFICIALS

16-7-101. Responsibility of Operator Licensee or Primary Management Official

(1) Responsibility for the employment and maintenance of lawful methods of

operation rests with the operator licensee or primary management official, and willful or

persistent use or toleration of methods of operation considered unlawful by the Commission is

prohibited. Each licensee shall fully and promptly conform to each and every requirement of the

Division or Commission.

(2) Every operator licensee or primary management official shall provide audit and

security measures as prescribed by this Code, ICMPs and federal law. Every operator licensee

or primary management official shall ensure that all slot machines on the licensed premises

comply with the specifications set forth in this Code.

16-7-102. Job Descriptions - List of Personnel Prior to opening for business, an

operator licensee or primary management official must furnish to the Division a written list of all

persons, including birth dates and social security numbers, employed by the gaming operation.

The operator licensee or primary management official must furnish job descriptions of licensees.

Additionally, the operator licensee or primary management official must by the first day of each

month submit changes to its lists of employees and changes to the job descriptions of all

employees who hold support licenses, unless the Division, in writing, demands more frequent

notification or allows less frequent notification.

16-7-103. Information to be Furnished by Licensee

(1) Each operator licensee must report to the Commission at least quarterly the full

name and address of every person, including lending agencies, who has a right to share in the

revenues of gaming, or to whom any interest or share in the profits of gaming has been pledged

as security for a debt or deposited as a security for the performance of an act or to secure the

performance of a contract of sale.

(2) Each operator licensee must immediately report to the Commission the name, date

of birth, and social security number of all persons who obtain an ownership, financial or equity

interest in the management company of five percent or greater, or have the ability to control the

management company, or who have the ability to exercise significant influence over the

management company, or who loan any money or other thing of value to the management

company.

16-7-104. Inspections An operator licensee or primary management official shall

immediately make available for inspection by the Division, upon demand, all papers, books and

records produced, used or kept in connection with gaming, and all portions of the premises where

gaming is conducted or where gaming devices or equipment are kept. Upon demand, employees

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and agents of the Division must be given immediate access to any portion of the gaming facility

for the purpose of inspecting or examining records or documents, gaming devices or equipment,

or the conduct of gaming activity.

16-7-105. Duty to Maintain Records Each operator licensee or primary management

official shall keep a complete set of books of account, correspondence and all other records

necessary to show fully the gaming transactions of the gaming operation, all of which shall be

open at all times during business hours for the inspection and examination of the Division. The

Commission may require any operator licensee or primary management official to furnish such

information as the Commission considers necessary for the proper administration of this Code

and may require an audit to be made of such books of account and records on such occasions as

the Commission considers necessary by an auditor, who shall likewise have access to all such

books and records of the gaming operation, and the operator licensee may be required to pay the

expense thereof.

16-7-106. Employee on Premises When a licensed game or a slot machine is

available for play by the public, each operator licensee or primary management official must have

a key licensee present on the premises to supervise the operation of the game or machine.

16-7-107. Display of License All operator licensees and primary management

officials are required to display the gaming facility license and operator license in a manner

plainly visible to the public.

16-7-108. Chip Reserves An operator licensee or primary management official must

have sufficient numbers of chips to conduct gaming.

16-7-109. Payment of Winners - Reserves An operator licensee or primary

management official shall have available sufficient financial reserves to pay winners of, or

participants in, gaming activities conducted or offered. Payment must be made to winners and

participants by cash or by check drawn upon a bank, or other financial institution, within 24

hours. Any check issued to any winner of gaming must, at the time of issuance and until cashed

or three months has expired (whichever is earlier), be backed by and drawn upon sufficient funds

to cover the full amount of the check.

16-7-1 10. Publication of Payoffs Payoff schedules applicable to every licensed

game or slot machine must be displayed or displayable at all times either on the table or machine

or in a conspicuous place immediately adjacent to it. Payoff schedules must accurately state

actual payoffs applicable to the particular game and may not be worded in a manner which

misleads or deceives the public. Maintenance of misleading or deceptive matter on a payoff

schedule or failure on the part of an operator licensee or primary management official to make

payment in strict accordance with posted payoff schedules is prohibited.

16-7-111. Taxes and Fees Every operator licensee or primary management official

shall ensure the payment of applicable taxes and fees, pursuant to this Code and applicable

federal law. Taxes or fees must be paid in a manner that assures receipt by the due date as

required.

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16-7-1 12. Player Rules An operator licensee or primary management official must

post the following rules for players:

(1) Players and other persons present in the gaming area must be at least 21 years of

age;

(2) No side bets are permitted; and

(3) Nc) credit is extended.

(4) It is unlawful to claim unattended or unearned credits and money on gaming

devices; and

(5) It is unlawful to participate in a gaming activity while intoxicated.

16-7-1 13. Advertising No operator licensee or primary management official shall

allow, conduct or participate in any false or misleading advertising concerning gaming

operations.

16-7-114. Special Rules of Conduct An operator licensee or primary management

official may establish rules of conduct for players and spectators at the gaming facility. Any such

rules must be posted. The Commission shall have the authority to immediately terminate any or

all of such rules.

16-7-1 15. Procedure Upon Dissolution Upon dissolution of a corporation,

partnership or association, the operator licensee must return the operator license to the Division

within 10 days following the date of the dissolution.

16-7-116. Transfers of Interest No person may sell, lease, purchase, convey or

acquire an interest in an operator licensee without the prior approval of the Commission.

However, this requirement shall not apply to stock transfers of less than five percent in a publicly

traded corporation.

16-7-117. Termination of Employment of Key and Support Licensees When key or

support licensees change employment, are terminated, or resign, the operator licensee, primary

management official or designee must notify the Division in writing within seven days.

16-7-1 18. Post-Termination Matters Upon termination of a license issued to an

operator licensee for any reason, no further gaming activity shall be conducted by said licensee.

After such termination, said operator licensee shall surrender its license.

16-7-1 19. Restrictions on Time, Place and Structure Gaming conducted pursuant to

this Code shall be permitted 365 days a year. Gaming may take place 24 hours a day in a

licensed facility.

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16-7-120. Revocation or Expiration of License A key or support licensee whose

license has been revoked, suspended or expired shall notify the operator licensee or primary

management official for the gaming operation within 24 hours after such revocation, suspension

or expiration. An operator licensee or primary management official shall, as soon as practical

and, in any event, within 24 hours of receipt of written notice thereof, remove the person whose

license has been revoked, suspended, or has expired from any licensed position.

16-7-121. Foreign Gaming Any operator licensee or primary management official

who has applied to another jurisdiction for licensure or other permission to conduct gaming in

such jurisdiction shall notify the Division of such application. Upon request, the licensee shall

make available to the Division all executed copies of all application forms and related documents

filed with the foreign jurisdiction by or on behalf of the applicant or by any entity affiliated with

the applicant.

ARTICLE 8

RiGHTS AND DUTIES OF LICENSEES

16-8-101. Responsibility of Licensees Acceptance of a gaming license or renewal

thereof by a licensee constitutes an agreement on the part of the licensee to be bound by this

Code and all the orders of the Commission. It is the responsibility of the licensee to keep

informed of the content of this Code, and ignorance of the Code requirements will not excuse

violations.

16-8-102. Discovery of Violations Each licensee must immediately notify the

Division of the discovery of a violation or of a suspected violation of this Code.

16-8-103. Licensee Notifications Requirements

(1) Any person licensed by the Commission must notify, in writing, the director of the

Division of any criminal charge pending against such person within 10 days of such persons

arrest or filing of charges. This notification requirement shall not apply to non-felony traffic

violations, unless they result in suspension or revocation of a drivers license or unless they are

based on allegations of driving under the influence of intoxicating liquor or drugs.

(2) The licensee must notify, in writing, the director of the Division of the disposition

of the charges within 10 days of said disposition.

(3) Any person licensed by the Commission must notify the Division, in writing, of

any change of physical or mailing address within 10 days of such change.

16-8-104. Licensee Identification Every licensee must wear, in plain view,

identification issued by the Division. This section shall not apply to employees engaged in

undercover operations.

16-8-105. Detention and questioning of Person Suspected of Violating Code -

Limitations on Liability -

Posting of Notice

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(I) Any licensee may question any person in the gaming facility suspected of

violating any of the provisions of this Code. A licensee is not criminally or civilly liable:

(a) On account of any such questioning; or

(b) For reporting to the Commission, the Division or law enforcement

authorities the person suspected of the violation.

(2) Any licensee who has probable cause to believe that there has been a violation of

this Code in the gaming facility by any person may detain him or her in the facility in a

reasonable manner and for a reasonable length of time. Such a detention does not render the

licensee criminally or civilly liable.

(3) A licensee is not entitled to the immunity from liability provided for in subsection

(2) of this section unless there is displayed, in a conspicuous place in the gaming facility, a notice

in boldface type clearly legible and in substantially this form:

ANY GAMING LICENSEE WHO HAS PROBABLE CAUSE TO

BELIEVE THAT ANY PERSON HAS VIOLATED ANY

PROVISION OF THE GAMING CODE MAY DETAIN THAT

PERSON.

16-8-106. Intoxicated Persons

(1) No licensee shall permit:

(a) Persons who are visibly intoxicated or noticeably under the influence to

participate in a gaming activity; or

(b) Service of alcoholic beverages in the licensed premises to persons who are

visibly intoxicated.

(2) No person shall participate in a gaming activity when such person is intoxicated.

16-8-107. Patron Disputes

(1) In a patron dispute, a licensee must notify the disputing patron that the patron has

a right to contact the Division or the Commission regarding the dispute.

