Exhibit 10.1
TRIBAL-STATE COMPACT
FOR REGULATION OF CLASS III GAMING
ON THE MISSISSIPPI BAND OF CHOCTAW INDIANS RESERVATION
IN MISSISSIPPI
TABLE OF CONTENTS
Page
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SECTION 1. TITLE...........................................................................................2
SECTION 2. FINDINGS........................................................................................2
SECTION 3. DECLARATION OF POLICY...........................................................................3
3.1 Common Concerns.................................................................................3
3.2 Positive Tribal Impacts.........................................................................3
3.3 Positive State Impacts..........................................................................3
3.4 Protection of Citizens..........................................................................3
3.5 Fairness........................................................................................3
SECTION 4. DEFINITIONS.....................................................................................4
SECTION 5. JURISDICTION....................................................................................8
5.1 Allocation of Jurisdiction......................................................................8
5.2 Cross Deputization..............................................................................9
5.3 No Grant of General Jurisdiction to State.......................................................9
SECTION 6. CLASS III GAMING................................................................................9
6.1 Compliance with Compact and IGRA................................................................9
6.2 Inspectors.....................................................................................10
6.3 Reporting of Violations........................................................................10
6.4 Quarterly Meetings.............................................................................11
SECTION 7. REGULATORY STANDARDS FOR CLASS III GAMES.......................................................12
7.1 Common Interest................................................................................12
7.2 Minimum Age for Players........................................................................12
7.3 Inspection by State............................................................................12
7.4 Posting of Table Game Rules....................................................................13
7.5 Regulations Governing Class III Gaming.........................................................14
7.6 Class III Net Revenues.........................................................................14
7.7 Exclusion of Persons...........................................................................14
SECTION 8. LICENSES, WORK PERMITS AND BACKGROUND INVESTIGATIONS OF EMPLOYEES AND MANAGERS.................16
8.1 Confidential Records...........................................................................16
8.2 Licenses and Work Permits Required.............................................................17
8.3 Application Process for Class III Gaming Licenses; Background Investigations...................19
8.4 Application for Class III Gaming Work Permit; Procedure........................................20
8.5 Automatic Disqualification for or Revocation of License or Work Permit.........................21
8.6 Denial, Suspension or Revocation Based Upon Written Findings...................................22
8.7 Discipline of Employees and Licensees..........................................................22
8.8 Employee Gaming................................................................................23
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8.9 Paying Players.................................................................................23
8.10 Management Contract with Licensed Contractor...................................................23
SECTION 9. COST OF OVERSIGHT REGULATION, ENFORCEMENT, IMPROVEMENTS AND PROMOTION..........................24
9.1 Expense Reimbursement..........................................................................24
9.2 Promotion of Tourism...........................................................................25
SECTION 10. DISPUTE RESOLUTION.............................................................................26
SECTION 11. RESERVATION OF RIGHTS UNDER THE IGRA...........................................................27
SECTION 12. ALCOHOLIC BEVERAGE LICENSE.....................................................................28
SECTION 13. SEVERABILITY...................................................................................28
SECTION 14. NOTICES........................................................................................28
SECTION 15. EFFECTIVE DATE AND DURATION....................................................................29
15.1 Effective Date.................................................................................29
15.2 Duration.......................................................................................29
SECTION 16. AMENDMENTS.....................................................................................29
SECTION 17. ENTIRE AGREEMENT; SUCCESSORS AND ASSIGNS.......................................................29
SECTION 18. GOVERNING LAW..................................................................................30
SECTION 19. JUDICIAL ENFORCEMENT...........................................................................30
SECTION 20. AUTHORITY TO EXECUTE...........................................................................30
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EXHIBIT A - Restated Title XV of Tribal Code, Chapters 1 and 3
EXHIBIT B - Choctaw Gaming Commission Regulations Governing the Conduct of
Class III Gaming
iii
TRIBAL-STATE COMPACT
FOR REGULATION OF CLASS III GAMING
ON THE MISSISSIPPI BAND OF CHOCTAW INDIANS RESERVATION
IN MISSISSIPPI
WHEREAS, the State of Mississippi (hereinafter "State") and the Mississippi Band
of Choctaw Indians, a federally recognized Indian tribe organized under the
Indian Reorganization Act of 1934, (hereinafter "Tribe") are separate
sovereigns, and each respects the laws of the other sovereign; and
WHEREAS, the Congress of the United States has enacted the Indian Gaming
Regulatory Act (hereinafter "IGRA"), Public Law 100-497, 102 Stat. 2467, 25
U.S.C. Sections 2701 to 2721, creating a mechanism through which the State and
the Tribal governments may allocate jurisdiction and control of gaming
activities which occur within the federally recognized boundaries of land
wherein exclusive jurisdiction is vested in a Tribal government; and
WHEREAS, the State permits and regulates certain gaming activities within the
State (but outside Tribal lands) pursuant to the powers established by Sections
97-33-1 et. seq. and Sections 75-76-1 et. seq. of the Mississippi Code of 1972,
as amended; and
WHEREAS, the Tribe, exercising powers of self-government as set forth in the
Tribal Constitution adopted under the Indian Reorganization Act, 25 U.S.C. 476,
and acting by and through its duly organized Tribal council, has enacted (i)
Ordinance No. 40 authorizing Class III (Casino-Type) gaming activities on Tribal
lands pursuant to rules and regulations contained in the Tribal-State of Compact
and (ii) Resolution CHO-1-93 authorizing the Tribal Chief and the
Secretary-Treasurer to negotiate and execute with the State a Compact to
allocate jurisdiction and control of these gaming activities and (iii) Ordinance
No. 16-R amending the Tribal Code to create the Choctaw Gaming Commission; and
WHEREAS, the IGRA requires that the State negotiate in good faith with the Tribe
to develop a Tribal-State Compact for Class III gaming on Tribal lands; and
WHEREAS, the Tribe and the State mutually agree that the conduct of Class III
gaming under the terms and conditions set forth below will benefit and protect
the citizens of the Tribe and the State, consistent with the objective and
requirements of the IGRA;
NOW THEREFORE, in consideration of the mutual undertakings and agreements
hereinafter set forth, the Tribe and the State enter into the following
intergovernmental Compact.
