ASHAKOPEE 1viDEWAKANTON SIOUX COMMUNITY

2330 Sioux Trail N.W., Prior Lake, Minnesota 55372

Tribal Office (612) 445-8900

FAX: (612) 445-8906

RESOLUTION 03-31-93-001

ADOPTION OF

THE SHAKOPEE MDEWAKANTON SIoUX (DAKOTA) COMMTJNITY

GAMING ORDINANCE

OFFICERS

STANLEY R. CROOKS

Chairperson

KENNETh ANDERSON

Vice Chairperson

DARLENE MATTA

Secretc,~~Tr~surer

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

the General Council of the Shakopee Mdewakanton Sioux (Dakota)

Community is the governing body of the Community; and

the General Council is empowered through Article V, Section 1(h) of the

amended Constitution of the Shakopee Mdewakanton Sioux Community to

promulgate and enforce ordinances intended to safeguard and promote the

peace, safety, and general welfare of the Community by regulating the conduct

of trade and the use and disposition of property upon the reservation,

providing that any regulation directly affecting non-members be subject to

review by the Secretary of the Interior; and

the General Council is empowered through Article V, Section 1(g) to

promulgate and enforce ordinances, subject to review by the Secretary of the

Interior, which provide for taxes, assessments of license fees upon nonmembers doing business within the reservation, or obtaining special rights or

privileges; and

the General Council is empowered by Article V, Section 1(i) to adopt

resolutions regarding the operation and procedures of the Council itself and

of other Community committees, agencies, and officials; and

the Shakopee Mdewakanton Sioux (Dakota) Community is presently engaged

in gaming through a Community owned gaming enterprise, Little Six, Inc.,

which gaming enterprise, together with all gaming activities conducted on the

Shakopee Mdewakanton Sioux (Dakota) Reservation, is subject to the

provisions of the Indian Gaming Regulatory Act (IGRA); and

due to certain changes in IGRA., and in the regulations promulgated pursuant

thereto, the Community gaming enterprise, and the gaming activities which it

conducts, are no longer in compliance with the applicable federal regulations

of IGRA; and

WHEREAS,
WHEREAS, the General Council has determined it to be in the best interests of the

Community to address the deficiencies in Shakopee Ordinance Regulating

Bingo and Other Forms of Gaming, which Ordinance was enacted by

Resolution No. 8-12-88-001; and

WHEREAS, the General Council has determined that amendment of Shakopee Ordinance

Regulating Bingo and Other Forms of Gaming, adopted by Resolution No. 8-

12-88-001, is not possible in light of the substantial changes in the laws and

regulations applicable to gaming which have been enacted since the adoption

of that Ordinance; and

WHEREAS, the General Council finds it necessary to address the deficiencies through

adoption of legislation which will meet the requirements of all applicable

statutes and regulations; and

WHEREAS, the General Council has determined that the Community should make every

effort to remain a self-regulated sovereign entity, and has further determined

that the adoption of this Ordinance will bring the Cornniunity into compliance

with the requirements of IGRA for self-regulation; and

WHEREAS, the General Council finds that the proposed Shakopee Mdewakanton Sioux

Community Gaming Ordinance meets all the requirements of the applicable

laws and regulations and is necessary to protect the integrity of gaming on the

Shakopee Mdewakanton Sioux (Dakota) Reservation.

Now THEREFORE BE IT RESOLVED, that the General Council hereby approves, adopts, and

enacts the legislation entitled the Shakopee Mdewakanton Sioux (Dakota) Gaming

Ordinance of March 31, 1993.

BE IT FURTHER RESOLVED, that this Ordinance shall become effective immediately, as of

April 1, 1993, in accordance with the terms and provisions herein, and shall govern all

gaming activities now and hereafter conducted on the Shakopee Mdewakanton Sioux

(Dakota) Reservation; and

BE IT FURTHER RESOLVED, that the Shakopee Ordinance Regulating Bingo and Other

Forms of Gaming, enacted by Resolution No. 8-12-88-1 is hereby repealed, together with

any other law relating to gaming which conflicts with or is inconsistent with this Ordinance,

and in all cases of conflict, this Ordinance shall be controlling, and such other laws,

ordinances, or regulations are also repealed; and

BE IT FURTHER RESOLVED, that the Community submits this Ordinance to the Secretary of

the Interior or his designated representative and requests immediate review and approval

of this Ordinance; and

BE IT FURTHER RESOLVED, that the Community submits this Ordinance to the

National Indian Gaming Commission and requests immediate review and approval of this

Ordinance.
This Resolution is presented to the General Council pursuant to the provisions of

Resolution No. 07-27-90-003.

Seconded by /

K nneth Anderson, Vice-Chairman

Darlene Matta, Secretary-T~~asurer
CERTIFICATION

Approval of Resolution No. 03-31-93-001, were presented

to the General Council of the Shakopee Mdewakanton Sioux

Community at a Special General Council Meeting held on March

31, 1993.

There are 75 eligible voters pursuant to the voting list

certified and posted by the Secretary/Treasurer on March

25, 1993.

To the best of my knowledge and belief, the results

reported herein accurately reflect the vote of the General

Council.

The vote on Approval of Resolution No. 03-31-93-001,

Shakopee Mdewakanton Sioux Gaming Ordinance was:

33 FOR, / AGAINST, I ABSTENTIONS, SPOILED,

/ CHAIR NOT VOTING

This Vote PASSED ___________

FAILED ___________

The vote on Alternative Provisions:

,~ Section 102 /

~..,3c (i) (1) lb (j) (2)

c5 ABSTENTIONS, I SPOILED, / CHAIR NOT VOTING

This Section 102 (~ ) (i PASSED

The vote on Alternative Provisions:

~ Section 102

~SO (k)(l) ~ (k)(2)

_____

ABSTENTIONS,_____ SPOILED, / CHAIR NOT VOTING

This Section 102 (K) (i) PASSED

The vote on Alternative Provisions:

-, Sect~oj~ 200

S.3A9\7B

* ABSTENTIONS, / SPOILED, I CHAIR NOT VOTING

This Section 200 8 PASSED

The vote on Alternative Provisions:

~jf~SectAo~l_200

_____

ABSTENTIONS, / SPOILED, I CHAIR NOT VOTING

This Section 200 D PASSED

page 1
The vote on Alternative Provisions:

~Section 200

~3 E~7F

_____

ABSTENTIONS, ( SPOILED, / CHAIR NOT VOTING

This Section 200 PASSED

CERTIFICATION

~

St~tØy 1~. Cr9ok~, Tribal Chairn~an

~Ł~~Treasure

Rnd hJ Schact,

Election Coimnissioner

page 2
SHAKOPEE MDEWAKANTON SIOUX COMMUNITY

2330 Sioux Trail NW., Prior Lake, Minnesota 55372

Tribal Office (612) 445-8900

FAX: (612) 445-8906

RESOLUTION O4-1,~-93-0O2.

RATIFICATION OP

THE SKAKOPEE MDEWAKANTON SIOUX COMMUNITY

GAMING ORDINANCE RESOLUTION 03-31-93-002.

OFFICERS

STANLEY ft CROOKS

Chairperson

KENNETH ANDERSON

Vice Chairperson

DARLENE MAlTA

Secre:aryfl~surer

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

WHEREAS,

the General Council of the Shakopee Mdewakanton Sioux (Dakota)

Community is the governing body of the Community empowered by the

Constitution and By-Laws of the Community with the authority and the

responsibility for enacting legislation beneficial to the Community; and

the General Council is empowered through Article V, Section 1(g) to

promulgate and enforce ordinances, subject to review by the Secretary of the

Interior, which provide for taxes, assessments, of license fees upon nonmembers doing business within the reservation, or obtaining special rights or

privileges; and

the General Council is empowered through Article V, Section 1(h) of the

amended Constitution of the Shalcopee Mdewakanton Sioux Community to

promulgate and enforce ordinances intended to safeguard and promote the

peace, safety, and general welfare of the Community by regulating the conduct

of trade and the use and disposition of property upon the reservation,

providing that any regulation directly affecting non-members be subject to

review by the Secretary of the Interior; and

the General Council is empowered by Article V, Section 1(i) to adopt

resolutions regarding the operation and procedures of the council itself and

of other Community committees, agencies, and officials; and

the Shakopee Mdewa.kanton Sioux (Dakota) Community is presently engaged

in gaming through a Community owned gaming enterprise, Uttle Six, Inc.,

which gaming enterprise, together with all gaming activities conducted on the

Shakopee Mdewakanton Sioux (Dakota) Reservation, is subject to the

provisions of the Indian Gaming Regulatory Act (IGRA); and

due to certain changes in IGRA, and in the regulations promulgated pursuant

thereto, the Community gaming enterprise, and the gaming activities which it

conducts, are no longer in compliance with the applicable federal regulations

of IGRA and

WHEREAS,
WHEREAS, the General Council has determined it to be in the

best interests of the Community to address the

deficiencies in Shakopee Ordinance Regulating Bingo

and Other Forms of Gaming, which Ordinance was

enacted by Resolution No. 8-12-88-001;and

WHEREAS, the General Council has determined that amendment of

Shakopee Ordinance Regulating Bingo and Other Forms

of Gamin~, adopted by Resolution No. 812-88001, is

not possible in light of the substantial changes in

the laws and regulations applicable to gaming which

have been enacted since the adoption of that

Ordinance, and the General Council finds it

necessary to address the deficiencies through

adoption of legislation which will meet the

requirements of all applicable statues and

regulations; and

WHEREAS, the General Council finds that the proposed Shakopee

Mdewakanton Sioux Community Gaming Ordinance meets

all the requirements of the applicable laws and

regulations and is necessary to protect the

integrity of gaming on the Shakopee Mdewakanton

Sioux (Dakota) Reservation.

NOW THEREFORE BE IT RESOLVED, that the General Council hereby

approves, adopts, enacts, and ratifies the legislation

entitled the Shakopee Ndewakanton Sioux (Dakota) Gaming

Ordinance; and

BE IT FURTHER RESOLVED, that this Ordinance shall become

effective immediately, as of May 3, 1993, in accordance with

the terms and provisions herein, and shall govern all gaming

activities, conducted on the Shakopee Mdewakanton Sioux

(Dakota) Reservation; and

BE IT FURTHER RESOLVED, that the Shakopee Ordinance

Regulating Bingo and Other Forms of Gaming, enacted by

Resolution No. 8-12-88-1 is hereby repealed, together with

any other law relating to 9aming which conflicts with or is

inconsistent with this Ordinance, and in all cases of

conflict, this Ordinance shall be controlling, and such other

laws, ordinances, or regulations are also repealed; and

BE IT FURTHER RESOLVED, that the Community submits this

Ordinance to the Secretary of the Interior or his designated

representative and requests review and approval of this

Ordinance; and

BE IT FURTHER RESOLVED, that the Community submits this

ordinance to the National Indian Gaming Commission and

requests immediate review and approval of this Ordinance.
CERTIFICATION

This Resolution, and the Ordinance which it adopts, is

presented to the General Council for Referendum Ballot,

having been properly moved and seconded under the procedure

specified by the Referendum Ordinance, Ordinance No. 11-8-88-

04.

Moved bf

Stanley R rooks, Dà~r1ene Matta, /

Chairman SecretaryTreasurer

COUNTY OF SCOTT )

ss

STATE OF MINNESOTA )

The for,~gojnq ins ient was acknowledged before me this / 7

199

PALq. A. KEMPF

No~afy Pi.ó& M~m,esob

SCOTT COUNTY

My Comm~uion £xpirel Jun. 16, 1998 I
...

CERTIFICATION

Approval of Resolution No. 04-19-93-001, Adoption of

Shakopee Ndewakanton Sioux (Dakota) Community Gaining

Ordinance, as presented to the General Council of the

Shakopee Mdewakanton Sioux Community for vote by referendum

under the provisions of the Ordinance passed on January 13,

1987 and approved by the Bureau of Indian Affairs.

Under the authority vested in me by the General Council and

that Ordinance, I hereby certify that, to the best of my

knowledge and belief, the procedures specified in that

Ordinance were duly followed, and that the results reported

here accurately reflect the vote of the General Council.