(2) If a licensee refuses payment of alleged winnings to a patron, the licensee and the

patron are unable to resolve the dispute to the patrons satisfaction, or the dispute involves at

least $250, the licensee must immediately notify the Division. An agent of the Division shall

investigate the dispute and notify the patron, in writing, of the outcome of the investigation and

the findings of the Division. If the patron is not satisfied with the determination of the Division,

the patron or the Division will notify the Commission, in writing, of the disputed point for a

decision.

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(3) Failure to immediately notify the Division of a dispute, or to notify a patron of the

patrons rights, or failure to pay after an adverse decision, is a violation by the licensee.

(4) The Commission must notify the licensee and the patron in writing of the

Commissions decision regarding the dispute within 30 days after the date that the Commission

first received notice of the dispute.

16-8-108. Patron Violations Licensees shall not allow a patron to repeatedly violate

the rules of the game.

ARTICLE 9

PROCEDURES FOR DISCIPLiNARY ACTIONS

16-9-101. Grounds for Disciplinary Action

(1) Any license granted pursuant to this Code may be suspended for up to six months

or revoked:

(a) for any cause which would have prevented its issuance; or

(b) if reliable information is received that a licensee does not meet eligibility

standards for issuance of a gaming license; or

(c) for any violation of this Code, the ICMPs or any order of the

Commission; or

(d) for conviction of a crime involving moral turpitude or a felony.

(2) Such suspension or revocation shall occur after notice to the licensee and a

hearing upon proof by a preponderance of the evidence, as determined by the Commission,

except in those instances covered by summary suspension.

(3) The Commission may revoke or suspend the gaming license of any person who is

convicted of a crime, even though the convicted persons post-conviction rights and remedies

have not been exhausted.

(4) The charge of a licensee with a felony or with a misdemeanor involving moral

turpitude in any jurisdiction is grounds for disciplinary action. The Commission may find the

licensee violated this Code based on the facts of the criminal charge even though the licensee

may be acquitted on the criminal charge.

16-9-102. Penalties

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(1) In addition to revocation or suspension, or in lieu of revocation or suspension, the

Commission may impose a reprimand or a monetary penalty not to exceed the following

amounts:

(a) If the licensee is a slot machine manufacturer, the amount of$l00,000.00.

(b) If the licensee is an operator, the amount of $25,000.00.

(c) If a key licensee, the amount of $5,000.00.

(d) If a support licensee, the amount of $2,500.00.

(2) Any monetary penalty received by the Commission pursuant to this section shall

be deposited in the gaming fund established pursuant to this Code.

(5) The civil penalties set forth in this section shall not be a bar to any criminal

prosecution or to the imposition of any other civil or administrative remedy.

16-9-103. Initiation of Disciplinary Proceedings

(1) Upon its own motion, or upon written complaint signed and sworn to by the

complainant, the Commission may determine to initiate disciplinary proceedings against any

licensee. Disciplinary proceedings, as used herein, shall mean those procedures undertaken by

the Commission to suspend or revoke any license issued, to levy a monetary penalty against any

licensee, or to otherwise sanction violations of gaming laws, regulations and rules.

(2) The Commission may initiate disciplinary proceedings against a licensee where it

determines that there is probable cause to believe:

(a) That the licensee or the operator licensees employees or agents have

violated any of the provisions of this Code;

(b) That the licensee or persons associated with the licensee are of unsuitable

moral character; or

(c) That violations by the licensee or the operator licensees employees or

agents of laws other than the gaming laws make the licensee no longer suitable for licensing.

(3) Disciplinary proceedings shall be initiated by the Commission by sending to the

licensee by first class mail, at the last known mailing address of the licensee, or by personal

service, a list of the grounds for the proposed disciplinary action and a notice containing the time

and place for any hearing before the Commission. Said list and notice shall be provided to the

licensee at least 10 days prior to the hearing.

16-9-104. Citizen Complaints Authorized - Procedure Following Filing

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(1) Any person claiming that a licensee has engaged in, or is engaging in, conduct

constituting grounds for disciplinary action may file with the Commission or the Division a

written complaint stating the name of the licensee complained against. The complaint must fully

detail the conduct upon which the complaint is made.

(2) The Division shall investigate the complaint and make a recommendation to the

Commission regarding the merits of the complaint. The Commission may reject a complaint if it

does not meet the requirements of this section.

(3) If the Commission determines the complaint has merit, the Commission must

serve a copy of the complaint, by first class mail or personal service, on the licensee complained

against and any other affected parties. The licensee complained against has 20 days to answer

after service of the complaint and the notice containing the time and place for any hearing before

the Commission. The complaint and notice shall be provided to the licensee at least 10 days

prior to the hearing.

16-9-105. Informal Consultation If the Division considers the complaint to be

grounds for disciplinary action, the Division may consult with the licensee and the parties affect

ed in an effort to resolve the matter satisfactorily without a formal hearing. The Division must

notify in writing the complainant, the licensee complained against and affected parties of the

results of the informal consultation, which must be approved in writing by the Commission. The

informal consultation does not prevent the Commission from conducting a formal hearing.

16-9-106. Assurance of Voluntary Compliance The Division may accept an

assurance of voluntary compliance regarding any act or practice alleged to violate this Code from

a person who has engaged in, is engaging in, or is about to engage in such acts or practices. The

assurance must be in writing and may include a stipulation for the voluntary payment of the costs

of the investigation and any amount necessary to restore to a person money or property, which

may have been acquired by the alleged violator because of the acts or practices. An assurance of

voluntary compliance may not be considered an admission of a violation for any purpose;

however, proof of failure to comply with the assurance of voluntary compliance is prima f~je

evidence of a violation of this Code. The Commission may review an assurance of voluntary

compliance and approve or reject the disposition proposed by the Division.

16-9-107. Final Action by Commission

(1) After hearing the evidence and reaching a decision in connection with any

disciplinary proceeding, the Commission may find the grounds alleged for disciplinary action

substantiated or unsubstantiated. The Commission may substantiate the complaint by a

preponderance of the evidence on some or all of the grounds alleged for disciplinary action. In

the event the complaint is found unsubstantiated, the disciplinary proceedings shall be

terminated.

(2) The Commission may allow or require briefs of law before making its decision.

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(3) Written findings of fact, conclusions of law, and an order must be entered before

any decision of the Commission to suspend, revoke or impose conditions upon a license shall be

considered final.

(4) In the event the complaint is deemed substantiated, the Commission may revoke

the license, may suspend the license for a particular period of time, may impose a monetary

penalty, may impose conditions upon the license, may issue a public or private letter of

reprimand to be placed in the file of the licensee, or may take any combination of these actions.

16-9-108. Summary Suspension Every license granted pursuant to this Code may be

summarily suspended by the Commission, pending a hearing before the Commission, for good

cause.

16-9-109. Grounds for Summary Suspension

(1) Where the Commission has reasonable grounds to believe and finds that any

person licensed under this Code has been guilty of a deliberate or willful violation of any of the

provisions of this Code, or that the licensee has been charged with a felony, or that due to other

violations of law by the licensee, the public health, safety or welfare imperatively requires

emergency action, or where the Commission has received post-license notification from the

NIGC pursuant to § 16-6-103(7), and where the Commission incorporates such findings in its

order, the Commission may summarily suspend a license pending disciplinary proceedings for

suspension or revocation. Any such disciplinary proceedings shall be promptly instituted and

determined.

(2) The summary suspension of a license without notice pending a hearing shall be

for a period not to exceed 30 days.

16-9-110. Notice The Division must have delivered a notice of summary suspension

personally or by certified mail, return receipt requested, to the licensee summarily suspended.

The notice must state when the suspension will begin and must state the reasons for the

suspension.

16-9-111. Disciplinary Proceeding Notice Required The Division must serve upon

the summarily suspended licensee a formal notice initiating disciplinary proceedings and a notice

of hearing within five days after receipt by the licensee of the notice of summary suspension.

The Commission shall hear the matter on an expedited basis but in no event later than 30 days

after the imposition of the summary suspension.

ARTICLE 10

PROCEDURES FOR HEARINGS

16-10-101. Request for Hearing A person aggrieved by an action of the Commission

that was taken without a hearing may, within 30 days following the date of the action, request a

hearing. The Commission may direct the aggrieved person to provide certain information to the

37
Commission prior to the hearing or it may grant the hearing conditioned upon the fulfillment of

other reasonable terms and conditions.

16-10-102. Notice of Hearing The Commission shall give written notice to an

applicant for whom the Division recommends a conditional license, suspension of a license, or

denial of a license. The notice shall contain the time and place when the licensing issue will

come before the Commission for consideration and shall notify the applicant of the right to attend

the Commission meeting. The notice shall be served, together with a copy of the Divisions

recommendation, at least 10 days prior to the meeting by personal service or by first class mail to

the address listed for the applicant in the application. The Commission shall notify each

applicant in writing of the disposition of the application or license.

16-10-103. Summoning of License The Commission may summon any licensee to

appear to testify before it with regard to the conduct of the licensee. The testimony may be under

oath and may embrace any matters which the Commission or its agents consider relevant to the

discharge of its official duties. Testimony so taken may be used by the Commission as evidence

in any proceeding or matter then before it or which may later come before it. Failure to appear

and testify fully at the time and place designated, unless excused, may constitute grounds for

disciplinary action against a licensee.

16-10-104. Conduct of Hearings

(1) Hearings shall be conducted as administrative proceedings with all rights of due

process; however, strict evidentiary and procedural rules shall not apply.

(2) The Division will first present its case, including witnesses, exhibits and

testimony. The licensee will then have the opportunity to present his case, including witnesses,

exhibits and his own testimony.

(3) The Commission may ask questions of any witnesses for clarification and may

recall witnesses, if necessary, but must maintain neutrality.

