Section GMG.01.14 — Licensing Of A Gaming Facility

(a) Applicability. This Ordinance applies to all persons engaged in gaming within the jurisdiction of the Tribe. Any application for license pursuant to this Ordinance except application for an Operator's License made by the Tribe, and participation in any gaming activity within the jurisdiction of the Tribe shall be deemed to be a consent to the jurisdiction of the Tribe and the Tribal Court in all matters arising from the conduct of such gaming and all matters arising under any of the provisions of this Ordinance or other tribal laws.

(b) License Required. Only the Tribe is authorized under this Ordinance to operate Class II and Class III gaming. The Tribe is required to apply to the Commission annually for an Operator's license.

(1) Tribally Owned or Tribally Operated Class II. This license shall be required of all tribally owned or tribally operated gaming facilities operating one or more Class II games of chance.

(2) Tribally Owned or Tribally Operated Class III. This license shall be required for all tribally owned or operated gaming facilities operating any games of chance other than Class I or Class II gaming.

(d) No License Requirement for Class I Gaming. A tribal license shall not be required for any Class I gaming activity or operation; however, any person or group engaging in a Class I activity shall register their activity with the Commission. It is the Commission's responsibility to make a determination, using the IGRA, Federal Regulations and Tribal Law and practice to determine whether an activity is in fact Class I.

(e) Applications Procedures: Facility License.

(1) Application for Gaming License. For any proposed Class II or Class III gaming activity, the Tribal Council shall file annually with the Mohican Gaming Commission an application for a tribally owned or tribally operated Class II or Class III gaming license, which shall contain the name of the proposed enterprise, its location and all other pertinent information required by this Ordinance and Commission regulations.

(2) Tribally Owned or Tribally Operated Class II. Before issuing a license to a tribally owned or operated Class II gaming facility the Commission shall:

(A) Review the proposed gaming operation to ensure that all criteria required by this Ordinance is met.

(B) Insure that the necessary background checks on management contractors, primary gaming management officials and key employees required by this Ordinance are being performed according to this Ordinance.

(f) Tribally Owned or Tribally Operated Class III. Before issuing a license to a tribally owned or operated Class III gaming facility, the Commission shall:

(1) Review the proposed gaming activity to ensure that all criteria required by this Ordinance is met, or that good faith efforts are being used to meet that criteria;

(2) Insure that the necessary background checks on gaming management contractors, primary gaming management officials and key employees required by this Ordinance are being performed according to this Ordinance;

(3) Review the accounting procedures used in such gaming activity.

(4) Review all aspects of the proposed gaming operation to ensure compliance with the provisions of the Tribal/State Compact.

(g) Criteria That a Potential Gaming Operator Must Meet. The Commission shall issue the above license to any tribally owned or tribally operated Class II or Class III proposed gaming operation only if all of the following criteria are met:

(1) The proposed gaming activity or facility is to be located on tribally owned land or land held in trust for the Tribe, within the exterior boundaries of the tribal reservation, prior to October 17, 1988; or on after acquired lands that meet the requirements of Section 2719 of the IGRA for after acquired lands, and appropriate amendments to the Tribal/State Compact, if required, are made.

(2) The proposed gaming activity is to be played as Class II gaming as defined by this Ordinance and the IGRA or as Class III gaming authorized by a Tribal/State Compact.

(3) The proposed gaming activity is authorized by Tribal Council Resolution.

(4) The Tribe will have the sole proprietary interest and the exclusive responsibility for the conduct of the proposed gaming activity.

(5) The Resolution authorizing the proposed gaming activity provides that:

(A) The revenues of the proposed gaming activity shall be audited annually and copies of those audits shall be provided to the General Manager, Commission and the NIGC.

(B) The proposed gaming activity shall comply with all applicable IRS reporting and filing requirements.

(C) All of the net proceeds of the proposed gaming activity shall be used for the purposes stated in Section GMG.01.05 of this Ordinance.

(D) All contracts for gaming supplies, gaming services or concessions for an amount in excess of twenty-five Thousand Dollars ($25,000.00) (except for contracts for legal and consulting services) shall be subject to an annual independent audit.

(E) The construction or maintenance of the gaming facility and the operation of the proposed gaming activity shall be conducted in a manner that the Commission finds will adequately protect the environment and the public health and safety.

(F) The General Manager, all primary gaming management officials and all key employees have passed the background investigations and obtained the tribal gaming licenses required by this Ordinance. Each application must state in writing that all future primary gaming management officials and key employees will be required to pass background investigations and obtain gaming licenses within a reasonable time of hire with continued employment being made contingent upon the successful licensing of said individual.

