# SUBCHAPTER I: PRELIMINARY MATTERS

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## Record

- **Collection:** Tribal code
- **Document type:** Tribal code

## Text

TRIBAL CODE
CHAPTER 42:
GAMING ORDINANCE

CONTENTS:
SUBCHAPTER I: PRELIMINARY MATTERS
42.101 Scope ..................................................................................................... 42-7
42.102 Purpose ................................................................................................. 42-7
42.103 Authority ............................................................................................... 42-7
42.104 Interpretation and Relation to Other Laws ........................................... 42-7
42.105 Severability and Non-Liability ............................................................. 42-8
42.106 Implied Consent .................................................................................... 42-8
42.107 Effective Date ....................................................................................... 42-8
42.108 Repealer ................................................................................................ 42-8
SUBCHAPTER II: DEFINITIONS
42.201 General Provisions ................................................................................ 42-9
42.202 Board of Directors ................................................................................ 42-9
42.203 Class I Gaming ...................................................................................... 42-9
42.204 Class II Gaming .................................................................................... 42-9
42.205 Class III Gaming ................................................................................. 42-10
42.206 Commission ........................................................................................ 42-10
42.207 Commissioner ..................................................................................... 42-10
42.208 Director ............................................................................................... 42-10
42.209 Electronic Games of Chance ............................................................... 42-11
42.210 Game and Gambling Game ................................................................. 42-11
42.211 Gaming and Gambling ........................................................................ 42-11
42.212 Gaming Consultant ............................................................................. 42-11

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42.213 Gaming Device ................................................................................... 42-11
42.214 Gaming Enterprise .............................................................................. 42-12
42.215 Gaming Operation …………………………………………………….42-12
42.216 Gross Revenue .................................................................................... 42-13
42.217 IGRA ................................................................................................... 42-13
42.218 Indian Land ......................................................................................... 42-13
42.219 Key Employee ..................................................................................... 42-13
42.220 License ................................................................................................ 42-14
42.221 Licensee .............................................................................................. 42-14
42.222 Management Contract ......................................................................... 42-14
42.223 Native American or Indian ................................................................. 42-15
42.224 Net Revenue ........................................................................................ 42-15
42.225 NIGC ................................................................................................... 42-15
42.226 Operating Expense .............................................................................. 42-15
42.227 Patron .................................................................................................. 42-15
42.228 Person.................................................................................................. 42-15
42.229 Primary Management Official ............................................................ 42-15
42.230 Reservation ......................................................................................... 42-16
42.231 Tribal Court......................................................................................... 42-16
42.232 Tribal - State Compact or Compact .................................................... 42-16
42.233 Tribe .................................................................................................... 42-16
SUBCHAPTER III:

OWNERSHIP AND OPERATION OF LICENSED GAMING

ESTABLISHMENTS
42.301 Tribal Ownership of Licensed Gaming Establishments ..................... 42-16
42.302 Revenues to Benefit Tribe .................................................................. 42-17
42.303 Management by Tribal Gaming Authority ......................................... 42-17
42.304 Gaming Managers ............................................................................... 42-18
SUBCHAPTER IV: TRIBAL GAMING COMMISSION
42.401 Establishment and Composition of the Commission .......................... 42-18
42.402 General Powers and Duties of Commission ....................................... 42-19
42.403 Compensation for Commissioners ...................................................... 42-20
42.404 Commission Chairperson .................................................................... 42-20

