National Indian Gaming Commission 

To: Dmcll Flyingman 

Governor 

Cheyenne & Arapaho Tribes of Oklahoma 

P.O. Box 38 

Concho, OK 73022 

Fax: (405) 422-7425 

FIoyd Bringing Good 

Chairman 

Cheyenne & Arapaho Gaming Commission 

P.O. Box 149 

Concho, OK 73022 

Fa: (405) 262-4953 

Robert Lyttle 

TribaI Attorney 

c/o Roberk J. Lyttle, P.C. 

Attorneys at Law 

3334 West Main Street #I 48 

Norman, OK 73072 

1. Notification of Violation 

The Chairman of the National Indian Gaming Commission (NIGC) hereby gives notice 

that the Cheyenne and Arapaho Tribes of Oklahoma (Respondent or Tribes), located in 

Concho, Oklahoma, are in violation of the Indian Gaming Regulatory Act (IGRA) and 

NIGC regulations for: Failure to submit license applications to the NlGC for all key 

employees and primary management officials; failure to submit background 

investigations on key ernpIoyees and primary management officials; and failure to submit 

eligibility determinations of suitability for empIoyrnent in a gaming operation. Finally, 

Respondent violated NJGC regulations by employing 142 key employees and primary 

management officials without a liccnse after 90 days of their initiaI date of employment. 

2. Authority 

The Chairman of the NIGC {Chairman) may issue a Notice of Violation (NOV) to any. 

person for violation of any provision of the Indian Gaming Regulatory Act (IGRA), 
NIGC regulations, or my provision of a tribal gaming ordinance or resolution approved 

by the Chairman. 27 U.S.C. 9 2713; 25 C.F.R. 573.3. 

Applicable Federal and Tribal Laws 

A. 25 U.S.C. I$ 2710@)(2)(F)(i) - IGRA requires that a tribe have in place an 

adequate system to ensure that background investigations are conducted on 

key employees and primary management officials of a gaming operation. 

B. 25 U.S.C. 6 27 I O(b3(2)(F)(ii](I) - IGRA requires that tribal gaming operations 

issue tribal licenses for primary management officials and key employees of 

the gaming enterprise with prompt notification to the Commission of the 

issuance of such licenses. 

C. 25 U.S.C. § 2710@)(2)(F)(ii)(II] - IGRA requires that a tribal gaming 

operation shall maintain a standard whereby any 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 of gaming, or create or 

enhance the dangers of unsuitable, unfair, or il1egaI practices and methods and 

activities in the conduct of gaming shall not be eligible for employment. 

D. 25 W.S.C. ?j 2710(b)(2)(F}(ii)(IQ - IGRA requires that a tribal gaming 

operation notify the Comission of the background investigation results 

before issuing a license to key employees or primary management officials. 

E. 25 C.F.R. 5 502.1 4 -NIGC regulations provide define key employee to mean: 

(a) A person who perfom one or mere of the following functions: (1) Bingo 

caller; (2) Counting room supervisor; (3) Chief of security; (4) Custodian of 

gaming supplies or cash; (5) Floor manager; (G) Pit boss; (7) Dealer; (8) 

Croupier; (9) Approver of credit; (10) Custodian of gambling devices 

including persons with access to cash and accounting records within such 

devices; (b) If not otherwise included, any other person whose total cash 

compensation is in excess of $50,000 per year; or, (c) If not othenvise 

included, the four most highly compensated persons in the gaming operation. 

F. 23 C.F.R. 5 502.19 - NIGC regulations dehe primary management official to 

mean: (a) The person having management responsibility for a management 

contract; (b) Any person who has authority: (1) To hire or fire employees; or 

(2) To set up working policy for the gaming operation; or (c) The chief 

financia1 officer or other person who has financial management responsibility, 

G. 25 C.F.R. 8 556.4 - NIGC regulations require that a tribe shall perform a 

background investigation for each prirna~y management official and for each 

key employee of a gaming operation. 
25 C.F.R. 522.2(h] and 25 C.F.R. tj 556.4(a)(14) - NIGC regulations require 

that a tribe shall collect fingerprints from an applicant for a primary 

management official or key employee position and conduct a criminal history 

check including a check of the criminal history record information maintained 

by the FBI. 

