Moh/res-gaming ord

Resolution No. ~~

of the

MOHEGAN TRIBE OF INDIANS OF CONNECTICUT

WHEREAS, the Nohegan Tribe of Indians of Connecticut is an

American Indian tribe recognized by the government of the United

States pursuant to the provisions of 25 Code of Federal

Regulations Part 83; and

WHEREAS, the Council is authorized under Article V1 section

1(1) of the Mohegan Constitution to negotiate with federal, state

and local governments and under Article V, section 1(4) to seek

funds from governmental and private sources; and

WHEREAS, the Mohegan Tribe is desirous of pursuing economic

development for the benefit of its members, and to strengthen

tribal sovereignty; and

WHEREAS, the Tribe has determined that such economic

development is best furthered, in the first instance, by operation

of a tribal gaming enterprise pursuant to the Indian Gaming

Regulatory Act, 25 U.S.C. §~ 2701 ~ ~ and

WHEREAS, the Mohegan Tribe has taken steps to acquire land on

which such a gaming facility could be developed; and

WHEREAS, the Mohegan Tribe has entered into a compact with

the State of Connecticut to govern the operation of Class III

games pursuant to the IGRA; and

WHEREAS, the Tribe has entered into Management and

Development Agreements with Trading Cove Associates, to provide

them with exclusive authority to develop, construct and manage the

Tribal Gaming Enterprise for a term of seven years; and

WHEREAS, the Council wishes to adopt an ordinance for the

regulation of gaming on Tribal land;

NOW, THEREFORE, BE IT RESOLVED, that the ordinance attached

hereto and identified below is hereby approved as perfected by the

tribal attorney;

Gaming Ordinance of the Mohegan Tribe , attached hereto and

incorporated by reference herein.

FURTHER RESOLVED, that the Chief and Secretary of the Mohegan

Tribe are hereby authorized to such ordinance for approval to the

National Indian Gaming Commission, and to take any and all other
action, as may be necessary to obtain the National Indian Gaming

Commissions approval of the aforesaid ordinance and to secure to

the Mohegan Tribe all of the benefits contemplated by such

ordinance.

FURTHER RESOLVED, that the National Indian Gaming Commission

is hereby requested to grant any approval of the aforesaid

document legally required to assure its binding force and effect

and the Chief is hereby authorized and directed to take all action

necessary to seek and obtain any such approval.

Dated this _______

day of 

, 1994, at

____________________

Connect

MOHEGAN TRIBE OF IND NNECTICUT

~~4~Raiph ~e,Chi ATTEST:
ORDINANCE NO. 94-1

ORDINANCE

OF THE MOHEGAN TRIBE OF INDIANS OF CONNECTICUT

FOR GAMING ON

TRIBAL LANDS

An Ordinance to Regulate and

Provide for the Licensing of

Class II and Class III Gaining

on Tribal Lands of the Mohegan Tribe of Indians of Connecticut

GENERAL PROVISIONS

SECTION 1 -SHORT TITLE

This Ordinance may be cited as the Mohegan Tribal Gaining

Ordinance.

SECTION 2 -

DECLARATION OF TRIBAL POLICY

§ 2-1. It is the policy of the Mohegan Tribe of Indians of

Connecticut, hereinafter referred to as Tribe:

(a) That the Tribe shall have the sole proprietary interest

in any Gaming Operation;

(b) That all Gaming Operations on Tribal Lands shall be

conducted by the Tribe, through employees of the Tribal

Council or its Management Contractors only;

(c) That it is the objective of this Ordinance to provide

revenue to promote (i) Tribal economic development and
self-sufficiency and (ii) the health, education, and

welfare of Tribal members; and

(d) That the Gaming activities provided for by this

Ordinance within lands of the Tribe shall be conducted

in conformance with the requirements of this Ordinance,

the Indian Gaining Regulatory Act, 102 Stat. 2467,

25 U.S.C. § 2701, ~. ~., as implemented by the

regulations promulgated by the National Indian Gaming

Commission, and the provisions of any Tribal-State

Compact governing Class III Gaming on Mohegan Tribal

Lands.

SECTION 3 -

FINDINGS

§ 3-1. The Tribal Council finds that -

(a) Class II Gaming may be conducted on Tribal Lands of the

Tribe by reason of the fact that the State of

Connecticut permits bingo;

(b) Class III Gaming may be conducted on Tribal Lands of the

Tribe by reason of the fact that the State of

Connecticut permits -

(i) lottery

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(ii) jal alai or pelota;

(iii) pari-mutuel wagering on horse and dog racing;

(iv) casino nights;

(v) off-track betting and/or simulcasting horse and

dog races.

SECTION 4 -

DEFINITIONS

§ 4-1. For the purpose of this Ordinance, the following

definitions shall apply:

(a) Act means the Indian Gaming Regulatory Act, Public Law

100-497, 102 Stat. 2466, codified at 25 U.S.C. §~ 2701,

~ seq

(b) Applicant means any person that completes an

application with the Tribe for a Gaming License.

(c) Assessable Gross Revenues means the annual total

amount of money wagered and admission fees, less any

amounts paid out as prizes or paid for prizes awarded,

and less an allowance for amortization of capital

expenditures for structures.

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(d) Bingo means that game of chance (whether or not

electronic, computer, or other technologic aids are used

in connection therewith)

(i) which is played for prizes, including monetary

prizes, with cards bearing numbers or other

designations;

(ii) in which the holder of the cards 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.

(e) Chairman means Chairman of the National Indian Gaming

Commission or his or her designee.

