Spokane Tribe of Indians P.O. Box 100 Welipinit, WA 99040 (509) 258-4581 Fax 258-9243

CENTURY OFSURVIVAL

1881 - 1981

RESOLUTION

Spokane Resolution 1996-162

TRIBAL GAMING CODE

WHEREAS, the Spokane Tribal Council is the duly constituted governing body of theS~pokane

Tribe by authority of the Constitution and By-laws of the Spokane Tribe; and

WHEREAS, under the Constitution and By-laws of the Tribe, the Spokane Tribal Council is

charged with the duty of protecting the health, security and general welfare of the Spokane Tribe

and all reservation residents; and

WhEREAS, the Tribe previously amended its gaming code, pursuant to Spokane Resolution 1993-

074, adopted February 18, 1993, and pursuant to Spokane Resolution 1995-368 to adopt a

comprehensive gaming code to govern the regulations of gaming activities on Spokane Tribal lands;

and

0

WHEREAS, the National Indian Gaming Association has rejected the Code on the asserted grounds

that Paragraph 2.17(a) of~the Code does not make explicit reference to 25 CFR Part 556 and does

not mirror certain definitions of terms as defined in NIGC regulations; and

WHEREAS, the amendment of the code to include such an explicit reference to 25 CFR Part 556

and to conform to NIGC definitions does not diminish the Tribes ability to insure the integrity and

fairness of its gaming operations, in that the Gaming Code already mandated compliance with 25

CFR Part 556 by the forÆe and effect of the existing language of Paragraph 2.17(a) and that the

changed definitions due not materially alter the subject terms; and

NOW ,THEREFORE, BE IT HEREBY RESOLVED by the Spokane Tribal Business Council

meeting in Special Session this 19th day of March, 1996, that the Tribal Council does hereby

amends its existing Gaming Code by deleting strike thru language and by adding underlined

language to certain sections as follows:

Section 2.17 Administrative duties of the Tribal Gaming Commission. The Tribal Gaming

Commission shall perform all duties, exercise all powers, assume and discharge all responsibilities,

and carry out and effect all purposes of this Code relating to the regulation of all gaming activity.

In all decisions, the Commission shall act to promote and ensure integrity, security, honesty, and

fairness of the operation and administration of all gaming activity. The Commissions duties shall

include but not be limited to the following:
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(a) Correspond with the National Indian Gaming Commission and do whatever is necessary to

complete compliance with the rules and regulations of that agency, including but not limited

to compliance with all requirements of NIGC regulations set forth in 25 CFR Parts 556 and

558. Specifically, the Commission shall arrange for an annual outside audit of authorized

gaming and will provide a copy to the National Indian Gaming Commission;

(b) assure that all gaming activity is conducted in a manner which adequately protects the

environment and the public health and safety;

(c) Proscribe an adequate system which ensures that background investigations are conducted

on all primary management officials and key employees of any Gaming establishment and

that oversight of such officials and their management is conducted on an ongoing basis. The

Commission shall immediately notify the National Indian Gaming Commission of the

issuance of such licenses. The Commission will review all applications and background

investigations to ensure that no person shall be eligible for employment in or with any part

of the gaining operation if that persons prior activities, criminal record, if any, or reputation,

habits and associations pose a threat to the public interest or to the effective regulation of

gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices and

methods and activities in the conduct of gaming. The Commission shall notify the National

Indian Gaming Commission of the results of such background checks before the issuance

of such licenses;

(d) Recommend the hiring such professional, clerical, technical, and administrative personnel

as may be necessary to carry out the provisions of this Code;

(e) Identify and make necessary arrangements for a law enforcement agency to take fingerprints

and for conducting a criminal history check which shall, at a minimum, include a check

through the Federal Bureau of Investigation National Criminal Information Center.

(f) Review all records, documents, and anything else necessary and pertinent to enforcement

of any provisions of this Code;

Section 1.05 Class II Gaming means -

(a) the game of change commonly known as bingo or lotto (whether or not electronic, computer,

or other technologic aids are used in connection therewith) when players

(i) which is playedfor prizes, including monetary prizes with cards bearing numbers

or other designations;
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(ii) in which the holder of the card covers such numbers or designations when objects,

similarly numbered or designated, are drawn or electronically determined; and

(iii) in which ~jn.. the game is won by being the first person ~ covering a previously

designated arrangement of numbers or designations pattern on such cards;

(b) including (if played in the same location) as bingo or lotto pull tabs, lotte, punch boards, tip

jars, instant bingo, and other games similar to bingo; an~d

(~) ( Nonbanking card games that: aie

(i) State law explicitly authorized or does by laws of the State of Washington, or

( arc not explicitly prohibited by the laws of the Spokane Tribe of Indiana and the

State of Washington and are played legally anywhere at any location in the state-of

Washington, but only if such card games arc played ~

(jjj) players p1~y in conformity with ~those laws and regulations (any) of the State

of Washington regarding concerning hours, Of periods of operation, of such card

games or~~jimitations on wagers Of ~pot sizes; in such card games.

( The terra class U gaming does not include

any banking card games, including baccarat, chemin de for, or blackjack (21), or

~-electroniØ or electromechanical facsimiles of any games of change machines

of any kind

(d) Notwithstanding any other provision of this section, the term class II gaming includes

those card games played in the states of Michigan. North Dakota. South Dakota. or

Washington, that were

(j) An Indian tribe actually operates the same card games as played on or before May

1, 1988, as determined by the Chairman: and

(~j~ the pot and wager limits remain the same as on or before May 1. 1 988, as determined

by the Chairman: but only to the extent of the nature and scope of the card games

that were actually operated by an Indian tribe in the State on or before such date

~ Individually owned class II gaming operations
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~j) that were operating on September 1. 1986

I.ii) that meet the requirements of 25 U.S.C. §2710(b)(4)(B)

Qil) where the nature and scope of the game remains as it was on October 17. 1988: and

(j~) where the ownership interest or interests are the same as on October 17. 1988

Section 1.16 Key Employee means:

~) A person who peiforms one or more of the following functions

Q) Bingo caller

Qj) Counting room supervisor

(jjj~ Chief of Security

~jy) Custodian of gaming supplies or cash

(~) Floor manager

Lxi) Pit boss

(~Lii) Dealer

(yjji Croupier:~

Q~ Approver of credit: or

~) Custodian of gambling devices including persons with access to cash and accounting

records within such devices

(k) If not otherwise included, any other person whose total cash compensation is in excess of

$50,000.00 per year: or

~ If not otherwise included the four most highly compensated persons in the gaming

operation, all employees who have authority ovcr rcccipt or distribution of revenues from

the gaming acti~~ity and shall include but not limited to cashiers, dealers, pit bosses, floor

managers, supervisors and any othcr individual who has thc authority to sign checks or

handle cash or currency

Section 1.18 Net Revenues means gross gaming revenues of an Indian gaming operation

activity Icss

~ amounts paid out as, or paid for, prizes; winnings and

(~) total g4ming-related operating expenses, including reasonable salaries p~d to employees

a~nd-excluding management fees, as defined by Paragraph 1.20
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Section 1.19 Management Contract means any contract, subcontract, or collateral agreement

between the Spokane an Indian Tribe and a contractor or between a contractor and subcontractor if

such contract or agreement provides for th~ management of all or part of a gaming operation,

excluding those parts of the operation that arc not related to specific gaming activities.

specifically in the context of this definition means policy decision making authority

regarding the gaming activity

Section 1.24 Primary Management Officials means

(~) The person having management responsibility for a management contract

th) Any person who has shall include all officials of the gaming activity who exercise authority

over daily operation of the gaming, including thc authority

(i) to hire ana fire employees~.~

(ii) to supervise employees or to establish c~ncrational set up working policy for the

gaming operation: or

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

activity. Such officials shall include, but not be limited to, all owncrs, officers, shareholders

with greater than a ten percent (10%) ownership interest, or partners of the management

contractor, if any

BE IT FURTHER RESOLVED, that the amended Code be resubmitted to the National Indian

Gaming Commission for formal approval, provided however, that by such resubmission, the Tribe

does not waive any rights or privileges to challenge the correctness of the decision of the National

Indian Gaming Commission to reject the Code as enacted on February 18, 1993 or as amended on

September 20, 1993.

Certification

The foregoing was duly enacted by the Spokane Tribal Business Council on the 19th

day of March, 1996, by the vote of 4 for and 0 against under authority contained in

Article VIII of the Constitution of the pokane Indians ra)~jfied by the Spokane Tribe

on November 22, 1980.

