CHAPTER 12-8
OPERATION OF GAMES
12-8-1 General Manager.
Each licensed gaming enterprise shall designate one (1) person who shall serve as the general manager to be responsible for managing and overseeing the day-to-day operations of the gaming enterprise. The designee shall obtain a Series B gaming license before commencing such work.
(Enacted by PBP TC No. 2020-363, December 9, 2020)
12-8-2 General Manager’s Monthly Report.
The general manager shall present a written monthly report to the Tribal Gaming Commission which details the number of patrons served, the amount of income generated, the numbers of employees working at the gaming facility, a detailed description of any patron complaints and other problems experienced at the gaming facility, a list of all bills which are thirty (30) days or more past due, and a written statement of any changes in key employees or primary management officials.
(Enacted by PBP TC No. 2020-363, December 9, 2020)
12-8-3 Form of Payment of Winnings.
Any patron’s winnings in an amount under five hundred dollars ($500.00) shall be paid in cash or cash equivalent on the date on which it is won. Any patron’s winnings in an amount over five hundred dollars ($500.00) or more shall be paid in cash or cash equivalent, or check, or both, in accordance with the patron’s request, and within two (2) hours of the patron’s request to cash out unless extenuating circumstances are present.
(Enacted by PBP TC No. 2020-363, December 9, 2020)
12-8-4 Advice of Patron Complaint Process.
The general manager shall propose, subject to the approval of the Tribal Gaming Commission, a patron complaint process. Each general manager shall post at least one (1) sign in each gaming room informing patrons that they may file complaints directly with the Tribal Gaming Commission and advising them of the Tribal Gaming Commission’s address and phone number.
(Enacted by PBP TC No. 2020-363, December 9, 2020)
12-8-5 Liability Insurance.
Each licensed gaming facility shall carry sufficient liability insurance to protect the public in the event of an accident. The Tribal Gaming Commission shall determine the amount of liability insurance required for each gaming facility.
(Enacted by PBP TC No. 2020-363, December 9, 2020)
12-8-6 Posting of Rules of Play.
Each general manager shall post the rules of play of each game in a conspicuous place in the gaming facility and shall make written copies available to the general public upon request.
(Enacted by PBP TC No. 2020-363, December 9, 2020)
12-8-7 Responsibility for Compliance With Applicable Law.
The general manager shall be personally responsible for seeing that gaming activity is managed in accordance with Nation and Federal law, and that such gaming activity complies with all IRS reporting requirements.
(Enacted by PBP TC No. 2020-363, December 9, 2020)
12-8-8 Audits.
(A) Annual Audit. An audit by an independent certified public accountant of the Tribal Gaming Commission’s choice shall be performed annually for each licensed gaming enterprise and on each contract for supplies, services or concessions in excess of twenty-five thousand dollars ($25,000) annually, except for contracts for professional legal or accounting services relating to any such gaming activity or operation. Any such audit shall be conducted in accordance with generally accepted auditing standards and shall be conducted at the expense of the subject gaming enterprise.
(B) Additional Audits. Additional audits, as may be deemed necessary by the Tribal Gaming Commission, shall be performed from time to time.
(C) Audits Furnished to the National Indian Gaming Commission. The annual audit of each licensed gaming enterprise and each audit for supplies, services, or concessions of each such operation shall be furnished to the National Indian Gaming Commission within one hundred twenty (120) days after the end of each fiscal year pursuant to the IGRA and regulations of the National Indian Gaming Commission thereunder.
(D) Audits Furnished to the State. The annual audit of each licensed Class III gaming enterprise and each audit for supplies, services, or concessions of each such operation may be made available to the State pursuant to the Tribal-State Gaming Compact.
(Enacted by PBP TC No. 2020-363, December 9, 2020)
12-8-9 Management Contracts – Generally.
(A) Any management contract entered into between the Nation and a management contractor shall be valid only upon approval by the National Indian Gaming Commission. Any person or entity desiring a management contract with the Nation shall agree to pay for any costs incurred for background investigations for each entity, key employee, primary management official, director, officer, and ten (10) percent or greater shareholder or partner of the proposed management contractor, and each person proposed to possess an ownership interest in such management contract.
(B) Each management contract shall be approved by the Tribal Council with the advice and comment of the Tribal Gaming Commission. Before the Tribal Council considers any management contract, each key employee, primary management official, director, officer, and ten (10) percent or greater shareholder or partner of the proposed management contractor, and each person proposed to possess an ownership interest in such management contract, shall apply for a Series B gaming license, and each person proposed to be a standard gaming employee shall apply for a Series C gaming license. The Tribal Gaming Commission shall complete the application review process and submit its written findings to the Tribal Council. Before giving final consideration to any such proposed management contract, the Tribal Council shall direct the Tribal Gaming Commission to take the following steps and provide the Tribal Council with all information obtained thereby:
(1) Obtain a complete financial statement of the applicant, and if the applicant is a corporation, a complete financial statement of each director, officer, ten (10) percent or greater shareholder, or partner;
(2) Contact each of the tribal governments and licensing agencies referred to in any application referred to in this subsection (B) to determine the performance history of the proposed management contractor or any such applicant for a Series B gaming license;
(3) Arrange to have the proposed management contractor investigated to learn his personal attributes and to determine whether the management contractor or any of the people referred to in this subsection (B) have prior criminal records or any pending criminal charges;
(4) Obtain an independent verification of each financial statement obtained pursuant to subsection (B)(1) of this section; and
(5) Undertake any additional steps needed to determine the character and reputation of each such proposed management contractor.