SECTION 1. TITLE
This document shall be referred to as the "Tribal-State Compact for Regulation
of Class III Gaming on the Mississippi Band of Choctaw Indians Reservation in
Mississippi".
SECTION 2. FINDINGS
As the basis for this Compact, the Tribe and the State have made the following
findings:
2.1 A principal goal of Federal Indian policy is to promote tribal
economic development, tribal self-determination and strong
tribal government;
2.2 The Tribe and the State find it to be consistent with the
IGRA, and the public health, safety and welfare, to regulate
Class III Gaming pursuant to this Compact.
2.3 The Tribe has the right to license and regulate gaming
activity on Tribal lands in accordance with the IGRA and this
Compact.
2.4 The Compact shall govern the licensing, regulation, and
operation of Tribal Class III Gaming conducted on Tribal lands
located within the State.
2.5 The Compact will provide the Tribe with the opportunity and
responsibility to operate Class III Gaming in a way that will
benefit the Tribe economically, ensure fair operation of the
games, and minimize the possibilities of corruption and
infiltration by criminal influences.
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SECTION 3. DECLARATION OF POLICY
3.1 COMMON CONCERNS. The Tribe and the State, through this Compact
shall attempt, in good faith, to address the legitimate common
concerns of both parties.
3.2 POSITIVE TRIBAL IMPACTS. The State recognizes the positive
impacts that gaming may provide to the Tribe. The Tribe will
utilize revenues generated by gaming to fund programs that
provide various vital services to Tribal members. These
programs may include education, health and human resources,
housing development, road construction and maintenance, sewer
and water projects and economic development, tribal
administration or any other purpose authorized under the IGRA.
3.3 POSITIVE STATE IMPACTS. The State recognizes that the positive
economic effects of such gaming enterprises may extend beyond
Tribal lands to the Tribe's neighbors and surrounding
communities, and may help to ▇▇▇▇▇▇ mutual respect and
understanding among Indians and non-Indians.
3.4 PROTECTION OF CITIZENS. The Tribe and the State want to
protect their citizens from any criminal involvement in the
gaming activities regulated under this Compact.
3.5 FAIRNESS. This Compact is intended to assure that Class III
Gaming is conducted fairly and honestly by the Tribe, its
contractors and employees and the players.
SECTION 4. DEFINITIONS
The provisions of the Compact relating to definitions, tense, number and gender
apply and govern the interpretation of the Compact, except when otherwise
plainly declared or clearly apparent from the context.
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4.1 "CARD GAME" means a game that is defined as a Class II game in
the IGRA in which the Casino operator is not a party to ▇▇▇▇▇▇
and from which the Casino operator receives compensation in
the form of a rake-off, a time buy-in, or other fee or payment
from a player for the privilege of playing, and includes but
is not limited to the following: poker, bridge, whist, solo
and panguingui.
4.2 "CASINO" means one or more rooms or buildings wherein Class
III Gaming is conducted and includes any bar, cocktail lounge,
or other facilities housed therein as well as the area
occupied by the games.
4.3 CHOCTAW GAMING COMMISSION" means the regulatory body created
by Tribal Ordinance No. 16-R for regulation of gaming activity
on Tribal land.
4.4 "CLASS III GAMING" means all gaming that is not Class I or
Class II gaming as defined in the IGRA and which is regulated
under the terms of this Compact.
4.5 "EQUIPMENT" means any mechanical or electronic contrivance,
component or machine used remotely or directly in connection
with gaming or any game that would not otherwise be classified
as a Gaming Device, including dice, playing cards, links which
connect to progressive slot machines, devices which affect the
proper reporting of gross revenue, satellite transmission and
receival devices, computerized systems of betting at a race
book or sports pool, computerized systems for monitoring slot
machines and devices for weighing or counting money.
4.6 "FUNDS" AND "REVENUE" means money or any other thing of value.
4.7 "GAME" AND "GAMBLING GAME" means any game played with cards,
dice, equipment or any mechanical or electronic device or
machine for money, property, checks, credit or any
representative of value, including, without limiting
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the generality of the foregoing, faro, monte, roulette, keno,
bingo, fan-tan, twenty-one, blackjack, seven-and-a-half, big
injun, klondike, craps, poker, ▇▇▇▇▇-a-luck, chinese
▇▇▇▇▇-a-luck (dai shu), wheel of fortune, chemin de fer,
baccarat, pai gow, beat the banker, panguingui, slot machine,
and any other banking or percentage game. In addition,
parimutuel wagering, race book and sports pools shall be
considered allowable games hereunder only if such games are
allowed under the laws of the State.
4.8 "GAMING" AND "GAMBLING" means to deal, operate, carry on,
conduct, maintain or expose for play any game as defined in
Section 4.7.
4.9 "GAMING DEVICE" means any equipment or mechanical or
electronic contrivance, component or machine used remotely or
directly in connection with Gaming or any Game which affects
the result of a wager by determining win or loss. The term
includes a system for processing information which can alter
the normal criteria of random selection, which affects the
operation of any game or which determines the outcome of a
game.