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42.405 Meetings.............................................................................................. 42-20
42.406 Quarterly Report ................................................................................. 42-21
42.407 Appointment of Director ..................................................................... 42-21
42.408 Director's Contract .............................................................................. 42-21
42.409 Termination of Director ...................................................................... 42-22
42.410 Duties of Director ............................................................................... 42-22
42.411 Commission Budget ............................................................................ 42-23
42.412 Restrictions on Commissioners and Director ..................................... 42-23
42.413 Applications and Investigations .......................................................... 42-23
42.414 Licensing Decisions ............................................................................ 42-25
42.415 Right to a Hearing ............................................................................... 42-25
42.416 Confidentiality .................................................................................... 42-26
42.417 Commission Regulations .................................................................... 42-26
42.418 Prior Notice of Actions ....................................................................... 42-27
42.419 Request for Commission Action ......................................................... 42-27
42.420 Independence of Commission ............................................................. 42-27
42.421 Relation to Gaming Management ....................................................... 42-28
42.422 Legal Advisor ..................................................................................... 42-28
42.423 Approval of Gaming Devices ............................................................. 42-28
42.424 List of Undesirables ............................................................................ 42-28
42.425 Patron Dispute Resolution .................................................................. 42-28
SUBCHAPTER V: LICENSES
42.501 Types of Licenses ............................................................................... 42-29
42.502 Class I Gaming ................................................................................... 42-30
42.503 Licensing of Class II Gaming ............................................................. 42-30
42.504 Licensing of Class III Gaming ............................................................ 42-31
42.505 Licensing of Primary Management Officials, Key Employees,
and Gaming Consultants .......................................................... 42-31
42.506 Licensing of Gaming Device Suppliers .............................................. 42-32
42.507 Non-Transferability of License ........................................................... 42-33
42.508 Granting of a License ......................................................................... 42-33
42.509 Consultation With Law Enforcement ................................................. 42-34
42.510 Fees ..................................................................................................... 42-34
42.511 Ninety Day Limitation; Grace Period ................................................. 42-34

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42.512 Reports to NIGC; Processing of Applications .................................... 42-35
42.513 Disclosure by Applicant...................................................................... 42-36
42.514 Violations by Licensee........................................................................ 42-36
42.515 Suspension or Revocation of License ................................................. 42-37
SUBCHAPTER VI: MANAGEMENT CONTRACTS
42.601 Commission Approval Required......................................................... 42-38
42.602 Requirements for Approval................................................................. 42-40
42.603 Contract Disapproval .......................................................................... 42-41
42.604 Modifying or Voiding Contract .......................................................... 42-42
42.605 Conveying Interest in Land................................................................. 42-42
42.606 Fee for Costs of Investigation ............................................................. 42-42
42.607 Approval by Board of Directors ......................................................... 42-42
42.608 Submission to NIGC ........................................................................... 42-42
42.609 Notice to State of Michigan ................................................................ 42-43
SUBCHAPTER VII: GENERAL PROVISIONS
42.701 Accounting Records ............................................................................ 42-43
42.702 Independent Audit............................................................................... 42-43
42.703 Notices to Patrons ............................................................................... 42-44
42.704 Minimum Standards for Gaming Devices .......................................... 42-44
42.705 Installation of Gaming Devices .......................................................... 42-45
42.706 Compliance With Bank Secrecy Act .................................................. 42-45
42.707 Sale of Alcoholic Beverages ............................................................... 42-45
42.708 Native American Preference ............................................................... 42-46
42.709 Employee Benefits .............................................................................. 42-46
42.710 Altered Gaming Devices ..................................................................... 42-46
42.711 Minimum Age of Gaming Participants and Patrons ........................... 42-46
42.712 Visibly Intoxicated Patrons ................................................................. 42-47
42.713 Compliance with Federal Law and Regulations ................................. 42-47
42.714 Environment, Health and Safety ......................................................... 42-47
42.715 Internal Controls ................................................................................. 42-47
42.716 Background Checks on Vendors and Lessors..................................... 42-47
42.717 Offers and Gifts to Officials and Employees ...................................... 42-48