(f) Cheating means operating or playing in a game in a

manner in violation of the written or commonly

understood rules of the game, with the intent to create

for himself/herself or someone in privity with him/her

an advantage over and above the chance of the game.

(g) Class II Gaming means that Gaming defined in 25 C.F.R.

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§ 502.3.

(h) Class III Gaming means that Gaming defined in 25 C.F.R.

§ 502.4.

(1) Collateral Agreement means any contract, whether or

not in writing, that is related, either directly or

indirectly, to a Management Contract, or to any rights,

duties, or obligations created between the Tribe (or any

of its members, entities, or organizations) and a

Management Contractor or subcontractor (or any person or

entity related to a Management Contractor or

subcontractor)

(j) Commission means the National Indian Gaming

Commission.

(k) Council means the Tribal Council as described in the

Constitution of the Mohegan Tribe.

(1 ) Employee Manager is a manager other than a Management

Contractor employed by the Tribe to manage a tribal

Gaming Establishment.

(m) Gaming means risking any money or other thing of value

for gain, contingent, wholly or partially, upon lot,

chance, the operation of Gaming apparatus, or the

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happening or outcome of an event over which the person

taking the risk has no control.

(n) Gaming Establishment means any location or structure,

wherein Gaming is licensed, promoted, performed,

conducted, or operated.

(o) Gaming License means the permit granted by the Tribe

to an applicant for employment with a Gaming Operation.

(p) Gaming Operation means each economic entity that is

licensed by the Tribe, operates the games, receives the

revenues, issues the prizes, and pays the expenses. A

Gaming Operation may be operated by the Tribe directly

or by a Management Contractor.

(q) Gross Gaming Revenues means the annual total amount of

money wagered and admission fees.

(r) Key Employee means:

(i) A person who performs one or more of the following

functions:

(1) Bingo caller;

(2) Counting room supervisor;

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(3) Chief of security;

(4) Custodian of Gaming supplies or cash;

(5) Floor manager;

(6) Pit boss;

(7) Dealer;

(8) Croupier;

(9) Approver of credit; or

(10) Custodian of gambling devices including

persons with access to cash and accounting

records within such devices;

(ii) If not otherwise included, any other person whose

total cash compensation is in excess of Fifty

Thousand Dollars ($50,000) per year; or

(iii) If not otherwise included, the four most highly

compensated persons in the Gaming Operation.

(s) Management Contract means any contract, subcontract,

or Collateral Agreement between the Tribe and a

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contract~or or between a contractor and a subcontractor

if such contract or agreement provides for the

management of all or part of a Gaming Operation.

(t) Management Contractor means the person or entity

holding a contract entered into pursuant to 25 U.s.c.

~ 2710(d) (9) or § 2711.

(u) Minor mans a person less than eighteen (18) years of

age.

(v) Net Revenues means Gross Gaming Revenues of a Tribal

Gaming Operation less -

(i) Amounts paid out as, or paid for, prizes; and

(ii) Total Gaming-related Operating Expenses, excluding

management fees.

(w) Operating Expenses means total Gaming-related expenses

excluding management fees.

(x) Person means any individual, firm, partnership,

corporation, company, or association.

(y) Person Having a Direct or Indirect Financial Interest

in a Management Contract means:

(i) When a person who is a party to a Management

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Contract, any person having a direct

financial interest in such Management

Contract;

(ii) When a trust is a party to a Management

Contract, any beneficiary or trustee;

(iii) When a partnership is a party to a Management

Contract, any partner;

(iv) When a corporation is a party to a Management

Contract, any person who is a director or

who holds at least ten percent (10%) of the

issued and outstanding stock alone or in

combination with another stockholder who is a

spouse, parent, child or sibling; or

(v) When an entity other than a natural person

has an interest in a trust, partnership, or

corporation that has an interest in a

Management Contract, all parties of that

entity are deemed to be persons having a

direct financial interest in a Management

Contract.

(z) Tribal Land means the person designated in the

Management Contract as having engagement responsibility

9
for the Gaming Operation, or a portion thereof.

(aa) Player means a person participating in a game with the

hope of winning money or other benefit, but does not

include a licensee, any assistant of a licensee, or

their immediate family.

(ab) Primary Management Official means:

(i) The Person Having Management Responsibility

for a Management Contract;

(ii) Any person who has authority;

(1) To hire and fire employees; or

(2) To set up working policy for the

Gaming Operation; or

(iii) The chief financial officer or other person

who has financial management

responsibility.

(ac) Secretary means the Secretary of the Interior.

(ad) Tribal Lands means all lands which are held in trust

by the United States of America for the Tribe and all

lands owned by the Tribe which are subject to

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restriction against alienation imposed by the United

States.

(ae) Tribal-State Compact means an agreement between the

Tribe and the State of Connecticut about Class III

Gaming under 25 U.S.C. § 2710(d).

(af) Tribe means the Mohegan Tribe.