4.10 "GAMING EMPLOYEE" means any person employed directly by the
Tribe or its authorized agent to conduct any Game, including:
boxmen; cashiers; change personnel; counting room personnel;
dealers; employees of manufacturers or distributors of gaming
equipment within this State whose duties are directly involved
with the manufacture, repair or distribution of gaming
equipment in the Casino; employees of operators of slot routes
who have keys for slot machines or who accept and transport
revenue from the slot drop; floormen; hosts or other person
empowered to extend credit or complimentary services; keno
runners: keno writers; machine mechanics; odds makers and line
setters; security
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personnel; shift or pit bosses; shills; supervisors or
managers; and ticket writers. "Gaming employee" does not
include bartenders, cocktail waitresses or other persons
engaged in preparing or serving food or beverages.
4.11 "INDIAN GAMING REGULATORY ACT OR "IGRA" means Public Law
100-497, 102 Stat. 2467, 25 U.S.C. Sections 2701 to 2721
(1988), as it may be amended from time to time.
4.12 "MISSISSIPPI GAMING COMMISSION" through September 30, 1993
means the State Tax Commission, and thereafter means the
Mississippi Gaming Commission established pursuant to the
Mississippi Gaming Control Act found in Title 75, Chapter 76
of the Mississippi Code of 1972, as amended.
4.13 "NATIONAL INDIAN GAMING COMMISSION" means the commission
established pursuant to the IGRA if such commission is
operating pursuant to its promulgated rules and regulations,
and prior to such time, shall mean the Secretary.
4.14 "PAY OUT" means:
1. Money, tokens, credit to a player's account, and the
actual cost to the Tribe's Casino operation of
personal property, other than travel expenses, food,
refreshments, lodging, or services, distributed to a
player as the result of a legitimate wager; and
2. Cash Paid directly to an independent financial
institution by the Tribe's Casino operations for the
purchase of an annuity designed to pay a player's
winnings over several years.
4.15 "PARIMUTUEL SYSTEM OF WAGERING" means any system which whereby
▇▇▇▇▇▇ with respect to the outcome of a race or other sporting
events are placed in a wagering
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pool conducted by the Tribe and in which the participants
are wagering with each other and not against the operator.
The term includes off-site pari-mutuel wagering. It is
agreed that gaming utilizing the parimutuel system of
wagering shall be allowable games as defined in Section 4.7
herein only if such parimutuel system of wagering is
allowed on non-Tribal lands under the laws of the State.
4.16 "PREMISES" means land together with all buildings,
improvements and personal property located thereon.
4.17 "PROGRESSIVE KENO GAME" means a game with a payoff limit that
increases by a predetermined amount as the game is played,
which limit is at all times exhibited on an indicator visible
to the public. "Progressive keno game" includes video
progressive keno devices.
4.18 "RAKE-OFF" means a percentage of the total amount anted and
wagered by players during a hand in a card game.
4.19 "SECRETARY" means the Secretary of the U.S. Department of
Interior.
4.20 "SLOT MACHINE" means any mechanical, electrical or other
device, contrivance or machine which, upon insertion of a
coin, token or similar object, or upon payment of any
consideration, is available to play or operate, the play or
operation of which, whether by reason of the skill of the
operator in playing a gambling game which is presented for
play by the machine or application of the element of chance,
or both, may deliver or entitle the person playing or
operating the machine to receive cash, premiums, merchandise,
tokens or any thing of value, whether the payoff is made
automatically from the machine or in any other manner.
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4.21 "SPORTS POOL" means the business of accepting ▇▇▇▇▇▇ on
sporting events by any system or method of wagering other than
the system known as the parimutuel method of wagering;
provided, however, that such ▇▇▇▇▇▇ shall be allowable gaming
under this Compact only if such ▇▇▇▇▇▇ are allowed on
non-Tribal lands under the laws of the State.
4.22 "STATE" means the State of Mississippi.
4.23 "TRIBE" means the Mississippi Band of Choctaw Indians.
4.24 "TRIBAL CHIEF" means the principal executive officer of the
Tribe.
4.25 "TRIBAL COUNCIL" means the governing body of the Tribe.
4.26 "TRIBAL LAND" means all lands within the limits of the
Mississippi Band of Choctaw Indians' federally recognized
reservation and shall be synonymous with the term "Indian
lands" as used in IGRA.
4.27 "VIDEO GAMES OF CHANCE" means electronic video devices that
simulate games commonly referred to as poker, blackjack,
craps, hi-lo, roulette, or which line-up symbols and numbers,
or other common gambling forms, which are activated by the
insertion of a coin, token, or currency, and which award game
credits, cash, tokens or replays, and contain a meter or
device to record unplayed credits or replays.
SECTION 5. JURISDICTION
5.1 ALLOCATION OF JURISDICTION. For purposes of regulating Class
III Gaming and enforcing the requirements of this Compact, (i)
the Tribe shall exercise exclusive criminal and civil
jurisdiction over Tribal members and all other Native
Americans, to the extent allowed by federal law; (ii) the
Tribe and the State shall exercise concurrent civil
jurisdiction over the Class III Gaming activities as set
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forth in this Compact; and (iii) the State shall exercise
exclusive criminal jurisdiction over non-Indians; provided
however, that nothing contained in this Compact shall be
deemed to modify or limit federal criminal and civil
jurisdiction as provided by federal law over the Class III
operations authorized under this Compact. The Tribe shall
maintain its own security force which will have primary law
enforcement responsibilities on the premise.
5.2 CROSS DEPUTIZATION. The parties hereto, to the extent
permitted by law, agree to enter into cross deputization
agreements as may be necessary and proper to facilitate the
enforcement of the civil and criminal jurisdiction recognized
under the Compact.
