STIPULATED NOTICE OF VIOLATION 

and 

PRE-OPENING AGREEMENT 

This Agreement is entered into by and between the Omaha Trite of 

Nebraska ("Tribe"), through its dulv authorized representatives, and the 

Chairman of the National Indian ~k-tin~ Commission ("NIGC" or 

"Commission"). By this Pre-Opening Agreement, the parties stipulate to the 

violations described below; settle the sSipuIated Nofice of Violation (NOV); and 

settle an outstanding civil fine. This Pre-Opening Agreement specifies vasi nus 

compliance measures the Tribe will take as a condition to resuming gaming 

operations. 

I. Notice of Violation 

1. The Chairman of the NIGC hereby gives notice that the Omaha Tribe of 

Nebraska (hereafter referred to as "the Tribe"), a federaI1y recognized 

Indian hibe with tribal headquarters in Macy, Nebraska, has violated 

NSGC regulations, 25 C.F.R. 5 501 ef seq. 

2. The circumstances of the nnn-submission of audit violations are as 

follows: 

a. 1GRA requires that tribes submit annual audits of each gaming 

operation. 25 U.S.C. 5 2710(b){2)(C). 

b. NIGC regulations require that a tribe cause to be conducted an annual 

independent audit of the financial statements of each gaming 

operation on Indian Iands and submit a copy of the audit report(s) tn 

the NTGC within 120 days after the end of each fiscal year. 25 C.F.R. 55- 

571.12571.23. 

c. In accordance with statements issued by the American Institute of 

Certified Public Accountants, the audit repost shall include both the 

SAS 112, Cornrnunicnting I~zterrznl Control Rehfed M~tters 1&11tiped 172 An 

A itriif; and SAS 114, TI~P Audifor's Cornnzuniixfion Wi tll Tho* CItnrged 

With Gmlernnnce. NICC Bulletin 09-01. The reports must also include a 

management IetterCs) setting forth the results of the annual audit(sjl.25 

C.F.R. § 571.13. 

d. The Tribe Iicensed and operated two gaming operations, Casino 

Omaha and Lucky 77, which were open and operating during all or 
part of thc tribal gaming operations' fiscal vear from October I, 2007' to 

Septcrnbcr 30,2008. 

e. The audit reports for Casino Omaha and Lucky 77 gaming operations 

were each due to the NlGC on January 28,2009,120 davs after the 

gaming operations' fiscal years ended on September 30,2008. 25 

C.F.R. 9 571.13. 

f. NIGC received the Lucky 77 audit on January 30,2009, but did not 

receive the audit for Casino Omaha until July 29,2009. 

g. By submitting a late audit for Casino Omaha, the Tribe violated NlGC 

reguIations. 

3. The circumstances of the late fee payments and quarterly statement 

violation are RS ~~I~ows: 

a. The Tribe licensed and operated two gaming operations, Casino 

Omaha and Lucky 77, which were open and operating during a11 or 

part of calendar years 2008 and 2009. 

b. The quartedy statements are due March 31, June 30, September 30, and 

December 31 of each caIendar year the gaming operation is subject to 

the jurisdiction of the NIGC. 25 C.F.R 5 514.1 (c)(2). The quarterly 

statements shall be transmitted to the Commission to arrive no later 

than the JUE dates. 25 C.F.R. 5 514.1(~)(4). 

c. Fee payments must be sent to the NIGC with the quarterly statements. 