16-10-105. Decisions of the Commission The Commission shall issue all decisions

in writing within 10 days. Commission actions shall be deemed final in such cases upon the

mailing of the decision by first class mail to the address listed in the request for hearing.

16-10-106. Service and Filing If a filing or a service of notice on the Commission is

permitted or required by this Code, the filing or notice may be delivered in person or mailed to

the Commission. A filing or notice is complete on the date it is received by the Commission.

16-10-107. Judicial Review Any person aggrieved by a final action of the

Commission may appeal the decision to the Southern Ute Indian Tribal Court by filing a petition

for review within 30 days of the decision.

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ARTICLE 11

GAMING FUND

16-1 1-101. Gaming Fund There is hereby created a gaming fund, which shall be

maintained and operated as follows:

(1) The following funds shall be deposited into the gaming fund: The Tribes share

of net revenues from gaming; the tribal management development fee; the gaming fund fee; and

any other taxes or fees the Tribe may collect from the gaming operation, including any payments

required pursuant to a management contract with an operator licensee.

(2) All expenses of the Division and the Commission, including expenses of

background and other investigations, prosecution, and legal expenses related to gaming, shall be

paid from the gaming fund.

(3) In addition to the direct gaming expenses stated in subsection (2), upon adoption

of a resolution by the Tribal Council, the gaming fund may be used for the following purposes:

(a) To fund tribal government operations or programs;

(b) To provide for the general welfare of the Tribe and its members;

(c) To promote tribal economic development;

(d) To donate to charitable organizations; and

(e) To help fund operations of local government agencies.

(4) Net revenues from gaming shall not be used for any purpose other than those

listed above; and no per capita distribution shall be paid from the gaming fund, except pursuant

to a plan approved by the Secretary of the Interior.

16-1 1-102. Audits The gaming fund shall be audited at least annually by an

independent certified public accountant, who shall submit a report of the audit to the

Commission and the Tribal Council. The expenses of the audit shall be paid from the gaming

fund.

ARTICLE 12

UNLAWFUL ACTS

16-12-101. Fraudulent Acts

(1) Fraudulent acts by licensees or patrons are prohibited.

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(2) In addition to those acts listed elsewhere in this Code, fraudulent acts shall

include but shall not be limited to:

(a;) Misrepresentation of the probabilities of pay out or pay out awards of any

gaming device or game;

(b) Wording pay off schedules or pay out awards in a misleading or deceptive

manner; and

(c) Failure of the licensee to make payment in strict accordance with posted

payoff schedules.

(3) It is unlawful for any person:

(a) To alter or misrepresent the outcome of a game or other event on which

wagers have been made after the outcome is determined but before it is revealed to the

players;

(b) To place, increase or decrease a bet, or to determine the course of play

after acquiring knowledge, not available to all players, of the outcome of the game or any

event that affects the outcome of the game or which is the subject of the bet or to aid

anyone in acquiring such knowledge for the purpose of placing, increasing or decreasing a

bet, or determining the course of play contingent upon that event or outcome;

(c) To claim, collect, or take, or attempt to claim, collect, or take, money or

anything of value in or from a gaming activity with intent to defraud and without having

made a wager contingent thereon, or to claim, collect, or take an amount greater than the

amount won;

(d) To knowingly entice or induce another to go to any place where gaming is

being conducted or operated in violation of the provisions of federal, state, or tribal law

with the intent that the other person participate in that gaming activity;

(e) To place or increase a bet after acquiring knowledge of the outcome of the

game or other event which is the subject of the bet, including past-posting and pressing

bets;

(f) To reduce the amount wagered or to cancel a bet after acquiring

knowledge of the outcome of the game or other event which is the subject of the bet,

including pinching bets;

(g) To manipulate, with the intent to cheat, any component of a gaming device

in a manner contrary to the designed and normal operational purpose for the component,

with knowledge that the manipulation may affect the outcome of the game or with

knowledge of any event that affects the outcome of the game;

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(h) To win or attempt to win money or property by any trick or sleight of hand

performance, or by fraud or fraudulent scheme;

(i) To conduct a gaming operation without a valid operator license;

(j) To conduct a gaming operation on unlicensed premises;

(k) To permit any gaming activity to be conducted, operated or dealt on any

licensed premises by an unlicensed person;

(1) To place any games or slot machines into play or display such games or

slot machines without the authorization of the Commission;

(m) To issue, suspend, revoke or renew any license pursuant to this Code for

any personal pecuniary gain or any thing of value, or for any person to violate any of the

provisions of this Code pertaining to conflict of interest;

(n) To employ or continue to employ any person in a gaming operation who is

not duly licensed in a position whose duties require a license pursuant to this Code; or

(o) To be employed, work or otherwise act in a position whose duties would

require licensing pursuant to this Code without first obtaining the requisite license.

16-12-102. Collusion

(1) Players in any game shall not play, nor attempt to play, in cooperation or collusion

with any other person, nor shall any licensee knowingly permit such cooperation or collusion.

(2) Evidence of collusion may include, but shall not be limited to, the following:

(a) Any play by a player which is intended to assist one player over another.

(b) A continuing or repeated pattern of betting by and between the same two

or more players, the purpose of which is to cause other players to fold or withdraw from a

game.

(c) Two or more players sharing winnings from a hand or a player agreeing to

share winnings with another player if either wins any part of the pot, except as permitted

in tournament play.

(d) Having an agreement not to bet or not to raise another player.

(e) Verbal or non-verbal communication pertaining to the game between

persons including, but not limited to: imparting information about ones hand to a player

in the pot; advising someone on how to play a hand or suggesting a particular betting

action; reading a hand for a player who has not yet shown his hand; or any

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communication between players by means other than spoken English, unless such

communication, or its import, is understood by all persons at the table.

(f) Any other act participated in by two or more players which fraudulently

creates an unfair advantage for a player, or which fraudulently creates a disadvantage for

any other player in the game.

16-12-103. False Statements -

Misleading Information - Falsifications of Records

Any person who knowingly makes a false statement in any application for a license or in any

statement attached to the application; or who provides any false or misleading information to the

Commission, the Division or the Tribal Council; or who fails to keep records to substantiate the

receipts, expenses or uses resulting from gaming conducted under this Code; or who falsifies any

records which relate to any transaction connected with the holding, operating and conducting of

any gaming, or who knowingly violates any of the provisions of this Code may be prosecuted

under applicable law.

16-12-104. Age of Participants - Violations

(1) It is unlawful for any person under 21 years of age to:

(a) Linger in the gaming area of a casino;

(b) Sit on a chair or be present at a gaming table, slot machine, or other area in

which gaming is being conducted; or

(c) Participate, play, be allowed to play, place wagers, or collect winnings,

whether personally or through an agent, in or from any gaming.

(2) It is unlawful for any person to engage in gaming with, or to share proceeds from

gaming with, any person under 21 years of age.

(3) It is unlawful for any licensee to permit any person who is less than 21 years of

age to:

(a) Linger in the gaming area of a casino;

(b) Sit on a chair or be present at a gaming table, slot machine or other area in

which gaming is being conducted; or

(c) Participate, play, be allowed to play, place wagers, or collect winnings,

whether personally or through an agent, in or from any gaming.

(4) Any person violating any of the provisions of this section may be prosecuted

under applicable law.

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(5) Any person violating any of the provisions of this section with a person under

eighteen years of age may also be prosecuted under applicable law for contributing to the

delinquency of a minor.

16-12-105. Age of Persons Conducting Gaming No person under the age of2l years

shall be employed as a gaming employee, conduct, or assist in conducting, any gaming activity;

and no such person shall manage or handle any of the proceeds from gaming.

16-12-106. Licensees -

Requirements and Restrictions

(1) An operator licensee or primary management official shall not employ any person

to work in the field of gaming, or to handle any of the proceeds of gaming, unless such person

holds a valid key or support license issued by the Commission.

(2) It is unlawful for any licensee to participate in gaming in the gaming facility

where such licensee is employed, except that such licensee may participate in gaming if such

participation is performed as part of the licensees employment responsibilities.

(3) It is unlawful for any licensee to knowingly participate in an illegal gambling

activity in any jurisdiction.

16-12-107. Extension of Credit Prohibited No licensee may extend credit to another

person for participation in gaming.

16-12-108. Maximum Amount of Bets The amount of bet made pursuant to this

Code shall be unlimited on the initial bet or subsequent bet or such amount as may be established

from time to time by the Commission; provided, however, that pending the outcome of the

litigation concerning the bet limit contemplated in the Compact, the amount of bet pursuant to

this Code shall not be more than that allowed under the Compact.

16-12-109. Failure to Pay Winners It is unlawful for any licensee to willfully refuse

to pay the winner of any game.

16-12-1 10. Exchange -

Redemption of Chips It is unlawful for any person to

exchange or redeem chips for anything whatsoever, except currency, negotiable personal checks,

negotiable counter checks, or other chips.

16-12-111. Ii~.

(1) It is unlawful for any employee who serves in a supervisory position to solicit or

accept any tip from any player or patron at the premises where he is employed, except that a

supervisor may accept a tip on behalf of an employee under his supervision.

(2) All such tips shall be immediately deposited in a lockbox reserved for that

purpose, accounted for, and distributed based upon procedures established in the ICMPs

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16-12-112. Cheating

(1) It is unlawful for any person to cheat at any gaming activity.

(2) For purposes of this Code, cheating means to alter the selection of criteria

which determine:

(a) The result of a game; or

(b) The amount or frequency of payment in a game.

16-12-113. Use of Device for Calculating Probabilities It is unlawful for any person

at a licensed gaming facility to use, or possess with the intent to use, any device to assist:

(1) In projecting the outcome of the game;

(2) In keeping track of the cards played;

(3) In analyzing the probability of the occurrence of an event relating to the game; or

(4) In analyzing the strategy for playing or betting to be used in the game, except as

permitted by the Commission.