76Eligible members had requested a ballot as of ________

~ __________, ballots were sent via First Class mail t9 all

members entitled to vote. The balloting was closed on ______

and the ballots were counted on ~3 ~3~~3

The Vote on this resolution was:

.\ g against, ~2 abstentions, / spoiled

This Resolution_____ passed failed.

St~anley R. 91~oks, Tribal Chairman

Kenneth Anderson, ViceChairperson

RanThlph

Election

~

~7.

Commissioner

Schacht,

~
I ~

Exhibit A

SHAKOPEE MDEWAKANTON SIOUX (DAKOTA) COMMUNiTY

GAMING ORDiNANCE

As VOTED ON DY THE GENERAL COUNCIL

ON

MARCH 31, 1993 AND APRIL 19, 1993
TABLE OF CONTENTS

Item Page Np.

TITLE I. GENERAL PROVISIONS

Section 100. Short Title 1

Section 101. Findings and Intent 1

Section 102. Definitions 3

Section 103. Effect of Headings 7

Section 104. Liberal Interpretation 7

Section 105. Severability 7

Section 106. Implementation 7

Section 107. Amendment 8

TITLE II. DEVELOPMENT. ADMINISTRATION, AND ENFORCEMENT

Section 200. Election and Composition of Community Gaming Commission 8

Section 201. Removal for Cause 10

Section 202. Decision-Making By The Commission 11

Section 203. Gaming Commission Meetings 11

Section 204. Conflict of Interest 13

Section 205. Powers of Community Gaming Commission 13

Section 206. Duties of Community Gaming Commission 15

Section 207. Plan of Organization, Delegation of Authority 18

Section 208. DELETED

Section 209. Hearing 18

Section 210. Community Gaming Commission Findings 19

Section 211. DELETED

Section 212. Community Gaming Commission Determination 19

Section 213. Written Determination Provided 19

Section 214. Violations and Sanctions 19

Section 215. Civil Penalty Provisions 21

Section 216. Exclusions or Ejectment of Certain Persons from

Gaming Establishments 21

Section 217. Factors to be Considered by the Commission in Making its

Determination to Exclude 22

Section 218. Notice to Excluded Persons 22

Section 219. Appeal 23

Section 220. No Limitation on the Number of Gaming Enterprises 23
Item Page No.

TITLE III. LICENSING

Section 300. License Required For Gaming Enterprise and Distribution

of Gaming Equipment 23

Section 301. Application Necessary For Public Gaming Activities 24

Section 302. Application for Gaming Enterprise 24

Section 303. Application and Investigation Report For Primary

Management Officials and Key Employees 26

Section 304. Background Investigation 28

Section 305. Report to National Indian Gaining Commission (Commission),

State of Minnesota For Class II and Class ifi Gaming

Applications and Investigation Reports For Key

Employees and Primary Management Officials 28

Section 306. Temporary Employment Authorization 29

Section 307. Licensing Requirements and Procedures For Key Employees

and Primary Management Officials 30

Section 308. Granting Licenses To Key Employees and Primary

Management Officials 31

Section 309. License Suspension For Primary Management Officials

and Key Employees 31

Section 310. Notice To Existing Key Employees and Management Officials 32

Section 311. Retention of Applications For Employees of a Gaming

Operation Other Than Key Employees and Primary Management

Officials 32

Section 312. Application For Distributors of Video Games of Chance and

Gaming Equipment 32

Section 313. Machine Licenses 33

Section 314. Classes of Licenses 34

Section 315. Reimbursement for Costs of Investigation 35

Section 316. Fraud on Application 35

Section 317. Exemptions 35

Section 318. License Renewal 36

Section 319. License Display 36

Section 320. Requirements to Maintain License 36

Section 321. Fees 38

Section 322. Payment of License Fees 38

Section 323. Non-transferability 39

Section 324. License as a Revocable Privilege 39

Section 325. Annual License Review 39

Section 326. Commission May Waive No Felony Requirement 39

11
Item Page No.

TITLE IV. RULES OF GENERAL APPLICABILITY

Section 400. Rules of Gaming Operation

Section 401. Video Games of Chance

Section 402. Restrictions for Gaming Enterprises

TITLE V. INDIAN GAMING REGULATORY ACT

Section 500.

Section 501.

Section 502.

Section 503.

Section 504.

Section 505.

Section 506.

Section 507.

Section 508.

40

40

41

Policy

Proprietary Interest

Net Revenues

Per Capita Payments

Contracts

Individually Owned Gaming.

Tribal Self-Regulation

Management Agreements

Internal Revenue Code

42

42

42

43

43

43

43

44

44

111
SHAKOPEE MDEWAKANTON SIOUX (DAKOTA) COMMUNITY

GAMING ORDINANCE

TITLE I. GENERAL PROVISIONS

SECTION 100. SHORT TITLE

This Ordinance shall be known and may be cited as the Shakopee Mdewakanton Sioux

(Dakota) Community Gaming Ordinance.

SECTION 101. FINDINGS AND INTENT

The Shakopee Mdewakanton Sioux (Dakota) General Council finds that:

(a) The Shakopee Mdewakanton Sioux (Dakota) Community is a sovereign entity

with the power and authority for self-governance. By virtue of the fact that

the United States has recognized the Community as an Indian tribe organized

under Section 16 of the Indian Reorganization Act of 1934, and pursuant to

the statutes and court decisions of the United States, which together have

recognized and maintained the doctrine of Indian sovereignty, the Shakopee

Mdewakanton Sioux (Dakota) Community enjoys a federal guarantee of the

perpetual integrity of the Shakopee Mdewakanton Sioux (Dakota)

Community.

(b) The Community has the authority and responsibility under the Shakopee

Mdewakanton Sioux (Dakota) Community Constitution and Bylaws to

promulgate ordinances which are intended to safeguard and promote the

peace, safety, morals, and general welfare of the Community by regulating the

conduct of trade and the use and disposition of the property upon the

reservation, and to create subordinate organizations for Community

development purposes and to regulate the activities of all such organizations,

and to secure the advantage of local self-government for ourselves and our

children.

(c) The Shakopee Mdewakanton Sioux (Dakota) Community desires to continue

to exercise its inherent authority over its internal affairs, as reliance upon

federal and other resources has adversely affected the quality of life within

this Community in both the present and the past.

(d) The Shakopee Mdewakanton Sioux (Dakota) Community requires methods

for maintaining a base to generate revenues for self-perpetuation and essential

governmental services.

(e) Public Gaming operations have been introduced to the Shakopee

1
Mdewakanton Sioux (Dakota) Community and it is of vital interest to the

public health, safety, and welfare of the Shakopee Mdewakanton Sioux

(Dakota) people that the Community regulate public Gaming in a manner

commensurate with the best interests of the Shakopee Mdewakanton Sioux

(Dakota) people.

(f) The regulation of public Gaming within the Shakopee Mdewakanton Sioux

(Dakota) Community is in the best interest of the Shakopee Mdewakanton

Sioux (Dakota) people.

Further, the Shakopee Mdewakanton Sioux (Dakota) General Council determines that the

intent of this Ordinance is to:

(g) Foster a spirit of cooperation with the Federal Government through

cooperation with the National Indian Gaming Commission regarding the

regulation of Class II Gaming;

(h) Foster a spirit of cooperation with the State of Minnesota in the regulation

of Class ifi Gaming;

(i) Regulate Gaming on trust lands located within the Shakopee Mdewakanton

Sioux (Dakota) Reservation, in compliance with compacts and other

applicable law;

U) Protect Gaming as a means of promoting Tribal economic development;

(k) Ensure that Community Gaming is conducted fairly and honestly by both the

operators and the players as a genuine means of providing both recreation

and entertainment, entirely free from organized crime and other corrupting

influences;

(1) Ensure that the construction and maintenance of all Gaming Enterprises, and

the operation of Gaming conducted at those facilities, shall at all times

protect the environment, the public health and welfare, and the sovereignty

of the Shakopee Mdewakanton Sioux (Dakota) Community, and that such

Gaming shall comply with all applicable Tribal, Federal, and State laws;

(m) Establish an adequate system to ensure financial controls exist which will

result in accountability for revenues generated from all Gaming Enterprises

conducted within the Shakopee Mdewakanton Sioux (Dakota) Reservation;

establish and maintain an adequate system to implement the necessary

background investigations, licensing, and monitoring of employees of Gaming

Enterprises; and establish and maintain an adequate system for the

investigation, enforcement, and prosecution of violations of this Ordinance

and the rules and regulations promulgated pursuant thereto;

2
(n) Provide, through the revenue generated by License fees levied on Community

Licensed Gaming Enterprises, a source of funding for proper administration

of this Ordinance;

(o) Preserve and protect the ability of the managers of Gaming Enterprises to

exercise their responsibilities for direct control of Gaming, fiscal planning,

reporting and control, and the employment, supervision and discipline of

employees; and

(p) Require all Gaming Enterprises located on trust lands subject to the

governmental power of the Shakopee Mdewakanton Sioux (Dakota)

Community to be wholly owned by the Community.

SECTION 102. DEFIMTIONS.

The following words and phrases when used in this Ordinance shall have the meanings

respectively ascribed to them in this section:

(a) Applicant shall mean any person who is required to be Licensed by this

Ordinance, and who submits a request for the grant or renewal of such

License.

(b) Blackjack shall have the meaning given the term in the Tribal-State Compact

For Control of Class ifi Blackjack On the Shakopee Mdewakanton Sioux

(Dakota) Reservation, entered into in 1991.

(c) Business Council shall mean the three members of the Shakopee

Mdewakanton Sioux (Dakota) Community Business Council, duly elected and

serving in accordance with the provisions of the Constitution of the

Community.

(d) Commissioner of Gaming shall mean that person elected to the position of

Commissioner of Gaming.

(e) Community shall mean the Shakopee Mdewakanton Sioux (Dakota)

Community, a federally recognized Indian tribe organized under Section 16

of the Indian Reorganization Act of 1934.

(f) Community Gaming Commission shall mean the five-member Community

Gaming Commission established pursuant to this Ordinance. All references

to Gaming Commission shall mean the Shakopee Mdewakanton Sioux

(Dakota) Community Gaming Commission uniess otherwise noted.

(g) Compact shall mean any agreement concerning Class III Gaming between

the Community and the State of Minnesota, and any amendments thereto.

3
(h) Gaming equipment shall mean bingo cards or sheets, devices for selecting

bingo numbers, pull-tabs, jar tickets, paddlewheels, tipboards, electronic video

equipment, or equipment employed to conduct the game of blackjack, or any

other games of chance.

(i) Gaming shall mean the act of paying for the opportunity and participation

in a game or games of chance for money or something of value, and to

operate, carry on, conduct, maintain, or expose for play, money, property, or

any representative of value wherein the outcome of a game is decided by

chance or in which chance is a material element, but does not include social

games played solely for consumable goods, i.e., foodstuffs, or games played in

private homes or residences for prizes, or games operated by charitable and

educational organizations which are approved by the Community Gaming

Commission.

U) Gaming Enterprise shall mean any commercial business owned by the

Community and operated, in part or in whole, for the conduct of bingo, the

sale of pull tabs, Gaming in general and the conduct of other games of

chance, including but not limited to video games of chance, blackjack, and any

other lawful games of chance.

(k) Gaming Operator shall mean a person, organization or entity that conducts

the management of Gaming at a Community Gaming Enterprise, including

the Community itself or any subdivision thereof~ Little Six, Inc., or any

subsidiary of Little Six, Inc.

(1) Gaming Test Laboratory shall mean, as contemplated by Section 6.1 of the

Tribal-State Compact regarding Video Games of Chance, a laboratory agreed

to and designated in writing by the State of Minnesota and the Gaming

Commission as competent and qualified to conduct scientific tests and

evaluations of video games of chance and related equipment; a laboratory

operated by or under contract with the states of Minnesota, or Nevada, or

New Jersey, or South Dakota constitutes a designated gaming test laboratory.

(m) General Council shall mean the governing body of the Community, in

accordance with the provisions of the Constitution of the Community.