Chairman 7

Spokane Tribal Business Council
SPOKANE TRIBE OF INDIANS

TRIBAL GAMING CODE

CHAPTER 1

DEFINITIONS

Section 1.01 Definitions Unless a different code meaning is clearly indicated,

the terms used in this Code shall have the same meaning as defined in the

Indian Gaming Regulatory Act, Public Law 100 ~ 497, 102 Stat. 2467 (Oct. 17

1988).

Section 1.02 Calendar Year means the period beginning January 1 at

12:00:01 and ending the immediately following December 31 at 12:00 oclock

midnight.

Section 1.03 Chairman means the Chairperson of the Spokane Tribal

Gaming Commission appointed by the Council as the chief administrator of

Spokane gaming.

Section 1.04 Class I Gaming means social games played solely for prizes of

minimal value or traditional forms of Indian gaming engaged in by

individuals as a part of, or in connection with, tribal ceremonies or

celebration.

Section 1.05 Class 1! Gaming means -

(a) the game of chance commonly known as bingo (whether or not

electronic, computer, or other technologic aids are used in connection

therewith) -

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TRIBAL GAMING CODE

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(i) which is played for prizes, including monetary prizes, with

cards bearing numbers or other designations,

(ii) in which the holder of the card covers such numbers or

designations when objects, similarly numbered or designated, are drawn or

electronically determined, and

(iii) in which the game is won by the first person covering a

previously designated arrangement of numbers or designations on such

cards, including (if played in the same location) pull tabs, lotto, punch boards,

tip jars, instant bingo, and other games similar to bingo, and

(b) card games that are

(i) explicitly authorized by laws of the State of Washington, or

(ii) are not explicitly prohibited by the laws of Spokane Tribe of

Indians and the State of Washington and are played at any location in the

State of Washington, but only if such card games are played in conformity

with those laws and regulations (if any) of the State of Washington regarding

hours or periods of operation of such card games or limitations on wagers or

pot sizes in such card games.

(c) The term class H gaming does not include

(i) any banking cards games, including baccarat, chemin de fer, or

blackjack (21), or

(ii) electronic or electromechanical facsimiles of any game of

chance or slot machines of any kind.

(d) Notwithstanding any other provision of this section, the term

class II gaming includes those card games played in the State of

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TRIBAL GAMING CODE

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Washington, that were actually operated in the State by an Indian Tribe on or

before May 1, 1988, but only to the extent of the nature and scope of the card

games that were actually operated by an Indian tribe in the State on or before

such date.

Section 1.06 Class III gaming means all forms of gaming that are not Class I

gaming or Class II gaming.

Section 1.07 Commission means the Spokane Tribal Gaming Commission.

Section 1.08 Commissioner means one of the members of the Spokane

Tribal Gaming Commission.

Section 1.09 Council means the Spokane Tribal Business Council.

Section 1,10

Reserved]

Section 1.11 Gaming or Gaming Activity means to deal, operate, carry on,

conduct, maintain or expose for play any game played with cards, dice,

equipment or any mechanical, electromechanical or electronic device or

machine for money, property, checks, credit or any representative of value,

including, without limiting the generality of the foregoing, faro, monte,

roulette, keno, bingo, fanTMtan, twenty-one, blackjack, seven-and-a-half, big

injun, klondike, craps, poker, chuck-a-luck, chinese chuck-a-luck (dai shu),

wheel of fortune, them de fur, baccarat, pai gow, beat the banker, panguingui,

slot machine, video poker machine, pull tabs, bingo, any banking or

percentage game or any other game or device approved by the Commission,

but does not include games played with cards in private homes or residences

in which no person makes or charges money for operating the game, except as

a player.

Section 1.12 -

reserved]

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Section 1.13 Gaming Establishment or Gaming Premises means any

premises where gaming, other than Class I gaming is operated or conducted,

and includes all buildings, improvements, equipment, and facilities used or

maintained in connection with such gaming.

Section 1.14 Gross Revenue means the total monetary value that would be

due to any operator of a gaming activity for any chance taken, for any table

fees for card playing, or other fees charged for participation or admittance, as

evidenced by required records. The value shall be stated in U.S. currency,

before any deductions or allowances for prizes, pay out of winnings, cost of

operation, promotional expenses, taxes, labor expenses, equipment or

materials used, or any other expenses. In the absence of records, gross

revenue shall be the maximum that would be due to an operator from that

particular activity if operated at maximum capacity.

Section 1.15 Indian Land means

(a) Any lands located within the exterior boundaries of the Spokane

Indian Reservation; and

(b) Any lands title to which is either held in trust by the United

States for the benefit of the Spokane Tribe of Indians, or held by the Spokane

Tribe of Indians subject to restriction by the United States against alienation

and over which the Spokane Tribe of Indians exercises governmental power;

and

(c) Any lands title to which is either held in trust by the United

States for the benefit of the individual Indian, or held by an individual

Indians subject to restriction by the United States against alienation and over

which the Spokane Tribe of Indians exercises governmental power.

Section 1.16 Employge means all employees who have authority over

receipt or distribution of revenues from the gaming activity, and shall

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TRIBAL GAMING CODE

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include but not be limited to cashiers, dealers, pit bosses, floor managers,

supervisors and any other individual who has the authority to sign checks or

handle cash or currency.

Section 1.17 Licensee means any person who has been issued a valid and

current license pursuant to the provisions of this Gaming Code.

Section 1.18 Net Revenue means gross revenues of a gaming activity less

amounts paid out as, or paid for, prizes, winnings, and total operating

expenses, including reasonable salaries paid to employees, and excluding

management fees, as defined by § 1.20.

Section 1.19 Management Contract means any contract, subcontract, or

collateral agreement between the Spokane Tribe and a contractor or between a

contractor and subcontractor, if such contract or agreement provides for

management of all or part of a gaming operation, excluding those parts of the

operation that are not related to specific gaming activities. Management,

specifically in the context of this definition means policy decision-making

authority regarding the gaming activity.

Section 1.20 Management Fee means any monies paid from gaming

revenue to any person or entity contracted and/or licensed to operate a

gaming establishment. Such term shall not include monies paid for operating

expenses. Such term shall also include any monies paid to the owner of a

gaming establishment licensed pursuant to § 3.03 of this Code.

Section 1.21 Operating Expense means -

(a) any expense incurred in the daily operation of a gaming activity

that is specifically designated as an operating expense in a management

contract;

(b) in the case of an establishment licensed by the Tribe pursuant to

§ 3.03, the term shall mean an expense specifically designated as an operating

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TRIBAL GAMING CODE

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expense in any regulation adopted by the Commission. Operating expense

shall include all monies that are reasonably attributed to maintaining and

operating the gamitig activities, reasonable salaries paid to employees, and

non-gaming activities that are reasonably related to promoting business in

the gaming establishment.

Section 1.22 Patron means any person or group of persons who participate

as players in games as defined by this Code, or who are physically present on

premises wherein or whereon such games are being played.

Section 1.23 Person means any association, partnership, corporation, firm

trust or other form of business association as well as a natural person.

Section 1.24 Primary Management Officials shall include all officials of the

gaming activity who exercise authority over daily operation of the gaming,

including the authority to hire and fire employees, to supervise employees or

to establish operational policy for the gaming activity. Such officials shall

include, but not be limited to, all owners, officers, shareholders with greater

than a ten percent (10 %) ownership interest, or partners of the management

contractor, if any.

Section 1.25 Regulation means the regulations of the Commission under

this Code.

Section 1.26 Reservation when not qualified, means -

(a) all lands and water areas within the exterior boundaries of the

Spokane Reservation, established pursuant to Executive Order, January 18,

1881 and any extensions thereof, and all Spokane tribal and allotted Indian

lands outside the exterior boundaries of the Spokane Indian Reservation.;

(b) any other lands designated as reservation lands by the Secretary of

the Department of Interior.

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TRIBAL GAMING CODE

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Section 1,27 Services means labor provided by one person to or for another,

where such labor is provided in pursuit of the purpose of gaming pursuant to

this code.

Section 1.28 Tribal Court means the Tribal Court of the Spokane Tribe of

Indians.

Section 1.29 Tribal-State Compact or Compact means a written document,

either negotiated and agreed to by the Spokane Tribe and an official or agency

of the State of Washington, or prescribed by the Secretary pursuant to 25

U.S.C. 2710 (7) (B) (vii), governing the conduct of Class III gaming activities on

Indian lands.

Section 1.30 Tribe means the Spokane Tribe of Indians.

Section 1.31 Working days means Monday through Friday except Federal or

Tribal holidays.

Section 1.32 Words and Terms Tense, number and gender. In constructing

the provisions of this Code, save when otherwise plainly declared or clearly

apparent from the context;

(a) words in the present tense shall include the future tense;

(b) words in masculine, feminine and neuter genders shall include all

genders;

(c) words in the singular shall include the plural, and in the plural

shall include the singular.