5.3 NO GRANT OF GENERAL JURISDICTION TO STATE. Nothing contained
in this Compact grants, or shall be construed to grant, to the
State or any agency, department of commission thereof, general
state civil regulatory or taxing authority, or criminal
jurisdiction, over the Tribe or its lands, property, members
or activities, except as expressly authorized under this
Compact.
SECTION 6. CLASS III GAMING
6.1 COMPLIANCE WITH COMPACT AND IGRA. The Tribe is authorized to
own and operate one or more Casinos for the purpose of
conducting Class III Gaming on Tribal Lands, provided that
such Class III Gaming, is conducted in accordance with the
terms of this Compact and the IGRA. It is recognized and
agreed that no Class III Gaming shall be conducted by the
Tribe on lands newly acquired by the Secretary in trust for
the benefit of the Tribe after October 17, 1988, unless
located within or contiguous to the existing boundaries of the
Tribe's reservation as of October 17, 1988 and if the
Secretary, after consultation with local officials,
9
as required by 25 U.S.C. Section 2719, determines that such
Gaming on newly acquired lands would be in the Tribe's best
interest and would not be detrimental to the surrounding
community, but only if the Governor of Mississippi concurs in
such determination. The primary responsibility for the on-site
regulation, control and security of the Gaming operation
authorized by this Compact, and for the enforcement of this
Compact, shall be that of the Choctaw Gaming Commission.
6.2 INSPECTORS. The Choctaw Gaming Commission shall employ
qualified inspectors or agents under the authority of the
Choctaw Gaming Commission. Said inspectors shall be
independent of the Tribal Gaming operation, and shall be
supervised and accountable only to the Choctaw Gaming
Commission.
6.3 REPORTING OF VIOLATIONS. A Choctaw Gaming Commission inspector
shall be present in the Casino during all hours of Gaming
operation, and shall have immediate access to any and all
areas of the Class III Gaming operation for the purpose of
ensuring compliance with the provisions of this Compact and
Tribal Ordinances. Any violation(s) of the provisions of this
Compact, or of Tribal Gaming Ordinances by a management
contractor, a Gaming employee, or any person on the Casino
premises whether or not associated with the Tribal Gaming
operation shall be reported immediately to the Choctaw Gaming
Commission. The Choctaw Gaming Commission shall forward copies
of all completed investigation reports and final dispositions
to the Mississippi Gaming Commission on a continuing basis. If
requested by the Choctaw Gaming Commission, the Mississippi
Gaming Commission shall assist in any investigation initiated
by the Choctaw Gaming Commission, and provide other requested
services to ensure proper compliance with the provisions of
this
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Compact, Tribal Gaming Ordinances, laws of the Tribe, or
applicable federal laws.
6.4 QUARTERLY MEETINGS. In order to develop and ▇▇▇▇▇▇ a positive
and effective relationship in the enforcement of the
provisions of this Compact and to keep the Choctaw Gaming
Commission and the Mississippi Gaming Commission informed as
to both of their separate Class III Gaming regulatory actions,
representatives of the Choctaw Gaming Commission and the
Mississippi Gaming Commission shall meet, not less than on a
quarterly basis, to review past practices and activities
during the preceding calendar quarter of the separate Class
III Gaming regulatory programs of the Tribe and the State. The
meetings shall take place at a location selected by the
Choctaw Gaming Commission. The Mississippi Gaming Commission
prior to or during such meetings shall disclose to the Choctaw
Gaming Commission any concerns, suspected activities or
pending matters reasonably believed to possibly constitute
violations of this Compact by any person, organization or
entity.
SECTION 7. REGULATORY STANDARDS FOR CLASS III GAMES
7.1 COMMON INTEREST
(1) In recognition of the valid public policy interests
of the State and the Tribe, regulatory standards are
hereby established for Class III Gaming operated and
played within Tribal lands.
(2) The Choctaw Gaming Commission shall adopt and
maintain, at all times during which the Tribe
conducts any authorized Class III Games, regulations
at least as restrictive as those set forth herein.
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(3) Nothing in this Section shall limit the rights or
remedies available to the parties under the IGRA.
7.2 MINIMUM AGE FOR PLAYERS
No person below the age of 21 on the date of Gaming shall be
permitted to play any Class III Game. If any person below the
age of 21 plays and otherwise qualifies to win any Class III
Game which requires notice and payout by the operator of the
facility, the prize shall not be paid, and the estimated
amount wagered during the course of the game shall be returned
to the minor. Nothing in this Section 7.2 shall be deemed to
limit civil fines, penalties and other remedies against
licensees or employees pursuant to Section 8.8 herein.
7.3 INSPECTION BY STATE
(1) The Choctaw Gaming Commission shall have the right to
conduct or cause to be conducted announced or
unannounced inspections of all Gaming operations to
ensure compliance with this Compact, Title XV of the
Tribal Code, and all other applicable Tribal and
federal laws and regulations, as amended from time to
time.
(2) Agents of the Mississippi Gaming Commission or their
designated representatives, upon the presentation of
appropriate identification to the on-site Choctaw
Gaming Commission official, shall also have the right
to gain access, without notice during normal business
hours, to all premises used for the operation of
Class III Gaming or the storage of Class III Gaming
equipment related thereto, and may inspect all Casino
premises, equipment, or equipment maintenance
records, in order to verify compliance with the
provisions of this Compact. Inspections made
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pursuant to this Section shall not be conducted in
a manner which disrupts normal business
operations. At the completion of any inspection by
the Mississippi Gaming Commission, copies of any
investigative or inspection report shall be
promptly sent to the Choctaw Gaming Commission.