(n) Indian Gaming Regulatory Act of 1988 shall mean the Act of the United

States Congress adopted on October 17, 1988, as Public Law 100-497, 102

Stat. 2467, codified at 25 U.S.C. § 2701 et seq.

(o) Interested Party shall mean any person who is required to be licensed, or

who has a financial interest, whether direct or indirect, in any enterprise,

person, facility, or place which is required to be Licensed by this Ordinance

4
and the rules and regulations adopted hereunder.

(p) Key Employees shall mean persons who serve as the General Manager of

a Gaming Enterprise, persons who have, alone or with others, the authority to sign checks or create or discharge financial obligations for a Gaming

Enterprise, persons who have any contact with a money room of a Gaming

Enterprise, and persons whose responsibilities include operation, management,

maintenance or other substantial contact of or with video games of chance,

blackjack, or other gambling equipment. Also, persons performing the

following functions are key employees:

(1) Bingo caller;

(2) Counting room supervisor;

(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;

(10) Custodian of gambling devices including persons with access to cash

and accounting records within such devices:

(11) If not otherwise included, any other person whose total cash

compensation is in excess of $50,000 per year;

(12) If not otherwise included, the four most highly compensated persons

in the Gaming Enterprise, and the board of directors of Little Six, Inc.

(cij License shall mean the permission by authority of the Community Gaming

Commission to do an act, which shall be illegal without such license. With

respect to real property of the Community, a License is a privilege to go on

the premises for a certain purpose, but does not operate to confer on, vest in,

or grant any title, interest, or estate in such property.

5
(r) Licensee shall mean any person, entity or organization granted a License

pursuant to the provisions of this Ordinance.

(s) Other Employees shall mean all employees of a Gaming Enterprise not

otherwise included in the above definitions of Key Employee or Primary

Management Official.

(t) Person shall mean any individual, partnership, corporation, association, or

public or private organization.

(u) Person Having Management Responsibility shall mean the person having

management responsibility for the Gaming Enterprise or a portion thereof,

or any person to whom such authority is delegated.

(v) Primary Management Officials shall mean any persons who have a direct

financial interest in, or management responsibility for, a Gaming Enterprise,

and in the case of a corporation, shall include those individuals who serve on

the board of directors of such corporation. If not otherwise included,

management official shall also mean:

(1) The person having management responsibility for a management

contract approved pursuant to federal statutory and regulatory

authority;

(2) Any person who has authority:

(a) To hire and fire employees; or

(b) To set up working policy for the Gaming Enterprise; or

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

management responsibility.

(w) Other Compacts shall mean such agreements as may in the future be

entered into between the Community and the State of Minnesota, governing

Class ifi gaming, as that term is defined by the Indian Gaming Regulatory Act

of 1988.

(x) Other games of chance shall include, but not be limited to, games similar to

traditional bingo in which prizes are awarded on the basis of a designated

winning number or numbers, color or colors, symbol or symbols determined

by chance.

(y) Shall is used in this Ordinance as imposing an obligation to act.

6
(z) Traditional bingo shall mean that game commonly known as bingo.

(aa) Tribal General Legal Counsel shall mean the lawyer or legal firm or

association with whom the Community has contracted to represent the

Community in all legal matters.

(bb) Video game of chance shall have the meaning given the term in the TribalState Compact for Control of class ifi Games of Chance On the Shakopee

Mdewakanton Sioux (Dakota) Community Reservation in Minnesota, entered

into December 4, 1989.

SECTION 103. EFFECT OF HEADINGS

Article and section headings contained herein shall not be deemed to govern, limit, modify,

or in any manner affect the scope, meaning, or intent or the provisions of any article or

section of this Ordinance.

SECTION 104. LIBERAL INTERPRETATION.

The provisions of this Ordinance, being necessary for the welfare of the Community and its

members, shall be liberally construed to effect the purpose and objective hereof, but in all

cases, consistent with the provisions of IGRA or any other applicable law.

SECTION 105. SEVERABILITY.

The provisions of this Ordinance are severable; if any part or provision hereof shall be held

void by tribal or federal court or federal agency, the decision of the court or agency so

holding shall not affect or impair any of the remaining provisions of the Ordinance.

Citation to potential court action is this section shall not be deemed a waiver of the

Communitys sovereign immunity from suit.

SECTION 106. IMPLEMENTATION.

It being immediately necessary for the preservation of the public peace and safety of the

Community and its members, this Ordinance shall take effect and be in full force from and

after its approval and passage by the General Council, and shall remain in affect pending

approval from the Secretary of the Interior and the National Indian Gaming Commission

(NTGC). If any section, provision, term or requirement of the Ordinance is determined by

the N1GC to conflict with the provisions of IGRA or the applicable regulations promulgated

thereto, that determination shall not require subsequent re-approval of the Ordinance by

the General Council, but shall require only that the Ordinance be brought into technical

compliance by the Gaming Commission with the regulations to which it is subject.

7
SECTION 107. AMENDMENT.

This Ordinance may be amended only upon an affirmative vote of an absolute majority of

all eligible voting members of the General Council at a meeting called specifically and

exclusively for the purpose of amending the Gaming Ordinance, and then such amendment

shall be valid only if it complies with the terms and provisions of IGRA.

TITLE II. DEVELOPMENT, ADMINISTRATION, AND ENFORCEMENT

SECTION 200. ELECTION AND COMPOSITION OF COMMUNITY GAMING

COMMISSION.

(a) Nomination of Members of the Commission The General Council shall nominate

shall nominate up to five candidates for the position of Gaming Commissioner,

together with five other nominations for the positions of members of the

Commission, for a total of ten nominees for purposes of selection by the General

Council of one person to serve as Gaming Commissioner, one person to serve as

Assistant Commissioner, together with three (3) persons to serve as members of the

Commission, which will have sole authority to regulate any and all gaming activity

on the Shakopee Mdewakanton Sioux (Dakota) Reservation, including but not

limited to the functions of: issuing gaining licenses, whether for persons, distributors,

gaming enterprises, or otherwise, as required by this Ordinance; conducting

background investigations of persons requesting licenses; ensuring compliance with

the provisions of this Ordinance; or ensuring compliance with the provisions of

IGRA.

(b) Nomination Process The nomination process shall be initiated by the Business

Council within fifteen (15) days of any vacancy on the Commission. The Business

Council shall publish to the General Council members in written form the positions

available on the Commission, together with the qualifications which the individual

candidates must possess to serve on the Commission. The Business Council shall

continue to receive nominations for fourteen (14) days after the notice of nomination

has been received by the General Council members. At the expiration of the

fourteen day period, and within fourteen days following, the Business Council shall

schedule a General Council meeting for purposes of selecting the persons to serve

on the Commission.

(c) Selection Process The persons to serve on the Gaming Commission shall be

selected at a General Council meeting. The individual nominees shall appear and

state their qualifications for the position for which they were nominated. Following

presentation of the candidates, there shall be an election for the members of the

Commission, including the Commissioner. The selection process shall be as follows:

8
The person with the highest vote total nominated to the position of

Commissioner shall serve as the Commissioner of Gaming.

The person with the second highest vote total nominated to the position of

Commissioner shall serve as the Assistant Commissioner of Gaming.

The remaining three positions on the Commission shall be filled by the three

candidates with the highest vote totals, whether the individual candidate was

nominated for the position of Commissioner or for general membership on

the Commission.

(d) Duties of Commissioner. Assistant Commissioner. Members of the Commission

(1) The Commissioner of Gaming shall have responsibility for calling and

presiding over meetings of the Commission, presiding over rulemaking procedures,

and presiding over any hearings which the Commission might conduct, as well as

overseeing administration of the daily affairs of the Commission including the receipt

of complaints concerning gaming or persons associated with gaming, directing

activities of persons charged with conducting background investigations and

investigations of complaints, keeping all records, whether relating to financial

matters, licenses, investigations, or any other aspect of the Commissions duties and

responsibilities, and delegating such responsibilities as the Commissioner deems

necessary. Each member of the Commission shall be responsible for communicating

to the General Council information related to the conduct of the Commission on a

quarterly basis in the form of a written report.

(2) The Assistant Commissioner of Gaming shall have responsibility for acting as

Commissioner in the Commissioners absence or disability.

(3) The Members of the Commission shall be required to vote pursuant to Section

202 in all cases where the Commission is required to make a decision regarding

licensing, rule-making, a hearing determination regarding the imposition of any

sanction including but not limited to licensing suspension, revocation, restriction or

limitation, civil penalties, or the exclusion or ejectment of any person, as well as

annual license renewal.

(e) Ouplifications of the Members of the Commission The members of the Commission

shall be at least eighteen (18) years of age and eligible voting members of the

Community. The members of the Commission shall in all cases be required to

complete an application for licensing which complies with the provisions of the IGRA

and this Ordinance, and a background check shall also be conducted for each

individual nominee for a position on the Commission, which background check shall

fulfill the requirements of the IGRA and this Ordinance. Any person not possessing

the necessary qualifications for licensing under the provisions of the IGRA and this

9
Ordinance may not serve on the Commission in any capacity. The members of the

board of directors of Little Six, Inc., all employees of Little Six, Inc., and any member

of the Business Council shall be precluded from serving on the Commission.

(f) Term of Office For Members of the Commission The term of office for the

Members of the Commission shall be four years, with the initial members of the

Commission serving for the following terms: The Commissioner of Gaming shall

serve for four years, the Assistant Commissioner shall serve for three years, and the

remaining members of the Commission shall serve for two year terms. All

subsequent terms for all members of the Commission, including the Commissioner

of Gaming and the Assistant Commissioner of Gaming shall be four year terms.

SECFION 201. REMOVAL FOR CAUSE.

(a) Removal Procedure The Shakopee Mdewakanton Sioux (Dakota) Community may

remove a Commissioner from office in a proceeding commenced by at least one third

(1/3) of the eligible voting members of the Community, which members must sign

a certified petition for removal which states the cause for removal, and which is

brought before the General Council by the Business Council as an agenda item

presented for a vote to the members of the Community at a General Council

meeting, and which makes known to the members of the Community the action of

the Commissioner which is asserted as the basis for removal for cause. Upon receipt

of the petition for removal, the Business Council shall notify the person whose

removal is sought within three days. Within fifteen (15) days the Business Council

shall schedule a General Council meeting for purposes of hearing the removal action.

If the Business Council shall fall to schedule a meeting in the required period of

time, then any member of the General Council shall have the authority to schedule

a meeting. The meeting notice must contain a recitation of the charges or cause

asserted for removal. An affirmative vote of forty per cent (40%) of all the eligible

voting members of the General Council is required to remove any person from their

position on the Commission.

(b) Review of Removal by Tribal Court Upon approval of the removal action by a the

required number of voters, the action shall be submitted to the Shakopee

Mdewakanton Sioux (Dakota) Community Court, and the Court shall review the

removal action, and issue a declaration that the Commissioner subject to the removal

action did in fact violate the removal for cause provisions of this Ordinance, and

shall be removed from office.

(c) Cause For Removal Cause for removal shall consist of fraudulent or dishonest

conduct, or gross abuse of authority or discretion with respect to the duties of the

Commissioner who is the subject of the removal action, unexcused failure to attend

at least three consecutive meetings, or conviction of a felony while serving on the

Commission. In no case shall the performance of the duties of a Commissioner in

10
compliance with the provisions of this Ordinance be considered a basis for removal.

In all cases the burden of proof, including the burden of presenting evidence and

persuading the court that the action complained of was fraudulent, dishonest, or was

a gross abuse of authority or discretion, shall rest with the members of the

Community seeking removal of the Commissioner or a member of the Commission.

SECTION 202. DECISION-MAKING BY THE COMMISSION

In all cases where a decision is required of the Conmüssion by the provisions of this

Ordinance, the Commission shall make said decision after deliberations on the merits of the

issue before it, and shall in all cases make a determination of the issue by majority vote of

at least a quorum of the Commission, and the position receiving the majority of the votes

shall represent the position of the Commission with regard to the matter. All votes by the

Commission shall be recorded, and a written record shall be maintained which sets forth the

position of the individual members of the Commission.