SECTION 5 -

AUTHORITY OF TRIBAL COUNCIL

§ 5-1. The Council shall have the power and responsibility to:

(a) enforce and administer the provisions of this Ordinance;

(b) issue and renew Gaming Licenses as provided in this

Ordinance and in any regulation which may be promulgated

by the Council;

(c) revoke, suspend, or condition a Gaming License or deny

an application for a license for violation of applicable

law or Ordinance regulating Gaming, or conviction of any

offense involving a Gaming related crime or moral

turpitude;

(d) collect fees and interest as provided for in this

Ordinance;

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(e) assess and collect penalties provided for in this

Ordinance;

(f) adjust the respective amounts of the annual license

fees, provided that such fees shall not be increased

retroactively;

(g) audit or cause to be audited expenditures, receipts, and

reports of a licensee responsible for managing a Tribal

Gaming enterprise;

(h) review, on demand, such books and records and inspect

the premises and operations of licensees as it deems

necessary for the enforcement of this Ordinance;

(1) draw up such forms as it deems necessary;

(j) institute such legal proceedings in the name of the

Tribe in a court of competent jurisdiction as it deems

necessary for the enforcement of this Ordinance;

(k) conduct hearings provided for in this Ordinance;

(1) deposit all fees, penalties, and interest collected

under authority of this Ordinance into an account to the

credit of the Tribe;

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(m) maintain a correct and full accounting of all fees,

penalties, and interest received under authority of this

Ordinance, and provide a monthly record of that

accounting; and

(n) take such other actions and issue such orders and

promulgate such regulations as the Council may deem

necessary to properly and fully perform its duties and

responsibilities under this Ordinance.

§ 5-2. The Council may appoint a committee of not more than

three (3) Tribal members to exercise any or all of the powers and

responsibilities set out in § 5-1 of this Ordinance, above.

SECTION 6 -

GAMES AUTHORIZED

§ 6-1. The Tribe shall have the sole proprietary interest in and

responsibility for the conduct of any Gaming Operation.

§ 6-2. Class II Games as follows may be licensed for conduct on

Tribal Lands:

(a) bingo, pull-tabs, lotto, punch boards, tip jars, instant

bingo, and other games similar to bingo as defined under

13
25 C.F.R. § 502.9.

(b) non-banking card games defined as Class II Gaming under

25 C.F.R. § 502.3(c).

(c) any game determined to be a Class II Game by

Congressional amendment of the Act, by regulation, or by

decision of the Commission or the federal courts.

§ 6-3. Class III Games as follows may be licensed for conduct on

Tribal Lands:

(a) such Class III Games as may be authorized by a TribalState Compact, and

(b) such Class III Games authorized under procedures

specified in 25 U.S.C. § 2710(d) (7) (B).

SECTION 7 -GAMING LICENSES REQUIRED

§ 7-1. A separate Gaming License is required for:

(a) (i) each person having a Management Contract;

(ii) each Primary Management Official and each Key

Employee whether employed by the Management Contractor

or directly by the Tribe; and

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(iii) all other employees.

(b) each place, facility, or location on Tribal Lands at

which class II or Class III Gaming is conducted.

SECTION 8 -

APPLICATION FOR GAMING LICENSES

§ 8-1. Each person having a Management Contract, each Primary

Management Official and each Key Employee whether employed by the

Management Contractor or directly by the Tribe, and all other

employees shall complete an application for an initial Gaming

License or renewal of an existing Gaming License for each Gaming

Establishment on an application form prescribed by the Council.

The form or forms prescribed by the Council for employees other

than Primary Management Officials or Key Employees shall be less

inclusive than the form prescribed for Primary Management

Officials and Key Employees and shall be appropriate to the

position held by the employee or for which the employee is

applying. The application shall set forth:

(a) the name under which the applicant transacts or intends

to transact business on Tribal Lands; and

(b) the location of the Gaming Establishment for which the

Gaming License is sought; and

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(c) the application shall be signed by the applicant if a

natural person, or, in the case of an association or

partnership, by a member or partner thereof, or, in the

case of a corporation, by an executive officer thereof,

or by some other person specifically authorized by the

corporation to sign the application, in which case

written evidence of the signators authority shall be

attached. The applicant shall provide evidence of

authority of the signator or any other representative to

act for and bind the applicant. If any change is made

in that authority, the Council shall be immediately

informed in writing and, until that information is filed

with the Council, any action of the representative shall

be presumed to be that of the applicant.

§ 8-2. Each application shall be accompanied by payment of the

appropriate license fee.

§ 8-3. The Management Contractor shall file along with the

application an organizational chart of its management organization

and job descriptions of the employees of the Gaming Operation.

The chart shall identify which employees are or will be the

Primary Management Officials and the Key Employees of the Gaining

Operation.

§ 8-4. An application for a Gaming License shall include:

16
(a) a description of the place, facility, or location on

Tribal Lands where the applicant will operate a Gaming

Operation or where the applicant will be employed.

(b) the following privacy notice prescribed by 25 C.F.R.

§ 556.2:

In compliance with the Privacy Act of 1974,

the following information is provided:

Solicitation of the information on this form

is authorized by 25 U.S.C. § 2701, et seq.

The purpose of the requested information is to

determine the eligibility of individuals to be

employed in a Gaming Operation. The

information will be used by National Indian

Gaming Commission members and staff who have

need for the information in the performance of

their official duties. The information may be

disclosed to appropriate Federal, Tribal,

State, local, or foreign law enforcement and

regulatory agencies when relevant to civil,

criminal or regulatory investigations or

prosecutions or when pursuant to a requirement

by a Tribe or the National Indian Gaming

Commission in connection with the hiring or

firing of an employee, the issuance or

revocation of a Gaming License, or

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investigations of activities while associated

with a Tribe or a Gaming Operation. Failure

to consent to the disclosures indicated in

this notice will result in a Tribes being

unable to hire you in a Primary Management

Official or Key Employee position.

The disclosure of your Social Security Number

(SSN) is voluntary. However, failure to

supply a SSN may result in errors in

processing your application.