7.4 POSTING OF TABLE GAME RULES
The name and rules of each table game shall be posted and be
clearly legible at or near each table in the Casino and must
designate:
(1) The maximum rake-off percentage, time buy-in, or other fee
charged;
(2) The number of raises allowed;
(3) The monetary limit of each raise;
(4) The amount of ante;
(5) Other rules as may be necessary.
7.5 REGULATIONS GOVERNING CLASS III GAMING
Attached hereto and incorporated by this reference are Exhibit
A (Tribal Code, Restated Title XV, Chapters 1 and 3) and
Exhibit B (Gaming Conduct Regulations) governing the conduct
of Class III Gaming under this Compact). The regulations
attached as Exhibit B may be modified or amended by the
Choctaw Gaming Commission, provided that no amendment to the
attached regulations shall be effective unless approved by the
Tribal Council and the Mississippi Gaming Commission, with
approval not to be unreasonably withheld. The Choctaw Gaming
Commission shall also have authority to adopt additional
supplemental regulations consistent with this Tribal-State
Compact, provided that the Tribal Council and the Mississippi
Gaming Commission shall receive prior
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written notice of such supplemental regulations which shall
become effective upon approval by the Tribal Council.
7.6 CLASS III NET REVENUES
(1) Net revenues to the tribe from Class III operations
shall be used to fund tribal government operations or
programs, to provide for the general welfare of the
members of the tribe, to promote economic
development, to donate to charitable organizations,
or to help fund the operations of local government
agencies, and shall be expended only in accordance
with budgets adopted by resolution of the Tribal
Council.
(2) Class III revenues shall not be used to make per
capita payments.
7.7 EXCLUSION OF PERSONS
(1) No person placed on an exclusion list by the Choctaw
Gaming Commission shall be permitted entry into any
portion of a Casino. The Choctaw Gaming Commission
shall maintain a list of persons to be ejected or
excluded from licensed Class III establishments. The
list shall be distributed to the Mississippi Gaming
Commission and to Tribal law enforcement agencies.
The Mississippi Gaming Commission shall likewise
furnish the Choctaw Gaming Commission with its
separately maintained exclusion list. The following
information, to the extent known, shall be provided
for each excluded person:
(a) The full name and date of birth and all aliases;
(b) A physical description;
(c) The effective date the person's name was placed
on the list;
(d) A photograph, if available; and
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(e) The person's occupation and his current home and
business address; and
(f) The stated reason for the exclusion.
(2) The Choctaw Gaming Commission may place a person on
the exclusion list pending a hearing if such person
has:
(a) Been convicted of a felony in any
jurisdiction, of any crime of moral
turpitude or of a crime involving Gaming:
(b) Violated or conspired to violate the
provisions of the IGRA or this Compact
relating to involvement in Gaming without
required licenses, or willful evasion of
fees or taxes;
(c) A notorious or unsavory reputation which
adversely affects public confidence and
trust in Gaming; or
(d) Their name on any valid and current
exclusion list from another jurisdiction in
the United States.
(3) Upon a determination by the Choctaw Gaming Commission
that a person comes under any one of the criteria
listed in this section, such person may be placed on
an exclusion list. Such excluded person shall be
notified of the availability of a hearing by the
Choctaw Gaming Commission.
(4) Any person who has been placed on any exclusion list
may petition the Choctaw Gaming Commission in writing
and request that their name be removed from the list.
(5) If the Commission or a subsequent tribal court of
review finds in favor of the excluded person, then
their name shall be removed from the exclusion
15
list and their exclusion shall be terminated as of
the date of the action by the Commission or the
court.
The Choctaw Gaming Commission shall provide
prompt written notification to the Mississippi
Gaming Commission of the action to terminate the
exclusion. This notification also shall include
the reason for the reinstatement action.
SECTION 8. LICENSES, WORK PERMITS AND BACKGROUND INVESTIGATIONS OF EMPLOYEES
AND MANAGERS
8.1 CONFIDENTIAL RECORDS
(1) The Choctaw Gaming Commission shall maintain a file
listing all applications for Class III Gaming
licenses and work permits and a record of all its
actions on such applications, and such records shall
not be confidential. The Tribe shall place the
privacy and false statement notices on all
applications for licenses and work permits in forms
required by the regulations promulgated in accordance
with the IGRA.
(2) Confidential information shall include (1) records
and financial data acquired by the Choctaw Gaming
Commission in carrying out its background
investigations of potential Gaming entities, managers
and key employees; (2) the identity of persons
interviewed during the course of such investigations;
and (3) proprietary financial data. Except as
otherwise provided herein, confidential information
is prohibited from public disclosure by the Choctaw
Gaming Commission, the Mississippi Gaming Commission
or by individual members of either commission.
Confidential or proprietary records, in whole or in
part, shall not be
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included as sections of or attachments to budget
documents, annual reports, minutes or audit
findings by either the Choctaw Gaming Commission
or the Mississippi Gaming Commission. Copies of
confidential or proprietary records may be
forwarded to the National Indian Gaming Commission
upon the written request of that agency or in
compliance with the appropriate reporting
requirements of the IGRA.
8.2 LICENSES AND WORK PERMITS REQUIRED
(1) No entity or person shall enter into a binding
management contract for operation and management of
Class III Gaming with the Tribe or shall be hired as
a management official or key employee of a Class III
Gaming enterprise, unless such entity or person is
the holder of a Class III Gaming license issued by
the Choctaw Gaming Commission. The Choctaw Gaming
Commission shall provide prompt notification to the
Tribal Chief, the National Indian Gaming Commission,
and the Mississippi Gaming Commission of any such
Class III Gaming licenses. Separate licenses will be
required for each place or location where Gaming is
conducted.