25 C.F~R. B 514.1(~)(5). 

d. The Tribe submiwed the fee payment due on March 31,2009, for 

Casino Omaha on April 3,2009, and faiIed to submit thc related 

required quarterly statement due on March 31,2009. Further, the Tribe 

did not submit the quarterly statement for Lucky 77 until April 23, 

2009. 

e. By submitting a late fee payment for Casino Omaha, the Tribe vioIated 

NIGC regulations. 

f. The Tribe also violated NIGC regulations by submitting the related 

quarterly statements for Lucky 77 in an untimely manner and fadkg to 

submit the statement for Casino Omaha entirely. 
4. The Chairman has authority to levy and coIlect appropriate civil fines, not 

to exceed ,925,000 per violation, against the tribal operator of an Indian 

game or management. contractor engaged in gaming for anv violation of 

any provision of the Indian Gaming Regulatory Act (IGRA) and NIGC 

regulations. 25 U.S.C. 5 2713(a$(1); 25 C.F.R. S 575.4. "If noncompliance 

continues for more than one day, the Chairman may treat each dailv act or 

omission as a separate violation." 25 C.F.R. 5 575.4(a)(2). 

11. Stipulations and Agreement For SettIement 

I. This Agreement is entered into by and between the Tribe bv duly 

authorized officers or agents, and the Chairman of the NIGC pursuant to 

25 C.F.R. 573.6(b) and shall be effective upon execution by the parties. 

2. The Tribe admits the facts set out in Section I, paragraphs 2 and 3 of this 

Agreement. Further, the Tribe agrees that NlGC has jurisdiction over this 

action and agrees to complv with the corrective measures set forth in 

sections I11 and IV of this Agreement. 

3. The Tribe is aware nf its right to: 

a. Appeal the notice of violation to the fuIl Commission under 25 C.F.R. 

part 577; 

b. Obtain a hearing to contest the matter under 25 C.F.R. part 577; and 

c. Appeal any final determination by the full Commission to a federa I 

district court under 25 U.S.C. 5 2714. 

4. The NIGC and the Tribe stipuIate that this Notice of Violation shaIl be 

deemed a final order of the Commission and a final agency action 

pursuant to 25 C.F.R- 9 577.9(d). 

5. The NIGC acknowledges that prior to the exemtion of this Stipulated 

Notice of Violation, the Tribe took affirmative steps to address the 

circumstances giving rise to this matter, including voIuntarily closing the 

Casino Omaha in an effort to regain regulatory compliance through 

reorganization, kaining, and hiring new staff. While such action 

represents a significant step toward compIiance, additionaI corrective 

actions are required by the Tribe. 

6. The cirmrn~tances of the civil fine due under Settlement Agreement 08-24 

are as follows: 
a. On Dcccrnbcr 15,2008, the NIGC Chairman and the Chairman of the 

Omaha Tribe cntered into SettIernent Agreement (SA-08-24) to settle an 

NOV for a late audit (NOV-08-24). 

b, Paragraph 12 of SA-08-24 states that twenty thousand dollars (520,000) 

of the civil fine would be suspended if the Tribe submitted quarterly 

fee statements and payments for its gaming operations by the 

regulatory deadlines of December 31,2008, and March 31,2009. 

Further, the $20,000 would become payable within 30 days of missing 

either deadline. 

c. The Tribe met the December 31,2008 deadline, but did not submit 

quarterly fee statements and payments by March 31,2009. It 

submitted the fee payment for Casino Omaha on April 3,2009, and 

failed to submit the required quarterly statement. Further, the Tribe 

did not submit a quarterly statement for its hcky 77 gaming operation 

until April 23, 2009. 

d. Because the Tribe failed To meet the conditions for its civil fine 

suspension under SA-08-24, a fwenty thousand dolIar ($20,000) civil 

fine is now due. 

111. Obligations of the Tribe 

As a condition of settTement of thc stipulated notice of violation and 

forgiveness of the $20,000 civil he due under SA 08-24, the Tribe agrees 

that it will not re-open the gaming facility formerly known as Casino 

Omaha ("Iowa FaciIity" or "Iowa Gaming Facility") untiI the foIIowing 

conditions have been met: 

a. At least 60 days prior to re-opening the Iowa Gaming Facility, the 

Tribe, through its tribal gaming commission, must submit to the NIGC 

its approved tribaI internal control standards rTICS") that satisfv 25 

C.F.R. 5 542.3(~)(1), (2) and (3) and 25 C.F.R. 5 543.3(c)(1) and (T), as 

applicable. 