25 C.F.R. 9 556.4@) - MGC regulations require that a tribe shall conduct an 

investigation sufficient to make a suitability determination regarding the 

licensing of the person pursuant to 25 C.F.R. 5 558.2. 

25 C.F.R. 8 556.5(a) - NIGC regulations require that when a tribe employs a 

primary management official or a key employee, the tribe shall forward to the 

Commission a completed ernpIoyment application. 

25 C.F.R. 9 556.5@) - NIGC regulations require that, before issuing a Iicense 

to an employee, a tribe shall foward to the Commission an investigative 

report on each background investigation including the following: (1) Steps 

taken in conducting a background investigation; (2) Results obtained; (3) 

Conclusions reached; and (4) The basis for those conclusions. 

25 C.F.R. # 556.5(c) - NGC regulations require that a tribe shall include a 

copy of the eligibility determination made by the tribe pursuant to 25 C.F.R. 

9 558.2 with the investigative report forwarded to the Commission. 

25 C.F.R. 9 558.2 - NIGC regulations require that an authorized tribal official 

shall review a person's prior activities, criminal record, if any, and reputation, 

habits and associations to make a finding concerning the eligibility of a key 

empIoyee or a primary management official for employment in a gaming 

operation. If the authorized tribaI official, in applying the standards adopted in 

a bibal ordinance, determines that employment of the person poses a threat to 

the public interest or to the effective regulation of gaming, or creates or 

enhances the dangers of unsuitable, unfair, or illegal practices and methods 

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

gaming operation shall not empIoy that person in a key employee or primary 

management official position. 

25 C.F.R. § 558.3(a)(1) NIGC regulations require that a tribal gaming 

operation fomfard the Commission a completed application for empIoyment 

when a key employee or primary management oficial begins work at a tribal 

gaming operation. 

25 C,F.R. 5 558.3(a)(2) NZGC regulations require that a tsibe conduct a 

background investigation pursuant to 25 C.F.R. Part 556 to determine the 

eligibility of key employee or primary management official for continued 

employment in a gaming operation. 
P. 25 C.F.R. 9 558.3@) NTGC regulations require that, upon completion of a 

background investigation and a determination of eligibility for employment in 

a gaming operation, a tribe shall forward a report to the Commission within 

sixty (60) days after an employee begins work or within sixty (GO) days of the 

Chairman" approval of an ordinance under 25 C.F.R. Part 523. 

Q. 25 C.F.R. $ 558.3@) MGC regulations require that a gaming operation shall 

not employ a key employee os primary management official who does not 

have a license after ninety (90) days. 

R. Section 102Cj) of the Cheyenne-Arapaho Tribes of Oklahoma Gaming 

Ordinance', approved by the NIGC Chaiman on February 22, 1994, provides 

a definition for key employee. Under the Ordinance, key employee means: 

(I) a person who performs one or more of the following functions: 

(i) Bingo caller; 

(ii) Counting room supervisor; 

(iii) Chief of security; 

(iv) Custodian of Gaming supplies or cash; 

(v) Floor manager; 

(vi) Pit boss; 

(vii) Dealer; 

(vi ii) Croupier; 

(ix) Approver of credit; or 

(x) Custodians of gambling devices including persons with access to 

cash and accounting records within such devices. 

(2) If not otherwise included, any other Person whose total cash 

compensation is in excess of %50,000 per year; or 

(3) If not othewise included, the four most highly compensated persons in 

the gaming operation. 

S. Section 102(m) of the Ordinance provides a definition for primary 

management official. Under the Ordinance, primary management official 

means: 

(1) The person having management responsibility for a management 

contract; 

(2) Any person who has authority: 

' The Ordinance was amended on April 4,1998 to remove the requirement that the tribal gaming commission 

chaitman be an atiorney. The Amendment was approved by the CI~airman on February 28,2008. 

4 
(i} to hire and fire employees; or 

(ii) To set up working policy for the Gaming Operation; or 

(3) The chief financial officer or other person who has financia1 

management responsibility. 