(C) If the Tribal Council, after reviewing the above described information, desires to enter into a management contract with the proposed management contractor, such management contract shall be placed in writing and submitted to the Nation’s legal counsel for review before the Tribal Council approves it.
(D) After the Tribal Council is satisfied with the information it receives and enters into a management contract, it shall submit the proposed management contract, together with all of the above described information, to the Chairman of the National Indian Gaming Commission for approval.
Each management contractor or operator of any gaming enterprise shall, by written notification to the National Indian Gaming Commission, designate an agent for service of any official determination, order, or notice of violation from such.
(Enacted by PBP TC No. 2020-363, December 9, 2020)
12-8-10 Management Contracts – Required Provisions.
Any management contract approved by the Tribal Council must contain, at a minimum, the following with respect to the gaming enterprise to which the contract is applicable:
(A) Governmental Authority. A provision that all gaming covered by the contract shall be conducted in accordance with this title;
(B) Assignment of Responsibilities. Provisions enumerating the responsibilities of the management contractor and the Nation for each of the following identifiable functions:
(1) Maintaining and improving the gaming facility;
(2) Providing operating capital;
(3) Establishing operating days and hours;
(4) Hiring, firing, training, and promoting employees;
(5) Maintaining the gaming enterprise’s financial statements and reports;
(6) Preparing the gaming enterprise’s financial statements and reports;
(7) Hiring and scheduling the auditors;
(8) Hiring and supervising security personnel;
(9) Providing fire protection services;
(10) Settling advertising budget and the placement of advertising;
(11) Paying bills and expenses;
(12) Establishing and administering employment practices;
(13) Obtaining and maintaining insurance coverage, including coverage of public liability and property loss or damage; and
(14) Complying with all applicable provisions of law, including this title and implementing regulations, the Internal Revenue Code and other applicable Nation and Federal laws as well as the applicable Tribal-State Gaming Compact;
(C) Accounting. Provisions for establishment and maintenance of satisfactory accounting systems and procedures which shall, at a minimum:
(1) Include an adequate system of internal accounting controls;
(2) Mandate the preparation of financial statements in accordance with generally accepted accounting principles;
(3) Require a monthly financial accounting of the gaming enterprise’s income and expenses to be provided to the Gaming Commission and Tribal Council;
(4) Be subject to annual audits by an independent auditor chosen by the Tribal Gaming Commission;
(5) Allow the gaming enterprise, the Nation, and the National Indian Gaming Commission to calculate the annual fee due the Commission under Section 18 of the IGRA, 25 U.S.C. §2717;
(6) Permit the calculation and payment of the management contractor’s fee; and
(7) Provide for the allocation of operating expenses or overhead expenses among the Nation, the gaming enterprise, the management contractor, and any other user of shared facilities and services;
(D) Reporting. Provisions which shall require any management contractor to provide the Tribal Council on a monthly basis with verifiable financial reports or all information necessary to prepare such reports;
(E) Access. Provisions which shall require any management contractor to provide immediate access to the gaming enterprise, including its books and records, by appropriate Nation officials, who shall have:
(1) Absolute access to the daily operation of the gaming enterprise and to its books, and the absolute right to verify the daily gross revenues of the gaming enterprise at any time; and
(2) Access to any other gaming-related information the Nation deems appropriate;
(F) Guaranteed Payment to Nation. Provisions which shall require any management contractor to pay a minimum guaranteed monthly payment in a sum certain to the Nation that has preference over the retirement of development and construction costs;
(G) Development and Construction Costs. Provisions which shall establish an agreed upon maximum dollar amount for the recoupment of development and construction costs;
(H) Term Limits. Provisions which shall limit any such contract to a term not to exceed five (5) years unless, upon the request of the Nation for a longer term, the Chairman of the National Indian Gaming Commission is satisfied that the capital investment required and the income projections for the particular gaming enterprise require the additional time, and authorizes a contract term that does not exceed seven (7) years;
(I) Compensation. Provisions which shall detail the method of compensating and reimbursing any management contractor and provide that if a management contract provides for a percentage fee, such fee shall be either:
(1) Not more than thirty (30) percent of the net revenues of the gaming enterprise if the Chairman of the National Indian Gaming Commission determines that such percentage is reasonable in light of the circumstances; or
(2) Not more than forty (40) percent of the net revenues if the Chairman of the National Indian Gaming Commission is satisfied that the capital investment required and income projections for the gaming enterprise require that additional fee;
(J) Termination Provisions. Provisions which shall establish the grounds and mechanisms for modifying or terminating the contract;
(K) Dispute Resolution. Provisions which shall contain a mechanism to resolve disputes between:
(1) The management contractor and customers, consistent with the procedures in this title;
(2) The management contractor and the Nation; and
(3) The management contractor and the employees of the gaming enterprise;
(L) Assignments and Subcontracting. Provisions which shall indicate whether and to what extent contract assignments and subcontracting are permissible; and
(M) Ownership Interest. Provisions which shall indicate whether, and to what extent, changes in the ownership interest in the management contract require advance approval by the Nation.
(Enacted by PBP TC No. 2020-363, December 9, 2020)