Don W. Abney, Principal Chief 

Sac and Fox Nation 

Route 2, Box 246 

Stroud, Oklahoma 74079 

Dear Chief Abney: 

The purpose of this letter is to respond to your fax transmission of March 29, 1999, in 

which you request the National Indian Gaming Commission (NIGC) to review tne proposed 

Lease Agreement, dated November 22, 1994 (Lease), and Indemnity, dated November 22, 1994, 

between the Sac and Fox Nation (Nation) and Telemark, LLC. The purpose of our review is 

normally to determine whether the agreement is a contract for management of an Indian tribal 

gaming operation or a collateral agreement to such a management contract, and therefore subject 

to our review and approval under the Indian Gaming Regulatory Act (IGRA). 

Because we were unfamiliar with the game being offered under the Lease, we also 

reviewed the game to determine whether its play is lawful under IGRA. We have determined: 

'lllb that Tele-Bingo is not being run as a tribal gaming operation under IGRA; that, in any event, it is 

a class III game which cannot be played ladlly on Indian land in Oklahoma; and that, therefore, 

the Nation should immediately close down the earne, 

Authority to review the Lease and Indemnity 

The authority of the NIGC to review and approve gaming related contracts is limited by 

the IGRA to management contracts and collateral agreements to management contracts. 25 

U.S.C. 5 271 1. The authority of the Secretary of the Interior to approve such agreements under 

25 U.S.C. § 81 was transferred to the NIGC pursuant to the IGRA. 25 U.S.C. 3 271 l(h). 

Management Contracts 

The NIGC has defined the term "management contract" to mean "any contract, 

subcontract, or collateral agreement between an Indian tribe and a contractor or between a 

contractor and a subcontractor if such contract or agreement provides for the management of all 

or part of a gaming operation." 25 C.F.R. 9 502.15. The NIGC has defined "collateral 

agreement" to mean "any contract, whether or not in writing, that is related either directly or 

indirectly, to a management contract, or to any rights, duties or obligations created between a 

tribe (or any of its members, entities, organizations) and a management contractor or 

subcontractor (or any person or entity related to a management contractor or subcontractor)." 25 

d C.F.R. § 502.5. 

1441 L STREET, N.W. 9TH FLOOR WASHINGTON, D.C. 20005 EL.: 202-632-7003 FAX: 202-632-7066 
b, 

a. (u- Determination as to mana~ement of the game, .. : .. - 

Although it is not clear from the face of the lease, NIGC field investigators visiting the 

site report that the Nation is not involved in the operation of Telemark's game, "Tele-Bingo." It 

appears that the game is wholly operated by Telemark on the Nation's land, and the Nation does 

not participate materially in any aspect of the operation. Under this arrangement, Tele-Bingo is 

not tribal gaming, and therefore does not meet the findamental requirement of the Indian Gaming 

Regulatory Act (IGRA) that the Nation have the sole proprietary interest and responsibility for 

the conduct of the game. Based upon this determination, it is not necessary to decide whether or 

not the Lease and Indemnity constitute a management agreement. The question of whether 

Telemark is managing a tribal gaming operation would only arise if Tele-Bingo was in fact a tribal 

gaming operation, but that is not the case. Stated otherwise, this operation does not meet even the 

basic requirement of being gaming by an Indian tribe under IGRA, and we cam5t therefore get to 

the management issue. There is no legal basis for the conduct of Tele-Bingo on the Nation's land. 

Classification of the game 

In addition I am informed that the description of the game in the Lease, which involved 

play using a 900 telephone number to get payment, is incomplete and inaccurate. As currently 

played the game apparently uses the Internet to provide the player with the bingo card (all players 

use the same card), to solicit payment and to provide a PIN to the player. Utilizing the PIN, the 

player then engages in "play" by phone. The play consists of telephoning a location on the 

W Nation's land and receiving, fiom the person on the other end, 20 randomly generated numbers. 

Payouts are based upon achieving a bingo with the fewest numbers, although a bonus is paid for 

covering the top row with the first five numbers. 

IGRA (25 U.S.C. 8 2703) defines class II gaming to mean: 

1. The game of chance commonly known as bingo: 

a. Which is played for prizes with cards bearing numbers or other designations 

b. In which the holder of the card covers such numbers or designations when 

objects, similarly numbered or designated, are drawn 

c. In which the game is won by the first person covering a previously designated 

arrangement on such card (s) 

Tele-Bingo is far removed fiom the "game of chance commonly known as bingo." The 

Tele-Bingo player is not engaged in play of a game with other players, covering numbers as they 

are called, and does not win by being "the first person covering a previously designated 

arrangement." Rather, the Tele-Bingo player receives randomly generated numbers by telephone, 

and wins by matching those numbers to a card which remains the same for all players in all games. 
(. 

Te:e-Bingo is simply a.'lottery, and as such it is a class 111 game. 

Please be advised that the Nation should take all necessary steps to close dcwn this game, 

without delay. Operation of this non-tribal game on the Nation's land is a violation of IGRA. 

Additionally, operation of a class 111 game on Indian land, without a compact, is a violation of 

IGRA and constitutes a crime under 1 8 U. S. C. 5 1 166. 

If you have any questions or concerns, please call me at (202) 632-7003. 

Richard B. Schiff r; 

Senior Attorney