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TRiBAL GAMING CODE

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CHAPTER II

ADMINISTRATION AND ENFORCEMENT

Section 2.01 Unauthorized Gaming Any Indian who commits any act of

unauthorized gaming on this reservation or on any Indian land shall be

guilty of a crime and shall be prosecuted in Tribal Court. However, it is

hereby declared that Class II and authorized Class Ill gaming, conducted on

this reservation or on any Indian land, that fully complies with the

provisions of this Code Si~i1 not be subject to any criminal penalties.

Section 2.02 Ownership - Revenues to Benefit Tribe Except for those licenses

issued pursuant to ~ 3.04, the Tribe shall have the sole proprietary interest in,

and the sole responsibility for the conduct of the gaming activity. Such

provision does not, however, limit the Tribes ability to enter into a

management contract wherein net revenues are divided between the Tribe

and other parties to the contract. A gaming establishment shall be operated so

as to produce the maximum amount of net revenues to the Tribe. Net

revenues will go entirely to the Tribe and will be used solely 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; or

(e) to help fund operations of local government agencies. Net

revenues from the gaming establishment may be used to make per capita

payments to members of the Tribe upon the preparation of a plan to allocate

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TRIBAL GAMING CODE

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revenues to the above uses and approval of this plan by the Secretary of the

Department of Interior.

Section 2.03 Establishment of Commission The Spokane Tribal Gaming

Commission is hereby established. The Commission shall consist of three (3)

members appointed by a majority vote of the Council. Only enrolled

members of the Tribe may be appointed to the Commission. A commissioner

shall be appointed by the Tribal Council and may be removed from office only

for cause and by a unanimous vote of Council. Vacancies shall be filled

within 30 days by the Council.

Section 2.04

Reserved]

Section 2.05 Compensation of Commissioners Commissioners shall be

compensated at a rate to be established by the Tribal Business Council.

Commissioners shall be reimbursed for actual expenses incurred on

Commission business, including necessary travel expenses.

Section 2.06 Selection of Chairperson The Commission shall select a from its

membership a chairperson, who shall serve a three year term, and shall have

the power to convene special meetings of the Commission upon 24 hours

written notice to members of the Commission. The 24 hour notice

requirement may be waived by a majority of the Commission.

Section 2.07 Meetings Open to Public General meetings of the Commission

shall be open to the general membership of the Spokane Tribe, all meetings

shall be governed by Roberts Rules of Order.

Section 2.08 Quorum -

Majority Vote A quorum shall consist of two

members of the Commission. All decisions shall be made by a majority vote

of the quorum present (or participating by telephone line), unless indicated

otherwise in this Code. Proxy or assignments of voting shall be prohibited.

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Section 2.09 Monthly Reports The Commission shall make monthly reports

to the Council within 30 days after the close of the month for which the

information is being required. The reports shall include a full and complete

statement of gaming revenues paid to the Tribe, expenses and all other

financial transactions of the Commission and a summary of all licensing and

enforcement actions.

Section 2,10 Powers The Commission shall exercise all powers necessary to

effectuate the purposes of this Code. The Commission may exercise any

proper power and authority necessary to perform the duties assigned to it by

the Code, and is not limited by enumeration of powers in this chapter. The

Commission shall meet with the Chairman not less than once each month

to make recommendation and set policy, to approve or reject reports of the

Chairman and transact other business that may be properly brought before it.

The Commission shall promulgate rules and regulations for the operation of

any gaming establishment and shall hear and resolve all disputes regarding

any provision of the Code. In all decisions, the Commission shall act to

promote and ensure integrity, security, honesty, and fairness of the operation

and administration àf all gaming activities. The Commission shall have the

power and authority to deny any application, to limit, condition, suspend, or

restrict any license, make a finding of suitability or approval of a license, or a

finding of suitability or approval of or the imposition of a fine upon any

person licensed, for any cause deemed reasonable by the Commission.

Section 2.11 Pnor Notice of Actions In adopting, amending, and repealing

regulations, the Commission shall give prior notice of the proposed action to

all licensees and other persons whom the Commission or Chairman has

reason to believe have legitimate and bona fide interest in such proposed

action. Said notice shall inform such persons as to the general nature of the

proposed action and advise them as to the manner in which comments on

said proposed action shall be received by the Commission. In emergencies,

the Commission may summarily adopt, amend or repeal any regulation if at

the time the Commission determines such action is necessary for the

immediate preservation of the public peace, health, safety, morals, and good

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TRIBAL GAMING CODE

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order or general welfare, together with a statement of facts constituting the

emergency; provided, the Commission shall schedule such emergency action

for a regular hearing within 60 days.

Section 2.12 Request for Commission Action Any person who is determined

by the Commission or Chairman to be a bona fide interested party may file

request in a manner and form approved by the Commission requesting the

adoption, amendment or repeal of a regulation. Upon receipt of the request,

the Commission shall within 30 days deny the request in writing or schedule

the matter for action pursuant to this chapter.

Section 2.13 Voting on Licensing Any Commission vote resulting in

approving, disapproving, revoking, suspending, limiting or conditioning a

license under this Code shall be by ballot only; provided, that in an emergency

a phone vote may be polled pursuant to Commission Regulations. Should

an applicant disagree with the determination of the Commission, the

Commission shall hold a hearing to review its decision, within three

working days from the date an applicant files his/her disagreement with the

Commission. At the hearing the burden shall be upon the applicant to show

cause why the Commissions determination was incorrect. Any

Commissioner that may gain economically (other than gain to the Tribe and

tribal membership generally) from the granting or denial of a licensing

application shall abstain from voting on such application.

Section 2.14 Commission Findings Following such hearing, the Commission

shall, within three working days, reach a determination concerning:

(a) the accuracy of the preliminary certification of facts, and

(b) whether the license in question should be granted, continued,

suspended, revoked, conditioned, or limited, and

(c) whether or not any other action recommended to the Commission

including, but not limited to, forfeitures, should be taken.

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Section 2.15 Notification of Commission Decision Within three working days

following this determination the Commission shall inform the subject in

writing of that determination.

Section 2.16 Right to appeal The subject shall have a right to appeal the

determination of the Commission to the Tribal Court. Such appeal must be

filed with the Tribal Court in written form on or before the tenth day

following receipt of the written determination of the Commission. A

determination of such appeal by the Tribal Court shall be final and no further

appeal may be had. In any appropriate case which has been referred to Tribal

Court for final action. The Tribal Court shall review, de novo, the

determination of the Commission. The Courts action may be appealed to a

panel of three associate judges. Such appeals must be heard within thirty (30)

days. In the event that associate judgeships are vacant, such vacancies shall be

filled by visiting judges of other tribal courts.

Section 2.17 Administrative duties of the Tribal Gaming Commission The

Tribal Gaming Commission shall perform all duties, exercise all powers,

assume and discharge all responsibilities, and carry out and effect all purposes

of this Code relating to the regulation of all gaming activity. In all decisions,

the Commission shall act to promote and ensure integrity, security, honesty,

and fairness of the operation and administration of all gaming activity. The

Commissions duties shall include but not be limited to the following:

(a) Correspond with the National Indian Gaming Commission and do

whatever is necessary to complete compliance with the rules and regulations

of that agency, including but not limited to compliance with all requirements

of NIGC regulations set forth in 25 CFR Part 558. Specifically, the

Commission shall arrange for an annual outside audit of authorized gaming

and will provide a copy to the National Indian Gaming Commission;

(b) assure that all gaming activity is conducted in a manner which

adequately protects the environment and the public health and safety;

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TRIBAL GAMING CODE

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(c) Proscribe an adequate system which ensures that background

investigations are conducted on all primary management officials and key

employees of any Gaming establishment and that oversight of such officials

and their management is conducted on an ongoing basis. The Commission

shall immediately notify the National Indian Gaming Commission of the

issuance of such licenses. The Commission will review all applications and

background investigations to ensure that no person shall be eligible for

employment in or with any part of the gaming operation if that persons

prior activities, criminal record, if any, or reputation, habits and associations

pose a threat to the public interest or to the effective regulation of gaming, or

create or enhance the dangers of unsuitable, unfair, or illegal practices and

methods and activities in the conduct of gaming. The Commission shall

notify the National Indian Gaming Commission of the results of such

background checks before the issuance of such licenses;

(d) Recommend the hiring such professional, clerical, technical, and

administrative personnel as may be necessary to carry out the provisions of

this Code;

(e) Identify and make necessary arrangements for a law enforcement

agency to take fingerprints and for conducting a criminal history check which

shall, at a minimum, include a check through the Federal Bureau of

Investigation National Criminal Information Center.