(G) The Commission shall have the authority to regulate the proposed Class II gaming activity.

(H) The proposed gaming activity shall pay to the NIGC and to the State such fees as federal law and the Tribal/State Compact may require to be paid.

(I) If the gaming activity is Class III gaming, such gaming activity meets all other criteria established by the Tribal-State Compact.

(h) License Application Fees. No application fee shall be required for a tribally owned or tribally operated Class II or Class III gaming activity.

(i) License Tax. No annual license tax shall be required for a tribally owned or tribally operated Class II or Class III gaming activity.

(j) Form of Gaming License. Every gaming license issued by the Commission shall include the name and address of the authorized licensee and the signature of an authorized officer of the Commission.

(k) Scope of Gaming License. A gaming license issued by the Commission shall be effective only for the gaming activity and location specified in the application. Such license may be transferred only upon prior approval of the Commission upon written request that details the proposed new gaming activity, its location and proposed gaming operator.

(l) Term of License. A tribally owned or operated Class II and Class III Gaming Operator's license shall be valid for a period of one year from the date of issuance.

(m) Posting of Licenses. Each gaming operator shall post its tribal gaming license in a conspicuous location at the gaming operator's gaming facility. If a gaming operator has more than one gaming facility, the gaming operator must obtain and post a separate license for each gaming facility.

(n) Gaming License Renewals. Each tribal gaming license must be renewed annually. No renewal fee shall be required for a tribally owned or tribally operated Class II or Class III license. In order to obtain a renewal of a license, the gaming operator shall submit a written renewal application to the Commission on the form provided by the Commission. No renewal application shall be approved until the Annual Report required by Section GMG.01.14(o) has been properly filed. All renewal applications submitted by a tribally owned Class II or Class III gaming activity shall be approved within a reasonable time unless the Commission determines, based on reasonable grounds, that the enterprise has been or will be operated in violation of tribal, federal or other applicable law or the terms of the Tribal/State Compact.

(o) Annual Reports. Each gaming operator who possesses a Class II or Class III tribal gaming license must file an annual report (not to be confused with the Annual Plan of Operation) with the Commission 15 days prior to the expiration of each such license. The report shall be submitted to the Commission on the annual report form provided by the Commission and shall include the following information:

(1) The name, address and telephone number of the gaming operator;

(2) A description of each gaming activity that it operates and the total gross proceeds of each;

(3) A written copy of any changes the gaming operator proposes to initiate in its operating rules or policies;

(4) A statement of the specific dates and times during which the gaming activity will be operated during the next license period;

(5) A statement of any changes in the general manager or in the primary gaming management officials or key employees who will operate the gaming activity over the next license period;

(6) The names and addresses of any key employees who the Commission may identify to be primary gaming management officials during review of the application;

(7) Written proof that the Gaming Operator has paid to the NIGC such fees as federal and tribal law may require it to pay, and will continue to do so;

(8) Written proof that the Gaming Operator has paid to the State such fees as the Tribal/State Compact may require it to pay;

(9) A sworn statement that the Gaming Operator has complied with the Internal Revenue Code and regulations, including written notice of customer winnings, and a statement that the Gaming Operator shall continue to obey all tribal and federal laws and shall hold the Commission and the Tribe harmless for failure to do so;

(10) The description of any location at which the gaming activity has been conducted and any new location that is expected to be established during the next license period;

(11) The number of full-time equivalent persons, on an annualized basis, employed by the operation during the past twelve (12) months, together with a projection of the number of full-time equivalent persons who are expected to be employed during the next license period;

(12) The total gross proceeds of the gaming operator attributable directly or indirectly to tribally licensed gaming activity over the proceeding twelve (12) months;

(p) Procedure to Remedy Gaming License Violation. If the Commission finds that a tribally owned or operated gaming activity is being operated in violation of this Ordinance or otherwise presents a threat to the Tribe or to the public, the Commission shall immediately take all information to Tribal Council before taking necessary steps to bring such gaming activity into compliance. Compliance means issuing a warning citation, and, if not in compliance after warning issuing a citation, charging a fine, suspending the operator's license, revoking the operator's license and or reporting such violation to the NIGC. The Commission may take all necessary steps as authorized under this law to remedy an emergency violation. In a case of revocation of the operator's license, the Commission shall provide notice to the NIGC, subjecting the Tribe to potential closure action. Nothing contained in this Section or in this Ordinance shall be construed as affecting a waiver of sovereign immunity.