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SUBCHAPTER VIII: ENFORCEMENT AND PENALTIES
42.801 Permitted Activity ............................................................................... 42-49
42.802 Prohibited Activity - Generally........................................................... 42-49
42.803 Exceptions ........................................................................................... 42-50
42.804 Enumeration of Unlawful Acts .......................................................... 42-50
42.805 Jurisdiction and Procedure ................................................................ 42-52
42.806 Enforcement ........................................................................................ 42-52
42.807 Remedies ............................................................................................. 42-53
42.808 Limitations Period............................................................................... 42-54
42.809 Parties to a Violation........................................................................... 42-54
42.810 Agent for Service of Process .............................................................. 42-54
HISTORY NOTE
Current Ordinance:
Effective date: December 9, 1994.
Adopted by Tribal Resolution No. 93-143, November 2, 1993.
Section 42.224 was amended prior to the ordinance taking effect by Resolution No. 94-152, December 2,
1994.
Approved , as amended, by the Chairman of the National Indian Gaming Commission under 25 CFR Part
522 on December 9, 1994.
Reenacted as part of the Tribal Code July 5, 1995, Resolution No. 95-89.
Amendments:
Tribal Resolution 2024-74, adopted March 12, 2024, amends to align Tribal Code with 25 CFR Parts
502.556 and 558. Tribal code changes 42.214, 42.215, 42.219, 42.229 and 42.220.
Tribal Resolution 2016-284, adopted December 13, 2016, amends and adopts §42.515.
Tribal Resolution 2016-247, adopted October 18, 2016, amends and adopts the following §§42.224,
42.413,42.425, 42.508, 42.512, 42.515, 42.702, and 42.810. Approved by NIGC on February 16, 2017.
Tribal Resolution 2010-29, adopted January 26, 2010, amends §42.801, identifying St. Ignace parcel as
eligible for gaming. Approved by NIGC on March 30, 2010.
Tribal Resolution 2009-197, adopted September 22, 2009, amends §42.404 Commission Chairperson.
Tribal Resolution 2008-51, adopted February 26, 2008, amends §42.405(1) and §42.405(4). Calling of
Special Meetings.
Tribal Resolution 2006-101, adopted August 28, 2006, amends §42.801 to add subsection 2(c) identifying
St. Ignace parcel taken into trust in 2000. Denied by NIGC on September 1, 2006.
Tribal Resolution 2006-98, adopted August 15, 2006, amends §42.801. Rescinded by 2006-101.
Tribal Resolution 2005-20, adopted February 15, 2005, amended §42.412 (2) to disallow Gaming
Commissioners, etc. from gaming in the Sault Ste. Marie Tribes’ gaming establishments.
Tribal Resolution 99-55, adopted April 26, 1999, amended ''42.303,42.304 by deleting Management by
Economic Development Commission and substituting in ' '42.303, 42.304 Management by Tribal Gaming Authority.

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Tribal Resolution 98-25, adopted March 3, 1998, amended ''42.412, 42.420,42.503,42.511,42.601,42.716.
Tribal resolution 97-54, adopted June 3, 1997 amended former ''42.401,42.404,42,405. Upon approval from NIGC.
Tribal resolution 5-15-86, adopted May 20, 1986, provided for limited non-Indian employment by amending
former '42.504.
Tribal resolution 7-26-86B, adopted July 26, 1986, amended former '42.703.
Tribal resolution 1-15-87, adopted January 20, 1987, amended former '42.703.
Tribal resolution 3-21-88, adopted March 21, 1988, amended former '42.203 to authorize raffles and pull
tabs.
Tribal resolution 5-28-88B, adopted May 28, 1988, amended former '42.201 to provide for the Kewadin
Shores Casino.
Tribal resolution 4-9-91, adopted April 9, 1991, and reaffirmed
by the Board of Directors on April 23, 1991, amended former '' 42.504, 42.702 and 42.703.
Compact:
A Tribal-State Compact for the Conduct of Tribal Class III Gaming by the Tribe was executed on August
20, 1993.
The Compact was approved by the Secretary of the Interior under 25 USC '2710(d)(8) on November 19,
1993, and notice was published in the Federal Register on November 30, 1993, 58 FR 63262.
Prior Ordinances:
1. Bingo Control Ordinance:
The Bingo Control Ordinance, Tribal Code Chapter 43, was adopted by Tribal Resolution 2-19-85 on
February 19, 1985. It was repealed by '42.107 of the current ordinance.
Amendments
Tribal Resolution 12-04-89A, adopted December 4, 1989, amended '' 8D, 43.103 and 43.403 to allow nontribal members to conduct bingo.

2. Millionaire Party Gaming Ordinance:
The Millionaire Party Gaming Ordinance, Tribal Code Chapter 42, was adopted by Tribal Resolution 11-0485C on November 4, 1985. It was repealed by '42.107 of the current ordinance.

Cases:
United States v. Dakota, 666 F Supp 959 (WD Mich 1985) - casino operated by Fred Dakota enjoined as
violative of the Organized Crime Control Act.
United States v. Dakota, 796 F2d 186 (6th Cir 1986) - affirms above decision.
United States v. Bay Mills Indian Community, 692 F Supp 777 (WD Mich 1988) - suit by US to enjoin
casino gaming by Michigan tribes dismissed; US remedy is criminal prosecutions.
United States v. Bay Mills Indian Community, 880 F2d 415 (6th Cir. 1989) - grants dismissal of appeal in
the above case after a settlement by the parties.
Sault Ste. Marie Tribe v. Michigan, No. 92-1683 (6th Cir 9/15/93), 1993 US App LEXIS 23460 - gaming
case under IGRA regarding bad faith in negotiating a compact; appeal of dismissal of the state from the case on 11th
Amendment grounds was dismissed as interlocutory.