16-12-1 14. Use of Counterfeit or Unapproved Chips or Tokens or unlawful Coins

(1) It is unlawful for any person to use counterfeit chips in any gaming activity.

(2) It is unlawful for any person engaged in any gaming activity designed to be played

with, to receive, or to be operated by chips or tokens approved by the Commission or by lawful

coin of the United States of America knowingly to use anything other than chips or tokens ap

proved by the Commission or lawful coin, or to use coin not of the same denomination as the

coin intended to be used in that gaming activity.

16-12-115. Possession of Certain Unlawful Devices, Equipment, Products or

Materials

(1) It is unlawful for any person to possess any device, equipment or material which

he knows has been manufactured, distributed, sold, tampered with, or serviced in violation of the

provisions of this Code.

(2) It is unlawful for any person, not an authorized employee of a licensee acting in

furtherance of his employment, to have in his possession any device intended to be used to

violate the provisions of this Code.

(3) It is unlawful for any person, not an authorized employee of a licensee acting in

furtherance of his employment, to have in his possession while on the licensed gaming premises

44
any key or device designed for the purpose of and suitable for opening, entering or affecting the

operation of any gaming activity, drop box or electronic or mechanical device connected thereto,

or for removing money or other contents therefrom.

(4) Possession of more than one of the devices, equipment, products or materials

described in this section shall give rise to a rebuttable presumption that the possessor intended to

use them for cheating.

(5) It is unlawful for any person to use or possess while on the licensed gaming

premises any cheating device, including but not limited to, tools, drills, wires, coins or tokens

attached to strings or wires or electronic or magnetic devices, to facilitate the alignment of any

winning combination or to facilitate removing from any slot machine any money or contents

thereof, unless the person is a licensee acting in the furtherance of his employment.

16-12-116. Persons Not to Bring Their Own Cards or Chips Persons may not bring

onto the licensed gaming premises, or introduce into a game, playing cards or chips other than

those authorized for play by the gaming facility.

16-12-117. Cheating Games and Devices It is unlawful for any person engaged in

gaming in a licensed gaming facility knowingly to:

(1) Conduct, carry on, operate, or deal, or allow to be conducted, carried on, operated,

or dealt, any cheating game or device; or

(2) Deal, conduct, carry on, operate, or expose for play any game or games played

with cards or any mechanical device, or any combination of games or devices, which have in any

manner been marked or tampered with or placed in a condition or operated in a manner the result

of which tends to deceive the public or tends to alter the normal random selection of

characteristics or the normal chance of the game which could determine or alter the result of the

game.

16-12-118. Unlawful Manufacture, Sale, Marking, Altering, or Modification of

Equipment and Devices Associated With Gaming - Unlawful Instruction

(1) It is unlawful to manufacture, sell or distribute any cards, chips, dice, game or

device which is intended to be used to violate any provision of this Code.

(2) It is unlawful to mark, alter, or otherwise modify any associated equipment or

gaming device in a manner that:

(a) Affects the results of a wager by determining win or loss; or

(b) Alters the normal criteria of random selection, which affects the operation

of a game or which determines the outcome of a game.

45
(3) It is unlawful for any person to instruct another in cheating, or in the use of any

device for that purpose, with the knowledge that the information so conveyed may be used to

violate any provision of this Code.

16-12-119. Seizure of Evidence Gaming Investigators or other tribal law

enforcement officers may seize any property which constitutes evidence of a violation of this

Code, consistent with the Indian Civil Rights Act and pursuant to applicable standards of lawful

search and seizure.

16-12-120. Disposition of Seized Property or Evidence Property seized as evidence

as a result of a violation of this Code shall be disposed of in the following manner at the

conclusion of all official proceedings, including appellate proceedings in the Tribal Court

system:

(1) Unlawfully obtained gaming money, chips or tokens shall be returned to the

gaming operation.

(2) Unlawful counterfeit money, chips or tokens shall be either destroyed by the

Division or may be retained by the Division for display or training purposes.

(3) Cheating devices shall be either destroyed by the Division or may be retained by

the Division for display and training purposes.

(4) Surveillance videotapes, records or logs shall be returned to the gaming operation.

16-12-12 1. Excluded and Ejected Persons It is unlawful for any person whose name

is on the list promulgated by the Commission to enter the licensed premises of a gaming facility.

16-12-122. Failure to Display Licenses and Required Notices it is unlawful to fail to

display in a conspicuous manner:

(1) Operator and facility licenses granted by the Commission.

(2) Notices in bold face type, which are clearly legible and in substantially the

following form:

YOU MUST BE 21 YEARS OF AGE WITH PROPER ID TO

ENTER THE CASINO.

IT IS UNLAWFUL FOR ANY PERSON U1~IDER THE AGE OF

TWENTY-ONE TO ENGAGE IN GAMING.

16-12-123. Prohibitions on Giving Items of Value No licensee or applicant for a

license shall give anything of value to any member of the Tribal Council, member of the

Commission, or employee of the Division, except for items of insignificant value distributed

46
without charge to the general public or items provided by vendors for demonstration, educational

or training purposes.

16-12-124. Violations of Code - Penalties

(1) Any person violating this Code shall be subject to prosecution and punishment

under applicable law, which may be tribal, state or federal, depending on the offense and whether

the defendant is Indian or non-Indian.

(2) Any licensee who violates any provision of this Code shall not only be subject to

prosecution and punishment under applicable law, but shall also be subject to disciplinary

proceedings concerning his license.

(3) Persons prosecuted in Tribal Court shall be subject to punishment of up to one (1)

year in jail and/or a $5,000 fine.

ARTICLE 13

EXCLUDED PERSONS

16-13-10 1. Legislative Declaration The Commission hereby declares that the

exclusion or ejection of certain persons from licensed gaming facilities is necessary to carry out

the policies of this Code and to maintain the strict regulation of gaming.

16-13-102. Factors Considered

(1) The Commission shall establish a list of persons who are to be excluded or ejected

from any licensed gaming premises, including any person whose presence in the facility is

determined to pose a threat to the interest of the Tribe or to gaming.

(2) In making the determination for exclusion, the Commission shall consider the

following:

(a) Prior conviction of a felony, a misdemeanor involving moral turpitude, or

a violation of the gaming laws of any Indian tribe, any state, the United States, or any of

its possessions or territories.

(b) A violation, attempt to violate, or conspiracy to violate the provisions of

this Code relating to the failure to disclose an interest in gaming for which the person

must obtain a license or make disclosures to the Commission.

(c) A reputation that would adversely affect public confidence and trust that

tribal gaming is free from criminal or corruptive influences.

(d) Prior exclusion under the gaming regulations of any other Indian tribe,

state, the United States, any of its possessions or territories.

47
(e) Career or professional offenders or associates of career or professional

offenders.

16-13-103. Procedure

(1) If the name and description of any person is placed on the exclusion list, the

Commission shall serve notice of that action upon the person by one of the following means:

(a) By personal service;

(b) By certified mail to the last known address of the person; or

(c) By publication in a newspaper of general circulation within the

Reservation, if personal service or service by certified mail is not possible.

(2) A person placed on the exclusion list may contest that action by filing a written

protest with the Commission, and the protest shall be heard by the Commission as a contested

matter.

16-13-104. Sanctions

(I) The Commission may impose sanctions upon any operator or key licensee, in

accordance with the provisions of this Code, if such licensee fails to exclude or eject from the

licensed premises any person placed by the Commission on the list of persons to he excluded,

which sanctions may include, but not be limited to, suspension, revocation, denial or restriction

of any license.

(2) Any person whose name is on the list promulgated by the Commission shall not

have any personal pecuniary interest, direct or indirect, in any management contract, management

company or business involved in or with gaming or in any entity licensed pursuant to this Code.

ARTICLE 14

ACCOUNTING REGULATIONS

16-14-101. Definitions for Accounting Regulations In addition to definitions

previously set forth in this Code, the following definitions apply to accounting regulations as

established in this Code:

(1) Examination or Examine means an audit, review or other financial examination

procedures.

(2) Fiscal Year or business year means a period beginning on October 1st and

ending September 30th of the following year.

16-14-102. Accounting and Financial Records

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(I) Each operator licensee or primary management official must keep accurate,

complete, legible and permanent records of all transactions pertaining to revenue that is taxable

or subject to fees under this Code. If permanent records are kept in a computerized form or on

microfiche, the Division or the Commission, on request, must be provided with a detailed index

to the microfiche or computer record. All such records must be made available upon request to

the Commission and the Division.

(2) Each operator licensee or primary management official must keep general

accounting records on a double entry system of accounting, maintaining necessary detailed,

supporting, subsidiary records, including:

(a) Detailed records identifying revenues, expenses, assets, liabilities and

equity for each facility;

(b) Detailed records of all returned checks;

(c) Individual and game records to reflect drop, adjusted gross proceeds

(AGP), and the percentage of AGP to drop by table for each table game and to reflect

drop, AGP, and the percentage of AGP to drop for each type of table game, by each shift;

(d) Slot analysis reports which, by each machine, compare actual hold

percentages to theoretical hold percentages;

(e) The records required by the ICMPs, as approved by the Division,

applicable to the gaming operation;

(f) Journal entries prepared by the operator licensee or primary management

official and adjustments proposed by the independent accountant;

(g) Any other records that the Commission or Division specifically requires to

be maintained; and

(h) All tax returns relating to the gaming operation.

(3) Each operator licensee or primary management official must create and maintain

records sufficient to accurately reflect AGP, net revenues, and expenses relating to the gaming

operation on a monthly and year-to-date basis, as well as financial statements.