(f) Review all records, documents, and anything else necessary and

pertinent to enforcement of any provisions of this Code;

Section 2.21 Right of Inspection The Commission, including its agents,

inspectors, and employees have the authority:

(a) To inspect and examine all premises wherein gaming is conducted

or gambling devices or equipment are manufactured, sold or distributed;

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TRIBAL GAMING CODE

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(b) To inspect all equipment and supplies in, upon or about a gaming

establishment, or inspect any equipment or supplies wherever located, which

may, or have been used in the gaming establishment;

(c) Summarily to seize and remove from a gaming establishment (or

whatever located) and impound such equipment or supplies for the purpose

of examination, inspection, evidence or forfeiture;

(d) To demand access to and inspect, examine and audit all papers,

books and records of applicants and licensees respecting any income produced

by any gaming business, and require verification of income and all other

matters affecting the enforcement of the policy of or any of the provisions of

this Code;

(e) To seize and impound any patrons winnings which the

Commission may have reasons to believe may have been won or obtained in

violation of this Code pending a civil forfeiture hearing on such seizure;

(f) For the purpose of administration and enforcement of this Code the

Commission, including its investigative personnel may, if deemed necessary

by the Tribal Business Council, have the powers of the peace officer of the

Spokane Tribe of Indians for purposes of this Code only;

(g) Commissioner shall have full power and authority to issue

subpoenas and compel the attendance of witnesses for hearings at any place

within the Reservation, to administer oaths and to require testimony under

oath. Any process or notice may be served in the manner provided for

service of process and notices in civil actions. The Commission and the

Chairman may pay such transportation and other expenses of witnesses as it

may deem reasonable and proper.

Section 2.22 Confidentiality of Information The Commission and Chairman

may refuse to reveal, in any court proceeding the identity of any informant,

Spokane Tribe of Indians

TRIBAL GAMING CODE

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or the information obtained from the informant, or both the identity and the

information.

Section 2.23 Powers of Delegation The Commission may organize itself into

functional divisions as it may deem necessary and from time to time alter

such plan of organization as it may deem expedient. The Commission shall

establish its own budget for operations, and acquire such furnishings,

equipment, supplies, stationery, books, motor vehicles, and other things as it

may deem necessary or desirable in carrying out its functions, and incur such

other expenses, within the limit of funds available to it, as it may deem

necessary. Within the limits of a Council approved budget, the Commission

shall employ and fix the salaries of or contract for the services of such

professional, technical and operational personnel and consultants as the

execution of its duties and the operation of the Chairman and Commission

may require. At the Councils discretion, said budget may be reviewed and

modified by the Council at any time. Upon the end of the budget year any

surplus which might exist shall be refunded to Council at their discretion.

The Commission and Chairman shall each keep and maintain a file of all

applications for licenses under this chapter, together with a record of all

action taken with respect to such applications. The Commission and

Chairman shall keep and maintain such other files and records as they may

deem desirable and all such records may be open to public inspection as they

may deem appropriate; provided, that the annual Commission budget shall

be made available to any tribal member upon demand.

Section 2.24 Sanctions Any person who engages in activities on property

subject to the provisions of this Gambling Code without a license, in

violation of the license or terms imposed thereon, in violation of terms of

suspension, or in violation of any regulation, provision, or amendment

under this Code shall be in violation of the Code, including any person who

unlawfully trespasses upon any premises licensed by this Code without the

consent of the licensee and/or the Commission.

Spokane Tribe of Indians

TRIBAL GAMING CODE

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Section 2.25 Limitations Period No fine shall be assessed nor any action taken

for any violation under the preceding section unless a charge is filed in

proper form with the Tribal Court within two years of the commission of the

offense.

Section 2.26 Violations of Code - Punishment By accepting a license, the

licensee is consenting to the civil jurisdiction of the Tribal Court. Any

violation of this Code shall be subject to a fine of no more than five

thousand dollars ($5000.00) for each separate count or violation, or prohibited

from any gaming activity, or both. Each day of violation shall constitute a

separate count or violation under this Code. A violator may also be required

to pay court costs, storage fees, and auction or sales fees. All property used or

which may be used in activities in each and every separate violation of this

Code may become the property of the Tribe; persons may be prohibited from

trespassing on premises licensed under this Code, licenses may be suspended,

revoked, or limited and/or establishments may be forcibly closed. All such

action shall be taken at the discretion of the Commission, subject to the right

of appeal to Tribal Court. Winnings found to have been received in violation

of this Code are forfeited and become the property of the Tribe.

Section 2.27 Due Process Regarding Enforcement Actions The Commission

shall promulgate regulations protecting due process rights of all individuals

subject to the enforcement of this Code. Such regulations shall provide, at a

minimum:

(a) provide standards for emergency or summary suspension of license;

(b) provide fair notice and opportunity for hearing regarding any

revocation or suspension of license, and regarding any enforcement action

taken pursuant to this Code;

(c) provide right to appeal, de novo, of any Commission disciplinary or

enforcement action to Tribal Court.

Spokane Tribe of Indians

TRIBAL GAMING CODE

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Section 2.28 Special Agents The Commission shall authorize special agents

appointed pursuant to Section 1 of Chapter IV of the Tribes Law and Order

Code or pursuant to any appropriate section and/or chapter of any subsequent

~aw and Order Code to perform services reasonably necessary to assure

compliance with the provisions of this Code only. Said special services of

enforcement and surveillance shall be under the authorization and direction

of the Chairman, unless otherwise determined by the Commission. This

section shall in no way be deemed to limit the normal law enforcement

functions of these or other tribal law enforcement officers not so authorized.

Section 2.29 Independence of Commission The Chairman, Commissioners,

members of the Council and their immediate families shall receive no

personal compensation, gift, reimbursement or payment of any kind from

any person doing or wishing to do business with the Tribe relating to gaming

nor with any person wishing to obtain an unfair advantage in any authorized

wager on gaming. Personal compensation, gift, reimbursement or payment of

any kind shall not include business entertainment, meals, lodging or other

ordinary and reasonable expenses in the negotiation and solicitation of

contracts. Any property received in violation of this provision, including

cash payments, shall be immediately forfeited to the Tribe and the offending

persons shall be prosecuted to the fullest extent possible under tribal law for

accepting a bribe. The Commission shall cooperate to the fullest extent

possible with any Federal or State law enforcement agency to pursue

prosecution under applicable Federal or State law.

CHAPTER III

LICENSING OF GAMES

Section 3.01 -

Mandatory License -

Any person seeking to conduct, operate, or

manage any gaming activity pursuant to this codes shall apply for, and

receive, all the required licenses from the Commission prior to engaging in

such gaming activities. Engaging is such gaming activities without first

Spokane Tribe of Indians

TRIBAL GAMING CODE

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obtaining the required licenses shall be deemed a violation of this Code and

shall be punishable in accordance with § 2.26.

Section 3.02

Section 3.03 Licensing and Regulation of Class II Gaming Activity N~i

Revenue Allocation; Audits; Contracts

(a) A separate license issued by the Commission shall be required for

each place, facility, or location within the Tribes jurisdiction at which any

Class II Gaming Activity is conducted.

(b) The Commission may license and regulate a tribally owned Class II

Gaming Activity if -

(i) such gaming activity is located on Indian lands within the

Tribes jurisdiction, and the State of Washington permits such gaming for

any purpose by any person, organization or entity (and such gaming is not

otherwise specifically prohibited on Indian lands by Federal laws); and

(ii) except as provided in Section 3.04, the Tribe will have the

sole proprietary interest and responsibility for the conduct of such gaming

activity, and

(iii) net revenues from such Gaming Activity are used in

accordance with Section 2.02 of this Code; and

(iv) such gaming activity is subject to annual outside audits,

which may be encompassed within existing independent tribal audit systems,

and provided to the Council, and

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TRIBAL GAMING CODE

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(v) all contracts for supplies, services, or concessions for an

aggregate amount in excess of $25,000 annually relating to such gaming are

also subject to independent audits; and

(vi) the construction and maintenance of the gaming facility,

and the operation of that gaming, is conducted in a manner which adequately

protects the environment and the public health and safety; and

(vii) all primary management officials and key employees of the

Class II gaming operation have successfully passed a background

investigation which is approved by the Tribe and the National Indian

Gaming Commission.

Section 3.04 Grandfathered Licenses and Licenses that Mirror State

Restrictions

(a) Licenses that Mirror State Restrictions The Commission may

license and regulate Class II gaming activities owned by any person or entity

other than the Tribe and conducted within the Trib&s jurisdiction, only if

the requirements described in section (b)(i) of this Section are met and are

conducted in a manner that is at least as restrictive as the regulations

established by Washington State law governing similar gaming within its

jurisdiction. No person or entity, other than the Tribe, shall be eligible to

receive a license from the Commission to own a Class II gaming activity

conducted within the Tribes jurisdiction if such person or entity would not

be eligible to receive a license from the State of Washington to conduct the

same activity within its jurisdiction.