(2) Persons not required to be licensed as management
officials or key employees shall not be employed to
work in a Class III Gaming enterprise, unless such
person is the holder of a Class III Gaming work
permit issued by the Choctaw Gaming Commission.
(3) For purposes of this Tribal-State Compact, a "key
employee" shall include a Class III Gaming employee
of the Tribe or a Tribal Class III Gaming licensee
(1) having the power to exercise any significant
influence over decisions concerning any part of the
operation, administration,
17
supervision, or physical security activities of
Gaming activities or (2) who receives a base
salary from the Casino operator in excess of
$30,000 per year. Without limiting the foregoing,
any individual who has authority to hire or fire
other Gaming employees or who is considered a "key
employee" under regulations adopted by the
National Indian Gaming Commission shall be
considered to be a "key employee" of a Gaming
enterprise.
(4) While on duty in a Casino, all licensed management
officials, key employees, and permitted employees
shall wear identification badges, including a
photograph, title, license or permit number,
signature and zones within the Casino to which he or
she is permitted access. Undercover security
personnel may be exempted from the display
requirements of this paragraph.
8.3 APPLICATION PROCESS FOR CLASS III GAMING LICENSES; BACKGROUND
INVESTIGATIONS
(1) The Choctaw Gaming Commission shall require all
applicants for Class III Gaming licenses (entities
proposing to enter into Class III Gaming management
contracts and management officials and key employees)
to pay a nonrefundable application fee of $2,000 and
to complete an application form containing sufficient
information to allow a background investigation of
the applicant, including without limitation all
information required by regulations promulgated
pursuant to the IGRA. The Choctaw Gaining Commission
shall send a copy of the completed applications to
the Mississippi Gaming Commission and the National
Indian Gaming Commission. If the Choctaw Gaming
Commission determines that
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investigative costs shall exceed the application
fee, the Choctaw Gaming Commission shall notify
the applicant in writing of the estimated costs to
be incurred by the Choctaw Gaming Commission in
performing or causing to be performed a background
investigation, and the applicant must pay such
estimated costs to the Choctaw Gaming Commission
prior to the Choctaw Gaming Commission processing
the application.
(2) The Choctaw Gaming Commission shall ensure that
background investigations are conducted on all
applicants for Class III Tribal Gaming licenses and
that continuing oversight of management officials and
key employees is conducted. The Choctaw Gaming
Commission shall notify the Tribal Chief, the
National Indian Gaming Commission, and the
Mississippi Gaming Commission of the results of
background checks on any Class III Gaming applicants
and the findings concerning the eligibility of
applicants for receipt of a license prior to issuance
of any Tribal Class III Gaming license.
8.4 APPLICATION FOR CLASS III GAMING WORK PERMIT; PROCEDURE
(1) Applicants for a Class III Gaming work permit shall
complete an application form and shall furnish their
fingerprints in duplicate on fingerprint impression
cards and a current color photograph in duplicate to
the Choctaw Gaming Commission. The photographs must
be satisfactory to the Choctaw Gaming Commission and
must have been taken not earlier than three (3)
months before the date of filing the application. The
applicant shall also sign a written statement
certifying that the applicant is
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not automatically disqualified for a work permit
in accordance with the standards set forth in
Section 8.6 below.
(2) An applicant for a work permit shall pay the
application fee established by the Choctaw Gaming
Commission, by regulation, which shall be sufficient
to cover the costs of processing the application.
(3) The Choctaw Gaming Commission shall forward a copy of
all applications for Class III Gaming work permits to
the Mississippi Gaming Commission prior to granting
the work permit.
(4) The Choctaw Gaming Commission may either grant or
deny the work permit based upon its investigation and
review of the application.
8.5 AUTOMATIC DISQUALIFICATION FOR OR REVOCATION OF LICENSE OR
WORK PERMIT
The Choctaw Gaming Commission shall deny or revoke Gaming
licenses or work permits to persons or entities whose prior
activities, criminal record, or records, habits and
associations pose a threat to the public interest or to the
effective regulation of Gaming or create or enhance the
dangers of unsuitable, unfair or illegal practices and
activities in connection with Gaming activities. All Class III
Gaming licenses and work permits shall be reviewed and, if
appropriate, renewed on an annual basis, with prompt
notification to the Mississippi Gaming Commission and National
Indian Gaming Commission of renewals of licenses. Should
tribal laws be amended to permit such, licenses and permits
may be renewed every two years after the first two annual
renewals. Without limiting the foregoing, the Choctaw Gaming
Commission must automatically deny or revoke Class III Gaming
licenses or permits to persons:
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(a) who have been convicted of a felony in any
jurisdiction of any crime;
(b) who have been convicted of a violation or
conspiracy to violate the provisions of this
Tribal-State Compact, the Indian Gaming
Regulatory Act, or other Tribal or federal
laws relating to involvement in Gaming
without required licenses or willful evasion
of Gaming fees or taxes;
(c) having a notorious or unsavory reputation or
association with such individuals which
adversely affect public confidence and trust
in Gaming;
(d) whose license or work permit would violate
conflict of interest rules in Section 15-1-4
of the Tribal Code; or
(e) who are individual applicants under the age
of 21.
8.6 DENIAL, SUSPENSION OR REVOCATION BASED UPON WRITTEN FINDINGS.
In the event the Choctaw Gaming Commission receives a written
finding from either the National Indian Gaming Commission or
the Mississippi Gaming Commission specifying why a particular
applicant or employee is not eligible for a Class III Gaming
license or work permit under the standards set forth in
Section 8.6 above, the Choctaw Gaming Commission shall suspend
the applicable Class III Gaming license or permit or shall
delay action on the application and shall notify the affected
applicant of the suspension and proposed revocation and of a
hearing time and place on the proposed revocation. After the
hearing, the Choctaw Gaming Commission shall decide to revoke
or reinstate the license or
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permit and shall notify the Mississippi Gaming Commission
and the National Indian Gaming Commission of its decision.