SECTION 203. GAMING COMMISSION MEETINGS.

The Commission shall hold meetings as necessaiy, at the Shakopee Mdewakanton Sioux

(Dakota) Community Center. A majority of the members of the Commission shall

constitute a quorum, which number shall be necessary and sufficient for a meeting to be

held and business to be conducted, however, all votes shall be taken in compliance with

Section 202. Notice of the meeting shall be provided at least 48 hours in advance, which

notice shall include the agenda and the name of any person whose License which will be

considered at the meeting. Upon payment of a reasonable fee, any Interested Party shall

be provided with such notice. The Gaming Commission shall in all cases determine the

reasonable fee.

Regular meetings shall be closed to all non-members, with the exception of NIGC members

or their authorized representative, and may be closed to enrolled members of the

Community for purposes of protecting the privacy of the individual Licensee, but only after

passage of a recorded motion for executive session. At regular meetings the Commissioners

shall deal with the routine business and affairs of the Commission, including but not limited

to:

(a) Consideration of applications, and the accompanying background information

required by this Ordinance as part of the application process;

(b) Meeting with officials of the National Indian Gaming Commission., State of

Minnesota, or any other law enforcement agency or office for purposes of

ensuring compliance with or enforcement of this Ordinance, or for purposes

of pursuing possible criminal violations related to gaming, which violations

occurred upon or are related to gaming conducted on property under the

control of the Shakopee Mdewakanton Sioux (Dakota) Community.

11
(c) To receive oral reports of alleged criminal violations, which violations

occurred upon or are related to Gaming conducted on property under control

of the government of the Shakopee Mdewakanton Sioux (Dakota)

Community.

(c) Deliberations of matters related to licensing decisions, and the factual

determinations related to those decisions;

(d) Examination of financial or other data required to be reviewed by the

Commission under the provisions of this Ordinance, and which may be of a

confidential nature;

(e) Consultation with legal counsel.

A record shall be made of all proceedings of the Commission, whether in open or executive

session, which record shall reflect all factors considered by the Commission; such record

shall be available to the affected party and shall be made available to enrolled members

only with the consent of the affected party or by order of the Shakopee Mdewakanton Sioux

(Dakota) Community Court by request of an enrolled member.

The Commission shall hold special meetings, pursuant to the notice requirements defined

above, at any time the Commission deems necessary and appropriate, which may be open

only to NIGC members or their authorized representative, and to enrolled members of the

Community for the purposes of:

(a) Holding a hearing prior to a final action denying a license, revoking a license,

suspending a license, or placing a limitation on a license;

(b) Holding hearings related to the promulgation of substantive and procedural

regulations under the authority granted the Commission by this Ordinance;

and

(c) Holding hearings related to violations of this Ordinance which may be

punishable by civil penalties or other sanctions.

Following special meetings which are open only to NIGC members or their authorized

representatives and enrolled members of the Community, the Commission may hold closed

special meetings for the purposes of deliberations regarding the decision to be made

concerning the matters presented at the public meetings. However, the requirement that

there be a record established also applies here.

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SECTION 204. CONFLICT OF INTEREST.

No Member of the Commission, including the Commissioner of Gaming, employee of the

Commission, or any person serving in any capacity as agent of the Commission, or any

member of his/her family living with him/her, tuay have a financial interest, other than that

financial interest resulting from Community membership, in any Gaming business or

enterprise, or in any Gaming contractor, vendor, or any person providing services to

Gaming, or accept any gift or thing of value from a Gaming contractor. Nothing in this

section shall prohibit a member of the Commission, or other person subject to this section,

from having a financial interest in any Gaming business or enterprise operating pursuant to

the provisions of this Ordinance, which interest derives from their status as a Community

member, including any distribution payments derived from profits made by such gaming

business or enterprise.

The Commissioner of Gaming and the Members of the Commission shall be restricted from

Gaming in any manner in any facility, place, enterprise, or establishment which is subject

to regulation pursuant to the provisions of this Ordinance.

SECTION 205. POWERS OF COMMUNITY GAMING COMMISSION.

The Community Gaming Commission may exercise any proper power and authority

necessary to perform the duties and discharge the responsibilities with which the

Commission is charged. Those powers include, but are not limited to, the power to:

(a) Receive and process all license applications, and issue licenses to all gaming

operations, persons, individuals, and distributors who are required to be

licensed by this Ordinance and who qualify for such licensure, and to notify

the National Indian Gaming Commission of the issuance of such licenses;

(b) To conduct or cause to be conducted background investigations of all Primaiy

Management Officials and Key Employees of the involved Gaming Enterprise,

as well as background checks of the members of the Conmiission and any

employees of the Commission;

(c) To deny any License application, and to limit, suspend, restrict, or revoke any

License upon a finding that the provisions of this Ordinance or other

applicable law have been violated

(d) Definition of all contracts to:

(1) Determine whether the transaction documents are a contract;

(2) Determine whether the contract is or is not related to Gaming, and if

related to Gaming, whether it is subject to the provisions of this

13
Ordinance; and

(3) Whether the non-Tribal party to the contract must be licensed under

the provisions of this Ordinance.

Nothing in this Section shall prevent a Gaming Enterprise from engaging in a

transaction which might involve Gaming related contracts under the provisions of this

Ordinance, or any regulations promulgated hereunder, but it shall be the duty of the

Gaming Enterprise to notify the Commission of transactions which might be Gaming

related, and request of the Commission a determination regarding whether the

transaction is or is not a gaming related contract.

(e) Collect license fees;

(f) Consult with Tribal General Legal Counsel to advise the Commission as

needed, but in those situations where a member of the Commission has been

removed for cause by the General Council and that action is on appeal to the

Tribal Court, the Commission member may be represented by independent

legal counsel;

(g) Inspect and examine, during regular business hours, all premises where

Gaming is conducted or Gaining devices or equipment is sold or distributed;

(h) Inspect, review, and photocopy all Gaming operations contracts, papers,

records, books, or other pertinent documents relating to the conduct of

Gaming, when deemed necessaiy for the purpose of determining compliance

by the Licensee with the provisions of this or any related Ordinance, or to

ensure compliance by the Licensee with the provisions of any contract or

agreement related to Gaming, or to ensure the enforcement of this or any

related Ordinance, or to determine the suitability of any Applicant for a

License;

(i) To hold hearings, and to require Licensees or License Applicants to appear

and testify under oath regarding matters related to the enforcement of the

provisions of this Ordinance, complaints received about matters within the

purview of the Commission to address, actions by the Commission regarding

licenses, or any other matters over which the Commission has authority;

(j) To promulgate such regulations as are deemed necessary for the purpose of

giving effect to the provisions of this Ordinance, including but not limited to:

(1) substantive rules concerning: the issuance, suspension, or revocation of

Licenses; the conduct, operation, and oversight of gaming activities; the

investigations and inspections into the conduct of gaming and the

14
actions of Licensees; the maintenance of gaining equipment; and any

other matters with which the Commission must deal to fulfill its

responsibilities and which are deemed necessary by the Commission to

further compliance with this Ordinance; and

(2) procedural rules concerning: the conduct of hearings; the

administration of the daily affairs of the Commission; investigations

and inspections of gaming, or persons involved with or licensed in

connection with Gaming; the processing and disposition of complaints

which may be received by the Commission from members of the

Community or the general public regarding matters within the

authority of the Commission; and any other rules deemed necessary by

the Commission to further compliance with this Ordinance;

(k) To impose civil penalties or other sanctions as is deemed appropriate by the

Commission in compliance with the provisions of this Ordinance; and

(1) To retain staff, and to delegate, from time to time, such powers as the

Commission deems necessary to fulfill the duties of the Commission, provided

that the power to vote as described in Section 203 shall not be delegated.

SECTION 206. DUTIES OF COMMUNITY GAMING COMMISSION.

It shall be the responsibility of the Commission to ensure that all duties of the Commission

are discharged in a manner which assures compliance with this Ordinance and all other

applicable laws of the Shakopee Mdewakanton Sioux (Dakota) Community, the United

States, and the State of Minnesota. The duties of the Commission shall include:

(a) Processing all License applications, making determinations regarding the

suitability of persons for licensing, issuing Licenses to those persons qualified

for such licensure, and notifying the NTGC of the issuance of such Licenses

as required by 25 U.S.C. * 2701, et. seq;

(b) Denial, limitation, revocation, rescission or suspension of any License when

deemed necessary under the provisions of this or any related Ordinance or

Law of the Shakopee Mdewakanton Sioux (Dakota) Community, or any

applicable Federal or State law;

(c) Conducting, or causing to be conducted, background investigations on all

Primary Management Officials and Key Employees of the involved Gaming

Enterprise, as well as background checks of the members of the Commission

and any employees of the Commission;

(d) Printing and making available all necessary license application forms, together

15
with the appropriate licenses;

(e) Collection of License fees imposed pursuant to the terms of Section 205(j)(1)

of this Ordinance;

(f) Inspection and examination of all premises where Gaming is conducted or

gaming devices or equipment are sold or distributed;

(g) Inspection, review, and oversight of all Gaming contracts to ensure

compliance with the terms of this Ordinance; and inspection, review and

examination of all records, books, and financial documents relating to the

conduct of Gaming to determine compliance by the Licensee with the

provisions of this Ordinance or any other applicable law;

(h) Definition of all contracts to:

(1) Determine whether the transaction documents are a contract; and

(2) determine whether the contract is or is not related to gaming, and, if

related to gaming, whether it is subject to the provisions of this Ordinance;

and

(3) whether the non-Tribal party to the contract must be Licensed under the

provisions of this Ordinance.

Nothing in this Section shall prevent a Gaming Enterprise from engaging in

transactions which might involve a Gaming related contract under the

provisions of this Ordinance, or the regulations promulgated hereunder, but

it shall be the duty of the Gaming Enterprise to notify the Commission of

such a transaction and request from the Commission a determination that the

transaction is or is not a Gaming related contract.

(1) Requiring, and causing to be conducted annually, outside independent audits

of all Gaming activity as required by IGRA; requiring, and causing to be

conducted annually, outside audits of all contracts related to the conduct of

Gaming, with the exception of those contracts for legal and accounting

services, whether those contracts be for supplies, services, concessions or other

subject matter which the Commission determines to be related to Gaming,

and which are for a contract amount in excess of $25,000.

(j) Promulgation of such substantive and procedural regulations as the

Commission deems necessary to administer the provisions of this Ordinance,

but only upon thirty (30) days notice of the proposed rulemaking action, which

notice shall be published and posted at the Gaming Enterprise, mailed to all

16
eligible voting members of the General Council, posted at the Community

Center, and provided in written form to the board of directors

of any Licensed Gaming Establishment.

(1) The notice shall specify the purpose of the proposed regulation, the draft

language of the proposed regulation, and the factors the Cornniission has

considered in its determination to enact the proposed regulation, and an

address at which the Commission shall receive comments pursuant to the

provisions of (2), below;

(2) During the notice period the Commission shall receive comments

regarding the proposed regulation at the Commission offices, or at a

designated mailing address.

(3) The comments received by the Commission shall be considered by the

Commission at a meeting open to the public, and the Commission shall make

a final determination regarding the need for the proposed regulation, the

language of the proposed regulation, and the effective date of the proposed

regulation on the basis of all the information available to the Commission.

(4) Within thirty (30) days of the effective date of the proposed regulation

adopted by the Commission, a General Council vote concerning the proposed

regulation, as enacted by the Commission, may be requested. To initiate the

review by the General Council, 1/3 of the eligible voting members of the

Community shall sign a petition requesting such a vote, which petition shall

be submitted to the Business Council. The Business Council shall thereafter

schedule, within thirty (30) days of receipt of the petition, a vote on the

regulation. The petition shall state the objections to the proposed regulation,

the date of filing, and list the names, together with the signatures, of the

persons requesting the General Council vote. The regulation shall thereafter

become effective only upon approval by a majority of a quorum of the voting

members of the General Council, however, if a quorum is not present at the

General Council meeting scheduled for the vote on the contested regulation,

then the regulation shall become effective without further action by the

Commission.