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TRIBAL CODE
CHAPTER 42:
GAMING ORDINANCE

SUBCHAPTER I: PRELIMINARY MATTERS
42.101 Scope.
This Chapter governs the conduct of gaming within the jurisdiction of the Tribe,
provides for the operation of Tribal licensed gaming establishments, prohibits noncomplying gaming activities and provides remedies for violations of this Chapter.
42.102 Purpose.
The Board of Directors hereby finds that the gaming industry is vitally important to
the economy of the Tribe and the general welfare of its members. The continued growth and
success of gaming is dependent upon public confidence and trust that gaming is conducted
honestly, and that gaming is free from criminal and corruptive elements. Public confidence
and trust can only be maintained by strict regulation of all persons, locations, practices,
associations and activities related to the operation of licensed gaming establishments.
Therefore, all establishments where gaming is conducted and where gaming devices are
operated must be licensed, controlled and operated to protect public safety, morals, good
order and general welfare, and to foster the stability and success of gaming.
42.103 Authority.
The authority for this Chapter is Article VII, Sections 1(d), (g), (h), (k) and (m) of the
Tribal Constitution; the Organized Crime Control Act, 18 U.S.C. '1855(e); and the IGRA.
42.104 Interpretation and Relation to Other Laws.
(1) In its interpretation and application, the provisions of this Chapter shall be held
to be minimum requirements and shall be liberally construed in favor of the Tribe.
(2) This Chapter is enacted pursuant to and intended to be in conformity with the
IGRA, NIGC regulations and the Tribal-State Compact. The applicable provisions of IGRA,
NIGC regulation and the Compact control over any conflicting provision of this Chapter.

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42.105 Severability and Non-Liability.
(1) If any section, provision, or portion of this Chapter is adjudged to be unconstitutional or invalid by a court of competent jurisdiction, the remainder of this Chapter will
remain unaffected.
(2) The Tribe declares that there is no liability on the part of the Tribe, its agencies,
agents, or employees for any damages which may occur as a result of reliance upon or
conformity with the requirements of this Chapter. The Tribe by adoption of this Chapter
does not waive its sovereign immunity in any respect.
42.106 Implied Consent.
Entry upon Indian land without the permission of the Tribe is prohibited. Such
permission where given is expressly conditioned upon the consent of the person entering
such land to the jurisdiction of the Tribe for purpose of enforcing this Chapter. Entry made
in any manner which is not in conformity with the provisions of this Chapter is made without
consent. Any person who enters upon Indian land shall be deemed to have given consent to
the jurisdiction of the Tribe for purposes of enforcing this Chapter.
42.107 Effective Date.
This Chapter shall take effect upon its approval or substitute approval by the
Chairman of the NIGC under 25 CFR Part 522.
42.108 Repealer.
(1) The following Tribal ordinances, together with all amendments and additions to
those ordinances, are hereby repealed in their entirety:
(a) the Millionaire Party Gaming Ordinance, adopted November 4, 1985
by Tribal Resolution 11-04-85C; and
(b) the Bingo Control Ordinance, adopted February 19, 1985 by Tribal
Resolution 2-19-85.
(2) When this Chapter imposes greater restrictions than those contained in other
previously enacted Tribal ordinances, codes, or resolutions, the provisions of this Chapter
shall govern.

SUBCHAPTER II: DEFINITIONS

42-8

42.201 General Provisions.
In construing the provisions of this Chapter, unless otherwise plainly declared or
clearly apparent from the context:
(1) words in the present tense shall include the future tense;
(2) words in the masculine, feminine and neuter genders shall include all genders;
and
(3) words in the singular shall include the plural, and in the plural shall include the
singular.
42.202 Board of Directors.
"Board of Directors" means the Board of Directors of the Tribe.
42.203 Class I Gaming.
"Class I Gaming" means social games played solely for prizes of minimal value or
traditional forms of Indian gaming engaged in by individuals as a part of, or in connection
with, Tribal ceremonies or celebrations.
42.204 Class II Gaming.
"Class II Gaming" means:
(1) the game of chance commonly known as bingo (whether or not electronic,
computer, or other technologic aids are used in connection therewith):
(a) which is played for prizes, including monetary prizes, with cards bearing
numbers or other designations;
(b) in which the holder of the card covers such numbers or designations when
objects, similarly numbered or designated, are shown or electronically determined;
and
(c) in which the game is won only by the first person covering a previously
designated arrangement of numbers or designations on such cards, including (if
played in the same location) pull tabs, lotto, punch boards, tip jars, instant bingo, and
other games similar to bingo; and,
(2) those card games actually operated by the Tribe on or before May 1, 1988, to