b. Additionally, at least 60 days prior to re-opening the Iowa Gaming 

Facility, management of the Iowa Facility shall also submit its written 

system of internal controls, required by 25 C.F.R. 3 542.3(d) and 25 

C.F.R. 9 543.3(6). This internal conk01 system should, at a minimum, 

include: 1) an organizationa1 chart depicting segregation of functions 

and responsibilities; 2) a detaiIed narrative description of the 
administrative and accounting procedures designed to satisfy thc 

requirments of the tribal internal control standards; and 3) a written 

statement siped bv the Iowa Gaming FaciIity's chief financial officer, 

general manager, or comparable position attesting that the 

organization's internal controIs satisfy the requirements of the tribal 

internal control standards adopted by the tribal gaming regulatory 

authoritv. The parties acknowledge that the requirements specified in 

this paragraph (b) are minimum requirements for purposes of this 

Ageemen t odv. 

c. Within 30 days of receipt of the TICS and internal control svstem 

specified in paragraphs (a) and (b) above, the NIGC Audit Division 

will review the submission and provide a wrimn response to the Tribe 

and Iowa Gaming Facility management. The response wilI either 

approve the submission or notc the sections of the submission that do 

not comply with NIGC regulations. If the Audit Division notes 

compIiance exceptions that pose an unacceptable risk to the Iowa 

Gaming FaciIityrs operational inte@ty, the Tribe must remedy (or 

cause to be remedied) the exception(sj prior to opening. The Tribe 

agrees that it will not re-open the Iowa Gaming FaciIity until it has 

received written confirmation from the NIGC that the exception(s) 

were remedied. Less sipificant exceptions shall require the Tribe to 

demonstrate correction within 60 days sf receipt of the Audit 

Division's review. tf the deficienci~s remain after the 60day correction 

period, the NIGC Chairman mav reinstate all or any portion of the 

$20,000 fine due under SA-08-24; assess additional civil fines or 

penalties for the stipulated vinIation(s); and/ or direct the Tribe to close 

the affected gaming facility or facilities with a specified re-opening 

date. The Tribe agrees that these remedies do not restrict the NIGC 

Chairman from issuing new notices of violations and other 

enforcement actions for new violations of IGRA, NIGC regulations, 

and/ or the Tribe's gaming ordinance. 

d. The Tribe agrees that the minimum banks011 formula, required by 25 

C.F.R. 5 542.14(d)(3), must be approved in writing by the NIGC 

Chairman or his designee prior to re-opening. The Tribe agrees that it 

will maintain this bankrolI formula for the Iowa Gaming FaciIity for 

the duration of the probationary period set forth in this Agreement, 

unless it receives written approval from the NIGC Chairman or his 

designee of a modified formuIa. 

e. During the probation period, if at any time the Tribe does not have 

approved TICS that are at least as stringent as the MECS in 25 C.F.R. 59 
542 and 33 ("NTGC MIW), the Trilw acgrees that the NIGC MICS will 

govern the Iowa Gaming Facility until iit adopts MJCS that meet or 

exceed NIGC standards. 

f. I'rior to re-opening the Iowa Gaming Facility. the Tribe will (1) prepare 

an outline of its intended uses of net gamins revenue that complies 

with IGRA, as discussed in NIGC BuIIetin 01-05; (2) approve the 

outline by duly adopted resolution of the Omaha Tribal Council 

{"Council"); and (3) provide the NEGC Chairman a copy of the 

resolution and outline. En the event that the NTGC Chairman or his 

designee determines that the outIine and Jor the Council resolution do 

not comply with IGRA, then the Tribe shall revise the outline and/or 

repea1 and enact a new resolution within thirty (30) days following the 

date the NIGC Chairman or his ctesipcc provides written notice of 

such noncompliance. Tihe Tribe agrees to comply with this tribal 

resolution for thc duration of the probatinnarv period set forth in this 

Agreement, with the exception that if the ride obtains approval of a 

Revenue AlIocation Plan, as defined in 25 U.S.C. 5 27'40@)(3), from the 

Secretary of the Department of the Interior, it wilI foIIow the Revenue 

Allmation Plan. 