(k) Consultation with Tribal General Legal Counsel to advise the Commission as

needed;

(I) Imposing civil penalties or other sanctions, including seizure of property, after

a hearing as provided by this Ordinance;

(m) Defending this Ordinance in any court with proper jurisdiction or before any

federal agency, however, any reference herein to legal action shall not be

17
deemed a waiver of the Communitys sovereign immunity from suit.

(n) Proposing an annual budget for Commission operations pursuant to the

provisions of this Ordinance; remuneration to or salaries for the

Commissioner and Commission members shall be set by the Business Council

and such amount shall be reflected in the proposed budget. The Business

Councils determination shall be subject to notice and review by the General

Council.

(o) The performance of any other duties required in the Ordinance or any

amendments thereto.

SECTION 207. PLAN OF ORGANIZATION, DELEGATION OF AUThORITY.

The Community Gaming Commission may organize any functional committees or divisions

from among its members as may be necessary, and may from time to time alter such plan

of organization as may be expedient, and may delegate all powers vested in the Commission

by this Ordinance, with the exception of the power to vote, to the divisions or committees

so formed.

SECTION 208. DELETED

SECTION 209. HEARING.

(a) Opportunity for Hearing The Community Gaming Commission shall afford

an applicant for a license an opportunity for a hearing prior to a final action

denying such application and shall afford a licensee or any other person(s)

subject to this Ordinance, the opportunity for a hearing prior to taking final

action resulting in termination, revocation, suspension, or limitation of a

license, or:the imposition of any sanctions which the Commission is authorized

to impose under Sections 214,215, and 216, and which the Commission deems

proper.

(b) Hearing Procedures Such hearing shall be conducted as an adjudicatory

proceeding, with an opportunity given the affected party to be represented by

counsel, present testimony, exhibits, and any other evidence which the affected

party feels will support the partys position. In all cases such hearings shall

be held on the record, and, in cases of license denial, witnesses may be

required to testify under oath. In all cases which might result in the

imposition of sanctions, testimony shall be taken by the Commission under

oath.

(c) Emergency Action. Suspension Without Hearing However, the Commission

may summarily suspend temporarily or may extend suspension of a license for

18
up to fifteen (15) days without a hearing in those cases where such

extraordinary action is essential to protect the public safety or the integrity of

Gaming conducted on the Shakopee Mdewakanton Sioux (Dakota)

Reservation. Such action shall be taken only in those emergency cases where

there is a clear need for these extraordinary measures. In cases where a

license is suspended prior to a hearing, an opportunity for a hearing shall be

provided which complies with the provisions of this Ordinance.

SECTION 210. COMMUNITY GAMING COMMISSION FINDINGS.

Whenever upon specific factual finding the Community Gaming Commission determines that

any person has failed to comply with the provisions of this Ordinance, any regulation

promulgated hereunder, or other applicable law, the Commission shall make a written

certification of the specific findings of fact, with a copy thereof to the subject or subjects of

that determination. Unless waived in writing by the subject or subjects of that

determination, the Commission shall, after notice provided within five (5) days, hold a

hearing. The hearing shall be held within not less than thirty (30) days and not more than

sixty (60) days thereafter, at which time the subject shall have an opportunity to be heard

and present evidence.

SECTION 211. DELETED

SECTION 212. COMMUNITY GAMING COMMISSION DETERMINATION.

Following such hearing the Community Gaming Commission shall, within seven (7) days,

reach a determination concerning the accuracy of the preliminary certification of facts and

whether the License in question should be granted, continued, suspended, revoked,

conditioned, or limited and whether any other action recommended to or by the

Commission including, but not limited to, forfeitures or fines should be taken.

SECFION 213. WRITfEN DETERMINATION PROVIDED.

Within three (3) days following its determination the Commission shall inform the subject,

in writing, of that determination.

SECTION 214. VIOLATIONS AND SANCFIONS.

Any person who engages in Gaming or Gaming related activities on property subject to the

provisions of this Ordinance without a gaming license, or in violation of the terms imposed

by a Gaming License, or in violation of the terms of a suspension imposed by the

Commission on that Gaming License, or in violation of any other provision of this

Ordinance and regulations promulgated hereunder, or amendments hereto, shall be in

violation of the Ordinance. This provision shall apply to any person who is upon any

premises licensed by this Ordinance without the consent of the licensee and/or the

19
Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission.

Violation of any provision of this Ordinance or any of the Gaming Commissionss

Regulations by a Licensee, his or her agent, or employee:

(a) Shall be deemed contrary to the public safety, good order, and general welfare

of the Community and its members;

(b) May be grounds for refusing to grant or renew a License, or for suspension

or revocation of a License;

(c) May be grounds for filing a complaint with the NIGC, may be grounds for

filing criminal charges and/or a civil action in a court of competent

jurisdiction on behalf of the Community Gaming Commission; and

(d) In the case of a Licensee being convicted of a felony, shall be grounds for

immediate revocation of the License.

Acceptance of a License or renewal thereof or condition imposed thereon by a Licensee

constitutes agreement on the part of the Licensee to be bound by all the regulations and/or

conditions of the Community Gaming Commission and by the provisions of this Ordinance,

and the regulations promulgated hereunder, and as the same may hereafter be amended.

It is the responsibility of the Licensee to keep him/herself informed of the contents of all

such regulations, provisions, and conditions, and ignorance thereof will not excuse the

violations.

Any person in violation of this Ordinance shall be subject to sanctions under this Ordinance.

The following provisions shall govern the response of the Commission to violations:

(a) Each day of violation may constitute a separate count or violation of this

Ordinance. Separate violations shall be prosecuted as separate offenses

before the Gaming Commission or a court of competent jurisdiction;

(b) All property used in each and every separate violation of this Ordinance may

become the property of the Community. All property used in each and every

separate violation of this Ordinance may be subject to forfeiture following a

hearing;

(c) Violators may also be required to pay court costs, storage fees, and auction

or sales fees;

(d) Persons may be excluded or ejected from Gaming Enterprises or prohibited

from trespassing on premises licensed under this Ordinance, and may be

subjected to civil penalties or sanctions for violating the provisions of Section

20
216;

(e) Licenses may be suspended, revoked, or limited and/or Gaming

Establishments may be forcibly closed;

(f) Winnings found to have been received in violation of this ordinance may be

confiscated and may, following a hearing, be forfeit and become the property

of the Community;

(g) Civil penalties may be imposed as additional sanctions, in the amounts

prescribed and in accordance with the hearing procedures set forth in this

Ordinance.

Any of the above actions may be taken at the discretion of the Gaming Commission.

SECTION 215. CIVIL PENALTY PROVISIONS.

It shall be a civil violation of the laws of the Shakopee Mdewakanton Sioux (Dakota)

Community to disobey the provisions of this Ordinance or any regulations promulgated by

the Community Gaming Commission, or any proper order issued under the authority of this

Ordinance. Any person or Licensee found to be guilty of such violation may be assessed

a civil penalty. Civil penalties may be imposed pursuant to and in compliance with the

provisions of this Ordinance, and any regulations promulgated by the Commission under the

authority provided in this Ordinance. Civil penalties may be imposed in addition to the

imposition of any other sanctions permitted under this Ordinance, including but not limited

to suspension or revocation of the Gaming License for a period not to exceed one year.

Civil penalties may be imposed up to the amount of $25,000.00 for each individual violation.

SECTION 216. EXCLUSION OR FJECTMENT OF CERTAIN PERSONS FROM

GAMING ESTABLISHMENTS.

(a) Exclusion or Ejection of Persons Permitted The Community hereby declares

that the exclusion or ejectment of certain persons from licensed gaming

establishments, facilities, enterprises or places is necessary to carry out the

policies of this Ordinance and to maintain the health, welfare, safety and

security of the public, as well as to protect the integrity of gaming conducted

on the Shakopee Mdewakanton Sioux (Dakota) Reservation.

(b) Notice To Gaming Enterprise In the furtherance of the policies of this

section the Commission may provide for any Gaming Enterprise, facility, or

place a list of persons who are not permitted to enter or be on the premises,

and who may be forcibly excluded or ejected therefrom, including any person

whose presence poses a threat to the Shakopee Mdewakanton Sioux (Dakota)

Community, the State of Minnesota, or to the integrity of licensed gaming

21
conducted within the Reservation. Upon a finding that a person should be

excluded or ejected for any of the reasons specified in Section 217, the

Commission shall provide the Gaming Enterprise with a picture of that

person, with a written description of that person, together with written notice

that the person shall not be permitted to enter or be on the premises of any

Gaming Enterprise, and who, upon identification by the Gaming Enterprise,

shall be forcibly ejected or excluded therefrom.

(c) Exclusion by Gaming Enterprise The Licensee of any Gaming Establishment

may independently make a finding that any person should be excluded or

ejected for any of the reasons specified in Section 215, and may act to exclude

or eject such persons, provided that any person so ejected shall be provided

with written notice of the right to a hearing to appeal such action to the

Gaming Commission.

SECTION 217. FACTORS TO BE CONSIDERED BY ThE COMMISSION IN

MAKING ITS DETERMINATION TO EXCLUDE.

In making its determination regarding exclusion or ejectment from a gaming facility, place,

establishment, or enterprise the Commission shall consider:

(a) That persons prior conviction for a felony, a misdemeanor involving moral

turpitude, or a violation of the Gaming laws of any Indian Tribe, State, or of

the United States;

(b) Any violation or attempt to violate, or conspiracy to violate the provisions of

this Ordinance relating to the disclosure of an interest in a Gaining

Enterprise;

(c) Failure to disclose information required by the license application, or any

effort to evade taxes or fees associated with the conduct of Gaming; and

(d) Any reputation for behavior which would adversely affect the public

confidence in the Gaming Enterprise and trust that the Gaming industry is

free from criminal or comipting influences.

(e) Disorderly conduct, or any attempt to manipulate or tamper with any Gaming

equipment or alter or distort the normal conduct of any game, or to conspire

with any other person for such purposes.

SECTION 218. NOTICE TO EXCLUDED PERSONS.

When the name and description of a person is placed on the List of excluded persons, the

Commission shall, if possible, give notice of the action to that person by at least one of the

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q

following means:

(a) By personal service;

(b) By certified mail to the last known address of the person.

SECTION 219. APPEAL

Persons against whom action has been taken pursuant to Sections 214 through 218 by the

Gaming Commission and who have been heard before the Commission may appeal the

Commissions decision to the Shakopee Mdewakanton Sioux (Dakota) Communitys Tribal

Court. In all appeals before the Tribal Court, there will be deference given by the Tribal

Court to the determination of the Commission as the agency charged with responsibility for

interpreting its own regulations. Findings of fact made by the Commission may be certified

for review by the Tribal Court.

Conclusions of law made by the Commission shall be reviewed de novo by the Tribal Court,

that is, as though the Tribal Court were hearing the matter for the first time. The Tribal

Court will overturn actions of the Commission only where it can be shown that those actions

were arbitrary and capricious, or were clearly an abuse of the Commissions discretion. In

all cases, the evidentiary standard on review shall be a preponderance of the evidence

standard.

SECTION 220. NO LIMITATION ON ThE NUMBER OF GAMING ENTERPRISES.

Nothing in this Ordinance shall limit the number of Gaming Enterprises the Gaming

Commission can license to conduct Gaming on the Shakopee Mdewakanton Sioux (Dakota)

Community Reservation or lands subject to the governmental control of the Shakopee

Mdewakanton Sioux (Dakota) Community, pursuant to the provisions of this Ordinance and

IGRA, but in all cases,~ each separate facility, place, or location shall require a separate

license, issued specifically for that place, facility, or location.

TITLE III. LICENSING

SECTION 300. LICENSE REQUIRED FOR GAMING ENTERPRISES AND

DISTRIBUTION OF GAMING EQUIPMENT.