Section 300 of the Ordinance requires that each key employee and primary 

management official have a current and vaIid license issued pursuant to the 

provisions of the Ordinance. 

Section 303.A of the Ordinance states that fingerprints of key employees and 

primary management oEcials shall be taken by the Cheyenne and Arapaho 

Tribes of Oklahoma Police Department, who shall immediately submit such 

fmgerprint cards to the NIGC for processing. 

Section 303.3 of the Ordinance requires the Tribes to perform a background 

investigation and make an eligibiIity determination on each applicant. Section 

303.~' requires the Tribes to review a person's prior activities, criminal record, 

if any, and reputation, habits and associations to make a finding concerning 

the eligibility of a key employee or primary management official for 

employment in the gaming operation. Where it is determined that the 

applicant is unsuitable for work in a gaming facility that the tribal gaming 

operation shall not employ the applicant in a key employee or primary 

management official position. 

Section 303.C of the Ordinance requires the Tribes to transmit a key 

employee" s or primary management official's application file to the NIGC and 

conduct the background investigation and conduct an eligibility determination 

as required by $ 303.B- Section 303.C also requires the Tribes to submit the 

report described in 303.D (background investigation report) to the NIGC 

within sixty (60) days of an employee beginning work. 

Section 303.D of the Ordinance requires the Tribes to prepare and fonvard to 

the NTGC an investigative report on each background investigation including: 

the steps taken in conducting a background investigation; results obtained; 

conclusions reached; and the bases for those conclusions. 

Section 303.C(c) of the Ordinance prohibits a tribal gaming operation from 

employing as a key employee or primary management official a person who 

does not have a Iicense after ninety (90) days. 

Exhibit A to the Ordinance, as approved in 1994, provides that upon 

completion of the necessary background investigation, and after the Tribes 
have complied with the 30-day MGC review requirements found in 25 C.F.R. 

558.3 and $558.4, the Tribes may issue a license. 

AA. Section 306 of the Ordinance states that any key employee or primary 

management officiaI employee license shall be valid for a period of one (1) 

year. 

4. Role of Back.9;round Investigations and EmpIoyee Licensing 

The background investigation and licensing process for key employees and primary 

management officials is crucial to maintaining the integrity of Indian gaming. 

Submission of the completed application, hackgound investigation report, and licensing 

determination to the NIGC so that it may object to the issuance of a Iicense is an integal 

part of this process as set forth in the IGRA. Gaming is a cash intensive business that 

requires a carefully screened employee base and careful implementation of internal 

controls. The background investigation and licensure process helps insure that employees 

who have access to cash and other gaming resources are worthy of positions of trust. 

AccordingIy, under TGRA, the licensure of key employees and primary management 

officials is a key tribaI governmental responsibility. 

5. Circumstances of the Violation 

A. Respondent is a federally recognized Indian Tribe with tribal headquarters 

in Concho, Oklahoma. 

B. Respondent operates three (3) gaming faciIities: Lucky Star-Concho, 

located at 7777 North Highway 81, Concho, Oklahoma; Lucky StarClinton, located at 101 North Indian Hospital Road, Clinton, Oklahoma; 

and Feather Warrior Casino, at 1407 South Clarence Nash Boulevard, 

Watonga, Oklahoma. 

C. As of March 1,2008, at least two (2) licensing files were complete and the 

employees licensed with NICC concurrence, but not within the required 

timeframe. The submission of the investigative report and eligibility 

determination was not submitted to the NlGC within the sixty (60) days of 

date of mpIoyment. Both of these employees had been employed for over 

ninety (90) days without being properly licensed. One employee had been 

employed over six (6) years without a license. 

D. As of Mwch 1, 2008, at least one hundred and forty (140) licensing files 

for current key employees and primary management officials were 

identified where the MGC received m incomplete gaming license 

application or did not receive a copy of the gaming license application, 

background investigation report, suitability determination, or fingerprint 
cards despite the fact that each employee had been employed in excess of 

ninety (90) days. 

E. Of the one hundred and forty (140) key employees or primary 

management officials employed beyond ninety (90) days, ninety-two (92) 

have been employed over one year without a permanent gaming license. 