(c) the following notice regarding false statements is

prescribed by 25 C.F.R. § 556.3:

A false statement on any part of your

application may be grounds for not hiring you,

or for firing you after you begin work. Also,

you may be punished by fine or imprisonment

(U.S. Code, Title 18, Section 1001)

(d) the following background investigation information from

each Primary Management Official and each Key Employee:

(1) full name, other names used (oral or

written), social security number(s), birth

date, place of birth, citizenship, gender,

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all languages (spoken or written);

(ii) currently and for the previous five (5)

years: business and employment positions

held, ownership interests in those

businesses, business and residence

addresses, and drivers license numbers;

(iii) the names and current addresses of at least

three (3) personal references, including

one personal reference who was acquainted

with the applicant during each period of

residence listed under paragraph (d) (ii) of

this Section;

(iv) current business and residence telephone

numbers;

(v) a description of any existing and previous

business relationships with Indian tribes,

including ownership interests in those

businesses;

(vi) a description of any existing and previous

business relationships with the gaming

industry generally, including ownership

interests in those businesses;

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(vii) the name and address of any licensing or

regulatory agency with which the person has

filed an application for a license or

permit related to Gaming, whether or not

such license or permit was granted;

(viii) for each felony for which there is an

ongoing prosecution or a conviction, the

charge the name and address of the court

involved, and the date and disposition if

any;

(ix) for each misdemeanor conviction or on-going

misdemeanor prosecution (excluding minor

traffic violations), within ten (10) years

of the date of the application, the name

and address of the court involved and the

date and disposition;

(x) for each criminal charge (excluding minor

traffic charges) whether or not there is a

conviction, if such criminal charge is

within ten (10) years of the date of the

application and is not otherwise listed

pursuant to paragraph (d) (viii) or (d) (ix)

of this Section, the criminal charge, the

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name and address of the court involved, and

the date and disposition;

(xi) the name and address of any licensing or

regulatory agency with which the applicant

has filed an application for an

occupational license or permit, whether or

not such license or permit was granted;

(xii) a current photograph;

(xiii) a complete history of the applicants

educational background, including the names

of any colleges, universities, trade or

vocational schools, and high schools

attended;

(xiv) a description of the applicants family

including an explanation of the

relationships described (e.g., parents,

guardians, etc.);

(xvi) any financial statement from the

applicants accountant or other financial

information specifically requested on the

application form, for example, income

sources, assets owned, insurance policies,

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mortgages, and other information relating

to the filing of bankruptcy or other

obligations;

(xvii) a description of the applicants spousal

status including, if applicable, the

existence of any previous marriages;

(xviii) fingerprints of the applicant to be taken

by the Connecticut State Police (or other

law enforcement agency approved by the

Tribe) and forwarded to the NIGC for a

criminal history check. A criminal history

check will include a check of criminal

history records information maintained by

the Federal Bureau of Investigation;

(xix) a statement authorizing law enforcement

agencies and prior employers to release

information and respond to questions

relating to the applicants records,

habits, reputation, and associations;

(xx) all applicants are required to submit to a

drug screening test and, if employed,

random screening tests thereafter; and

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(xxi) any other information the Council deems

relevant.

§ 8-5. Each applicant for a Gaming License who has or will have a

contract with the Tribe to manage a Tribal Gaming Operation shall

state whether or not he/she already has a Management Contract to

operate any Indian or non-Indian Gaming Operation and, if so, a

description of the location of each such operation.

§ 8-6. A Management Contractors application shall include

information required by 25 U.S.C. § 2711 and 25 C.F.R. § 537.1.

§ 8-7. When a Key Employee or a Primary Management Official

begins work at a Gaming Operation the Council shall forward a copy

of the persons completed application for a Gaming License to the

Commission.

SECTION 9 -

QUALIFICATIONS FOR GAMING LICENSES

§ 9-1. The Council may issue or renew a Gaming License to an

applicant who submits a proper and completed application and pays

the appropriate license fee, provided that the Council determines

that the applicant:

(a) is not a minor;

(b) is a person of good character, honesty, and integrity;

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(c) has no prior activities, criminal record, reputation,

habits, and associations which pose a threat to the

public interest or the interest of the Tribe 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 to the conduct of Gaming;

(d) has not supplied false and/or misleading information or

who has not omitted material information required under

this Ordinance, the Act, and 25 C.F.R. Chapter III;

(e) has not had, or is not in privity with anyone who has

had, a Gaming License revoked for cause in any

jurisdiction since the effective date of the Act;

(f) has complied with this Ordinance or any resolution

adopted by the Council;

(g) does not occupy a competing position in the employ of

another Tribe within a five hundred (500) mile radius of

any Tribal Gaming Operation; and

(h) does not violate any of the requirements set forth in

25 U.S.C. § 2711(a) and (e).

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§ 9-2. Subject to the requirement of payment of annual license

fees, each Gaming License shall be valid for three (3) years

provided that, in the discretion of the Council, a Gaming License

may be granted for a term to run concurrently with the term of a

Management Contract.

§ 9-3. A Gaming License may not be assigned or transferred and is

valid only for use by the person in whose name it is issued and at

the Gaming Establishment for which it is issued. A Gaming License

shall be conspicuously displayed at all times at the Gaming

Establishment for which issued.

§ 9-4. The Council shall make the final decision as to whether a

Gaming License shall be issued, suspended, or revoked, subject to

the dispute resolution procedures agreed to by the Tribe in a

management agreement.