(b) Licenses

(i) The provisions of subsection (a) of this Section and the

provisions of Subsections (ii) and (iii) of Section 3.02(b) shall not bar the

continued operation of an individually owned Class H gaming operation that

Spokane Tribe of Indians

TRIBAL GAMING CODE

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was licensed and regulated by the Tribe and was operating on September 1,

1986, if:

(A) such gaming operation remains in full compliance

with all applicable Tribal and Federal laws, and is issued an annual license

renewal from the Commission, and

(B) income to the Tribe from such gaming is used only for

the purposes described in Section 2.02 of this Code, and

(C) not less than 60 percent of the net revenues is income

to the Tribe, and

(D) the owner of such gaming operation pays the

appropriate assessment levied by the National Indian Gaming Commission.

Section 3.05 Issuance of Tribal Gaming Licenses; Objections. The Commission

shall consult with appropriate law enforcement officials concerning any

gaming licenses it may issue. if, after issuance of a gaming license by the

Commission, reliable information is received that a primary management

official or key employee does not meet the standard established under Section

3.04 of this Code, the Commission may suspend such license and, after notice

and hearing, may revoke such license.

Section 3.06 License and Regulation of Class Ill gaming activities; Tribal-State

Compact Required

(a) The Commission may license and regulate Class III Gaming Activity

if,

(1) Such gaming meets the requirements of Section 3.02, and

(2) conducted in conformance with the terms and conditions of a

valid Tribal-State Compact entered into by the Tribe and the State of

Spokane Tribe of Indians

TRIBAL GAMING CODE

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Washington, or .with the terms and conditions of valid procedures for the

regulation of class III games in lieu of a compact;

(b) If the Indian Gaming Regulatory Act is unconstitutional, the

Commission may license and regulate Class Ill gaming activities without

regard to the IGRA and without regard to the laws of the State of

Washington. In such situation, agents of the Washington State Gambling

Commission are prohibited from entry onto Indians lands subject to the

jurisdiction of the Spokane Indian Tribe.

Section 3.07 Non-transferability of License Any license issued pursuant to

the provisions of this Code is valid only for the person or entity at the place of

business shown on the face thereof. It is not assignable or otherwise

transferrable to any other person or entity for any other location without

approval of the Chairman and Commission.

Section 3.08 Granting of License -

Majority Vote To approve of any license

issued pursuant to this Code, a quorum of the Commission must be present

with a majority vote of approval by said quorum required. A license will not

be issued to a person whose license has previously been revoked pursuant to

this Code, or to whom the issuance of renewal of a license has been denied,

except with the majority approval of the Commission members.

Section 3.09 Application Fee The Commission shall set a fee for applications,

background investigations, and licenses. All such fees shall be made payable

to the Spokane Tribal gaming Commission and delivered to the Spokane

Tribes Accounting office.

Section 3.10 Background Investigation No License shall be granted to any

person or entity who has been determined to be a person or entity whose

prior activities, criminal record, if any, and associations pose a threat to the

public interest or to the effective regulation and control of gaming, or create

or enhance the dangers of unsuitable, unfair, or illegal practices, methods,

and activities in the conduct of gaming or the carrying on of the business and

Spokane Tribe of Indians

TRIBAL GAMING CODE

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financial arrangements incidental thereto. The background investigation

shall be at least as stringent as the regulations of the National Indian Gaming

Commission published as 25 CFR § 556 in the Federal Register, volume 58,

no. 13, on Friday, January 22, 1993.

Section 3.11 Failure of Applicant to Disclose Material Information An

applicant for licensing shall make true and full disclosure of all information

to the Chairman and Commission as necessary or appropriate in the public

interest or as required in order to carry out the policies of this Tribe relating to

licensing and control of the gaming industry. It is the duty of the applicant to

disclose all information material to whether his involvement with gaming

would jeopardize or compromise the Tribal interest, whether or not the

applicant has been specifically requested to provide that information. It shall

constitute a violation of this code to fail to disclose, to mislead or to misstate

any such material information to the Chairman of the Commission, or to any

licensees employer.

Section 3.12 Temporary Employment Licenses The Commission may issue a

temporary employment license to any person or entity applying for a license

to work in a licensed gaming establishment which shall be valid pending the

background investigation of the applicant. In no event shall such temporary

license be valid for greater than 180 days.

Section 3. 13 Parameters of Licensee Violation of any provision of this Code

or any of the Commissions regulations by a licensee, his agent, or employee

shall be deemed contrary to the public health, safety, morals, good order and

general welfare of the Spokane Tribe and the inhabitants of the Spokane

Reservation, and shall be deemed grounds for refusing to grant or renew a

license, suspension or revocation of a license, or shall constitute grounds for

the filing of charges by the Commission or Chairman. Acceptance of a

gaming license or renewal thereof, or condition imposed thereon, by a

licensee, constitutes an agreement on the part of the licensee to be bound by

all the regulations and conditions of the Chairman or Commission and by the

provisions of this Code as the same are now, or may hereafter be amended or

Spokane Tribe of Indians

TRIBAL GAMING CODE

(September 1995) Page 22
promulgated, and to cooperate fully with the Chairman and Commission. It

is the responsibility of the licensee to keep himself informed of the contents

of all such regulations, amendments, provisions, and conditions, and

ignorance thereof will not excuse violations. The Commission shall use

reasonable efforts to notify all licensees of changes in regulations.

Section 3.14 Licensing of Distributors - The Commission may authorize,

require and issue such annual licenses as the Commission by regulation may

provide, to any person or entity to engage in the selling, distributing, or

otherwise supplying gambling equipment or paraphernalia for use in

connection with licensed gaming activity.

CHAPTER IV

MANAGEMENT CONTRACTS

Section 4.01 Commission Approval Required

(a) Any management contract entered into by the Tribe for the

operation and management of Class II and Class ifi gaming activity must be

submitted to the Commission for approval, but, before approving such

contract, the Commission shall require and obtain the following information:

(i) the name, address, and other additional pertinent background

information on each person or entity (including persons comprising such

entity) having direct financial interest in, or management responsibility for,

such contract, and, in the case of a corporation, those individuals who serve

on the board of directors of such corporation and each of its stockholders who

hold (directly or indirectly) 10 percent or more of its issued and outstanding

stock; and

(ii) a description of any previous experience that each person

listed pursuant to subsection (i) has had with other gaming contracts with

Indian tribes or with the gaming industry generally, including specifically the

Spokane Tribe of Indians

TRIBAL GAMING CODE

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name and address Of any licensing or regulatory agency with which such

person has had a contract relating to gaming; and

(iii) a complete financial statement of each person listed

pursuant to subsection (i)

(b) Any person listed pursuant to subsection (a)(i) shall be required to

respond to such written or oral questions that the Commission may

propound in accordance with its responsibilities under this section.

(c) For purposes of this Code, any reference to the management

contract described in Section 4.01(a) shall be considered to include all

collateral agreements to such contract that relate to the gaming activity.

(d) After the Commission has given its approval of a management

contract, the Commission shall submit such contract to the National Indian

Gaming Commission for its approval. No such contract shall be valid until

the National Indian Gaming Commission has approved it, provided

however, that a person or entity may perform pursuant to the terms of the

management contract on an interim basis pending NIGC approval.

(e) In making the determination to approve management contracts,

when the Tribe is submitted competing bids or proposals involving gaming

wherein the bids or proposals will provide substantially the same return to

the Tribe and its membership, the Commission and the Council shall give

preference to tribal members and cooperative associations of Tribal members

over non-Tribal members. Further, preference will be given to non-member

Indians and cooperative associations of non-member Indians over non

Indians.

Section 4.02 Approval of Management Contracts The Commission shall

approve any management contract entered into by the Tribe pursuant to this

Chapter only if it determines that such contract is in compliance with the

provisions of this Gaming Code, and provides at least:

Spokane Tribe of Indians

TRIBAL GAMING CODE

(September 1995) Page 24
(a) for adequate accounting procedures that are maintained, and for

verifiable financial reports that are prepared, by or for the Council on a

monthly basis;

(b) for access to the daily operations of the gaming to appropriate tribal

officials who shall also have a right to verify the daily gross revenues and

income made from any such tribal gaming activity;

(c) for a minimum guaranteed payment to the Tribe that has

preference over the retirement of development and construction costs;

(d) for an agreed ceiling for the repayment of development and

construction costs;

(e) for a contract term not to exceed five years, except that, upon the

request of the Tribe, the Commission may authorize a contract term that

exceeds five years but does not exceed seven years if the Commission is

satisfied that the capital investment required, and the income projections, for

the particular gaming activity require additional time; and

(f) for grounds and mechanisms for terminating such contract, but

actual contract termination shall not require the approval of the

Commission.