8.7 DISCIPLINE OF EMPLOYEES AND LICENSEES
In addition to the automatic license and permit revocations
pursuant to Section 8.6, the Choctaw Gaming Commission shall
propose regulations containing civil fines, penalties, license
or work permit suspensions or revocations that may be imposed
by the Choctaw Gaming Commission for violations of Restated
Title XV of the Tribal Code and any amendments thereto or
provisions of this Compact. Such regulations shall become
effective upon approval by the Tribal Council.
8.8 EMPLOYEE GAMING
No person who holds a work permit or license from the Choctaw
Gaming Commission in connection with Class III Gaming or who
is employed by any of the Tribe's suppliers of Gaming
equipment shall be permitted to participate in any Tribal
Class III Gaming.
8.9 PAYING PLAYERS
Neither the Tribe nor any of its agents, contractors or
employees may employ or pay any person to participate in any
Class III Game, including but not limited to any shill or
proposition player.
8.10 MANAGEMENT CONTRACT WITH LICENSED CONTRACTOR
(1) The Tribe will have sole proprietary interest in any
Casino. The Tribe and a contractor who has been
licensed pursuant to Section 8 of this Compact may
enter into a management contract for the operation
and management of a Casino, provided that such
management contract is in compliance with all
applicable requirements and provisions of the IGRA.
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(2) The Tribe shall require all "parties in interest" to
a proposed Class III management contract to submit to
the Choctaw Gaming Commission information and
identification sufficient to allow the Choctaw Gaming
Commission to perform or cause to be performed
background investigations on each party in interest
in accordance with Section 8 herein. The Tribe may
require the proposed contractor to cover the costs of
these background investigations. A copy of the
submitted information and the investigative reports
on each party in interest shall be provided by the
Choctaw Gaming Commission to the Mississippi Gaming
Commission prior to issuance of a Class III Gaming
license to the management contractor and prior to the
effective date of a Class III management contract. As
used in this section, "parties in interest" includes
any person or entity (including individuals
comprising such entity) having a direct financial
interest in, or responsibility for, the management of
a Casino pursuant to the management contract,
including investors, lenders, general and limited
partners, beneficiaries and trustees of a trust
acting as a party, corporate officers and directors,
all stockholders who hold (alone or in combination
with a spouse, parent, child or sibling of
stockholder) at least 10 percent of the stock of any
corporation which is a party to the contract.
SECTION 9. COST OF OVERSIGHT REGULATION, ENFORCEMENT, IMPROVEMENTS AND
PROMOTION
9.1 EXPENSE REIMBURSEMENT
The State and Tribe, acting by and through their respective
designees, shall mutually agree upon a budget for necessary
and actual expenses that may be
23
reasonably incurred by the State during the calendar year
in connection with Class III Gaming activities, including,
but not limited to, (i) oversight and enforcement actions
as provided for under this Compact, (ii) additional
manpower and equipment required by the Department of Public
Safety due to increased traffic control on State highways
leading to a Casino, and (iii) costs in making any
necessary improvements to an intersection of a State
highway with a Bureau of Indian Affairs or Tribal road
leading to a Tribal Casino as a result of increased traffic
due to Class III gaming activities and utilizing
governmental grants and road funds, where available. For
purposes of this Section 9, "Calendar Year" means the
twelve month time frame beginning on the date of
commencement of operations of the Casino. The State shall
prepare a quarterly payment request for actual expenses
specified in the approved budget, incurred by the State
during the preceding quarter, which shall be paid within
thirty (30) days thereafter.
9.2 PROMOTION OF TOURISM
Subject to the State designating Tribal lands as a State
tourism council area, the Tribe and the State shall separately
provide $250,000 each year in matching funds to be used for
advertising and promotion of tourism. The Tribe's $250,000 per
year contribution shall be paid in quarterly installments of
$62,500 each, conditioned upon the Tribe receiving profits of
at least $62,500 from the preceding quarter of Class III
Gaming operations. For purposes of this Section 9.2, quarterly
payment dates shall be January 15, April 15, July 15, and
October 15, unless otherwise agreed by the parties.
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SECTION 10. DISPUTE RESOLUTION
In the event that either party believes that the other party has failed to
comply with any requirement of this Compact or applicable regulations
thereunder, or in the event of any disagreement or dispute as to the proper
interpretation of the terms and conditions of this Compact, the following
procedures shall apply:
10.1 The party asserting noncompliance or seeking an interpretation
shall serve written notice on the other party. The notice
shall identify the specific Compact provision alleged to have
been violated and shall specify in detail the factual basis
for the alleged noncompliance of the Compact provision for
which interpretation is sought. Thereafter, the Governor and
Tribal Chief, or their designated representatives, shall meet
within thirty (30) days in an effort to resolve the dispute.
10.2 In the event the dispute is not resolved to the satisfaction
of the parties within ninety (90) days after service of the
notice set forth in Section 10.1 above, the dispute shall be
resolved through arbitration, as follows:.
(1) The parties shall agree upon one arbitrator.
(2) If the parties are unable to so agree, the Tribe and
the State shall each select one arbitrator, who
thereafter shall select a third arbitrator with
expertise in the subject matter of the dispute, and
the three arbitrators so selected shall arbitrate the
dispute. In the event the two arbitrators selected by
the parties are unable to agree on a third
arbitrator, the third arbitrator shall be appointed
by the American Arbitration Association.