Any person, organization, or entity (including Primary Management Officials and Key

Employees) conducting a public Gaining Enterprise on behalf of the Community, or acting

as the agent of such person, organization or entity, on property within the exterior

boundaries of the Shakopee Mdewakanton Sioux (Dakota) Community Reservation and/or

on property which is subject to the jurisdiction of the Community, or any person,

organization, or entity selling, leasing, or otherwise distributing gambling equipment or video

games of chance to the Community, shall be required to have and display prominently, or

23
display upon request, an appropriate, valid, and current Community public Gaming License

issued pursuant to the provisions of this Ordinance. Such License shall also be required for

each facility, place, establishment, or enterprise where Gaming is conducted. Any other

form of public Gaming operations being conducted within the jurisdiction of the Community

without the lawful written approval of the Gaming Commission is prohibited.

SECTION 301. APPLICATION NECESSARY FOR PUBLIC GAMING ACTIVITIES.

Except as provided in Section 316, all persons or organizations who may seek to engage in

public gaming activities within the jurisdiction of the Community must apply to the

Community Gaming Commission for the appropriate license in accordance with the

provisions of Section 302 and/or 303, at least thirty (30) days prior to commencing the

scheduled activities, and the Commission must conduct or cause to be conducted a

background investigation in accordance with the provisions of Section 304, but the Applicant

shall not begin the scheduled activity until the Commission has forwarded to the National

Indian Gaming Commission a completed application, and until such activity is Licensed, or

is approved in writing by the Commission, pending final License approval.

SECTION 302. APPLICATION FOR GAMING ENTERPRISE.

The License application for any Gaming Enterprise made by the proposed gaming operator

for that Gaming Enterprise shall contain the following information:

(a) The name and location of the Gaming Enterprise for which the Gaming

operator License is being sought, the number and types of games to be

played, a detailed plan of any proposed construction, the number of planned

employees;

(b) The full name, other names used (oral or written), social security number(s),

birth date, place of birth, citizenship, gender, all languages (spoken or written)

and address of the Gaming operator(s), or if the Gaming Enterprise is a

tribally operated facility, the foregoing information concerning each member

of the board of directors;

(c) The full name(s), other names used (oral or written), social security

number(s), birth date(s), place(s) of birth, citizenship, gender, all languages

(spoken or written), and addresses of all Interested Parties (including those

with direct or indirect financial interests) and their interest and connection

with the Applicant;

(d) For the previous five years for all operators and Interested Parties: business

and employment positions held, ownership interests in those businesses,

business and residence addressees, and drivers license numbers;

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(e) Current business and residence telephone numbers for all operators and

Interested Parties;

(t) A description of any previous business relationships with Indian tribes,

including ownership interests in those businesses, provided by all operators

and Interested Parties;

(g) A description of any previous business relationship with the Gaming industiy

generally, including ownership interests in those businesses provided by all

operators and Interested Parties;

(h) All operators and Interested Parties must provide 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, and if granted, whether it was ever suspended

or revoked;

(i) For each felony for which there is an ongoing, prosecution or conviction, if

any, the charge, the name and address of the court involved, and the date and

disposition, together with detailed and explicit information of any criminal

record of the Gaming operator and any Interested Party whose name appears

on the application to determine whether that person:

(1) Has committed a felony or Gaming offense in any jurisdiction;

(2) Has engaged in prior activities or maintains habits or associations

affecting his or her present conduct which would:

(i) Pose a threat to the public and Community interests;

(ii) Threaten the effective regulation and control of Community

Gaming;

(iii) Enhance the dangers of unsuitable, unfair, or illegal methods,

or activities in the conduct of Gaming.

U) For each misdemeanor conviction or ongoing misdemeanor prosecution

(excluding minor traffic violations), if any, within 10 years of the date of the

application, the name and address of the court involved and the date and

disposition;

(k) A photo of the operator, the operators fingerprints, and a photo of each

Interested Party;

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(1) The name and address of all proposed or actual ancillary contractors who

provide supplies, services, concessions or property to the proposed Gaming

operator;

(m) A financial statement of the Applicant, and financial statements of all

Interested Parties; and

(n) Any additional information as may be deemed necessary by the Gaming

Commission, or as may be required by the National Indian Gaming

Commission.

Any of the requirements to provide the foregoing information may be waived by the

Commission for good cause shown.

SECTION 303. APPLICATION AND INVESTIGATION REPORT FOR PRIMARY

MANAGEMENT OFFICIALS AND KEY EMPLOYEES.

The License Application for Primary Management Officials and Key Employees of any

Gaming operator of the Community shall contain the following statement:

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 prosecution

or when pursuant to a requirement by the Shakopee Mdewakanton Sioux (Dakota)

Community Gaining Commission 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 investigations of activities while associated with the Shakopee

Mdewakanton Sioux (Dakota) Community Gaming Commission or a gaming

operation. Failure to consent to the disclosures indicated in this notice will result in

the Shakopee Mdewakanton Sioux (Dakota) Community 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.

The Licensing application shall contain the following notice:

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

26
imprisonment (U.S. Code, Title 18, section 1001).

The Licensing application shall require the following information to be furnished by the

applicant before consideration shall be given the application by the Commission:

(a) The full name, other names used (oral or written), social security number(s),

birth date, place of birth, citizenship, gender, all languages (spoken or

written);

(b) For the previous 5 years: Business and employment positions held, ownership

interest in those businesses, business and residence addresses, and drivers

license numbers;

(c) The names and current addresses of at least three personal references,

including one personal reference who was acquainted with the applicant

during each period of residence listed under paragraph (4) of this section;

(d) Current business and residence telephone numbers;

(e) A description of any previous business relationships with Indian tribes,

including ownership interests in those businesses;

(f) A description of any previous business relationships with the gaming industry

generally, including ownership interests in those businesses;

(g) 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;

(h) For each felony for which there is an ongoing prosecution or a conviction, if

any, the charge, the name and address of the court involved, and the date of

disposition;

(i) For each misdemeanor conviction or ongoing misdemeanor prosecution

(excluding minor traffic violations), if any, within 10 years of the date of the

application, the name and address of the court involved and the date and

disposition;

(j) The name and address of any license or regulatory agency with which the

person has filed an application for an occupational license or permit, whether

or not such license or permit was granted;

(k) A photograph;

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(1) The fingerprints of the applicant; and

(1) Any additional information as may be determined by the Community Gaming

Commission.

SECTION 304. BACKGROUND INVESTIGATION.

The Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission shall conduct

or cause to be conducted an investigation sufficient to make a determination that

employment of a person under investigation poses/does not pose 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.

In conducting a background investigation, the Shakopee Mdewakanton Sioux (Dakota)

Community Gaming Commission or its licensed agents shall promise to keep confidential

the identity of each person interviewed in the course of the investigation.

If the National Indian Gaming Commission and/or the Shakopee Mdewakanton Sioux

(Dakota) Community Gaming Commission possess an investigative report for an employee,

the Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission may update

that report instead of performing an entirely new investigation.

The provisions of this Section shall apply to all members of the Commission, and to any

employees, agents or members of committees of the Commission.

SECTION 305. REPORT FOR NATIONAL INDIAN GAMING COMMISSION

(COMMISSION), STATE OF MINT~ESOTA FOR CLASS II AND

CLASS III GAMING APPLICATIONS AND INVESTIGATION

REPORTS FOR KEY EMPLOYEES AND PRIMARY MANAGEMENT

OFFICIALS.

Before issuing a Gaming License to any person, organization or entity, including

Management Officials and Key Employees, the Shakopee Mdewakanton Sioux (Dakota)

Community Gaming Commission shall forward to the Commission a completed application

containing the information listed under Section 302 or 303 of this Ordinance, as applicable,

together with an investigative report pursuant to Section 304 which shall include all of the

following:

(a) Steps taken in conducting a background investigation;

(b) Results obtained;

(c) Conclusions reached; and

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(d) The bases for those conclusions.

When the Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission

forwards a report to the National Indian Gaming Commission, it shall include a copy of the

determination that the potential employee did not pose any threat defined in Section 304.

Copies of the Background Investigation conducted by or at the direction of the Community

Gaming Commission shall be forwarded to the State of Minnesota, in accordance with the

terms of the Compacts between the Tribe and the State.

SECTION 306. TEMPORARY EMPLOYMENT AUTHORIZATION.

On the basis of the completed License application and any other available information, the

Shakopee Mdewakanton Gaming Commission shall make a preliminary finding concerning

the eligibility of a Key Employee or a Primary Management Official for employment in a

Gaming operation. If the Commission, in applying the standards adopted in this Ordinance,

determines that employment of a person under investigation 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,

the Commission shall not issue a temporary employment authorization to the individual, and

a management contractor or a Tribal Gaming operation shall not employ that person in a

Key Employee or Primary Management Official position.

If the Commission, after consideration of the appropriate information, judged by the

relevant standards as defined in this Ordinance and IGRA, and the rules and regulations

promulgated pursuant thereto, determines that the Applicant is sufficiently qualified to be

employed, the Commission shall issue a temporary employment authorization. Such

authorization shall be good for a period not to exceed ninety (90) days, shall be granted only

to identify and monitor the individual Applicant pending a determination by the National

Indian Gaming Commission of the Applicants suitability for a permanent license, and is

revocable upon completion of the background investigation of the individual applicant if the

Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission determines that

the results of the background investigation warrant such revocation. Such temporary

employment authorization, and the privilege of employment which it permits, is in all cases

revocable if the National Indian Gaming Commission determines the applicant is unsuitable

for licensing. The individual may begin employment upon receipt of the temporary

employment authorization.

Those individuals employed in a Gaming Enterprise as of the effective date of this

Ordinance shall be issued a temporary employment authorization under this Section, and

shall comply with the requirements of this Ordinance pertaining to them. The necessary

background checks of such individuals shall be conducted or examined, as appropriate, and

License applications, together with the necessary background checks, shall be forwarded by

the Shakopee Mdewakanton Sioux (Dakota) Gaming Commission to the National Indian

29
Gaming Commission as required under the provisions of IGRA and the regulations adopted

pursuant thereto.

SECFION 307. LICENSING REQUIREMENTS AND PROCEDURES FOR

PRIMARY MANAGEMENT OFFICIALS AND KEY EMPLOYEES.

In anticipation of issuing Licenses required under Section 300 of this Ordinance, the

following procedures must be performed before a Primary Management Official or a Key

Employee may be licensed.

When a Primary Management Official or Key Employee begins work at a gaming operation,

the Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission shall:

(a) Forward to the National Indian Gaming Commission a completed application

for employment that contains the information listed in Section 303 of this

Ordinance; and

(b) Conduct a background investigation under Section 304 of this Ordinance to

determine the eligibility of the employee for continued employment in a

Gaming operation.

(c) Upon completion of a background investigation and a determination of

eligibility for employment in a Gaining operation under paragraph (b)(2) of

this Section. the Shakopee Mdewakanton Sioux (Dakota) Community Gaming

Commission shall, pursuant to the provisions of Section 305 of this Ordinance,

forward a report to the Commission within 60 days after the employee begins

work. A Gaming operation shall not employ a person as a Key Employee or

Primary Management Official who does not have a license after 90 days, but

in all cases the Commission shall act to grant or deny the License within the

ninety (90) day period.

(d) During a 30-day period beginning when the National Indian Gaming

Commission receives a report submitted under paragraph (c) of this Section,

the Chairman of that Commission may request additional information from

the Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission

concerning an employee who is the subject of such a report. Such a request

shall suspend the 30-day period until the Chairman receives the additional

information.

(e) If, at the conclusion of the 30-day period described under paragraph (d) of

this Section, the National Indian Gaming Commission has not notified the

Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission

that it has any objections, the Shakopee Mdewakanton Sioux (Dakota)

Community Gaming Commission may issue the license, pursuant to Section

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308 of this Ordinance.

(f) The information required to be presented to the National Indian Gaming

Commission by (a), (b), and (c) of this section shall also be forward to the

Commissioner of Public for the State of Minnesota, pursuant to the terms of

the Tribal-State Compact on Video Games, and pursuant to the terms of the

Tribal-State Compact on Blackjack.

SECTION 308. GRANTING LICENSES TO KEY EMPLOYEES AND PRIMARY

MANAGEMENT OFFICIALS.