(4) If an operator licensee or primary management official fails to keep the required

records used to calculate AGP and net revenues, the Division may compute and determine the

amount of taxable proceeds upon the basis of an audit conducted by the Division, upon any

information within the Divisions possession, or upon statistical analysis or projections.

49
16-14-103. AGP Computations

(1) For each blackjack game and house-banked card game, AGP equals the closers

plus credits, plus drop, less openers and less fills.

(2) For each slot machine, AGP equals drop less fills to the machine, jackpot payouts

and additional payouts. The initial hopper load is not a fill and does not affect AGP. The

difference between the initial hopper load and the total amount that is in the hopper at the end of

each quarter must be adjusted accordingly as an addition to or subtraction from the drop for that

quarter. if an operator licensee or primary management official does not make or makes

inaccurate quarterly additions to or subtractions from the drop, the Division may compute an

estimated total amount in the slot machine hoppers and may require reasonable adjustments to

AGP.

(3) An operator licensee or primary management official shall not exclude from AGP

money paid out on wagers that are knowingly accepted by the operator licensee or primary

management official in violation of this Code.

16-14-104. Internal Control Minimum Procedures

(1) The Division shall establish ICMPs for the gaming operation.

(2) In addition to the ICMPs established by the Division, each operator licensee or

primary management official shall establish internal control procedures for the gaming operation,

including accounting procedures, reporting procedures and personnel policies, for the purpose of

determining the gaming operations liability for taxes and fees and exercising effective control

over internal fiscal affairs.

(3) The procedures must be designed to ensure that:

(a) Assets are safeguarded and accountability over assets is maintained;

(b) Liabilities are properly recorded and contingent liabilities are properly

disclosed;

(c) Financial records, including revenue, expenses, assets, liabilities and

equity, are accurate and reliable;

(d) Transactions are performed only in accordance with generally accepted

accounting principles (GAAP) and the gaming operations stated policies, which cannot

be inconsistent with GAAP and this Code;

(e) Transactions are recorded adequately to permit proper reporting of gaming

revenue, fees and taxes;

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(t) Access to assets is permitted only in accordance with specific

authorizations in accordance with the ICMPs;

(g) Recorded accountability for assets is compared with actual assets at

reasonable intervals and appropriate action is taken with respect to any discrepancies; and

(h) Functions, duties and responsibilities are appropriately segregated and

performed in accordance with sound practices by competent, qualified personnel.

(4) Each operator licensee or primary management official must describe the gaming

operations administrative, accounting, reporting and personnel procedures in detail in a written

system of internal control. Each operator licensee and primary management official must at all

times follow and comply with the written system of internal control and must submit a copy of its

written system to the Division at least 15 days prior to conducting or offering gaming to the

public. Each written system must include:

(a) An organizational chart depicting appropriate segregation of functions and

responsibilities;

(b) A description of the duties and responsibilities of each position shown on

the organizational chart;

(c) A detailed, narrative description of the administrative and accounting

procedures designed to satisfy the requirements of subsections (2) and (3);

(ci) A written statement signed by the gaming operations Chief Financial

Officer or controller and the operator licensee or primary management official, attesting

that the system satisfies the requirements of this section; and

(e) Such other items as the Commission or Division may require.

(5) Not later than October 1 of each year, the operator licensee or primary

management official must report any amendments to the gaming operations procedures and

written system of internal controls not affecting compliance with the ICMPs.

16-14-105. ICMP Revisions

(1) At least 45 days prior to revising the ICMPs, the Division shall provide a copy of

the proposed revision to the operator licensee or primary management official.

(2) Prior to revising the ICMPs, the Division shall consider all written statements,

arguments or contentions submitted.

(3) The Division shall send written notice that it has adopted revised procedures to

the operator licensee or primary management official.

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(4) Not later than 30 days after notice that the ICMPs revised pursuant to this section

are effective, all licensees must comply with the procedures and system as amended.

16-14-106. Variances

(1) The operator licensee or primary management official may not implement a

system of internal control that does not satisfy the minimum procedures established by the

Division, unless the Division has approved a variance to the ICMPs. Variances are specific to

the gaming operation requesting the variance and do not apply to other gaming operations.

(2) Requests for variances must be submitted in writing to the Division through the

internal control compliance officer. The Division must review the request for variance and

respond, in writing, within 10 days of receipt of the request, indicating whether or not the

variance is approved.

(3) All licensees must comply with approved variances within 10 days of notification.

16-14-107. Audits

(1) Operator licensees or primary management officials shall require the independent

accountant engaged by the Tribe to audit or review the financial statements of the gaming

operation and to prepare a report on the gaming operations compliance with the written

procedures on the system of internal control. Using the criteria established by the Division, the

independent Certified Public Accountant (CPA) shall report each material event and procedure

discovered during the course of the examination that the accountant believes does not satisfy the

ICMPs or variations that have been approved by the Division.

(2) In addition to the above, the operator licensee or primary management official

shall prepare a letter addressing each item of noncompliance noted by the accountant, describing

the corrective measures taken.

(3) The independent accountant shall provide to the Commission and the Tribal

Council, within 120 days after the end of the business year, a copy of the accountants written

report on the ICMPs and any other information related to accounting or internal controls, such as

a management letter, along with the operator licensees or primary management officials

response letter.

16-14-108. Failure to Comply Failure to comply with the ICMPs, or the variances

approved pursuant to this article, is an unsuitable method of operation and may result in a fine,

penalty or license revocation against any licensee determined by the Division to be responsible.

16-14-109. Examination Procedures

(1) The Division shall:

52
(a) Conduct periodic examinations of the accounting and financial records of

gaming operations, including but not limited to revenue, expenditure and compliance

audits;

(b) Review the accounting principles and procedures used by the gaming

operation;

(c) Review and observe methods and procedures used by licensees to count

and handle cash, chips, tokens and negotiable instruments;

(d) Examine the gaming operations internal control procedures;

(e) Examine accounting and financial records of the gaming operation;

(f) Examine the accounting and financial records of any gaming operation

when conditions indicate the need for such action or upon the request of the Commission;

and

(g) Review tax returns, tax records and tax adjustments.

(2) At the conclusion of each examination, the Division shall prepare a report of the

examination conducted for submission to the Commission, incorporating any responses of the

operator licensee or primary management official.

(3) When the Division finds that the gaming operation is required to pay additional

fees and taxes or finds that it is entitled to a refund of fees and taxes, the Division shall report its

findings and the legal basis for the finding to the Commission and to the operator licensee or

primary management official in sufficient detail to enable the Commission to determine if an

assessment or refund is required.

16-14-110. Records Retention -

Noncompliance

(1) Each operator licensee or primary management official must provide to the

Division, upon its request, the records required to be maintained by this Code. Unless the

Commission approves or requires otherwise in writing, each operator licensee or primary

management official must retain all such records within the exterior boundaries of the

Reservation for at least five years.

(2) Failure to keep and provide such records is an unsuitable method of operation and

subjects the operator licensee or primary management official to a fine, penalty or revocation of

license.

16-14-11 1. Records of Ownership -

Corporation Each corporate operator licensee

must provide to the Division, upon its request, the following documents pertaining to the

corporation:

53
(1) A certified copy of the articles of incorporation and any amendments;

(2) A copy of the bylaws and any amendments;

(3) A copy of the certificate issued by the Colorado secretary of state authorizing the

corporation to transact business in Colorado;

(4) A list of all current and former officers and directors;

(5) Minutes of all meetings of the stockholders;

(6) Minutes of all meetings of the directors;

(7) A list of all stockholders, listing each stockholders name, address, the number of

shares held, and the date the shares were acquired;

(8) The stock certificate ledger;

(9) A record of all transfers of the corporations stock; and

(10) A record of amounts paid to the corporation for issuance of stock and other capital

contributions.

16-14-112. Partnership. Limited Liability Company, or Association Records Each

partnership, limited liability company, or association operator licensee must provide to the

Division, upon its request, the following documents:

(1) A copy of the partnership, limited liability company, or association agreement

and, if applicable, the certificate of limited partnership;

(2) A list of the general and limited partners, or associates, including their names and

addresses, the percentage of interest held by each, the amount and date of each capital

contribution of each partner or associate, the date the interest was acquired, and the

compensation paid by the partnership or association to each partner or associate; and

(3) A record of all withdrawals of partnership or association funds or assets.

16-14-113. Sole Proprietor Records Each sole proprietor operator licensee must

provide to the Division, upon its request, a schedule showing the name and address of the

proprietor and the amount and date of the proprietors original investment and of any additions

and withdrawals.

16-14-114. Handling of Cash Each licensee who receives currency of the United

States from a patron in the gaming area of a gaming facility must promptly place the currency in

the locked box in the table, in the cash register, in an appropriate place in the cashiers cage, or in

another repository approved by the Division.

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16-14-1 15. Procedure for Accepting Checks

(1) Checks may not be accepted on the gaming floor except at a cashiers cage.

(2) Once a check is accepted at the cashiers cage, it must be deposited in a bank or

other financial institution. Prior to depositing the check, the licensee may not return the check to

the player or anyone else. Only if a check has been deposited and returned by the bank or other

financial institution may a check be returned to a patron in return for payment of the delinquent

funds.

16-14-116. Minimum Bankroll Requirements

(1) Each operator licensee or primary management official must maintain, in such

manner and amount as the Division may approve or require, cash or cash equivalents in an

amount sufficient to protect patrons against defaults in gaming debts owed by the gaming

operation. The Division shall distribute to operator licensees or primary management officials a

formula by which minimum bankroll requirements are to be determined.

(2) If at any time the gaming operations available cash or cash equivalents should be

less than the amount required by this section, the operator licensee or primary management

official must immediately notify the Division of this deficiency.