§ 9-5. Until authorized by a Tribal-State Compact, no Gaming

License shall be issued by the Council for Class III Gaming.

SECTION 10 -

GANING LICENSE FEES

§ 10-1. The fees for Gaming Licenses issued pursuant to this

Ordinance shall be determined by the Tribal Council. Such fees

shall be set at an amount determined to be sufficient to cover

tribal administrative costs plus the cost of conducting the

25
background investigations of the license applicants, provided that

the investigation fee for persons having a Management Contract

shall not exceed the reasonable cost of such fees agreed to by the

Tribe in a Management Contract. It is estimated that the costs of

conducting background checks of Primary Management Officials and

Key Employees will not exceed Five Thousand Dollars ($5,000) per

individual and Twenty Thousand Dollars ($20,000) per domestic

entity, with an additional cost of Twenty Thousand Dollars

($20,000) for each foreign country in which an entity does

business. License fees for all other employees shall be One

Hundred Dollars ($100) .

The Council may waive the annual fee on a

case-by-case basis.

§ 10-2. The Council may adjust the license fee at any time on a

prospective basis.

§ 10-3. The license fee shall be paid with the submission of the

applicantYs completed application, and shall be non-refundable.

§ 10-4. All moneys collected or received at a Gaming

Establishment, except any individual winnings or prizes of Ten

Thousand Dollars ($10,000) or less paid in cash immediately, shall

be deposited by the licensee in bank accounts approved by the

Council, which accounts shall contain only such moneys. Other

cash prizes, the purchase prices of non-cash prizes, and all

expenses for such Gaming activities shall be withdrawn from such

accounts approved by the Council by consecutively numbered checks

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duly signed by a specified officer or officers of the licensee and

payable to a specific person or organization. There shall also be

documentation for each check designating the nature of the expense

or prize for which the check is drawn. No check shall be drawn to

cash or a fictitious payee. Wire transfers shall be allowed

with proper supporting documentation.

SECTION 11 -

BACKGROUND INVESTIGATIONS

§ 11-1. The Council shall conduct, or cause to be conducted, a

background investigation of each applicant for a position which is

designated as a Key Employee or Primary Management Official

sufficient to make a qualification determination under Section 9

above, provided that the Tribe shall, to the extent permitted by

law, utilize state investigative processes set forth in the

Tribal-State Compact. In conducting the investigation, the

Council shall keep confidential the identity of each person

interviewed in the course of the investigation.

§ 11-2. Investigative Reports.

(a) The Council shall prepare and forward to the Commission

an investigative report summarizing each background

investigation of a Key Employee or Primary Management

Official that the Council intends to employ.

(b) The Council shall forward an investigative report to the

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Commission within sixty (60) days after a Key Employee

or Primary Management Official begins work or within

sixty (60) days of the approval of this Ordinance by the

Commission.

(c) Each investigative report shall include the following:

(i) the steps taken in conducting the background

investigation;

(ii) the results obtained;

(iii) the conclusions reached; and

(iv) the basis for those conclusions.

(ci) The Council shall submit to the Commission, along with

the investigative report, a summary of the Councils

qualification determination made under Section 9 above.

(e) If a Gaming License is not issued to an applicant, the

Council:

(i) shall notify the Commission; and

(ii) may forward copies of its qualification

determination and investigative report (if any) to

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the Commission for inclusion in the Indian Gaming

Individuals Records System.

(f) ~Jith respect to Key Employees and Primary Management

Officials, the Council shall retain applications for

Gaming Licenses and reports (if any) of background

investigations for inspection by the Chairman or his or

her designee for no less than three (3) years from the

date of termination of employment.

(g) A Gaming Operation shall not employ as a Key Employee or

Primary Management Official a person who does not have a

Gaming License ninety (90) days after a license

application has been submitted.

§ 11-3. Granting a Gaming License.

(a) If, within a thirty (30) day period after the Commission

receives an investigative report, the Commission

notifies the Council that it has no objection to the

issuance of a Gaming License pursuant to a license

application filed by a Key Employee or a Primary

Management Official, the Council may issue a license to

such applicant.

(b) The Council shall respond to a request for additional

information from the Chairman concerning a Key Employee

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or a Primary Management Official who is the subject of

an investigative report. Such a request shall suspend

the thirty (30) day period under Subsection (a) above

until the Chairman receives the additional information.

(c) If, within the thirty (30) day period described in

Subsection (a) above, the Commission provides the

Council with a statement itemizing objections to the

issuance of a Gaming License to a Key Employee or to a

Primary Management Official application, the Council

shall reconsider the application, taking into account

the objections itemized by the Commission. The Council

shall make the final decision whether to issue a Gaming

License to such applicant.

§ 11-4. Gaming License Suspension.

If, after the issuance of a Gaming License, the Tribe

receives from the Conirnission reliable information indicating

that a Key Employee or a Primary Management Official is not

eligible for employment under Section 9 of this Ordinance,

the Tribe shall suspend such license and shall notify in

writing the licensee of the suspension and the proposed

revocation.

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SECTION 12 -

MAINTENANCE OF GAMING FACILITY

§ 12-1. The Council shall establish standards and procedures for

inspection and enforcement by which a Gaming facility licensed

under this Ordinance shall be maintained in a manner which

adequately protects the environment and the public health and

safety.

SECTION 13 -USE OF NET REVENUES

§ 13-1. Net Revenues from Gaming permitted under this Ordinance

shall only be expended for one or more of 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 support operations of local governmental agencies.