At the end of the 30-day period described under paragraph (d) of Section 307 of this

Ordinance, or upon receipt of the National Indian Gaming Commissions report described

under paragraph (e) of Section 307, the Shakopee Mdewakanton Sioux (Dakota) Community

Gaming Commission may:

(a) Grant a Gaming License to a Primary Management Official or a Key

Employee who is eligible for continued employment in a Gaming operation;

or

(b) Tenninate the employment of an employee as a Key Employee or a Primary

Management Official;

In all cases, the Commission shall be required to act on the license application within thirty

(30) days of the receipt of the information from the National Indian Gaming Commission,

or, if no information has been provided within the thirty (30) day period set forth in Section

307(d), then the Commission must act within thirty (30) days of the expiration of the thirty

(30)day period referred to in Section 307(d).

SECTION 309. LICENSE SUSPENSION FOR PRIMARY MANAGEMENT

OFFICIALS AND KEY EMPLOYEES

If, after the issuance of a Gaming Ucense by the Shakopee Mdewakanton Sioux (Dakota)

Community Gaming Commission, the National Indian Gaming Commission receives reliable

information indicating that an employee is not eligible for employment under Section 304

of this Ordinance, the Commission shall notify the Shakopee Mdewakanton Sioux (Dakota)

Community Gaming Commission. Upon receipt of such notification under paragraph

307(b), the Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission shall:

(a) Suspend such License and shall notify the Ucensee in writing of the

suspension and the proposed revocation;

(b) The Shakopee Mdewakanton Sioux (Dakota) Community Gaming

Conimission shall notify the Licensee of a time and a place for a hearing on

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-I

the proposed revocation of her/his License;

(c) After a revocation hearing, the Shakopee Mdewakanton Sioux (Dakota)

Community Gaming Commission shall decide to revoke or to reinstate a

Gaming License. The Shakopee Mdewakanton Sioux (Dakota) Community

Gaming Commission shall notify the National Indian Gaming Commission of

its decision.

SECTION 310. NOTICE TO EXISTING KEY EMPLOYEES AND MANAGEMENT

OFFICIALS.

The Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission shall notify

existing Key Employees and Primary Management Officials in writing that they shall either:

(a) Complete a new application form that contains the Privacy Act notice at

Section 303 of this Ordinance; or

(b) Sign a statement that contains the Privacy Act notice (at Section 303 of this

Ordinance) and consent to the routine uses described in that notice.

The Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission shall also

notify existing Key Employees that they shall either:

(a) Complete a new application form that contains the notice regarding false

statements contained in Section 303 of this Ordinance; or

(b) Sign a statement that contains the notice regarding false statements (at

Section 303 of this Ordinance).

SECTION 311. RETENTION OF APPLICATIONS FOR EMPLOYEES OF A

GAMING OPERATION OTHER THAN KEY EMPLOYEES AND

PRIMARY MANAGEMENT OFFICIALS.

The Shakopee Mdewakanton Sioux (Dakota) Community Gaming Commission shall retain

applications for employment and reports (if any) of background investigations for inspection

by the Chairman of the National Indian Gaming Commission or her or his designee for at

least the term of employment but in no event less than three (3) years from the date of hire.

SECTION 312. APPLICATION FOR DISTRIBUTORS OF VIDEO GAMES OF

CHANCE AND GAMING EQUIPMENT.

The License application for any person, organization or entity wishing to sell, lease or

otherwise distribute Gaming equipment and/or video games of chance to the Community

shall contain the following information:

32
(a) The name(s) and mailing address(es) of the person or entity making the

application;

(b) The names and addresses of all Interested Parties (including those with direct

or indirect financial interests) and their interest and connection to the

applicant;

(c) The nature of the License applied for; the type of activity to be engaged in

under the License;

(d) Explicit and detailed disclosure of any criminal record, including any

delinquent taxes owed to the State of Minnesota, of the applicant, any person

involved in the organization, and any Interested Party whose name appears

on the application;

(e) Whether the Applicant has been properly Licensed by the State of Minnesota

pursuant to Minnesota Statute section 349.161; or proof of being the holder

of a current and valid distributor or manufacturer License from the State of

Minnesota, or the State of New Jersey, or the State of Nevada, or the State

of South Dakota;

(1) Whether the Applicant has ever had a distributor or manufacturer License

revoked or suspended by the state that issued the license and, if so, the

circumstances surrounding the states action;

(g) A statement of waiver allowing the Community and the State of Minnesota

to conduct a background investigation of the Applicant and any person whose

name is required to appear on the application;

(h) Whether the Applicant or any person whose name is required to appear on

the application maintains any involvement in the business of wholesale

distribution of alcoholic beverages; and

(i) Any additional information necessary to allow the Community Gaming

Commission or the State of Minnesota to investigate the applicant or any

person included on the application.

SECTION 313. MACHINE LICENSES.

Any person, organization, or entity applying for a Gaming Enterprise license pursuant to the

terms of this Ordinance must obtain from the Shakopee Mdewakanton Sioux (Dakota)

Community Gaming Commission an annual non-transferable license for each video game

of chance to be placed in a Gaming Enterprise operating under the provisions of this

Ordinance.

33
An application for a License for a video game of chance shall contain the following

information:

(a) The name and address of the Applicant with proof of a current and valid

distributor or manufacturer License issued by a state and the Community;

(b) Identification numbers or codes for each video game of chance placed in a

Community Gaming Enterprise, including the manufacturer, the serial number

and the model number;

(c) Proof of approval and certification of the machine by an approved gaming test

laboratoiy or proof that the video game of chance conforms precisely to the

exact specifications of the video game of chance prototype tested and

approved by the Gaming Test Laboratory;

(d) All other information as required by the Tribal-State Compact on Video

Games of Chance;

(e) Upon issuance, the Community Gaming Commission shall have attached to

each video game of chance licensed under the provisions of this Ordinance,

an unremovable identification plate on the exterior cabinet which contains the

information as required by the Tribal-State Compact on Video Games of

Chance.

SECTION 314. CLASSES OF LICENSES.

Upon proper application and approval, the following classes of licenses may be issued at the

discretion of the Community Gaming Commission (a) -

(e) herein.

(a) Class A License for a Gaming Enterprise in which a Gaming operator wishes

to conduct Traditional Bingo and other games of chance, including, but not

limited to, Video games of chance, Blackjack, or other Gaming subject to

other Compacts at a Community Gaming Enterprise; the License shall be site

specific, valid for a period of one year and shall have an application fee of

$25,000.00;

(b) Class B License to any Management Official or Key Employee of either a

Gaming operator or the Community; the License shall be valid for a period

of one year and shall have an application fee of $250.00;

(c) Class B-i License to any other employee, not licensed as a Management

Official or Key Employee, of a Gaming operator or the Community, employed

in a Gaming Enterprise licensed under the provisions of this Ordinance; the

License shall be valid for a period of one year and shall have

34
1

an application fee of ($75.00);

(d) Class C License to any Distributor or Manufacturer of Gaming equipment

and/or Video games of chance to be used in a Community Gaming

Enterprise; the License shall be valid for a period of one year and shall have

an application fee of $5000.00;

(e) Class D license for each Video Game of Chance to be used in a Community

Gaming Enterprise; the License shall be valid for a period of one year and

shall have the fee of $25.00.

(f) The Gaming Commission may revise the fees for each class of license

subsequent to an annual review and public hearing. Fees shall not be

reviewed more frequently than on an annual basis. The determination of the

Gaming Commission shall be final.

In all cases where an individual is required to be Licensed pursuant to the provisions of this

Ordinance, the License fee for that individual shall be paid by employer.

SECTION 315 REIMBURSEMENT FOR COSTS OF INVESTIGATION.

Any Applicant for a License under this Ordinance shall pay the Commission a reasonable

License fee at the time of application. If additional extraordinary investigation is necessary

to determine whether the Applicant is properly qualified for a License, the Commission may

require an additional fee, not to exceed the cost of the original fee.

SECTION 316. FRAUD ON APPLICATION.

It shall be unlawful for any Applicant to lie or willfully deceive in the submission of a

License application. The penalty for fraud on application is revocation of the License

following a hearing pursuant to Sections 209 and 211. The penalty also includes relevant

sanctions pursuant to Section 214 and 215 of this Ordinance.

SECTION 317. EXEMPTIONS.

The following activities are not public Gaming operations under the terms of this Ordinance

and, therefore, do not require a License under this title:

(a) Gaming in which no cash or valuable prizes are won, other than points for

cumulative competitive ratings or places for immediate competitive rankings,

is not subject to the provisions of this Ordinance. However, gaming for gain

which is conducted by a non-profit organization is subject to the requirements

of this Ordinance if cash or valuable prizes are awarded. Valuable prizes

means an object or service worth One Hundred Dollars ($100.00) or more in

35
fair market value.

(b) Traditional Indian Gaming activity, in the nature of hand games, are not

subject to the provisions of this Ordinance. The Community Gaming

Commission is hereby authorized to determine on a case-by-case basis, upon

request, whether a particular traditional gaming activity qualifies for the

exemption.

SECTION 318. LICENSE RENEWAL

Every Licensee intending to continue engaging in public Gaming activities within the

Shakopee Mdewakanton Sioux (Dakota) Community Reservation during the next calendar

year shall apply to the Community Gaming Commission for renewal of the license at least

sixty (60) days prior to the end of the previous License period.

SECTION 319. LICENSE DISPLAY.

Every Licensed Gaming Operator shall display in a prominent place a current and valid

Shakopee Mdewakanton Sioux (Dakota) Community License for that location.

SECTION 320. REQUIREMENTS TO MAINTAIN LICENSE.

The following requirements must be met to maintain a valid Gaming License granted

pursuant to this Ordinance:

(a) When a Licensee changes a location of public Gaming activities within the

Shakopee Mdewakanton Sioux (Dakota) Community Reservation, the Gaming

Commission shall, after notification by the Licensee of such change, issue a

corrected License for the balance of the current period reflecting the new

address upon reasonable proof of change of address and without imposition

of an additional License fee.

(b) It shall be unlawful for any Licensee to fail to notify the Gaming Commission

of any new prospective Key Employee, new ancillary contractor, or new

operator. The Community Gaining Commission shall investigate and provide

approval or disapproval of the new Key Employee, contractor, or operator

within thirty (30) days. Any information received by the Gaming Commission

shall be confidential, and shall be disclosed only in accordance with the

provisions of this Ordinance, and the Privacy Act of 1974 and 25 U.S.C. 2701

et seq.

(c) It shall be unlawful for any Licensee to begin the employment of a new Key

Employee, begin the performance of any new contract, or continue to conduct

36
Gaming under the control of any new operator without the approval of the

Community Gaming Commission.

(d) It shall be unlawful for any person to possess a firearm or dangerous weapon

on a premises where licensed gaming is allowed, with the exception of

firearms possessed by duly authorized peace officers.

(e) It shall be unlawful for a Licensee to engage in pawnbroking or to take goods

or materials in hock or to lend money or engage in similar activity with

persons for the purposes of enabling that person to gamble.

(f) A Licensee is required to, during normal business hours, maintain his or her

premises open for inspection by the Shakopee Mdewakanton Sioux (Dakota)

Community Gaming Commission or its agents, or any other authorized

governmental agency, and to keep its books and financial records open for

similar inspection.

(g) Licensed Gaming Operators and Tribal Gaming Operators must produce, if

possible, at a players request, losing tickets, copies of canceled checks or

other evidence of loss acceptable to the Internal Revenue Service if requested

by the player or contestant at the time the player or contestant buys a ticket

or chance or otherwise enters the game.