(3) Failure to maintain the minimum bankroll required by this section, or a higher

bankroll as required by the Division pursuant to this section, or failure to notify the Division of

any deficiencies is an unsuitable method of operation and may result in a fine, penalty or license

revocation.

16-14-117. Promotional Items

(1) A gaming operation which engages in promotions to increase business and

gaming may not deduct payouts made pursuant to the promotion from AGP except for money or

tokens paid at face value directly to a patron as the result of a specific wager.

(2) No deduction is allowed in the computation of AGP for any prizes, premiums,

drawings, benefits or tickets that are redeemable for money, merchandise or other promotional

allowances.

16-14-1 1 8. Match Play Items When match play promotional items are used in a

game, there will be no effect on calculation of AGP. A match play coupon must have printed on

it the name of the gaming facility, its value, and an explanation of its use.

16-14-119. Free Play Items

(1) Free play items are allowed but once used, may not be retained for subsequent

play by the customer. A free play coupon must have printed on it the name of the issuing

55
establishment, the monetary worth of the coupon and a sequential control number. All coupons

must have an expiration date printed on them.

(2) When a free play item is used in a game, there will be no effect on calculation of

AGP.

16-14-120. Reporting and Paying Gaming Taxes and Fees Required taxes and fees,

and all reports relating thereto, must be paid and submitted not later than the due date specified

by the Commission.

16-14-121. Financial Statements

(1) Each operator licensee or primary management official must prepare a financial

statement covering all financial activities of the gaming operation on a monthly and year-to-date

basis. If the gaming operation includes room, food, beverage or other non-gaming revenue, the

financial statements must cover those operations as well as gaming operations, in which case the

gaming operations financial statements must be presented separately.

(2) Operator licensees or primary management officials must submit the financial

statements to the Division and the Tribal Council not later than 15 days following the end of the

month covered by the statement and 45 days after the last month of the fiscal year.

16-14-122. Audited Financial Statements

(1) Annual financial statements covering all financial activities of every gaming

operation shall be prepared and audited in accordance with Generally Accepted Auditing

Standards by an independent CPA. In addition, all contracts for supplies, services or concessions

for a contract amount in excess of $25,000 annually (except contracts for professional legal or

accounting services) relating to gaming shall be audited in accordance with Generally Accepted

Auditing Standards by an independent CPA. Said audits may be encompassed within existing

independent tribal audit systems and shall be provided by the Division to the NIGC or its

successor federal regulatory agency, if required by federal law.

(2) Statements required must be presented on a comparative basis after the first period

of operation. Consolidated financial statements may be filed by commonly operated facilities,

but the consolidated statements must include separate financial statements for each facility.

(3) The independent CPA must issue a report on the financial statements that

expresses an opinion, whether it is unqualified, qualified, adverse or a disclaimer of opinion.

The independent CPA must also include any necessary explanatory or emphasis paragraph as

may be required by Generally Accepted Auditing Standards. The independent CPA must include

in the report on the consolidated financial statements an appropriate opinion on the consolidated

financial information, if any.

(4) Each operator licensee or primary management official must submit to the

Division and the Tribal Council a copy of its audited statements not later than 120 days after the

56
last day of the gaming operations business year. In the event of a license termination, change in

business entity, or a change in control of ownership, the operator licensee or primary

management official must, not later than 20 days after the event, submit to the Division and the

Tribal Council copies of audited statements covering the period since the previous statement. If

a license termination, change in business entity, or a change in control of ownership occurs

within 120 days after the end of the business year for which a statement has not been submitted,

the operator licensee or primary management official may submit statements covering both the

business year and the final period of business.

(5) The Commission or the Division may request additional information and

documents from the operator licensee, the primary management official or the independent CPA

regarding the financial statements or the services performed by the independent CPA.

(6) Failure to submit the requested information or documents is an unsuitable method

of operation and may result in a fine, penalty or revocation of license.

ARTICLE 15

GAMING DEVICES AND EQUIPMENT

16-15-101. Exclusive Agreements It is the public policy of the Tribe that gaming

equipment authorized and licensed by the Commission may not be subject to any exclusive

agreement.

16-15-102. Possession of Slot Machines The possession of slot machines on the

Reservation by licensed manufacturers and gaming operations is legal if all the requirements,

conditions and provisions of this Code are met. However, nothing in this section shall be

deemed to authorize or permit any use of slot machines for any purpose, except as specifically

authorized and provided for by this Code.

16-15-103. Slot Machines -

Shipping

(I) Any slot machine manufacturer shipping or importing a slot machine into the

Reservation shall provide to the Division at the time of shipment a copy of the shipping invoice,

which shall include, at a minimum, the destination, the serial number of the machine, and a

description of each machine.

(2) Any person within the Reservation receiving a slot machine shall, upon receipt of

the machine, provide to the Division information showing, at a minimum, the facility location of

each machine, its serial number and description. Such a report shall be provided regardless of

whether the machine is received from a manufacturer or any other person.

(3) Any machine licensed pursuant to this Code shall be licensed for a specific

licensed facility, and movement of the machine from that facility shall be reported to the Division

prior to such movement.

57
16-15-104. Security and Audit Specifications All slot machines and all other gaming

equipment and devices shall have the features, security provisions and audit specifications listed

in this Code and the regulations implementing this Code.

16-15-105. Unlawful Acts No licensed manufacturer, distributor or operator shall

sell, offer for sale, offer for play, or use for any other gaming purpose any slot machine or

component part that the licensee knows, or reasonably should know, will malfunction in any

manner that affects game play or the accuracy of the required meters. Licensed manufacturers

and distributors shall notify the Division of Gaming in writing within seven days of the discovery

of any design flaw or manufacturers defect that causes malfunctions in a model of slot machine,

component part, or game program.

16-15-106. Testing All slot machines, and such other devices and equipment as the

Commission may determine, shall be tested prior to approval for use in gaming by the Division.

The Division shall Kobetron the game EPROMs and verify the accuracy of the pay table. Once

tested and verified, the EPROMs shall be sealed in a manner determined by the Division.

16-15-107. Slot Machine Minimum Payback The minimum theoretical payback

value on a slot machine shall be at least 80 but not more than 100 percent of the value of any

coins or tokens played or accumulated credits played back. However, this section shall not be

construed to prohibit tournament slot machines with theoretical payback values greater than one

hundred percent where such machines do not accept nor pay out coins or tokens.

16-15-108. Device and Equipment Approval

(1) No slot machine, card table, cards, chips or tokens may be used for gaming by any

licensee without prior written approval of the Commission. The approval must describe with

particularity the equipment or device approved.

(2) Each individual slot machine, bill, token, or coin acceptor, hopper, ticket printer

or system, progressive system or progressive controller, and card table with electronic or electro

mechanical components, mechanical shuffling device, card shoe, or other gaming devices or

equipment must be approved by the Division before it is used for gaming.

16-15-109. House Banked Game Table Physical Characteristics House banked card

game tables must be played at a table having on one side places for the players and the opposite

side a place for the dealer. The cloth covering the table may have imprinted on it the name of the

establishment and must have rectangular, circular or oval areas to indicate boxes for wagers. If

the game is copyrighted, trademarked, and patented, tables must display the information required

pursuant to the rules of the game.

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16-15-110. Approval of Chips and Tokens -

Applications and Procedures

(I) An operator licensee or primary management official may not issue chips or

tokens or sell or redeem chips or tokens unless the specifications of the chips or tokens have been

approved in writing by the Commission.

(2) An application for approval must include the following in addition to other items

of information that the Commission may require:

(a) An exact drawing of each side and the edge of the proposed chip or token,

drawn to actual size or drawn in scale to larger than actual size, showing the

measurements of the proposed chip or token in each dimension;

(h) Written specifications for the proposed chips or tokens;

(c) The name and address of the manufacturer; and

(ci) The intended use for the proposed chips or tokens.

(3) If the Commission is satisfied with the proposed chips or tokens, the Division

will notify the operator licensee or primary management official. The operator licensee or

primary management official must submit a sample of the proposed chips or tokens in final,

manufactured form to the Commission. If the Commission is satisfied that the sample conforms

with the requirements of this section and with the information submitted with the application, the

Commission shall approve the proposed chips or tokens.

I 6-15-Ill. Specifications for Chips and Tokens

(1) Chips and tokens must be designed, manufactured and constructed in compliance

with all applicable statutes, rules and regulations of the United States and the Tribe to prevent

counterfeiting of the chips or tokens. Chips and tokens must not resemble any current or past

coinage or currency of the United States or any other nation.

(2) Chips and tokens must be approved by the Commission in accordance with the

specifications for chips and tokens in the Gaming Devices Regulations.

(a) The name of the gaming facility must be inscribed on each side of a chip

or token;

(b) The value of the chip or token must be inscribed on each side of a chip or

token; and

(3) A chip must be designed so that when stacked with chips and tokens of other

denominations and viewed on closed-circuit, black-and-white television, the denomination of the

chip may be distinguished from that of the other chips and tokens in the stack.

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16-15-112. Other Devices Other devices with which gaming is conducted must be

designed, manufactured, approved, used, discontinued, destroyed or otherwise disposed of in

accordance with the provisions of this Code. Other devices must be of a shape, size, design or

other specification approved by the Commission.

16-15-1 13. Definitions for Slot Machines The following definitions apply to all slot

machine hardware and software requirements:

(1) Leakage current means an electrical current which flows when a conductive

path is provided between exposed portions of a slot machine and the environmental electrical

ground when the slot machine is isolated from the normal AC power ground.

(2) Inappropriate coin-in means a coin or token which has been accepted by a slot

machine after the slot machine has already accepted the maximum number of coins or when the

slot machine is in a state which normally rejects additional coins, sometimes caused by

mechanical timing limits in coin handling equipment.