F. The Tribes are in violation of the TGRA, NIGC regulations, and the Tribal 

gaming ordinance as follows: 

The NIGC regulations and the Tibes' gaming ordinance require 

the Tribes to submit to the NIGC a completed application for 

employment for key employees and primary management officials. 

25 C.F.R. $5 556.5(a) and 558.3 (a)(l); Ordinance 4 303.CCa). The 

appIication must contain a privacy notice, notice regarding false 

statements, and a request for information required for a 

background investigation. 25 C.F.R. $9 558.3(a)(I); 556.2; 556.3; 

and 556.4. The Tribes have failed to submit license applications far 

one hundred and thirty-five (135) of its employees within sixty 

(60) days after each employee began work. 

The IGRA, MGC regulations and the Tribe" gaming ordinance 

require the Tribes to conduct background investigations of 

applicants for key employee or primary management official 

positions 25 U.S.C $ 27EO(b)(2)(F)(i); 25 C.F.R. $$ 556.4, 

55&.3(a)(2). That background investigation shall be sufficient to 

enable the Tribes to make an eligibility determination of an 

individual's suitability to work in the Tribe's gaming operation. 25 

C.F.R. 5 556.4@); Ordinance 5 303.B, The Tribes' gaming 

ordinance hrther requires the Tribe to review the information 

provided in the license appIication of each key employee and 

primary management official, including criminal record, if any. 

Ordinance 5 303.B. 

NlGC regulations require the Tribes to create and forward to the 

NIGC background investigation reports including: (1) Steps taken 

in conducting a background investigation; (2) Results obtained; (3) 

Conclusions reached; and (4) The bases for those conclusions. 25 

C.F.R. $556.5(b). The report must be forwarded to the 

Commission within sixty (60) days after an employee begins work. 

25 C.F.R. 5 558.3@]. The Tribes have faiIed to submit to the 

NIGC background investigation reports for one hundred and thirtysix (236) of its key employees and primary management officials 

within sixty (60) days after an employee has begun work. 
4. NIGC regulations and the Ordinance require the Tribes to collect 

fingerprint cards from each applicant, and to submit the 

fingerprints to the NIGC for processing. 25 C.F.R. § 556.4(a)(14); 

Ordinance $$ 303; 303.A. The Tribes have failed to forward 

fingerprints to the NIGC for processing of FBI criminal history 

checks for ninety-one (91) of its key empIoyees and primary 

management offtcids. 

5. The IGRA, NIGC regdations, and the Ordinance require the 

Tribes to make an eligibility determination of a person's suitability 

to work in a gaming operation. 25 U.S.C. $271 O(b)(2)(F)(ii)(II); 25 

C.F.R. §$ 556.5(c), 558.2; Ordinance 9 303.B. The Tribes are to 

forward such eligibility determination to the NIGC when 

forwarding the background investigation report. 25 C.F.R. fi 

558.2@]; Ordinance §$303.C@); 30?.D(b]. The Tribes have failed 

to forward such eligibility determinations to the NIGC fox one 

hundred and thirty-six (136) of its key employees and primary 

management officiaIs within sixty (60) days after an employee has . begun work. 

G. NIGC regulations and the Ordinance require that a gaming 

operation shall not employ a primary management official or key 

employee who does not have a license after ninety (90) days. 25 

C.F.R. § 558.3@); Ordinance $ 303.C(c). Respondent has 

employed one hundred and forty-two (142) people in primary 

management officiaI or key employee positions without a license 

for longer than ninety (90) days. 

6. Measures Required to Correct these Violations 

In order to correct the past and ongoing violations of the IGRA, MGC regulations, and 

the Tribe's gaming ordinance, Respondent must: 

A. There is no way to correct the late submissions and employment beyond 

90 days without a license for the two employees subsequently licensed by 

the Tribes. NTGC regulations and the Ordinance require the submission of 

the investigative report and eligibility determination to the NIGC with 

sixty (GO) days of the date of employment and prohibit the employment of 

a Primary Management Official or Key Employee beyond 90 days without 

a license. 25 C.F.R 5 558.3(b); Ordinance 5 303.C(c). Here, the Tribes 

failed to submit the required materials to the MGC within sixty (60) days 

and employed the two employees without a license beyond the permitted 

90 days. 
B. Within fifteen (15) days, starting frem the date of service of this Notice of 