42-9

the extent of the nature and scope of the card games on or before such date.
(3) card games that are:
(a) explicitly authorized by the State of Michigan; or
(b) are not explicitly prohibited by the laws of the State of Michigan and are
played at any location in the State of Michigan;
but only if such card games are played in conformity with those laws and regulations (if any)
of the State of Michigan regarding hours and periods of operation of such card games or
limitations on wagers or pot sizes in such card games.
(4) The term "class II gaming" does not include:
(a) any banking card games which are not included in sub. (2); or
(b) electronic or electromechanical facsimiles of any game of chance or slot
machines of any kind.
42.205 Class III Gaming.
"Class III Gaming" means all forms of gaming that are not class I or class II gaming.
42.206 Commission.
"Commission" means the Tribal Gaming Commission.
42.207 Commissioner.
"Commissioner" means one of the members of the Commission.
42.208 Director.
"Director" means the Director of the Commission appointed by the Board of
Directors as provided in '42.407.

42.209 Electronic Games of Chance.
"Electronic Games of Chance" means gambling games of chance featuring coin drop
and payout as well as printed tabulations, whereby the software of the device predetermines

42-10

the presence or lack of a winning combination and payout. Electronic games of chance are
defined as a microprocessor-controlled electronic device which allows a player to play
games of chance, which may be affected by an element of skill, activated by the insertion of
a coin or currency, or by the use of a credit, and awards game credits, cash, tokens, or
replays, or a written statement of the player's accumulated credits, which written statements
are redeemable for cash.
42.210 Game and Gambling Game.
"Game" and "Gambling Game" means any game played with cards, dice, equipment
or any mechanical, electromechanical or electronic device or machine for money, property,
checks, credit or any representative of value, including, without limiting the generality of the
foregoing, faro, monte, roulette, keno, bingo, fan-tan, blackjack (21), seven-and-a-half,
klondike, craps, poker, chuck-a-luck, Chinese chuck-a-luck (dai shu), wheel of fortune,
chemin de fer, baccarat, pai gow, beat the banker, panguingui, slot machine, any banking or
percentage game or any other game or device approved by the Commission, but does not
include games played with cards in private homes or residences in which no person makes
money for operating the game, except as a player.
42.211 Gaming and Gambling.
"Gaming" and "Gambling" means to deal, operate, carry on, conduct, maintain or
expose for play any game as defined by this Chapter.
42.212 Gaming Consultant.
"Gaming Consultant" means any person paid by the Tribe, the Commission, a
licensed gaming establishment, or a management contractor for professional, consulting or
advisory services related to gaming, or to perform any of the functions of a primary
management official or key employee, as an independent contractor and not an employee.
However, the term does not include an attorney with a contract approved under 25 USC '81
or '476.
42.213 Gaming Device.
"Gaming Device" means any equipment or mechanical, electromechanical 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 for random
selection, which affects the operation of any game or which determines the outcome of a
game. The term does not include a system or device which affects a game solely by stopping
its operation so that the outcome remains undetermined.

42-11

42.214 Gaming Enterprise.
“Gaming Enterprise” means the entities through which Tribes conduct, regulates, and
secures gaming on Indian lands within such tribe’s jurisdiction pursuant to the Indian
Gaming Regulatory Act.
42.215 Gaming Operation.
"Gross operation” means each economic entity that is licensed by a tribe, operated
the games received the revenues, issues the prizes, and pays the expenses. A gaming
operation may be operated by a tribe directly; by a management contractor; or, under certain
conditions, by another person or other entity.
42.216 Gross Revenue.
"Gross revenue" means the total revenue from all sources of a gaming enterprise
before operating expenses but after all gaming wins. The rules and regulations of the
American Institute of Certified Public Accountants defining gross revenues in a gaming
enterprise are adopted by this Chapter as if fully set forth herein. This definition may be
further defined by regulations promulgated by the NIGC.
42.217 IGRA.
"IGRA" means the Indian Gaming Regulatory Act, Pub.L. 100-497, 102 Stat. 2467,
the main provision of which are codified at 25 USC '2701 et seq., and any subsequent
amendments.
42.218 Indian Land.
"Indian land" means:
(1) land within the limits of the Reservation; or
(2) land over which the Tribe exercises governmental power and that is either:
(a) held in trust by the United States for the benefit of the Tribe or a
member of the Tribe; or
(b) held by the Tribe or a member of the Tribe subject to restriction by the
United States against alienation.
42.219 Key employee.