(3) Par sheet means a document which depicts the possible outcomes from the play

of a slot machine, the probability of occurrence of each, and the contribution of each winning

outcome to the payback percentage of a slot machine.

(4) Random access memory or RAM means the electronic component used for

computer work space and storage of volatile information in a slot machine.

(5) Random means the unpredictability and absence of pattern in the outcome of an

event or sequence of events.

(6) Random number generator means a hardware, software or combination

hardware and software device for generating number values that exhibit characteristics of

randomness.

(7) Read only memory or RUM means the electronic component used for storage

of nonvolatile information in a slot machine, including programmable RUM and erasable

programmable RUM.

(8) Tilt condition means a programmed error state for a slot machine, which occurs

when the slot machine detects an internal error, malfunction or attempted cheating. The machine

ceases processing further input, output or display information other than that indicating the tilt

condition itself.

16-15-114. Meters

(1) A slot machine must have both electronic (soft) and electromechanical (hard)

meters or another type of hard meter that is approved by the Division. Soft meters must have at

least eight digits. Hard meters must have at least six digits. The slot machines hard and soft

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meters must accumulate the same values. Slot machine soft meters must accumulate in

electronic digital storage and provide the means for on-demand display of the stored information.

(2) The coin-in meter must accumulate for all coin, token and credit wagers. The

coin-out meter must accumulate all coin, token, and credit transactions paid out by the slot

machines hopper for awards and credits from awards that are wagered. If the slot machines

coin-out meter increments for any additional values such as accumulated credit handpays, the slot

machine must have an additional soft meter that increments for those additional values. The

coin-drop meter must increment for the credit value of all coins and metal tokens that have been

diverted into a drop bucket and the credit value of all bills, paper tokens, gaming coupons, and

hopper tickets inserted into a bill acceptor. The jackpot meter, accumulated-credit meter and

hand-pay meter must reflect all awards and accumulated credits that are not paid out by the slot

machines hopper except additional payouts and promotional awards. Slot machines equipped

with ticket printers must increment the appropriate meters for all ticket payments.

(3) All slot machines equipped with bill acceptors must have bill acceptor soft meters

which accumulate the information required by the Gaming Devices Regulations.

(4) If a slot machine is equipped with a ticket printer or bill hopper, the slot machine

must have soft meters, approved by the Division, that accurately accumulate the value of all

hopper tickets and paper tokens or bills paid out of the slot machine. If the slot machine accepts

gaming coupons, paper tokens or hopper tickets, the slot machine must have soft meters,

approved by the Division, that accurately accumulate the value of all gaming coupons, paper

tokens and hopper tickets accepted by the slot machine.

(5) A slot machine must be equipped with electronic meters that record the number of

times the cabinet door was opened. Clearing of the electronic accounting meters requires prior

notification to the Division. A slot machines meters must be maintained at all times, regardless

of whether the machine is being supplied with power. Meter readings must be recorded before

the electronic accounting meter is cleared, unless prevented by a machine malfunction, and after

the electronic accounting meter is cleared. Licensees must maintain adequate records when any

electronic accounting meters are cleared.

(6) No slot machine may have a mechanism that causes the electronic accounting

meters to clear automatically when an error occurs.

(7) Electro-mechanical meters must have an accuracy rate of 99 percent or better.

Electronic meters must have an accuracy rate of 99.99 percent or better.

16-15-115. Random Events

(1) Events in slot machines are occurrences of elements, or particular combinations of

elements, that are available on the particular slot machine. A random event has a given set of

possible outcomes, each with a given probability or occurrence. The set of these probabilities is

called the distribution. Two events are independent if the outcome of one has no influence over

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the outcome of the other. The outcome of one event cannot affect the distribution of another

event if the two events are independent.

(2) The random number generator in a slot machine must produce game plays that are

random and independent, so that a complete future game outcome cannot be predicted from a

previous games outcome. Slot machine games may use information from the outcome of a

previous game in the next game, provided that information cannot be used to predict the entire

final outcome of the next game. The paytable must explain how the information from the

previous game is used in the next game. Random number generators must continue to run in the

background whether or not games are being played on the slot machine, so that the numbers

selected cannot be predicted when a number is picked for a particular game.

16-15-116. Electronic Acceptors At least one electronic acceptor must be installed

in a slot machine. All electronic acceptors must be approved by the Division.

16-15-117. Display of Rules of Play

(1) The rules of play for a slot machine must be displayable on the slot niachine face

or screen. Rules of play must be approved by the Division, which may reject the rules if they are

incomplete, confusing or misleading. Rules of play must be kept under glass or another

transparent substance or be displayed in a video format.

(2) The paytable for a slot machine game program must be displayable prior to

making a wager and must include an explanation of any special features and the amount of the

awards for all winning combinations. The slot machine must not allow the paytable or payout

percentage of a slot machine game to be altered, except in a manner approved by the Division.

(3) The slot machine game program may be replaced with the approval of the

Division.

(4) Multi-station slot machines that initiate games without a required action by the

patron must have a countdown clock advising the patron when the game will start.

(5) Slot machine games involving skill that use something other than a deck of cards

must display the probabilities of occurrence for all symbols used in the game.

16-15-1 18. Hopper Mechanism Slot machines must he equipped with a hopper

which is designed to detect jammed coins, extra payouts, hopper runaways and hopper empty

conditions. A hopper is defined to include a ticket printer or a bill hopper. The slot machine

control program must monitor the hopper mechanism for these error conditions on all game

states. All coins or tokens paid from the hopper mechanism must be accounted for by the slot

machine, including those paid as extra coins during hopper malfunction. Hopper pay and credit

limits must be designed to permit compliance by operator licensees or primary management

officials with tax laws and regulations.

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16-15-119. Software Requirements for Percentage Payout The slot machine must

meet the following maximum and minimum theoretical pay out during the expected lifetime of

the slot machine:

(1) The slot machine must theoretically pay out at least 80 percent and no more than

100 percent of the amount wagered. The theoretical payout percentage is determined using

standard methods of probability theory, and when applied to games whose outcome is determined

in whole or in part by skill, the theoretical pay out shall be computed using the optimum play

strategy for the given game tested.

(2) A nonprogressive slot machine must have a probability of obtaining the maximum

payout greater than I -in-17 million.

(3) Whenever a gaming operation offers a progressive jackpot as a part of the slot

machine payout, the amount of the payout may not be included in the theoretical payout

percentage for purposes of satisfying the minimum and maximum pay out requirements specified

in this section.

16-1 5-120. Progressive Slot Machines

(1) A progressive slot machine is a slot machine with an award that increases based

on coin, token or credit play.

(2) A progressive slot machine jackpot may be transferred to another progressive slot

machine at the same location in the event of a slot machine malfunction, replacement or for

some other good reason with the written approval of the Division. Once a progressive award has

been offered for play, it must be permitted to remain until it is won by a player or transferred to

other progressive games.

(3) The progressive slot machine must be linked to an electronic display meter

showing the award, which is visible to all players who are playing a game that may potentially

win the progressive amount. This meter is the progressive jackpot display.

(4) Records must be maintained that record the amount shown on a progressive

jackpot display. Supporting documents must be maintained to explain any reduction in the award

amount from a previous entry. The records and documents must be retained for a period

established by the Division.

(5) Each progressive game on the link must have the same probability of hitting the

combination that will award the progressive jackpot, and all machines on any link must be

located on the licensed premises of one gaming facility, or they may be linked across

telecommunication lines among more than one gaming facility (hereinafter referred to as Multi

Link), provided any such system complies with the Gaming Devices Regulations.

(6) During the nornial mode of progressive slot machines, the progressive controller

must continuously monitor each machine on the link for coin-in and must multiply the accepted

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coin-in by the rate progression in order to determine the correct amounts to apply to the

progressive jackpot. The progressive jackpot display must be constantly updated as play on the

link is continued.

(7) Each progressive controller linking one or more progressive slot machines must

be housed in a double-keyed compartment or secured in a manner approved by the Division. The

Division must be in possession of one of the keys. No person who has not been authorized by

the Division may have access to change a controllers configuration data. There must be a

progressive entry authorization log within each controller compartment, and the log must be

completed by any person gaining entrance to the controller. The log must be entered on a form

approved by the Division.

(8) If a progressive jackpot event occurs on a progressive slot machine which is

linked to the progressive controller and more than one machine is linked to the controller, the

progressive controller must identify the machine that caused the progressive jackpot display to

activate and it must display the winning progressive amount.

(9) The requirements of this section are intended to apply equally to one progressive

slot machine linked to a progressive controller, as well as several progressive slot machines

linked to one progressive controller. The Commission may grant waivers in order that both

single slot machines and multiple slot machines linked to a progressive controller may meet the

requirements of this section.

16-15-12 1. Cash Requirements Unless the Commission has approved the payment of

prizes by annuity, a gaming operation that has a progressive slot machine game must maintain a

minimum cash reserve equal to the total of all progressive slot machine jackpots that may be won

at the facility, as prescribed in the ICMPs, to ensure the gaming operation has cash available to

pay all progressive liabilities.

16-15-122. Increasing Probability and Progressive Bonus Slot Machine Games

(1) An increasing probability bonus is an award on a slot machine game or games of

either coins, credits, or free play games, where the chance of winning the bonus award increases

as the slot machine game is played.

(2) A progressive bonus award is a progressive award on one slot machine that does

not use an exterior controller. Progressive bonus awards do not include top and secondary

payable progressive awards.

16-15-123. Progressive Table Games

(1) A progressive table game is a table which is equipped with a progressive game

controller which increases the progressive jackpot liability as wagers are made by patrons

specifically to win the progressive jackpot award.