(3) The arbitrators shall meet with the parties
immediately after their appointment to determine a
schedule for arbitration, including whether and
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to what extent discovery is required. The arbitrators
may set the matter for an evidentiary hearing, or
oral argument, or may determine to dispose of the
dispute based upon written submissions only. If an
evidentiary hearing is held, the normal rules of
evidence shall be relaxed, pursuant to the
arbitrators' discretion. All parties shall have the
right to participate in the hearing and may determine
the most effective and efficient method for the
presentation of their case. The parties may present
evidence through live testimony, written reports and
affidavits, or the argument of counsel or its
representative at the hearing. The parties may be
represented by any person of their choice at
proceedings before the arbitrators, irrespective of
whether the representative is an attorney.
(4) The cost of arbitration shall be borne equally by the
Tribe and State. All parties shall bear their own
costs and attorney fees associated with their
participation in arbitration. The decision of the
arbitrators shall be final and non-reviewable. Any
party may pursue any remedy which is otherwise
available to that party to enforce orders of the
arbitrators in the event voluntary compliance does
not occur.
SECTION 11. RESERVATION OF RIGHTS UNDER THE IGRA
The State and Tribe agree that by entering into this Compact, the Tribe shall
not be deemed to have waived its right to initiate and pursue the procedures
provided by the IGRA if the State should refuse to enter into a compact with
respect to other forms of Class III Gaming, and neither the State nor the Tribe
shall be deemed to have waived any rights, arguments or defenses applicable to
such a procedure.
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SECTION 12. ALCOHOLIC BEVERAGE LICENSE
In the event that the Tribal Council passes an ordinance approved by the
Secretary that allows sales of alcoholic beverages on or about Casino premises
or adjacent property on Tribal lands designated by the Tribal Council as a
resort area, then the State will designate the same Tribal lands as a resort
area and shall authorize sales of liquor from the State warehouse to the Tribe
and persons or entities as may be authorized by the Tribe to sell alcoholic
beverages on designated Tribal lands, and the Tribe and such persons or entities
as it may authorize to sell alcoholic beverages will purchase liquor exclusively
from the State warehouse.
SECTION 13. SEVERABILITY
Each provision, section, and subsection of this Compact shall stand separate
and independent of every other provision, section, or subsection. In the
event that a court of competent jurisdiction shall find any provision,
section, or subsection of this Compact to be invalid, the remaining
provisions, sections, and subsections of the Compact shall remain in full
force and effect.
SECTION 14. NOTICES
All notices required or authorized to be served under this Compact shall be
served by certified mail (return receipt requested), commercial overnight
courier service or by personal delivery, at the following addresses:
Governor: State of Mississippi
▇.▇. ▇▇▇ ▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Tribal Chief: Mississippi Band of Choctaw Indians
▇.▇. ▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
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SECTION 15. EFFECTIVE DATE AND DURATION
15.1 EFFECTIVE DATE
This Compact shall become effective upon execution by the
Governor of the State and the Tribal Chief, approval by the
Secretary of the Interior and publication of that approval in
the Federal Register pursuant to the IGRA. This Compact is
entered into pursuant to the IGRA.
15.2 DURATION
This Compact shall remain in full force and effect until
terminated by mutual consent of the parties.
SECTION 16. AMENDMENTS
The State or the Tribe may, by appropriate and lawful means, request
negotiations to amend, replace or repeal this Compact. In the event of a request
for renegotiation or the negotiation of a new Compact, this Compact shall remain
in effect until renegotiated or replaced. Such requests shall be served pursuant
to Section 14. If such a request is made by the Tribe, it shall be treated as a
request to negotiate pursuant to the IGRA. The parties shall have 180 days to
negotiate, and all further procedures and remedies available under the IGRA
shall thereafter apply. The Tribe and the State may agree to extend the 180 day
period without prejudice to the rights of either party under this Section. Any
amendment to this Compact must be approved by the Secretary.
SECTION 17. ENTIRE AGREEMENT; SUCCESSORS AND ASSIGNS.
This Compact contains the entire agreement of the parties hereto with respect to
the matters covered by this Compact and no other statement, agreement, or
promise made by any party, officer, or agent of any party shall be valid or
binding. This Compact shall by binding upon the successors and assigns of the
parties hereto.
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SECTION 18. GOVERNING LAW.
This Compact shall be governed by and construed in accordance with the laws of
the United States.
SECTION 19. JUDICIAL ENFORCEMENT.
Any judicial action brought to enforce the terms of an arbitration decision
rendered under Section 10 of the Compact shall be brought only in the
appropriate United States District Court; provided however, that if a United
States District Court should first determine that it lacks subject matter
jurisdiction over such a cause of action, an enforcement action may then be
instituted in the courts of the State.
SECTION 20. AUTHORITY TO EXECUTE.
Each of the undersigned represents that he is duly authorized and has the
authority to execute this agreement on behalf of the party for whom he is
signing.
STATE OF MISSISSIPPI MISSISSIPPI BAND OF CHOCTAW INDIANS
/s/ ▇▇▇▇ ▇▇▇▇▇▇▇ /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
------------------------------------ ------------------------------------
▇▇▇▇ ▇▇▇▇▇▇▇, GOVERNOR ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, CHIEF
DATE: 12/4/92 DATE: 12/4/92
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/s/ ▇▇▇▇▇ ▇▇▇▇▇
------------------------------------
▇▇▇▇▇ ▇▇▇▇▇, SECRETARY-TREASURER
DATE: 12/4/92
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BUREAU OF INDIAN AFFAIRS
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SECRETARY OF INTERIOR
DATE:
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