July 1 1,2006 

Principal Chief Michell Hicks 

Eastern Band of Cherokee Indians 

88 Council House Loop 

P.O. Box 455 

Cherokee, NC 287 19 

Re: Amended Gaming Ordinance; 

Ordinance No. 7 10 (2005) 

Dear Principal Chief Hicks: 

This letter is in response to the Eastern Band of Cherokee Indians' written request, 

received April 28,2006, that the National Indian Gaming Commission ("NIGC') review 

and approve the Tribe's amended Tribal Gaming Ordinance ("Ordinance7'). The 

Ordinance was adopted by the Tribal Council on September 20,2005, by Resolution No. 

710 (2005), and concerns Class 11 and 111 gaming. It is our understanding that the 

amended Ordinance replaces the current Tribal Ghing Ordinance, which was approved 

by the NIGC on October 24,1996. 

This letter constitutes approval, under the Indian Gaming Regulatory Act ("IGRX7), of 

the Eastern Band of Cherokee Indians' amended Tribal Gaming Ordinance. We note that 

the Ordinance is only approved for gaming on Indian lands, as defined in the IGRA, over 

which the Tribe has jurisdiction. 

We further note that, missing fkom the Ordinance, are certain provisions which are 

normally included in gaming ordinances and which, by their absence, might cause some 

ambiguities. The following provisions, excerpted fiom the Ordinance, do not include the 

underlined language, which is explicitly set forth in IGRA and the NIGC7s regulations: 

1. [Subsection 16-1 (ii) J Primary management oficials means: 

(1) The person(s) having management responsibility for a management 

contract, or over all or any part of any gaming operation; 

(2) Any person who has authority: 

(i) To hire and fire employees of a gaming operation; or 

(ii) To establish working policy for a gaming operation; 

NATIONAL HEADQUARTERS 1441 L St. NW, Suite 9100. Washington, DC 20005 Tel: 202.632.7003 Fax: 202.632.7066 www.~lGc.cov 

REGIONAL OFFICES Portland, OR; Sacramento, CA; Phoenix, AZ; St. Paul. MN; Tulsa, OK 
(3) The chief financial officer or other person who has financial 

management responsibility for any gaming operation; 

(4) Any person who is a controlling shareholder of a management 

contractor; or 

(5) Any equivalent position in a gaming operation that the Commission 

designates by its rules as a primary management official. 

2. [Sec. 16-1.071 Ownership of gaming. The Tribe shall have the sole 

proprietary interest in and responsibility for the conduct of any gaming 

operation authorized by this chapter. 

3. [Subsection 16-5.08(a)] 

The Commission shall review an applicant's prior activities, criminal 

record, reputation, habits and associations to make a finding concerning 

the eligibility of a key employee or primary management official for 

employment in a gaming operation. If the Commission determines that 

employment of the person poses a threat to the public interest or to the 

effective regulation of gaming, or creates or enhances dangers of 

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

conduct of gaming, then a mananement contractor or the gaming operation 

shall not employ that person. 

While we interpret the Ordinance as implicitly, rather than explicitly, including these 

important phrases, we do recommend that the Tribe, in the future, revise the Ordinance to 

remove any ambiguities. 

Finally, we thank the Tribe for its submission. We sincerely appreciate the cooperative 

exhibited throughout the ordinance review process. The NIGC 

ng to work with you and the Tribe on gaming issues. 

, please feel free to contact Staff Attorney Katherine Zebell at 

Chairman 

cc: David Nash, Tribal Attorney General 

George Skibine, Office of Indian Gaming 

Management, Dept. of Interior 
Cherokee Connmcil House 

Cherokee, Qnalla Boaamdmry (NC) 

Date: March 10,2005 

ORDINANCE NO. 710 (2005) 

[third substitute; TGCITCGE consensus] 

WHEREAS the Eastern Band of Cherokee Indians has established two gaming enterprises 

and one regulatory body in compliance with the Indian Gaming Regulatory Act of 

1988; 

WHEREAS the authority of the Boards of Advisors responsible for overseeing, developing 

and expanding the Tribe's gaming business needs to be clarified to maximize the 

earnings potential for the Tribe; 

WHEREAS independent regulation of the gaming operations, consistent with federal 

regulatory standards, by a Tribal Gaming Commission is an important component 

of a successful gaming operation; 

WHEREAS it has been over eight years since the Tribal gaming ordinances were 

thoroughly reviewed and updated, and the attached ordinance has been developed 

based on guidance available from the National Indian Gaming Commission and 

detailed discussions among the TGC, and the TCGEITBE Boards. 

NOW THEREFORE BE IT ORDAINED by the Tribal Council of the Eastern Band of 

Cherokee Indians assembled, at which a quorum is present, that Chapters 16, 16A, 

and 16B of the Cherokee Code are hereby amended as set forth below. 

BE IT FINALLY ORDAINED that this ordinance shall be effective upon ratification by 

the Principal Chief, subject to approval by the National Indian Gaming 

Commission. 