Violation, coIIect fingerprint cards from all one hundred and forty (140) 

currently unlicensed key employees and primary management officials and 

send them to the NIGC with appropriate fees for processing; 

C. Within thirty (30) days, starting from the date of service of this Notice of 

Violation, perform complete background investigations and obtain FBI 

criminal history checks on all onc hundred and forty (140) unlicensed key 

employees and primary management officials and create background 

investigation reports; 

D. Within forty-five (45) days, starting from the date of service of this Notice 

of Violation, review the completed background investigation reports, 

containing FBI criminal history information, for a11 one hundred and forty 

(140) unlicensed key employees and primary management officials and 

make eligibility determinations of suitability for employment in a gaming 

operation; 

E. Within sixty (601 days, starting from the date of sewice of this Notice of 

Violation, submit to the NIGC a copy of the completed employment 

application, background investigation report, and eligibility determination; 

F. Complete licensing for a11 new key employees and primary management 

officials hired after the date of sewice of this Notice of Violation within 

ninety (90) days after date of hire. 

G. Not employ any persons hired as of the date of senice of this Notice of 

Violation as key employees or primary management officials who have 

not been licensed by the Tribe beyond 90 days from the date of service of 

the Notice of Violation; 

H. Notify the NIGC in fifteen (15) day intervals, starting from the date of 

service of this Notice of Violation, of the measures taken to correct this 

violation. The required information must be submitted to the Chairman, 

National Indian Gaming Commission, 1441 L Street, NW, Suite 9100, 

Washington, DC 20005. 

7. Appeal 

Within 30 (thirty) days after service of this Notice of Violation, Respondent may appeal 

to the full Commission under 25 C.F.R. Part 577 by submitting a notice of appeal and, if 

desired, request in writing for hearing to the National Indian Gaming Commission, 1441 

L Street, NW, Ninth Floor, Washington, DC 20005. Respondent has a right to assistance 

of counsel in such an appeal. A notice of appeal must reference this Notice of Violation. 
Within ten (10) days after filing a notice of appeal, Respondent must file with the 

Commission a supplemental statement that states with particularity the relief desired and 

the grounds therefore and that includes, when available, supporting evidence in the form 

of afidavits. If Respondent wishes to present oraI testimony or witnesses at the hearing, 

Respondent must include a request to do so with the supplemental statement. The request 

to present oral testimony or witnesses must specify the names of proposed witnesses and 

the general nature of their expected testimony, whethm a closed hearing is requested and 

why. Respondent may, in writing, waive its right to m oral hearing and instead elect to 

have the matter determined by the Commission solely on the basis of written 

submissions. 

8. Ternpow Closure Order or Fine--Submission of Information 

The violation cited above may result in a temporary closure order or the assessment of a 

civil fine against Respondent in an amount not to exceed $25,000 per violation per day. 

Under 25 C.F.R. $ 575.5(a), Respondent may submit written information about the 

. violation to the Chairman within fifleen (1 5) days after service of this notice of violation 

(or such longer period as the Chairman of the Cornmission may grant for good cause). 

The Chairman shall consider any information submitted in determining the facts 

surrounding the violation and the amount of the civil fine, if any. 

~ated this 

Chairman 

National Indian Gaming Cormnission 
Certificate of Service 

I certify that this Notice of Violation was sent by facsimiIe transmission and certified U.S. mail, 

return receipt requested, on this day of May, 2008 to: 

Dame11 Flyingman 

Governor 

Cheyenne & Arapaho Tribes of Oklahoma 

P.O. Box 38 

Concho, OK 73022 

Fax: (405) 422-7425 

Floyd Bringing Good 

Chaimm 

Cheyenne & Arapaho Gaming Commission 

P.O. Box 149 

Concho, OK 73022 

Fax: 1405) 262-4953 

Robert Lyttle 

Tribal Attorney 

c/o Robert J. Lyttle, P.C. 

Attorneys at Law 

3334 West Main Street #I 48 

Norman, OK 73072 

Shakira ~ergu&ljn 

Legal Staff Assistant, MGC