(g) for preference to Tribal members and non-member Indians in

hiring of employees for the gaming establishment and for provisions that the

management contract be subject to the TERO ordinance.

Section 4.03 Percentage-of-Net-Revenue Fees

(a) A management contract providing for a fee based upon a

percentage of the net revenues of a tribal gaming activity may be approved by

the Commission if such percentage fee is reasonable in light of surrounding

Spokane Tribe of Indians

TRIBAL GAMING CODE

(September 1995) Page 25
circumstances. Except as provided in this Section, such fee shall not exceed 30

percent of the net revenues;

(b) Upon request of the Council, the Commission shall approve a

management contract providing for a fee based upon a percentage of the net

revenues of a tribal gaming activity that exceeds 30 percent but not 40 percent

of the net revenues if the Council is satisfied that the capital investment

required, and income projections, for such tribal gaming activity require the

additional fee, and such contract is otherwise in compliance with this Gaming

Code..

Section 4.04 Contract Disapproval The Commission shall not approve any

contract if it determines that:

(a) Any person listed pursuant to Section 4.01(a)(i) who

(i) has been or subsequently is convicted of any felony relating to

a gaming offense; or

(ii) has knowingly and willfully provided materially important

false statements of information to the Commission or the tribal officials who

negotiate such contracts or has refused to respond to questions propounded

pursuant to Section 4.01(b); or

(iii) has been determined to be a person whose prior activities,

criminal record if any, or reputation, habits, and associations pose a threat to

the public interest or to the effective regulation and control of gaming, or

create or enhance the dangers of unsuitable, unfair, or illegal practices,

methods, and activities in the conduct of gaming or the carrying on of the

business and financial arrangements incidental thereto;

(b) The management contractor has, or has attempted unduly to

interfere or to influence for its gain or advantage any decision or process of

tribal government relating to gaming activity;

Spokane Tribe of Indians

TRIBAL GAMING CODE

(September 1995) Page 26
(c) The management contractor has deliberately or substantially failed

to comply with the terms of the management contract or the provisions of

this Code or any regulations adopted pursuant to this Code or the Indian

Gaming Regulatory Act.

Section 4.05 Modifying or Voiding Contract The Commission, after notice

and hearing, shall have the authority to require appropriate contract

modifications or may void any contract if it subsequently determines that any

of the provisions of this Chapter have been violated.

Section 4.06 Conveying Interest in Land No management contract for the

operation of a gaming activity regulated by this Code shall transfer or, in any

other manner, convey any interest in land or other real property, unless

specific applicable statutory authority exists and unless clearly specified i n

writing in said contract.

Section 4.07 Fee for Investigation Cost The Commission may require a

potential contractor to pay a fee to cover the cost of the investigation

necessary to reach a determination required in Section 4.04 of this Chapter.

CHAPTER V

AUDITING AND INTERNAL CONTROL

Section 5.01 - Minimum Procedures for Control of Internal Fiscal Affairs The

Commission shall promulgate regulations for control of internal fiscal affairs

of all gaming operations. At a minimum, those regulations shall:

(a) Prescribe minimum procedures for safeguarding the gaming

operations assets and revenues, including recording of cash and evidences of

indebtedness, mandatory count procedures. Such procedures shall establish a

control environment, accounting system, and control procedures that

safeguard the assets of the organization, assures that operating transactions

Spokane Tribe of Indians

TRIBAL GAMING CODE

(September 1995) Page 27
are properly recorded, promote operational efficiency, and encourage

adherence to prescribed policies;

(b) Prescribe minimum reporting requirements to the Commission;

(c) Provide for the adoption and use of internal audits, by internal

auditors and Certified Public Accountants licensed to practice public

accounting;

(d) Formulate a uniform code of accounts and accounting

classifications to assure consistency, comparability and effective disclosure of

financial information. Such code shall require that records be retained that

reflect drop (amount of cash wagered by patrons), win/loss (amount of cash

won/lost by the gaming operation) and the percentage of win/loss to drop, or

provide similar information, for each type of game, or each gaming device;

(e) Prescribe the intervals at which such informations shall be

furnished;

(f) Provide for the maintenance of documentation (ie. checklists,

programs, reports, etc.) to evidence all internal work performed as it relates to

the requirements of this section; and

(g) Provide that all financial statements and documentation referred to

in subsection (f) be maintained for a minimum of two (2) years.

Section 5.02 Commission Oversight of Internal Fiscal Affairs -

(a) The Commission shall, by regulation, require audits of the financial

statements of all gaming operations. Such audits must

(1) be made by independent Certified Public Accountant;

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TRIBAL GAMING CODE

(September 1995) Page 28
(2) include an opinion, qualified or unqualified or, if

appropriate, disclaim an opinion on the financial statements taken as a whole

in accordance with standards of the accounting profession established Ly rules

and regulations of the American Institute of Certified Public Accountants

and

(3) disclose whether the accounts, records and control procedures

maintained by the gaming operation are as required by the regulations

promulgated by the Commission; and

(4) provide for a preliminary review of the internal control

structure, upon adoption of the policies and procedures by the entity, to

disclose any deviation from prescribed rules and regulations and report such

findings to the Commission and management;

(b) The Commission shall bear its own costs related to performance of

the provisions of this section.

Section 5.03 Commission Right to Conduct Audit - The Commission shall be

able to retain its own appointed accountants, or direct an accountant

employed by the Tribe, to conduct its own audit of any gaming operation.

Section 5.04 Prohibition Against Embezzlement -

Any delay, maneuver or

action of any kind which in the opinion of the Chairman is effectuated by any

licensee to unlawfully divert gaming or other proceeds properly belonging to

the Tribe shall constitute grounds for taking disciplinary action against that

licensee. If the Commission finds an unlawful diversion was attempted, it

shall sanction the licensee. Sanctions may include fining, revoking,

suspending, limiting or refusing to renew the license.

Section 5.04 Non-Compliance - Failure to comply with this chapter or the

regulations promulgated thereunder, shall constitute a per se violation of this

Code.

Spokane Tribe of Indians

TRIBAL GAMING CODE

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CHAPTER VI

AUTHORIZATION OF GAMING

Section 6.01 Prohibition Against Gaming No person duly authorized by the

Commission shall engage, conduct or condone any Class II or Class III game

unless such game is approved by this Commission and regulations for rules

governing such game have been duly promulgated by this Commission.

Section 6.02 Grace Period The prohibition contained in Section 6.01 shall not

apply to those games already being played as of the date of enactment of this

Code, provided, however, that the licensee conform to the rules promulgated

hereunder within five (5) days of such promulgation.

Section 6.03 Authorization of Gaming The Commission may authorize the

playing of any game not prohibited by the laws of the State of Washington.

Such regulations shall conform with standards of the rules for the play of

games, as such games are played generally within the international gaming

industry.

Section 6.04 Approval of Gaming Terminals The Commission shall have the

discretion to review and approve all gaming terminals used in the gaming

operation as to integrity, fairness, and honesty.

(a) The Commission may test any machine in a gaming facility at any

time, or may require a prototype or sample of any model of gaming terminal

used in the gaming operation to be placed in the custody of the Chairman and

retained by him as a control for comparison purposes.

(b) Any evidence that gaming terminals used in the gaming operation

has been tampered with or altered in any way which would affect the

integrity, fairness, or honesty of the terminal shall be immediately reported

to the Commission.

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TRIBAL GAMING CODE

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Section 6.05 Postingof Rules The Rules of each authorized game offered at

any duly licensed gaming establishment shall be made available. The Gaming

operation shall post the rules in a conspicuous location in clearly legible

manner, that the rules are available for inspection, upon request.

CHAPTER VII

EXCLUSION OR EJECTION OF INDIVIDUALS

Section 7.01 List of Undesirables The Commission shall, by regulation,

provide for the establishment of a list of persons who are to be excluded or

ejected from any duly licensed gaming operation. The list may include any

person whose presence in the gaming establishment is determined by the

Commission to pose a threat to the interests of the Tribe, or to licensed

gaming. Race, color, creed national origin or ancestry, or sex must not be

grounds for placing the name of a person on the list.

Section 7.02 Notice and Opportunity to be Heard The Commission shall

promulgate regulations providing fair notice and opportunity to be heard to

any individual whose name is being contemplated by the Tribe to be placed

on the list referred to in section 7.01. Such regulations must provide the

person an opportunity to show cause why his name should be deleted from

the list. The individual may appeal any decision of the Commission to place

his name on the list to Tribal Court.