42-12

"Key employee" means:
(1) A person who performs one or more of the following functions:
(a) bingo caller;
(b) counting room supervisor;
(c) chief of security;
(d) floor manager;
(e) pit boss;
(f) dealer;
(g) croupier;
(h) approver of credit; or
(i) custodian of gaming devices including persons with access to cash and
accounting records within such devices.
(j) custodian of surveillance systems or surveillance system records.
(2) Any gaming operation employee authorized by the gaming operation for
unescorted access to secured gaming areas designated as secured gaming areas by the
TGRA.
(3) If not otherwise licensed as a key employee or primary management official, the
four most highly compensated persons in the gaming operation.
(4) Any other employee of the gaming enterprise as documented by the Tribe as a
key employee.
(5) “Key employee" does not include bartenders, cocktail waitresses or other persons
engaged exclusively in preparing or serving food or beverages.
42.220 License.
"License" means any license issued under Subchapter V of this Chapter.
42.221 Licensee.

42-13

"Licensee" means any person to whom a license has been issued under the provisions
of this Chapter.
42.222 Management Contract.
"Management Contract" means any contract, subcontract or collateral agreement
between the Tribe and a contractor or between a contractor and a subcontractor if such
contract or agreement provides for the management of all or a part of a licensed gaming
establishment that has been approved under Subchapter VI of this Chapter.
42.223 Native American or Indian.
"Native American" or "Indian" means any person who is subject to federal criminal
jurisdiction under the Major Crimes Act, 18 USC '1153.
42.224 Net Revenue.
"Net Revenue" means gross gaming revenues of an Indian gaming enterprise less:
(1) amounts paid out as, or paid for, prizes; and
(2) total gaming-related operating expenses, including all those expenses of the
gaming enterprise commonly known as operating expenses and non-operating expenses
consistent with professional accounting pronouncements, exclusive of management fees.
42.225 NIGC.
"NIGC" means the National Indian Gaming Commission, established by IGRA, 25
USC '2704.
42.226 Operating Expense.
"Operating expense" means any expense incurred in the daily operation of a licensed
gaming establishment, including items specifically designated as operating expenses in a
management contractor regulation adopted by the Commission.
42.227 Patron.
"Patron" means any person or group of persons on Indian land who participate as
players in games as defined by this Chapter, or use a gaming device, or who are physically
present on premises in or upon which such games are being played or such devices are used.

42-14

42.228 Person.
"Person" means any association, partnership, corporation, limited liability company,
firm, trust or other form of business association as well as a natural person.
42.229 Primary Management Official.
"Primary Management Official" means:
(1) the person having management responsibilities for a management contract;
(2) any person who has authority;
(a) to hire and fire employees of the gaming operation; or
(b) to establish policy for the gaming operation.; or
(3) the chief financial officer or other person who has financial management
responsibility.
(4) The general manager or a position with duties similar to a general manager.
(5) Any other employed management official of the gaming enterprise as documented
by the Tribe as a primary management official.

42.230 Reservation.
"Reservation", when not qualified, means the Sault Ste. Marie Tribe of Chippewa
Indians Indian Reservation and any other lands designated for the Tribe as reservation lands
by the Secretary of the Interior.
42.231 Tribal Court.
"Tribal Court" means the Tribal Court of the Sault Ste. Marie Tribe of Chippewa
Indians, as established by Tribal Code Chapter 80.
42.232 Tribal-State Compact or Compact.
"Tribal-State Compact" or "Compact" means the agreement between the Tribe and
the State of Michigan providing for the conduct of Class III gaming under 25 USC '2710(d)
executed on August 20, 1993, together with any subsequent amendments or agreements.

