NATIONAL TNDXAIV GAMING COMMISSION 

TO: CahtoTribe 

Attn: Cristy Taylor, Chairwoman (Agent for Service of Process) 

300 Cahto Drive 

LaytonviIlc, CA95454 

FAX: (707) 984-6201 

Annette Sizemore, Commissioner 

Cahto Tribal Gaming Commission 

200 Cahto Drive 

Laytonville, CA 95454 

FAX: (707) 384-6 1 22 

Tom Weathers, Esq. 

2030 Abdison Street, Suite 4 I0 

Berklcy, CA 94704 

FAX: (5 10) 548-7070 

1. Nolification of Violation 

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

notice that the Cahto Tribe (Respondent or Tribe), located in Laytonville, CA, has 

violated NICK regulations by failing to submit timely quarterly statements and 

fee payments for every quarter of 2008. 

Under the Indian Gaming Regulatory Act (IGRA) and NIGC regulations, the 

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

person for violation of any provision of the IGRA, NIGC regulations, or any 

provision of a tribal gaming ordinance or resolution approved by the Chairman. 

25 U.S.C. $2713; 25 C.F.R. $573.3. 

3, Applicable Federal Laws and TribaI Ordinance Provish 

A. IGRA requires the NIGC to establish a schedule of fees to be paid to the 

Commission annually by each gaming operation that conducts a class I1 or 

class 111 gaming activity. 25 U.S,C. $ 27 17. 
B. NTGC regulations require that each gaming operation under the 

jurisdiction of the Commission shall pay to the Commission annual fees as 

established by the Commission. 25 C.F.R. $ 514.l(a). 

C. Each gaming operation subject to the jurisdiction of the Commission and 

not exempt horn paying fees pursuant to the self-regulation provisions 

shaII file with the Commission a quarterly statement showing its 

assessable gross revenues for the previous calendar year. 25 C.F.R. $ 

514.I(c). 

D. The quarterly statements are due March 3 1, June 30, September 30, and 

December 3 1 of each calendar year the gaming operation is subject to the 

jurisdiction of the NIGC. 25 C.F.R. 5 5 14.1 {c3(2). The quarterly 

statements shall be transmitted to the Commission and arrive no later than 

the due date. 25 C.F.R. 5 514.1 (c)(4). 

E. NlGC regulations require each gaming operation to remit to the 

Commission the fees due each quarter with the quarterly statement. 25 

C.F.R. 9 5 14.1 (c)(5). 

F. NIGC regulations define "gaming operation" as "each economic entity 

that is licensed by a tribe, operates the games, receives the revenues, 

issues the prizes and pays the expenses." A gaming operation may he 

operated by a tribe direct1 y; by a management contractor; or. under certain 

conditions, by another person or other entity. 25 C.F.R. 9 502.1 0. 

4. Role of Qmrterlv Fees and Quarterlv Statements 

The annual fees collected by the NIGC are necessary in order to fund the agency's 

oversight and regulation of Tndian gaming and are based upon the quarterly 

statements submitted by Indian gaming operations. NIGC must set a fee rate 

sufficient to fund its annual budget, yet may not exceed the fee cap set by 

Congress. Thus, it is imperative that the NIGC receive quarterly statements from 

the gaming operations in a timely manner so that the NIGC is able to set accurate 

preIiminary and final fee rates. 

5. Circumstances of the Violation 

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

in Laytonville, CA. 

B. The Tribe operated its gaming operation, Red Fox Casino. during alI of 

2007 and 2008. 
C. The NTGC received untimely quarterly statements and fee payments a? 

fallows: 

For the quarter ending March 3 1 on October 27,200&, 2 1 0 days late. 

For the quarter ending June 30 on October 27,2008. 1 I: 9 days late. 

For the quarter ending September 30 on October 27,2008,27 days late. 

For the quarter ending on December 3 1,2008 on January 5.2009.5 days 

late. 

D. These untimely submissions are violations of NIGC regulations. 

6. Measures Required to Correct the Vialation 

While Ehere is no remedial action that can correct the untimely submission of 

quarterly statements and fees. improved controls to ensure timely submission of 

future quarterly statements and fees should he put in place. 

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

appeal to the kll Commission under 25 C.F.R. Part 577 by submitting a notice of 

appeal, and, if desired. request for hearing to the National Lndian Gaming 

Commission, 1441 L Street N W. Ninth Floor, Washington, DC 20005. 

Respondent has a right 10 assistance of counsel in such an appeaI. A notice of 

appeal must reference this Notice of Violation. 

Within ten (1 0) days aRer 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 affidavits. If Respondent wishes to present oral testimony 

or witnesses at the hearing, Respondent must include a request to do so with the 

supplemental statement. 'Ile request to present oral testimony or witnesses must 

specify the names of proposed witnesses and the general nature of their expected 

testimony, whether a closed hearing is requested and why. Respondent may 

wives its right to an oral hearing and instead elect to have the matter determined 

by the Commission soIely on the basis of written submissions. 

8. Fine-Submission of Information 

The violation cited above may result in the assessment of a civiI fine against 

Respondent in an amount nor 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 fifteen (1 5) days after service of this notice of violation 

(or such longer period as the Chairman may grant for _good cause). The Chainnan 
shaII consider any information submitted in determining the facts surrounding the 

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

Dated this 3rdof ~ebruay 2009 

Chairman 
I ccrti fy :hat this Y oticc of l'iolation n as scnl by Gcr;iml lc trarrsmission nnil certi ficrl 

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