Section 7.03 Prohibition Against Listed Individuals It shall be a violation of

this Code for any licensee who knowingly fails to exclude or prevent any

persons placed on the list referred to in section 7.01 from entering into or

engaging in any game at a duly licensed gaming establishment. It shall be a

violation of this Code for any person whose name appears on the list referred

to in section 7.01 to enter into or engage in any game at a duly licensed

gaming establishment. Nothing in this section may be interpreted to prevent

the gaming operation from refusing service to anyone.

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TRIBAL GAMING CODE

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Section 7.04 Prohibition Against Gambling by Minors It shall be a violation of

this Code for any licensee who knowingly permits gaming at a licensed

gaming establishment to any individual under the age of eighteen years.

CHAPTER VIII

CHEATING

Section 8.01 Unlawful Acts 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 made sure but before it is

revealed to the players;

(b) to claim, collect or take, or attempt to claim, collect or take, money

or anything of value in or from a gambling game with intent to defraud,

without having made a wager contingent thereon, or to claim, collect or take

an amount greater than the amount won;

(c) knowingly to entice or induce another to go to any place where a

gambling game is being conducted or operated in violation of the provisions

of this chapter, with the intent that the other person play or participate in that

gambling game;

(d) to place or increase a bet or wager after acquiring knowledge of the

outcome of the game or event which is the subject of the bet or wager,

including past-posting and pressing bets;

(e) to reduce the amount wagered or cancel the bet after acquiring

knowledge of the outcome of the game or other event which is the subject of

the bet or wager, including pinching bets;

(f) to manipulate with intent to cheat, any component of a gaming

terminal or any tangible device used in connection with the gaming activity

Spokane Tribe of Indians

TRIBAL GAMING CODE

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in a manner contrary to the designed and normal operational purpose for the

component, with knowledge that the manipulation affects the outcome of the

game or with knowledge of any event that affects the outcome of the game.

Section 8.02 Prohibition against Electronic Aids Except as specifically

permitted by the Commission, no person shall possess with the intent to use,

or actually use, at any table game, either by himself, or in concert with others,

any calculator, computer, or other electronic, electrical, or mechanical device

to assist in projecting an outcome at any table game, to keep track of or

analyze the cards having been dealt, to change the probabilities of any table

game or the playing strategies to be utilized. Nothing in this section shall be

interpreted to preclude the gaming establishment from maintaining and

offering such electronic aids so long as the information provided from such

aids is made available to all players.

CHAPTER IX

NATIONAL INDIAN GAMING COMMISSION

and TRIBAL-STATE COMPACTS

Section 9.01 National Indian Gaming Commission -

Regulations

Notwithstanding any provision in this Gaming Code or any regulation

promulgated thereunder, the Commission is fully empowered to comply

with all regulations promulgated by the National Indian Gaming

Commission, including, but not limited, to all requirements to report

ordinances, contracts, license applications, background checks, and other

information to the National Commission. Nothing in this section shall be

interpreted as a waiver of the Tribes right to challenge the legality of any

such regulations. If IGRA is unconstitutional, this section shall be void.

Section 9.02 National Indian Gaming Commission -Assessment -

Notwithstanding any provision in this gaming Code or any regulation

promulgated thereunder, the Commission is fully empowered to comply

Spokane Tribe of Indians

TRIBAL GAMING CODE

(September 1995) Page 33
with all assessments authorized by the National Commission. Such

assessments shall be paid from the Treasury of the Spokane Tribe of Indians.

This provision does not affect the responsibility of those possessing

grandfathered licenses as set forth in ~ 3.04(b) to pay assessments directly to

the National Commission. Nothing in this section shall be interpreted as a

waiver of the Tribes right to challenge the legality of any such regulations. If

IGRA is unconstitutional, this section shall be void.

5e~iion 9.03 Compact with the State of Washington -

Notwithstanding any

provision in this gaming Code or any regulation promulgated thereunder,

the Commission is fully empowered to comply with the provisions of any

compact properly executed between the Tribe and the State of Washington.

Nothing in this section shall be interpreted as a waiver of the Tribes right to

challenge the legality of any such compacts. If IGRA is unconstitutional, this

section shall be void.

CHAPTER X

MISCELLANEOUS

Section 10.01

reserved]

Section 10.02 Maintenance of Code and Regulations - Each licensee shall

obtain, maintain and keep current a copy of the Gaming Code and regulations

promulgated thereunder, which shall be located at the premises used for the

conduct of a licensed activity. The Code and regulations shall be produced by

the licensee and shown to any person upon demand. That the licensee may

not have a current copy of the Code, or each of the rules of the Commission,

shall not in any way diminish the licensees obligation to abide by the Code

and regulations. The Commission shall provide, at no cost, copies of the

Code and regulations, and amendments thereto, to each licensee.

Spokane Tribe of Indians

TRIBAL GAMING CODE

(September 1995) Page 34
Section 10.03 Compliance with Other Laws -

the construction, maintenance

and operation of any facility in which gaming activities are to take place shall

be in a manner which adequately protects the environment and the public

health and safety and shall comply with any otherwise applicable tribal and

federal laws relating to environmental protection and public health and

safety.

Section 10.04 Amendments - All provisions of this Gaming Code are subject

to amendment by a majority of both the Commission and the Spokane Tribal

Business Council. All regulations promulgated by the Commission are

subject to proper revision, repeal, or amendment by the Commission and the

Spokane Tribal Business Council.

Section 10.05 Severability - If any provision of this Code, or its application to

any purpose or circumstance, is held invalid by a court of competent

jurisdiction, the full remainder of the provision, or the application of the

provision through another person or circumstance, shall not be affected.

Spokane Tribe of Indians

TRIBAL GAMING CODE

(September 1995) Page 35
~Efl 14 04 0:00 rAcc.oo~

I

Spoi~ane Resoflition 199i-O14

TRIBAL GA)~ING CODE

WEEREA.S, the Spokane Tribal Council is the duly const~tute~

governing body of the Spokane Tribe by authority of the

Constitution and By-laws of the Spokane Tribe; and.

WEEREAS, under the Constitution and By-laws of the Tribe, the

Spokane Tribal Council is charged with the duty of protecting the

health, security and general welfare of the Spokane Tribe and all

reservation residents; and,

WflEREAS, it is in the best interest of the Spokane Tribe of

Indians to adopt a comprehensive gaming code to. govern the

regn1~rirrns of gaming activities on Spokane Tribal lands, and the

attached amended code better serves that purpose than the current

code; and,

NOW TRE~EWOPE. BR IT R~EBY RRSOLVED by the Spokane Tribal

Business Council meeting in Special Session this 18th day of

Pebz~.tary, 1993, that it hereby amends i~ F~d~ring Gaming Code,

Chapter 23 of the Spokane Tribal Law and Order Code of the Spokane

Rc~crvation, a~ cet forth in the attached amended Cr~d~ with

revisions by the Business Council.

CextifLc~ition

The foregoing was duly enacted by the Spokane Tribal

BusixL~~ C~~uiici1 oii the 18th day of February 1993, by the

vote of 3 for and D against under authority contained in

Article VIII of thee Cc,~sLiL~ion of the 3~ekane Indians

ratified by

~ on

NOV,~~??

1980 :t

Spokane Tribal i~ea~ Ca cii

EXHIBiT B
RESOLUTION

Spokane Resolution 1995-368

TRIBAL GAMING CODE

WHEREAS, the Spokane Tribal Council is the duly constituted governing body of the

Spokane Tribe by authority of the Constitution and By-laws of the Spokane Tribe; and

WHEREAS, under the Constitution and By-laws of the Tribe, the Spokane Tribal

Council is charged with the duty of protecting the health, security and general welfare

of the Spokane Tribe and all reservation residents; and;

WHEREAS, the Tribe previously amended its gaming code, pursuant to Spokane

Resolution 1993-074, adopted February 18, 1993 to adopt a comprehensive gaming

code to govern the regulations of gaming activities on Spokane Tribal lands; and

WHEREAS, the National Indian Gaming Association has rejected the code on the

asserted grounds that Paragraph 2.17(a) of the Code does not make explicit reference

to 25 CFR Part 558; and

WHEREAS, the amendment of the Code to include such an explicit reference to 25

CFR Part 558 does not diminish the Tribes ability to insure the integrity and fairness

of its gaming operations, in that the Gaming Code already mandated compliance with