g. Prior to re-opening the Iowa Gaming Facility, the Tribe and casino 

management will draft a cash mcmagement policy for the operation 

and submit it to NIGC for review and comm~nt. or purposes of this 

Ageement, a cash management policv is a plan for utilizing cash in a 

manner that is consistent with the needs and strategic goals of the 

opera tion , including funding ongoing operational expenses and 

saving for projected capitd expenditures of the Iowa Gaming Facility. 

h. Prior to re-opening the Iowa Gaming Facility, it must achieve 

satisfactory results in an Environmental Public Health and Safety 

("EPHS") review by NIGC field staff. If the review is not satisfa;tory, 

NIGC staff wwil detaiI in writing within seven davs of the visit the 

corrective actions required. NIGC wilI review the corrective actions 

and confirm in writing that- they are sufficient. The Tribe agrees that it 

wiIl not re-open until it receives NlGC written confirmation that the 

Tribe remedied the EPEE issues. 

i. Prior to re-opening the Iowa Gaming FaciIity, the Tribe wiI1 provide to 

the NIGC Chairman a copv of the executed ietter of engagement with a 

certified public accounting firm to conduct the audit of the Facility's 

financid statements and Agreed Upon Procedures Report for the year 

ending September 30,2009. 
2. As an additional condition of settlement of the stipulated notice of 

violation and forgiveness of the 520,000 civil fine due under SA 08-24, the > I ri be agrees to the following provisions for a five year probationarv 

period: 

a. The NKGC will review the Tribe's operation and regulation of its 

gaming facilities at periodic intervals for a probationary period of five 

years for the purpose of determining that the Tribe, in the operation 

and regulation of its gaming operations, is in material compliance with 

IGRA; NIGC regdations, including 25 C.F.R. 55 542 and 543; the 

Tribe's gaming ordinances; and this Agreement. 

b. The five-year probationary period begins on the date the Iowa Gaming 

FaciI ity re-opens (the " Re-Opening"). 

c. The Tribe agrees to conduct and regulate gaming operations at each 

authorized gaming facilitv in material compIiance with the provisions 

of this Agreement, the IGRA - including the use of revenues 

requirements contained in 25 U.S.C. §2710@)(2)(R), NIGC 

replations - including 25 C.F.R. 55 542 and 543, the Tribe's gaming 

orrIinances and gaming repIations, and the TiCS (or the NIGC MICS 

if TICS have not been approved). 

d. In the event that management of the authorized Facilihr, the Tribal 

Gaming Commission, or the Tribe determines that gaming operations 

at the Faciliky are being conducted or regulated in material violation of 

any provisions of the IGRA, NIGC reguIations, the Tribd gaming 

ordinance or gaming regulations, the TICS, or this Agreement, the 

Tribe wiII promptIy notify the NIGC Region Office in St. Paul, 

Minnesota of the violation(s) and take immediate steps to correct the 

vioIafion(s). 

e. In the event the NIGC Chairman or his designee determines that any 

self-reported vioTation(s), described in paragraph 2(d) above, has not 

been timely corrected or determines that there are other vioIatiom, 

then the NIGC Chairman shall provide the Tribe a letter describing the 

violationls) and setting forth a reasonable time period to correct the 

viola tionls), which for purposes of this Agreementt the parties agree 

will be at least 30 days folIowing the date of the Chairman's Ietter, 

unless otherwise agreed or unIess the violation is a "substantial 

violation" as that term is used in 25 C.F.R. 5 573.6, in which case the 

NIGC Chairman or his designee may establish a shorter period. 
f. The Tribe agrees that the NIGC may conduct unannounced audits of 

the books and records of the Tribe's Class II and Class III 

faciI i ties and review and observe the faciIities. 