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(2) A progressive jackpot may be transferred to another progressive table game at the

same ]ocation in the event of a progressive table game malfunction or replacement, or for some

other good reason, with the written approval of the Division. Once a progressive award has been

offered for play, it must be permitted to remain until it is won by a player or transferred to

another progressive table game.

(3) The progressive table game must be linked to an electronic display meter showing

the award, which is visible to all players who are playing at the table which may potentially win

the progressive amount. This meter is the progressive jackpot display.

(4) Records must be maintained that record the amount shown on a progressive

jackpot display. Supporting documents must be maintained to explain any reduction in the award

amount from a previous entry. The records and documents must be retained for a period

established by the Division.

(5) Each table on the link must have the same probability of hitting the combination

that will award the progressive jackpot, and all tables on any link must be located on the licensed

premises of one gaming facility. A progressive table game, upon written permission of the

Division, may be moved to a different licensed location if good cause warrants.

(6) During the normal mode of progressive table games, the progressive controller

must continuously monitor each table on the link for inserted/placed tokens and must multiply

the tokens by the rate progression in order to determine the correct amounts to apply to the

progressive jackpot. The progressive jackpot display must be constantly updated as play on the

link is continued.

(7) Each progressive controller linking one or more progressive tables must be housed

in a double-keyed compartment or secured in a manner approved by the Division. The Division

must be in possession of one of the keys. No person may have access to a controller without

notice to the Division. There must be a progressive entry authorization log within each controller

and the log must be completed by any person gaining entrance to the controller. The log must be

entered on a form provided by the Division. If the progressive controller is integrated with a

personal computer software system, logical access over the personal computer software

components must be designed to prevent unauthorized access to the software.

(8) If a progressive jackpot event occurs on a progressive table which is linked to the

progressive controller and more than one table is linked to the controller, the progressive

controller must identify the table that caused the progressive jackpot display to activate and it

must display the winning progressive amount.

(9) The requirements of this section are intended to apply equally to one progressive

table game linked to a progressive controller as well as several progressive table games linked to

one progressive controller. The Commission may grant waivers in order that both single

progressive table games and multiple progressive table games linked to a progressive controller

may meet the requirements of this section.

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16-15-124. Progressive Table Game Meter Requirements

Progressive table games must be equipped with an electro-mechanical meter that records

all coin-in transactions at the table. The meter must have at least six digits. A progressive table

games meter must be maintained at all times. In the event an electro-mechanical meter

malfunctions, meter readings must be recorded before and after the electro-mechanical meter is

replaced. Electro-mechanical meters must have an accuracy rate of 99 percent or better.

ARTICLE 16

SURVEILLANCE REQUIREMENTS

16-16-101. Video Camera Capabilities

(1) At all times during the conduct of gaming the following surveillance shall be

required:

(a) Video cameras capable of providing fixed or pan, tilt and zoom

surveillance of all gaming activities being played, including:

(i) A clear unobstructed view of all slot machine areas, pit and card

game areas and all table games;

(ii) A clear view of the dealing action of all games, including sufficient

specific coverage to identify dealers, patrons, spectators and game number;

(iii) A clear unobstructed view of all areas in the count rooms, cage

areas, cage windows or areas where business with the public is transacted and fill

windows where chip fill transactions are being handled; and

(iv) A clear unobstructed view of entrances and exits of the gaming

facility.

(b) Video cameras required under this subsection shall be of sufficient quality

to ensure that card values in specific hands, as well as denominations of chips being

wagered, can be determined.

(e) A surveillance system shall be capable of providing a hard photo of any

video picture upon request.

16-16-102. Video Camera Requirements

(1) All pan, tilt and zoom cameras shall be concealed in a manner to prohibit viewing

the camera and determining the direction under surveillance.

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(2) All fixed and pan, tilt and zoom cameras shall be connected to video monitors and

linked to recording devices that will provide instant video tape playback of any area.

(3) No time lapse recording systems are allowed.

16-16-103. Preservation of Video Recordings Video recordings gathered under this

section shall be preserved and stored for a period of at least 30 days and shall not be erased,

recorded over, nor otherwise altered during that time.

ARTICLE 17

COINS, CHIPS AND TOKENS

16-17-101. Forms of Wagers All wagers must be made with United States currency

or coins, or with chips or tokens furnished by the gaming operation.

16-17-102. Sale of Chips and Tokens

(1) Chips and tokens used for gaming must be sold for cash only; no credit may be

extended.

(2) Where a gaming operation redeems chips and tokens, it must redeem its own

chips and tokens from its patrons at face value.

16-17-103. Use of Chips and Tokens

(1) A gaming operation using chips or tokens must do the following:

(a) Comply with all applicable statutes, rules and regulations of the Tribe and

of the United States relating to chips or tokens;

(b) Sell chips and tokens only to patrons of the gaming facility and only at

their request;

(c) Promptly redeem the facilitys own chips and tokens from its patrons;

(d) Post conspicuous signs notifying patrons that federal law prohibits the use

of the gaming operations tokens and chips outside the gaming facility for any monetary

purpose whatever; and

(e) Take reasonable steps, including examining chips and tokens and

segregating those issued by other gaming facilities, to prevent sales to its patrons of chips

and tokens issued by another gaming operation.

(2) Except for tips given on the gaming floor, chips or tokens may not be accepted as

payment for goods or services other than gaming or as change in any other transaction.

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16-17-104. Redemption A licensee may not redeem chips or tokens if presented by a

person who the licensee knows, or reasonably should know, is not a patron of the gaming facility,

unless they are presented as follows:

(1) By another gaming facility which represents that it redeemed the chips and tokens

from its patrons or received them unknowingly, inadvertently or unavoidably;

(2) By an employee of the gaming facility who presents the chips and tokens in the

normal course of employment; or

(3) By a person engaged in the business of collecting chips and tokens issued by other

gaming facilities and presenting them to the issuing gaming facility for redemption.

16-17-105. Use of Other Facilitys Chips and Tokens A licensee may not knowingly

sell, use, permit the use of, accept or redeem chips or tokens issued by another gaming facility

except as follows:

(1) The chips or tokens are presented by a patron for redemption to a cashier and the

patron states that the patron received the tokens from the payout chutes of slot machines or from

a licensee at that gaming facility; or

(2) The chips or tokens are presented by a patron at a game, and the licensee redeems

the chips or tokens with chips of that gaming facility, places the redeemed chips in the imprest

bank or the tables drop box, and separates and accounts for the redeemed chips during the count

performed pursuant to the ICMPs.

16-1 7-106. Redemption and Disposal of Discontinued Chips and Tokens An operator

licensee or primary management official who permanently removes from use or replaces chips or

tokens at the gaming facility or ceases gaming activity for any reason must prepare a plan for

redeeming discontinued chips and tokens that remain outstanding at the time of discontinuance.

The operator licensee or primary management official must submit the plan in writing to the

Commission no later than 30 days before the discontinuance. If the cause for discontinuance of

the chips or tokens cannot reasonably be anticipated, the operator licensee or primary

management official must submit the plan as soon as practicable. The Commission may approve

the plan or require modification as a condition of approval. Upon approval of the plan, the

operator licensee or primary management official must implement the plan as approved. In

addition to other provisions the Commission may approve or require, the plan must provide for

the following:

(1) Redemption of outstanding discontinued chips and tokens for 120 days after the

discontinuance or for a longer or shorter period required by the Commission;

(2) Redemption of the chips and tokens at the gaming facility or at another location

approved by the Commission;

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(3) Publication of notice of the discontinuance of the chips and tokens and their

redemption and the pertinent times and locations. The notice must be published in at least two

newspapers of general circulation on the Reservation at least twice during each week of the

redemption period. Publication is subject to the Commissions approval of the form of the

notice, the newspapers selected for publication, and the specific days of publication;

(4) Conspicuous posting of the notice at the gaming facility or other redemption

location; and

(5) Destruction or other disposition of the discontinued chips and tokens as required

by the Commission.

16-17-107. Destruction of Counterfeit Chips and Tokens

(1) As used in this section, counterfeit chips or tokens means any chips or token-like

objects that have not been approved pursuant to this Code, including objects commonly referred

to as slugs, but not including coins of the United States or any other nation.

(2) Unless the Division, the Commission or a court of competent jurisdiction orders

otherwise in a particular case, operator licensees or primary management officials must destroy

or otherwise dispose of counterfeit chips and tokens in a maimer approved or required by the

Commission.

(3) Unless the Division, the Commission or a court of competent jurisdiction orders

otherwise, an operator licensee or primary management official niay dispose of coins of the

United States or any other nation discovered to have been unlawfully used in the gaming facility

by including them in their coin inventories; in the case of foreign coins, by exchanging them for

United States currency or coins and including the exchanged currency or coins in their currency

or coin inventories; or by disposing of them in any other lawful manner.

16-17-108. Disposition Reports and Records

(1) In addition to other information the Commission may require, the operator

licensee or primary management official must report the following information to the Division in

writing on a monthly basis:

(a) The number and denominations, actual and purported, of the coins and

counterfeit chips and tokens destroyed or otherwise disposed of pursuant to this section;

(b) The month during which they were discovered;

(c) The date, place and method of destruction or other disposition, including,

in the case of foreign coin exchanges, the exchange rate and the identity of the bank,

exchange company or other business at which the coins were exchanged; and

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(d) The names of the persons carrying out the destruction or other disposition

on behalf of the operator licensee or primary management official.

(2) Each operator licensee or primary management official must maintain a record

required by this section for at least five years, unless the Commission approves otherwise.

H~~n\suit\eodes\gaming\Gaming Code-03220 c~eanwpd 3/22/01

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