25 CFR Part 558 by the force and effect of the existing language of Paragraph

2.17(a); and

NOW ,THEREFORE, BE IT HEREBY RESOLVED by the Spokane Tribal Business Council

meeting in Special Session this 20th day of September, 1995, that the Tribal Council

does hereby amend its existing Gaming Code by inserting the words, including not

limited to compliance with all requirements of NIGC regulations set forth in 25 CFR

part 558 to the end of the first sentence of Section 2.17(a), such that the section

shall read as follows:

Section 2.17 Administrative duties of the Tribal Gaming Commission The

Tribal Gaming Commission shall perform all duties, exercise all powers, assume

and discharge all responsibilities, and carry out and effect all purposes of this

Code relating to the regulation of all gaming activity. In all decisions, the

Commission shall act to promote and ensure integrity, security, honesty, and

fairness of the operation and administration of all gaming activity. The

Commissions duties shall include but not be limited to the following:

(A) Correspond with the National Indian Gaming Commission and do

whatever is necessary to complete compliance with the rules and

regulations of that agency, including but not limited to compliance with

all requirements of NIGC regulations set forth in 25 CFR Part 558
Spokane Resolution 1995-368

TRIBAL GAMING COPE

Specifically, the Commission shall arrange for an annual outside audit of

authorized gaming and will provide a copy to the National Indian Gaming

Commission;

(B) assure that all gaming activity is conducted in a manner which

adequately protects the environment and the public health and safety;

(C) Proscribe an adequate system which ensures that background

investigations are conducted on all primary management officials and key

employees of any Gaming establishment and that oversight of such

officials and their management is conducted on an ongoing basis. The

Commission shall immediately notify the National Indian Gaming

Commission of the issuance of such licenses. The Commission will

review all applications and background investigations to ensure that no

person shall be eligible for employment in or with any part of the gaming

operation if that persons prior activities, criminal record, if any, or

reputation, habits and associations pose a threat to the public interest or

to the effective regulation of gaming, or create or enhance the dangers

of unsuitable, unfair, or illegal practices and methods and activities in the

conduct of gaming. The Commission shall notify the National Indian

Gaming Commission of the results of such background checks before the

issuance of such licenses;

(D) Recommend the hiring such professional, clerical, technical, and

administrative personnel as may be necessary to carry out the provisions

of this COde;

(E) Identify and make necessary arrangements for a law enforcement agency

to take fingerprints and for conducting a criminal history check which

shall, at a minimum, include a check through the Federal Bureau of

Investigation National Criminal Information Center.

(F) Review all records, documents, and anything else necessary and

pertinent to enforcement of any provisions of this Code;

FURTHER BE IT RESOLVED that the amended Code be resubmitted to the National

Indian Gaming Commission for formal approval, provided however, that by such

resubmission, the Tribe does not waive any rights or privileges to challenge the

correctness of the decision of the National Indian Gaming Commission to reject the

Code as enacted on February 18, 1993.
Spokane Resolution 1995-368

TRIBAL GAMING CODE

Certification

The foregoing was duly enacted by the Spokane Tribal Business Council

on the 20th day of September, 1995, by the vote of 4 for and 0 against

under authority contained in Article VIII of the Constitution of the

Spokane Indians ratified by the Spokane Tribe on November 22, 1980.

~irman

/~2~pokane Tribal BLt~ff~ess Council
RESOLUTION

Spokane Resolution 1993-180

COMPLIANCE WITH FEDERAL CODRT ORDER REGARDING TRIBAL GAMING

WHEREAS, the Spokane Tribal Council is the duly constituted

governing body of the Spokane Tribe by authority of the

Constitution and Bylaws of the Spokane Tribe; and

WHEREAS, under the Constitution and By-laws of the Tribe, the

Spokane Tribal Council is charged with the duty of protecting the

health, security and general welfare of the Spokane Tribe and all

reservation residents; and,

w–i~EAS, the Spokane Tribe, pursuant to its sovereign rights,

has chosen to pursue gambling activities as a viable means to

generate badly needed revenues to fund tribal programs and project

and to provide meaningful employment opportunities for the

membership; and,

WHEREAS, the Spokane Tribe, since the passage of the Indian

Gaming Regulatory Act in 1988, has made every effort to make IGRA

work in Washington State, including an attempt to negotiate a

viable tribal/state compact; and,

WHEREAS, the United States District Court for the Eastern

District of Washington ruled on June 3, 1993 in the case of

Confederated Tribes of the Colvi].le Reservation V. State of

Wpshinqtpn. et a], (Case # CS-92--0426WFN) that IGRA violates the

Tenth Amendment to the United States Constitution, and ruled that

in order for tribes to have recourse if they are unable to reach an

agreement with the State, all provisions regarding tribal/state

compacts are severed from IGRA; and

WHEREAS, the Colville decision is binding in the Eastern

District of Washington and is the first and only case to decide the

merits of the States argument of the Tenth Amendment, and

accordingly supersedes the decision of Judge Van Sickle in SDokane

Tribe of Indians v. State of Washinatpn 790 F.Supp. 1057 (E.D.

Wash. 1991); and

WHEREAB, the Colville decision confirms the Tribes position

that if IGRA violates the Tenth Amendment, the Tribe is entitled to

operate and regulate all forms of gaming to the exclusion of any

state laws or regulations; and

WHEREAS, the laws, regulations, practices and public policy of

Washington State are such that Washington State regulates, as

opposed to prohibits, all forms of gaming such that under the

analysis set forth by the Supreme Court in Cabazon Band of Mission

Indians v. California ____

S.Ct. (the Spokane Tribe

retains and reaffirms its exclusive right to regulate the operation

EXHIBIT P
of gaming activities on all lands under the Tribes jurisdiction;

and

WHEREAS, the exemption in IGRA of the Johnson Act for Class

III gaming activities is operable independent of the requirement of

a tribal/state compact and, therefore, survives the severability

analysis set for by Judge Nielson in the Colville decision, and the

State of Washington has failed to exempt properly the State from

the application of the Johnson Act, and Washington State, in fact,

tolerates, condones, and encourages the possession and operation of

numerous varieties of Johnson Act devices throughout Washington

State; and

WHEREAS, in the event that any appropriate authority disagrees

with the Tribes pobition on matters set forth in this Resolution

and attempts to enforce any provisions of federal law against

gaming operations on Spokane tribal lands, such action would also

require equally aggressive enforcement against games played

elsewhere in Washington State, including games on Indian lands,

would be tantamount to racially biased selective prosecution of the

Tribe and such enforcement practices are illegal under the Due

Process and Equal Protection provisions of the United States

Constitution; and

WHEREAS, the political reality of the recent developments of

court decisions regarding IGRA are such that the Tribe may be

irreparably and permanently injured and opportunity may be lost

forever unless the Tribe acts on an immediate and emergency basis

to establish gaming operations on tribal lands;

NOW ,THEREPORE, BE IT HEREBY RESOLVED by the Spokane Tribal

Business Council meeting in Special Session this 25th day of

June , 1993,, that it hereby directs its Vice-Chairman, John

Kieffer, to do the following on an immediate and emergency basis:

1. pursue and solicit proposals for contracts with the

intent of establishing the full range of games permissible under

Spokane tribal laws, as amended pursuant to the direction set forth

in this Resolution,

2. solicit proposals for the construction and/or operation

of a tribal owned casinoresort on the confluence site of the

Spokane and Columbia Rivers and tribal owned operations elsewhere

on Spokane tribal lands, including but not limited to:

a) banking card games such as blackjack, pai gow poker,

baccarat,

b) table games authorized in the State of Nevada, including

craps and roulette,

b) pari-mutuel wagering/simulcast activities,

c) keno and other lottery games,
d) electronic and video games of chance and slot machines,

including the use of the video format to play any game

authorized by Spokane tribal laws, as amended,

3. Based upon the proposals, develop a recommendation to the

Spokane Gaming Commission for immediate implementation with these

four objectives:

a) immediately exercising the Tribes rights to conduct all

the previously mentioned games at any location on tribal

lands,

b) as quickly as reasonablypossible, exercising the Tribes

right to conduct all previously mentioned games on the Tribes

preferred sites, including the site at the confluence of the

Spokane and Columbia Rivers,

C) expediting, the development of the Tribes proposed

destination resort, Two Rivers, by either a recommendation

that assumes financing of Two Rivers, or a recommendation that

supports Two Rivers without jeopardizing existing financing to

Two Rivers,

d) maximizing the Tribes long term revenue potential from

gaming operations to fund tribal governmental programs, and

the memberships long term meaningful employment potential.

Certification

The foregoing was duly enacted by the Spokane Tribal

Business CouncIl on the 25th day of June 1993, by

the vote of 5 for and 0 against under authority

contained in Article VIII of the Constitution of the

Spokane Indians ratified by the Spokane Tribe on November

22, 1980.

Chairman

Spokane Tribal Business Council