g Within nine months following the Re-Opening, the Tribe agrees that 

the NIGC will conduct a MICS compliance audit of both Class I1 and 

Class I11 zaming for the Iowa Gaming Facility. NIGC intends the audit 

primariIv as a training tool for the Tribe. Unless there is an immediate 

and material risk to the interest of the public, the NTGC Chairman 

agrees to aIlow the Tribe six months to correct any exceptions, and 

may, at its option, conduct folIow-up audits at any time during rrr 

subsequent to the cursection period. The Tribe further agrees that it 

wilI correct a11 exceptions found in the audit. If significant issues 

remain uncorrected, the NIGC may extend the time period for 

correction, order the gaming facility to close until a pre-determined 

date or order the gaming facility to close and follow the re-opening 

proceclurc described in section IV, paragraphs I-?; of this Agreement. 

The Tribe agrees to close the Iowa Gaming FaciIity if ordered to do so 

by the NIGC Chairman pursuant to the preceding sentence. 

h. The Tribe agrees that failure to folInw the minimum bankroll fnrmuIaestablished pursuant to 25 C.F.R. 5 !542.14(d)(3) and (1 )(d) of 

this section-poses an immediate and materia1 risk to the interest of the 

public and could resd t in a closure order by the NIGC Chairman 

without allowing a time period for correction. If the Chairman allows 

a correction period, it wiI1 be subject to paragraph (2)Cj) of this section. 

i. The NIGC wiII monitor the Tribe's allocation of net gaming revenues 

to ensure that such aIlocation complies with IGRA, the CounciI 

resolution referenced in (I)(f) of this section, and /or any revenue 

allocation plan adopted by the Tribe that is approved by the Secretary 

of the U.S. Department of the Interior. The Tribe will provide the 

NIGC with annual statements reflecting its alIocation sf all net gaming 

revenues. In addition, the Tribe shall provide NIGC access to all 

relevant records to enable the NIGC to monitor its aIEocation and /or 

distribution of net gaming revenues. In the event that the NIGC 

Chairman determines that the Tribe's alIocation of net gaming revenue 

is inconsistent with IGRA, the CounciI resoIution, and ,/or any 

approved revenue allocation plan, then the Tribe shall be given 3O 

days from the date NlGC notifies the Tribe to create a pIan to correct 

such violations. The Tribe will then be allowed up to one year or the 
tirnefrarne set forth in the plan to fully. implement the corrective 

actions. 

j. Following the review and a period to correct the vioIations referred to 

in paragraphs 2(d), (e), (h), and (ill th~ Tribe agrees that if the NIGC 

Chairman determines that the gaming facilitv is not then operated in 

compliance with IGRA, NIGC regulations, the Tribe's gaming 

ordinance, and/or this Agreement, the NIGC Chairman may reinstate 

the S2OI000 fine due under SA-08-24; assess additional civil fines or 

penaIties for the stipuIated vioIation(s); and /or direct the Tribe to dose 

the affected pming faciIity or facilities. The Tribe agrees that it will 

dose the affected facility c>~ facilities at issue pursuant to the preceding 

sentencc within PO calendar days of receiving written notice to do so 

horn the NPGC Chairman or his designee. Unless the Chairman or his 

designee specify a re-opening date for the facility and/or facilities in 

the Ietter describing the violations, described in paragraph 2(e), to reopen these facilities, the Tribe must follow the procedure described in 

section IV, paragraphs 1-3 of this Agreement. The Tribe agrees that 

these remedies do not restrict the NTGC Chairman from issuing new 

notices of violations and other enforcement actions for new violations 

of IGRA, NIGC regulations, and/or the Tribe's gaming ordinance. 

k. The Tribe shall safeguard the independence of its Tribal Gaming 

Commission by shielding it from improper influence of its Iegitimate 

exercise of authorihr or its ability to lawfully discharge its powers, 

duties, and responsibiIities in accordance with the Tribe's gaming 

ordinance and regulations, provided that nothing in this Agreement 

shall be construed to prevent the Tribe from removing any member of 

its gaming commission in accordance with the Tribe's gaming 

ordinance. 