§ 13-2. If the Council elects to make per capita payments to

tribal members, it shall authorize such payments only upon

approval of a plan submitted to the Secretary pursuant to

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25 U.S.C. § 2710(b) (3).

SECTION 14 -

RECORDS AND REPORTS

§ 14-1. A Gaming Operation shall keep permanent books of account

or records, including inventory records of Gaming supplies,

sufficient to establish the amount of gross and net income,

deductions and expenses, receipts and disbursements, and other

information required in any financial statement, report, or other

accounting prepared pursuant to the Act or Chapter III in Title 25

C.F.R.

§ 14-2. No later than the twenty-fifth (25th) day of each month,

each Gaming Operator shall provide, in a report form prescribed by

the Council, a statement of gross revenues, Assessable Gross

Revenue and Net Revenues received or collected at each Gaming

Establishment during the immediate preceding month.

§ 14-3. All papers, books, and records including computer records

of the Gaming Operation relating to licensed Gaming activities

shall be subject to inspection, examination, photocopying, and

auditing by the Council and the Commissions authorized

representatives at any time during reasonable hours. All such

papers, books, and records shall be retained not less than six (6)

years.

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SECTION 15 -

ANNUAL AUDIT

§ 15-1. (a) The Council shall cause to be conducted, at least

annually, an independent audit of the books and records

of each Gaining Operation.

(b) Audit Standards. The Tribe shall engage an

independent certified public accountant, licensed in

Connecticut, to provide an annual audit of the financial

statements of each Gaming Operation on Tribal Lands.

Such financial statements shall be prepared in

accordance with generally accepted accounting principles

and the audit(s) shall be conducted in accordance with

generally accepted auditing standards. Audit(s) of the

Gaming Operation required under this Section may be

conducted in conjunction with any other independent

audit of the Tribe, provided that the requirements of

Chapter III in Title 25 C.F.R. are met.

(c) Copies of Audit Reports. The Tribe shall submit to

the Commission a copy of the audit report(s) and

management letter(s) setting forth the results of each

annual audit within one hundred twenty (120) days after

the end of each fiscal year of the Gaming Operation(s)

resulting from the audit(s) conducted pursuant to

Subsection (a) above.

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(d) Relationship of Audited Financial Statements to Fee

Assessment Reports. The Tribe shall reconcile its

quarterly fee assessment reports, submitted under

25 C.F.R. Part 514, with its audited financial

statements and make available such reconciliation upon

request by the Commissions authorized representative.

§ 15-2. All Gaming related contracts that result in purchases of

supplies, services, or concessions for more than Twenty-Five

Thousand Dollars ($25,000) in any year (except contracts for

professional legal or accounting services) shall be specifically

included within the scope of the audit conducted pursuant to this

Section.

SECTION 16 -GROSS GAMING REVENUES

§ 16-1. The Gross Gaming Revenues derived from Gaming Operations

are Tribal funds and may be expended by a licensee whose authority

is either delegated or provided for by the Council in an approved

Management Contract.

SECTION 17 -VIOLATIONS

§ 17-1. No person shall operate or conduct any Gaming activity in

a Gaming Operation within the exterior boundaries of Tribal Lands

without a Gaming License issued by the Council as required by this

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Ordinance.

§ 17-2. No person shall knowingly submit false or misleading

information to the Commission or the Tribe in response to any

provision of the Act, Chapter III in Title 25 C.F.R., or a Tribal

Ordinance or Resolution that the Chairman has approved under Parts

522 or 523 in Title 25 C.F.R.

§ 17-3. (a) No Management Contractor shall fail to account

fully for all moneys received or collected in connection

with Gaming activities or to file any report required by

the Management Contract.

(b) A Gaming Operation shall not refuse to allow an

authorized representative of the Commission or an

authorized Tribal official to enter or inspect a Gaming

Operation in violation of 25 C.F.R. § 571.5 or § 571.6,

or of a Tribal Ordinance or resolution approved by the

Chairman under Parts 522 or 523 in Title 25 C.F.R.

§ 17-4. No person under the age of eighteen (18) years shall be

employed by a Gaming Operation or shall otherwise be permitted to

participate in any Gaming activities.

§ 17-5. No person shall engage in cheating (as that term is

defined in § 4-1(f) of this Ordinance) in any Gaming activity or

engage in any fraudulent conduct affecting either the Tribe or a

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customer of a Gaming Operation.

§ 17-6. No person, other than an officer of the Mohegan

Department of Law Enforcement, may enter or remain in a Gaming

Establishment licensed under this Ordinance while in the

possession of a firearm or other weapon.

§ 17-7. Any person who knowingly acts in concert with a person

who violates this Ordinance shall be deemed to be in violation of

this Ordinance to the same extent as the violator, and shall be

treated accordingly.

§ 17-8. The Management Contractor is responsible for ensuring

that all Primary Management Officials and Key Employees assisting

in the operation of any Gaining activity on the Management

Contractors behalf comply with this Ordinance. A violation by

any such officials or employees, unless otherwise provided in an

approved Management Contract, shall, subject to the contractual

opportunity to cure, be deemed a violation by the Management

Contractor and shall subject the contractor to civil enforcement

action. It shall not be a defense that the Management Contractor

was unaware of the violation.

§ 17-9. No person, whether playing in or conducting any Gaming

activity authorized under this Ordinance, shall:

(a) use bogus or counterfeit cards, or substitute or use any

36
game cards that have been tampered with;

(b) employ or have on ones person any cheating device to

facilitate cheating in any Gaming activity; or

(c) knowingly cause, aid, abet, or conspire with another

person or cause any person to violate any provision of

this Ordinance or any rule adopted under this Ordinance.