Submitted by the Principal Chief 
Floor Amendments to Ordinance No. 710 (2005) 

Agreed to by TGC, TCGE, and the Principal Chief and 

Approved by Tribal Council on September 20,2005 as Amended Below: 

Ciz apter 16: 

1. Subsection 16-l(n), beginning on page 2, line 4, is amended as follows: 

(n) Distributable net revenue means all &revenue distributed to the Tribe by a 

gaming operation, which shall be calculated as follows: gross revenue of the gaming 

operation less (1) prizes and operating expenses, (2) payments owed to a management 

contractor, (3) debt service payments (including without limitation principal, interest, and 

related fees, costs, and expenses), and (4) contributions to duly authorized 

capital/expansion reserve funds. Distributable net revenue shall include surplus 

regulatory funds distributed to the Tribe by the Commission. 

2. Subsection 16-l(z), beginning on page 4, line 24, is amended as follows: 

I (z) Management contract means any contract, agreement or other document-approved 

by the NIGC, including all collateral agreements, establishing a relationship between the 

Tribal government and any person, pursuant to which such person has managerial 

responsibilities in or for any gaming operation.>othii~,~ jn this char~ter shall be deemed to 

111odif~ or amel~d amanareinent contract appro\red prior the effecti1.e date of this 

ordinallce amendment. -11 bc :r 

3. Subsection 16-1.08(b), beginning on page 8, line 2, is amended as follows: 

(b) The Tribe has elected to make per capita payments, in the amount of 50% of 

I distributable net revenuej&i both Class 11 and Class I11 ~,aming actil ities, to enrolled 

tribal members, and shall authorize and issue such payments only in accordance with a 

revenue allocation plan submitted to and approved by the Secretary of the Interior under 

25 U.S.C. 9 2710(b)(3), as set forth in chapter 16C ofthe Cherokee Code. 

4. The second sentence of subsection 16-2.03(a), beginning on page 10, line 19, is amended 

as follows: 

I q. 

. . - Eac11 nonli11~~ kc 2 Ca -shall 

complete a license application and shall be subject to the same level of background 

investigation as required for a primary management official under this chapter. 

5. Subsection 16-2.04(a), beginning on page 11, line 5, is amended as follows: 

(a) While actively serving in any of the following capacities, no Principal Chief or 

Vice-Chief, member of the Tribal Council or a Board of Advisors, no judge or justice, 

Tribal ern17lovee. and no employee of the Commission or any gaming operation owned by 

the Tribe, may serve on the Commission; 

6. The second to last sentence of section 16-2.12, beginning on page 14, line 33, is amended 

as follows: 

In addition to the foregoing reports, the commission^^ shall meet won request a 

hasiswith the Principal Chief. 
7. Subsection 16-2.15(e), beginning an page 18, line 14, is amended as follows: 