(h) Each licensed Gaming Enterprise shall submit or make available to the

Gaming Commission each month, and the Gaming Commission shall make

available to the Business Council, a financial report for the previous months

operations. Members of the General Council who wish to examine the

reports may do so during normal business hours at the offices of the Business

Council or the Gaming Commission. Such reports shall be signed, under

oath, by a certified public accountant, selected and retained by the

Comniission. The report shall contain all information determined by the

Commission and the certified public accountant as necessary to determine and

ensure compliance by the Gaming Enterprise with the provisions of this

Ordinance or any other applicable law. The contents of the report shall

include, but not be limited to the following:

(1) Daily and weekly attendance at bingo;

(2) Gross receipts for each day and week for each Gaming Enterprise;

(3) Names of each employee and the salary or other compensation paid

to each;

(4) The names and addresses of each vendor or contractor receiving

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payments in excess of $100.00;

(5) All expenses specifying all payments to vendors and contractors;

(6) As to each person who wins $1,200 (one thousand two-hundred dollars)

or more, the names, addresses, and social security numbers of each

prize winner and the amount of each winners prize;

(7) All bank deposits made from proceeds of gaming enterprises, including

any interest received on such deposits;

(8) All bank withdrawals, and the purpose of each; and

(9) All expenditures, including the amount, person or organization paid,

date, and purpose of such expenditures.

(i) The licensed premises shall be open to inspection by the Gaming Commission

or its agents at all times during the regular business hours.

(j) There shall in all cases be a first hiring preference for Community members,

and a second hiring preference for Native Americans.

(k) There shall be no discrimination in operations conducted under the Gaming

License by reason of race, color, creed, or gender preference.

SECTION 321. FEES.

Each application for an initial or renewal License shall be accompanied by payment of the

License fee pursuant to, Section 314 herein. The Gaming Commissions imposition of the

License fee properly owed under this Ordinance shall be final. This fee is imposed for the

revocable privilege of being licensed to engage in public Gaming activities within the

jurisdiction of the Community.

SECTION 322. PAYMENT OF LICENSE FEES.

All License fees collected under authority of the Gaming Ordinance shall be paid to the

Secretary/Treasurer of the Community and the Secretary/Treasurer shall place them in a

separate account to be applied to expenses incurred by the Gaming Commission from the

enforcement of this Ordinance.

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. F

SECTION 323. NON-TRANSFERABILITY.

The License issued pursuant to the provisions of this Ordinance is valid only for the

person(s) or organization(s) at the place of business shown on the face thereof. It is not

assignable or otherwise transferable to any other person or organization or for any other

location without the written approval of the Community Gaming Commission.

SECFION 324. LICENSE AS A REVOCABLE PRIVILEGE.

The public Gaming Operations License is a revocable privilege, and no holder thereof shall

be deemed to have a part in any vested rights therein or thereunder. The burden of proving

qualifications to hold any License rests at all times on the Licensee. The Gaming

Commission is charged by law with the duty of continually observing the conduct of all

Licensees to the end that Licenses shall not be held by unqualified or disqualified persons

or unsuitable person or persons whose operations are conducted in an unsuitable manner.

SECTION 325 ANNUAL LICENSE REVIEW.

The Commission shall undertake a review of all Licenses, whether that License be of a

facility, place, operation, person, Primaiy Management Official, or Key Employee, which

review shall be comparable to that required for initial employment, and which shall take

place annually commencing with the anniversary date of employment. This review shall be

undertaken in a manner which ensures compliance with the provisions of the Tribal-State

Compacts on Gaming, and shall be subject to the same requirements, restrictions, and

limitations governing use as is the initial license application and background investigation

conducted in conjunction with the initial licensure.

SECTION 326. COMMISSION MAY WAIVE CERTAIN REQUIREMENTS.

The Commission shall have the authority to waive the requirement that Applicants for

licensing under the provisions of this Ordinance have no felony convictions. The

Commission may waive the requirements where the Commission makes a determination that

the Applicant has fulfilled the requirements of the sentence imposed by the Court which

exercised jurisdiction over the case, and where the felony is not gaming related, the

Applicant does not pose a threat to the integrity of gaming, the welfare or safety of the

Community or its guests, and where a period of time has elapsed with no further violations

of the law, which period would lead to the reasonable inference that the person intends to

abide by the law and be a responsible member of society.

The Commission shall not be permitted to waive the no felony requirement in those cases

where the individual applicant was found guilty of a felony which was committed against an

Indian Tribe, a Tribal government, or a Tribal entity.

The Commission may consider as a basis for License denial only those misdemeanors

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relating to theft, and may not consider as a basis for License denial those misdemeanors

relating to writing checks drawn on an account which contained insufficient funds, unless the

frequency and amount of such activity indicates to the Commission that the individual

engaging in the activity has a flagrant disregard for financial accountability which might

render them unsuited for Licensure. The Commission shall in no case consider

misdemeanors relating to minor traffic violations as a basis for License denial.

TITLE IV. RULES OF GENERAL APPUCABILITY

SECTION 400. RULES OF GAMING OPERATION.

Each Licensee operating a Gaming Enterprise under a License issued pursuant the

provisions of this Ordinance shall prominently display in writing all rules pertaining to

Gaming activity, including but not limited to Traditional Bingo, other games of chance,

Video Games of Chance, and Blackjack, near the specific location where such Gaming

activity is conducted; or shall make available a written list of all such rules to any person

making a request for such.

Each Gaming Operator Licensed under the provisions of this Ordinance shall utilize

Gaming rules that are in compliance with the laws of the Community, the State of

Minnesota, and the United States of America, any Compact and specifically the Indian

Gaming Regulatory Act of 1988 and any applicable regulations promulgated by the National

Indian Gaming Commission.

SECTION 401. VIDEO GAMES OF CHANCE.

The following requirements shall apply to management and conduct of all Video Games of

Chance within any Gaming Enterprise licensed pursuant to the provisions of this Ordinance.

(a) No gaming enterprise may own, lease, or operate Video Games of Chance

that have been manufactured by a manufacturer who has not received a

License from the Community Gaming Commission pursuant to the provisions

of Title ifi of this Ordinance. The Community Gaming Commission shall

issue Licenses to manufacturers of Video Games of Chance holding a valid

License from the State of Minnesota, or the State of New Jersey, or the State

of Nevada, or the State of South Dakota.

(b) No gaming enterprise may own, lease, or operate Video Games of Chance

that have been distributed by a distributor that has not received a License

from the Gaming Commission pursuant to the provisions in Title ifi of this

Ordinance. The Gaming Commission shall issue Licenses to distributors of

Video Games of Chance holding a valid License from the State of Minnesota,

or the State of New Jersey, or the State of Nevada, or the State of South

Dakota.

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(c) In the event that the State of Minnesota, or the State of New Jersey, or the

State of Nevada, or the State of South Dakota, suspends, revokes, or refuses

to renew a License of a manufacturer or distributor of Video Games of

Chance similarly licensed by the Gaming Commission, such action may be

grounds fOr similar action by the Gaming Commission, which shall suspend,

revoke, or refuse to renew the License issued by the Gaming Commission to

such manufacturer or distributor.

(d) No Video Game of Chance may be purchased, leased or otherwise acquired

by a Gaming Enterprise unless:

(1) The Video Game of Chance is purchased, leased, or acquired from a

manufacturer or distributor licensed to sell, lease, or distribute Video

Games of Chance by the Community Gaming Commission pursuant to

the provisions of this Ordinance; and

(2) The Video Game of Chance, or a prototype thereof, has been tested,

approved or certified by a Gaming Test Laboratory as meeting all

requirements and standards of the Tribal-State Compact on Video

Games of Chance or other Compacts and applicable Federal laws or

regulations.

(e) Any Gaming activity involving Video Games of Chance shall be conducted in

strict compliance with the Tribal/State Compact on Video Games of Chance.

SECTION 402. RESTRICTIONS FOR GAMING ENTERPRISES.

Each Licensee operating a Gaming Enterprise under a License issued pursuant to the

provisions of this Ordinance must at all times observe the following restrictions on Gaming

activities:

(a) Except as herein provided, no person shall be extended credit for Gaming by

any Gaming Enterprise. This restriction shall not apply to credits won by

players who activate play on video games of chance after inserting coins or

currency into the game, and shall not restrict the right of a Gaming Enterprise

to offer check cashing or to install or accept bank card or credit card

transactions in the same manner as would be normally permitted at any retail

business within the State of Minnesota.

(b) No person below the age of eighteen (18) years on the date of Gaming shall

knowingly be permitted to participate in the Gaming in any Gaming

Enterprise licensed under the provisions of this Ordinance. If any person

below the age of eighteen (18) years plays and otherwise qualifies to win any

prize, the prize shall not be paid, and in all cases,upon demand, the estimated

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amount wagered during the course of any game played by such person shall

be returned to the player.

(c) No Gaming Enterprise shall allow to be sold or otherwise made available any

beverage containing alcohol including, but not limited to, beer or liquor at the

Gaming Enterprise location.

(d) No firearms or air guns which are capable of discharging dangerous projectiles

or gases including, but not limited to, bbs or C02 guns, rifles, shotguns,

pistols, or revolvers, shall be allowed on the premises except as permitted for

security by an employed security force or other city, state, or federal law

enforcement officers in the course of their official duties.

TITLE V. INDIAN GAMING REGULATORY ACT

SECTION 500. POLICY.

It shall be the policy of the Community to fully comply with all applicable U.S. federal law,

to include the provisions of the Indian Gaming Regulatory Act (25 U.S.C. section 2701 et

seq.), and to comply with all applicable State law as defined in the Tribal-State Compact on

Video Games of Chance, the Tribal-State Compact on Blackjack, and other Compacts, if

any, in the conduct of all gaming activity within the jurisdiction of the Community.

SECTION 501. PROPRIETARY INTEREST.

The Shakopee Mdewakanton Sioux (Dakota) Community shall have the sole proprietaiy

interest and responsibility for the conduct of any gaming activity, whether Class II or Class

ifi, as those terms are defined by the Indian Gaming Regulatory Act of 1988, 25 U.S.C.

2703(7),(8), within the jurisdiction of the Community.

SECTION 502. NET REVENUES.

Net revenues derived from Gaming activity shall be utilized for the following purposes:

(a) To fund Community government operations or programs;

(b) To provide for the general welfare of the Community and its members;

(c) To promote Community economic development;

(d) To donate to charitable organizations; or

(e) To help fund operations of local government agencies.

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a ~ .1

SECTION 503. PER CAPITA PAYMENTS.

Net revenues from any Community licensed Gaming activity may be used to make per capita

payments to Community members pursuant to the requirements of Tribal law, the Indian

Gaming Regulatory Act, and any other applicable law.

SECTION 504. CONTRACTS.

All contracts for supplies, services, or concessions for a contract amount in excess of Twentyfive Thousand Dollars ($25,000.00) annually (except for contracts for professional legal or

accounting services) relating to Class II and Class ifi gaming (as defined by the Indian

Gaming Regulatory Act, 25 U.S.C. section 2703) shall be subject to the outside independent

audits provided for in Title II, Section 206(i) of this Ordinance.

SECTION 505. INDIVIDUALLY OWNED GAMING.

No Licenses will be issued to allow the operation of individually owned Gaming

Establishments.

SECIION 506. TRIBAL SELF-REGULATION.

It is the intent of the Community to request a hearing before the National Indian Gaming

Commission for the issuance of a certificate of self-regulation. In anticipation of being self

regulating, the Community ensures that it will:

(a) conduct its Gaming activity in a manner which:

(1) Has resulted, and will continue to result, in an effective and honest

accounting of all revenues;

(2) Has resulted, and will continue to result in, a reputation for safe, fair,

and honest operation of the activity; and

(3) Has been, and will continue to be, generally free of evidence of

criminal or dishonest activity;

(b) Adopt and implement adequate systems for:

(1) Accounting for all revenues from licensed Gaming activity;

(2) Investigation, licensing, and monitoring of all employees of the gaming

activity; and

(3) Investigation, enforcement and prosecution of violations of this

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Ordinance and regulations; and

(c) Conduct all Gaming operations on a fiscally and economically sound basis.

SECTION 507. MANAGEMENT AGREEMENTS.

All management agreements entered into by the Community, if any, shall comply with the

applicable provisions of the Indian Gaming Regulatory Act, 25 U.S.C. §2711.

SECTION 508. INTERNAL REVENUE CODE.

All applicable Internal Revenue Code provisions concerning reporting and withholding of

taxes with respect to the winnings from gaming shall be adhered to.

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