§ 17-10. A Gaming~ Operations facility shall be constructed,

maintained, and operated in a manner that does not threaten the

environment or the public health and safety.

§ 17-li. Alcohol not sold by the licensee to customers, and/or

controlled substances (as defined by federal, state, or tribal

laws) are not to be brought into the Gaming Establishment. All

retail alcohol sales must comply with applicable tribal law.

§ 17-12. If the Management Contractor fails to correct violations

within the time permitted in a notice of violation issued by the

Chairman or within fifteen (15) calendar days after the Tribe

provides notice of a violation, such failure shall be deemed a

further violation by the Management Contractor.

SECTION 18 -NOTICE OF VIOLATION

§ 18-1. The Council may issue a notice of violation to any person

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for violation of any provision of this Ordinance.

§ 18-2. A notice of violation shall contain:

(a) a citation to the Ordinance provision that has been or

is being violated;

(b) a description of the circumstances surrounding the

violation, set forth in common and concise language;

(c) measures required to correct the violation;

(d) a statement that the violation must be corrected within

five (5) calendar days from the date the notice was

issued, providing that a violation which threatens the

public health or safety or the integrity of the Gaining

process may require correction in a shorter period;

(e) a statement of the alleged violators rights of appeal;

and

(f) the amount of civil penalties, if any, that the alleged

violator must pay pursuant to Section 19, below.

SECTION 19 -CIVIL PENALTIES

§ 19-1. In issuing a notice of violation under Section 18 of this

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Ordinance, the Council may:

(a) impose a penalty not to exceed Five Hundred Dollars

($500) for each violation and, if such violation is a

continuing one, for each day, that the violation occurs;

and/or

(b) impose a penalty of One Hundred Dollars ($100) per day

for failure to submit to the Council any report required

under this Ordinance when it is due, and One Thousand

Dollars ($1,000) per day for failure to file any such

report after three-day notice and demand, provided that

if the person to whom the notice of violation is issued

appeals the notice, the Council may stay the imposition

of such penalties pending the resolution of the appeal.

§ 19-2. How assessments are made.

The Council shall review each notice of violation to

determine whether a civil fine will be assessed, the amount

of the fine, and, in the case of a continuing violation,

whether such daily violation will be deemed a separate

violation for purposes of the total civil fine assessed.

§ 19-3. Procedures for assessment of a civil fine:

(a) within five (5) calendar days after service of a notice

of violation, the alleged violator shall submit written

39
information about the violation and any corrective

measures undertaken to Council. The Council shall

consider any information so submitted in determining the

facts surrounding the violation and the amount of the

civil fine;

(b) the Council shall serve a copy of the proposed

assessment on the alleged violator within ten (10)

calendar days after the notice of violation was issued,

when practicable; and

(c) the Council may review and reassess any civil fine it

necessary to consider facts that were not reasonably

available on the date of issuance of the proposed

assessment.

§ 19-4. Final assessment:

(a) if the alleged violator fails to request a hearing as

provided in § 21 of this Ordinance, the proposed civil

fine assessment shall become a final order of the

Council;

(b) civil fines assessed under this Section shall be paid by

the person assessed and shall not be treated as an

Operating Expense of the Gaming Operation; and
(c) the Council shall transfer civil fines paid under this

Ordinance to the Secretary-Treasurer of the Tribe for

deposit into the Tribal Treasury.

SECTION 20 -

ENFORCEMENT

§ 20-1. The Council shall take any one or a combination of the

following actions with respect to any person who violates any

provision of this Ordinance:

(a) suspend or revoke any Gaming License issued by Council;

(b) bring an action in a court of competent jurisdiction for

imposition of one or more of the following sanctions:

(i) seizure of any Gaming apparatus, proceeds, or

other property of a licensee connected with the

Gaining activities engaged in by the licensee;

(ii) collection of any unpaid fees, interest,

penalties, and of any civil fines unpaid after

thirty (30) calendar days; or

(iii) execution on any nonexempt property of a

violator located within the exterior boundaries

of Tribal Lands, or

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(c) refer the matter to arbitration under the procedures set

forth ma governing Gaming management agreement.

§ 20-2. Civil actions may be brought by the Council pursuant to

this Ordinance in any court of competent jurisdiction to enforce

the imposition of any and all sanctions provided for under this

ordinance.

§ 20-3. Before taking any action authorized in § 19 and § 20-1 of

this Ordinance, the Council shall use its best efforts to notify

the alleged violator, in person or by letter delivered to his/her

last known address, of the charges against him/her, and allow the

alleged violator an opportunity for a prompt hearing. If the

alleged violator fails to respond, or cannot be found, the Council

may proceed with a hearing notwithstanding, and take such action

as it deems appropriate. Said notice of the alleged violation

shall be served at least three (3) business days prior to the

hearing.

§ 20-4. Every person who applies for a Gaming License and accepts

such license thereby acknowledges the civil enforcement

jurisdiction and authority of the Council under this Ordinance to

order an execution on his/her nonexempt property, the suspension

or termination of his/her further conduct of Gaming activities and

the seizure of his/her Gaming equipment or proceeds or other

property, upon a proper finding of the Council or the court that

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the person has violated a provision of this Ordinance, despite

lack of actual notice, provided that the Council has used its best

efforts to notify the person, in person or by letter delivered to

his/her last known address.