I. In accordance with 25 C.F.R. 5 571.12, the Tribe agrees to submit the 

gaming operations' audited financial statements and Agreed Upon 

Procedures Report far the fiscal year ending September 30,2009 bv 

January 28,2010. 

rn. En accordance with 25 C. F. R. part 514, the Tribe shaIl submit 

statements and anv required fee payments by the regulatory due dates 

set forth in the NIGC regulations. 

n. The Tribe agrees that a11 Key Employees and Primary Management 

Officids will be Iicenscd as required by the NIGC replations and its 

gaming ordinance. 
u. The Tribe agrees tc~ provide internal conk01 standard training for dl 

ernpIovees who are directlv involve~l in the conduct of the $antes or 

the support thereof (i-r., sun~eitlance, cage, drop and count, dealers, 

internal audit, efc.). The Tribe wiII submit documentation of the 

trainino, sessions and attendees' names and titIes to the NIGC within 

60 days after opening. 

p. The Tribe further agrees to maintain the level of competency among its 

staff by providing internal controls training within six months of 

hiring new employees into gaming-related positions. The Tribe will 

send doamentatinn of the training and attendees to NTGC within 30 

days after each training session occurs. 

q. The five year probationary period wilI be tolTed for the duration of any 

closure of my of the Tribe's gaming facilities. 

IV. Redopenix 

1. The Tribe agrees that it will only re-open and recommence gaming at 

the Iowa Gaming Facility upon the NIGC Chairman's mitten 

authorization. 

-. 7 The NIGC Chairman's authorixatfon to re-open and recomence 

gaming at the Iowa Gaming Facility, referenced in paragraph 1 of this 

section, is exclusively limited tc? a Ietter issued by the NIGC Cham mrtan 

or an authorized designee (the "NIGC Letter") stating that the Tribe 

has fully complied with this A%greement or corrected any Y iolation 

described in Section III(2) of this Agreement during the probationary 

period. The Tribe may not presume agreement in the absence of the 

NIGC Letter. Tfie parties agree that the NlGC Chairman shall have 

sole disfretion to determine whether the Tribe has met the 

requirements of this Agreement or adequately remedied any violation 

described in Section III(2) of this Agreement during the probationary 

period. 

rl 

3. Ile NTGC Chairman agrees that he will issue the NIGC LefAer within 

30 days of the date that the Tribe provides evidence reasonably 

demonstrating that it has satisfied Section III of this Agreement. If the 

evidence provided by the Tribe does not demonstrate satisfactory 

compliance with Section 111, the NIGC Chairman or his designee will 

provide witten notice of the deficiencies. Once the Tribe has corrected 

the deficiencies, it mav submit a~iditional documentation to thc NTGC 
Chairman cn his designee showing that it has satisfied thh Agreement. 

The NIGC Chairman or Ms dcsipee will -then review the additional 

evidence. Once the Trik has ~1ernamtrak.d that it has satisfied Sectinn 

Ill, the Chairman will imue the I~qtm referenced in paragraph 2 of this 

section. 

V, Additional Covenants 

1. The parties agree that ~fker the dfeciive date, thig Agreement shall be R 

public document and may be published or disd~~~l by either party. 

2. A signature produced by facsimile shall b dwmtd to be an original 

signature and shaIL be effective and binding for purposes of this 

Agreement. 

3. This Apmmt mmtitutes the cntirc agrccmem bturm the NIGC 

&?~itnlan and the Tribe. Nu wasran tiea, rt'pre~entatim, tb~@mnb, or 

agreements &dl be binding up011 any party except as set forth he-rein, 

hy modification or waiw af any term of this Agreement, including he 

modification OI waiver of tgrm, must h in writing and signed by all the 

parties. 

for the Omaha Tribe of Nebraska 

By: Datc: &-I-D~