(e) Regulations establishing licensing procedures for gaming vendors;+ifi~i+%ki 

~~~e~~~-fi~+~e~~~i'~-t!~ :~enc!(:~r..; that are not gaming vendors as defined 

in section 6- I %+&&Y -,,p rib>L L Vr 4r=wed b er; may be required to register with, provide -- .- 

basic information to, and pay a nominal registration fee to the Commission; and 

8. The last sentence of section 16-2.15, beginning on page 18, line 43, is amended as follows: 

Except as specifically delegated by the Tribal Council in this cl?a~ter under the 

procedures established ii~ this section, the Commission shall not have authority to 

promulgate or issue rules or regulations. 

9. Subsection 16-5.03(a)(8), beginning on page 31, line 7, is amended as follows: 

(8) For each felony. ~i.hether or ilot there is rt coni-iction. C.-*..-'--LthBw n,-- -- . . , bcw+z&m$he charge, the name and address of the court 

involved, and the date and disposition, if any; 

Chapter 16A: 

10. The last sentence of subsection 16A-3(b), beginning at page 3, line 25, is amended as 

follows: 

At least one member of the Board of Advisors shall be an experienced auditor or certified 

public accountant. or shall hale a Bachelor's Degrezi~d sign~ficant financial and 

manaoement - experience in I?rlor emplo\ 1111. 

11. Section 16A-14, beginning at page 18, line 16, is amended as follows: 

-- The Board members shall leceil e coml?ensation and heneiits at a le\ el detem~ined hl 

I ribal Co~lncil resolution. This compsn~ation sl~all be included in the IZoard's ani~ual 

budget. bard members ~hail be reimbur~d for actual expenses incurred on Board 

fic:1: 

business. 

TCGIZ 

including 

552 

necessary 

L A 

h" 

tralrei 

-@ 

expenses. , . 1 

\/c:;Gs::: TCGE i%d&e~& no .. l'b- - ,&+~E&%+H: TCGE Sd 

hwch CG:;~ be CG:- 2;: 7 . u , 

&f;e TCGE. 
Additional Floor Amendments Approved by Motion of Tribal Council to 

Ordinance No. 710 (2005) on September 20,2005 

1. Subsection 16-l(d), beginning on page 1, line 16, is amended as follows: 

(d) Capital/expansion reserve fund means a gaming related reserve fund, together 

with interest earned thereon, established by a gaming operation or the Commission either 

(1) required by an NIGC-approved management contract or (2) specifically authorized for 

I gaming related purposes by a Tribal Council cs~iin:~~:ce.- -. 

2. Subsection 16-2.01(c), beginning on page 9, line 11, is amended as follows: 

1 Commissioners may hold other positions of employment wit!: the T:iSe-and may engage 

in business; provided, however, that they shall not engage in any business regulated 

pursuant to the provisions of this chapter. 

3. The following new subsection is added to the end of Section 16-2.01, page 9, line 39: 

&The Commission shall select anlluall!;. from its n~ernbesship~ a Comniission Cl~ais. 

4. Subsection 16-2.13(d), beginning on page 15, line 30, is amended as follows: 

(d) The Commission shall have the authority to establish, fund, and maintain 

capitallexpansion reserve funds for (1) working capital in an amount recommended by 

the independent auditors, and (2) for such other purposes as are specifically authorized for 

I gaming regulatory purposes by a Tribal Council -ordinancebased on a detailed 

plan for use of the funds submitted by the Commission. 

5. Section 16-2.17, beginning on page 19, line 25, is amended as follows: 

The Commission is expected to work cooperatively with the Board of Advisors of a 

Tribal gaming operation, and shall meet with the Boards of Advisors on a regular basis to 

foster good business practices in compliance with applicable laws and regulations, 

resolve differences of opinion, and advance the interests of the Tribe. If a dispute arises 

I with a-the Board of Advisors regarding whether an issue is regulatory or operational, then 

the Commission and the Board shall make every good faith effort to resolve the dispute 

and then shall utilize the arbitration provisions of Section 16-2.15, if applicable and 

necessary. 

6. Subsection 16A-5(c)(3), beginning on page 7, line 5, is amended as follows: 

(3) Establish, fund, and maintain capitallexpansion reserve funds, as defined in 

Section 16-1 of the Cherokee Code, for working capital, continuity of operations, 

reinvestment in or future expansion of a gaming operation, or such other gaming related 

purposes as are consistent with an approved master plan, provided that such funds are 

either (1) required by an NIGC-approved Management Contract, or (2) specifically 

I authorized for gaming related purposes by a Tribal Council d-t-ordi~ia~~ce to 

accomplish the goals of an approved master plan or other detailed plan for use of the 

funds submitted by the Board of Advisors; 
CIt agter 16B: 

7. Subsection 16B-3, beginning on page 2, line 33, is amended as follows: 

(-iy&k:; ~f f!;~ hci+-&The Board of Advisors oi'ti:e Ti3I ij~;iil .. - -- - I:c -- i.ix .- -~;in;i;' . . -- 

indil-iducils n-I:o serve AF ,he Rozrd of .;ikdvjsol-s (lithe Trihai C:a::iiii) Ga:xi112 Fi~ti-rpi-ise 

--- Iyurcual?t to Section i 6i)t-3. 9ri47:ided t11at they sh~~Il have the :;~!l_l:ij.~'ij~to si:lcc: fi 

-- ainc:nrr them_cel\.es differel2t officers to lead ?he TBE. and the TEE si~ll I-~~ ::o~-er~xd ;is a 

separate Tribal sil;?ing entercrize. .'-"&e+-~- I , &. 

,&T- k5m. " f cf he ~s&a;~e-de~m-&- 

''.U~LI\,- The TB . n . . '.,,on d" r dLd. 

-n,77 + . - 0 - &&"c 5 th9 TriSzl Cc u +. 

Wk 

r. + tlt/iRef."""t'".f...- L u '.~f l?d:.is=rs . .llL A 7-x- of lAAdvim 7 .* . . * tz 

7. 

. . . . . . 3 9 j, T- thc P:.:nc~~ Triba! Cwcc:! 1,- a 4A 

%&el.iet- " a dL* ' r ro,-ki:: CCI . 7-1 A,:: re&&!: bcc&ti\.c 

&e&ft.e; 
8. Subsection 16B-5(c)(3), beginning on page 6, line 25, is amended as follows: 

(3) Establish, fund, and maintain capital/expansion reserve funds, as defined in 

Section 16-1 of the Cherokee Code, for working capital, continuity of operations, 

reinvestment in or future expansion of a gaming operation, or such other gaming related 

purposes as are consistent with an approved master plan, provided that such funds are 

either (1) required by an NIGC-approved management contract, or (2) specifically 

authorized for gaming related purposes by a Tribal Council ei-ordi~~ance to 

accomplish the goals of an approved master plan or other detailed plan for use of the 

funds submitted by the Board of Advisors; 

9. Section 16B-15, beginning on page 16, line 2, is amended as follows: 

- 

1 he Board mcnlbers shall receive compensation and benefits at a le\ el determined by 

Tribal Council resolution. This compensatiol~ shall be included in the Board's annual 

budget. Board n~ewbers shall be reil~lbursed for actual expenses incurred on Board 

33wdwdd-d 

business, 

TBE 

iilcludino 

fFd 

necessary 

b:. 

travel 

LIv\r\rn-i,n-emp 

expenses. 1 

5-c:~ TP 

e~t sf pecknt .bL -xpC- L, act:-e TEE E~a+ihysw& . j 

tl,,, TRC