SECTION 21 -

HEARINGS AND APPEALS

§ 21-1. This Section provides procedures for appeals to the

Council regarding:

(a) a violation alleged in a notice of violation; and

(b) civil fines assessed by the Council in this Ordinance.

§ 21-2 The Council shall hold a hearing on the proposed

revocation of a Gaming License held by a Primary Management

Official or Key Employee after it has suspended such license

pursuant to 25 C.F.R. § 558.5. The licensee shall be notified by

the Council of the time and place for hearing. After the hearing,

the Council shall decide to revoke or reinstate the Gaming

License. The Tribe shall notify the Commission of its decision.

§ 21-3. Any licensee paying a civil fine or penalty for any

violation enumerated in this Ordinance because of excusable

neglect may petition the Council for a partial or full waiver of

suit, fine, or penalty. The petition shall be filed within thirty

(30) business days after the payment was made.

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§ 21-4. Any person aggrieved by a decision made or action taken

by the Council without notice and opportunity for hearing to the

aggrieved person, may petition the Council for a hearing and

reconsideration. The petition shall be filed within thirty (30)

business days after the petitioner knew or should have known of

the decision or action. The Council shall grant a prompt hearing

upon receiving such a petition, and shall reconsider its decision

or action, affirm, modify, reverse and/or vacate the Councils

order in light of what is presented at a hearing.

§ 21-5. Any person aggrieved by a decision made or action taken

by the Council after notice and opportunity for hearing may

petition the Council for review. Such petition shall specifically

set forth the reasons for aggrievement and be filed with the

Council no later than thirty (30) business days after the

Councils decision or action. The Council shall set the matter

for hearing no later than thirty (30) business days and no sooner

than three (3) business days after receipt of the petition, and

may, upon establishing that it has jurisdiction, affirm, modify,

reverse and/or vacate the Councils order.

§ 21-6. Upon the Councils finding of a violation by a party to a

federally-approved Gaming Management Contract, that person may

invoke the dispute resolution procedures of that contract before

any liabilities are effective.

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SECTION 22 -

SERVICE

§ 22-1. The Chairman of the Mohegan Tribe, 27 Church Lane,

tincasville, Connecticut 06382, is hereby designated as the Tribes

agent for service of any official determination, order, or notice

of violation by the Commission, provided that the Council may

change such designation by resolution provided to the Commission

with copies to the Tribes Management Contractor.

§ 22-2. A Management Contractor or a Tribal operator shall

designate by written notification to the Commission an agent for

service of any official determination, order, or notice of

violation.

SECTION 23 -RESOLUTION OF DISPUTES BETWEEN MANAGEMENT CONTRACTOR

OR TRIBE AND CUSTOMERS

§ 23-1. Notice of warning regarding the improper conduct set out

in § 23-2 of this Ordinance or other Gaming rules established and

enforced by the Gaming Operation shall be posted at the entrance

of each Gaming Establishment and/or given to the customer upon

entering the premises.

§ 23-2. The following improper conduct shall result in ejection

of a customer from any Gaming Establishment:

(a) cheating;

45
(b) possession of weapons in the Gaming Establishment;

(c) possession of alcohol that has been brought by a

customer into the Gaining Establishment;

(d) possession of a controlled substance in the Gaming

Establishment;

(e) disorderly conduct, including the willful, or wanton

disregard for the rights of others; and

(f) any other act which is disruptive to the Gaming

Operation.

§ 23-3. Failure by a customer to provide proof of age when

requested by Gaming Operation personnel shall result in ejection

of the customer from the premises but the admission fee shall be

refunded.

§ 23-4. Ejection of a customer shall be accomplished by the

Mohegan Department of Law Enforcement, upon request of the Gaming

Operation.

§ 23-5. (a) Either the Employee Manager or management

contractor of the Gaming Operation or an alternate

designated by either shall be present at all times to

resolve complaints by customers involving the

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operation of bingo and other Class II Games at the

establishment.

(b) If the Employee Manager or Management Contractor or

their alternates are unable to resolve any dispute,

as provided in (a) the matter may, upon request of

the customer, be referred to the Council for

resolution. Action by the Council may be initiated

by making a written request to the Legal Department

of the Mohegan Tribe, 27 Church Lane, Uncasville,

Connecticut 06382. The decision of the Council on

any dispute so referred to it for resolution shall be

final.

SECTION 24 -APPLICABLE LAW

§ 24-1. All controversies involving contracts relating to Gaming

entered into under the authority of the Council on Tribal Lands

shall be resolved, as appropriate, in accordance with:

(a) the Indian Gaming Regulatory Act;

(b) National Indian Gaming Commission Regulations;

(c) the laws of the Tribe; and

(d) if no Tribal laws exist, the laws of the State of

Connecticut, which are incorporated herein by

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reference.

§ 24-1. To the extent that the provisions of any Tribal-State

Compact entered into by the Mohegan Tribe and the State of

Connecticut are inconsistent with any provisions of this

Ordinance, the provisions of the compact shall govern Class III

Gaming on Mohegan Tribal Lands.

SECTION 25 -

SAVINGS PROVISION

§ 25-1. If any provision of this Ordinance or the application

thereof to any person or circumstance is held invalid, the

invalidity shall not affect other provisions or applications of

the Ordinance which can be given effect without the invalid

provisions or application, and, to this end, the provisions of

this Ordinance are severable.

SECTION 26 -

EFFECTIVE DATE

§ 26-1. This Ordinance shall be effective immediately upon

approval by appropriate governmental authority.

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