42-15

42.233 Tribe.
"Tribe" means the Sault Ste. Marie Tribe of Chippewa Indians.
SUBCHAPTER III: OWNERSHIP AND OPERATION OF LICENSED GAMING
ESTABLISHMENTS.
42.301 Tribal Ownership of Licensed Gaming Establishments.
Each licensed gaming establishment shall be wholly owned by the Tribe. No part or
share of the proceeds of the operation of a Tribal gaming establishment shall inure to the
benefit of any person except as provided in a management contract approved in accordance
with Subchapter VI. No gaming employee shall have any interest in the ownership or
leasing of any property, gaming device or premises used by a licensed gaming establishment.

42.302 Revenues to Benefit Tribe.
(1) The Tribe shall have the sole proprietary interest and responsibility for the
conduct of any gaming, subject to any management contract approved under Subchapter VI
under which net profits are divided between the Tribe and other parties to the contract.
(2) A licensed gaming establishment shall be operated so as to produce the
maximum amount of net revenue to the Tribe.
(3) The net revenue shall be used solely for one or more of the following purposes:
(a) to fund Tribal governmental operations or programs;
(b) to provide for the general welfare of the Tribe and its members;
(c) to promote Tribal economic development;
(d) to donate to charitable organizations;
(e) to help fund operations of local government agencies;
(f) for per capita payments to Tribal members upon adoption of a plan to do
so by the Board of Directors and approval of the plan by the Secretary of the Interior
under 25 USC § 2710(b)(3).

42-16

42.303 Management by Tribal Gaming Authority.
(1) Subject to the provision of any management contract, each licensed gaming
establishment shall be operated as a Tribal enterprise under the supervision and management
of Sault Ste. Marie Tribal Gaming Authority, as provided in its Charter, Tribal Code Chapter
94.
(2) Within the limitations imposed by this Chapter; the Sault Ste. Marie Tribal
Gaming Authority Charter, Tribal Code Chapter 94; and other provisions of Tribal law, and
subject to the provision of any management contract, the Tribal Gaming Authority shall:
(a) exercise exclusive control over the management and conduct of the
business and operations of each licensed gaming establishment, including rules of
play for the games played;
(b) contract and incur liability for and on behalf of the licensed gaming
establishment;
(c) borrow for or on behalf of the licensed gaming establishment money
which in its discretion and judgment be necessary for the conduct of the business,
and pledge or encumber business assets to secure the repayment of money so
borrowed;
(d) make all contracts for and on behalf of the licensed gaming establishment
in the conduct of its business;
(e) employ, discipline and discharge employees and establish personnel
policies and terms and conditions of employment;
(f) carry on and transact or supervise and control all of the other gaming
business of the Tribe; and
(g) establish procedures for resolving disputes between the gaming public
and the licensed gaming establishment or management contractor.
42.304 Gaming Managers.
The Tribal Gaming Authority shall employ one or more gaming managers to operate
the licensed gaming establishments. The Tribal Gaming Authority may delegate to a gaming
manager such of its powers and duties as it deems appropriate, subject to its supervisory
authority. Any person employed as a gaming manager upon the effective date shall continue
in that capacity, provided such person obtains a license as required by Subchapter V.
SUBCHAPTER IV: TRIBAL GAMING COMMISSION

42-17

42.401 Establishment and Composition of the Commission.
(1) The Tribal Gaming Commission is hereby created. The Commission shall
consist of the members of the Board of Directors holding office from time-to-time, except as
provided in subsection (3) below.
(2) A Commissioner shall hold office by virtue of his position as a member of the
Board of Directors, and shall hold office as a Tribal Gaming Commissioner only during his
tenure as a member of the Board of Directors.
(3) A member of the Board of Directors may decline to serve as a Tribal Gaming
Commissioner by filing a signed statement of declination with the Secretary of the Board of
Directors. Positions so vacated shall not be filled and shall not be counted in determining
the requirement for a quorum pursuant to Section 42.405 (2).
(4) The principal office of the Commission shall be maintained in Sault Ste. Marie,
Michigan.
42.402 General Powers and Duties of Commission.
The Commission shall have the powers and duties granted or imposed by this
Chapter, which shall include the following:
(1) To inspect and examine all premises wherein gaming is conducted or gambling
or gambling devices, equipment or supplies are manufactured, sold or distributed.
(2) To inspect all gaming devices, equipment and supplies in, upon or about a
licensed gaming establishment, or inspect any gaming devices, equipment or supplies
wherever located, which may or have been used in the licensed gaming establishment.
(3) To summarily seize and remove and impound such gaming devices, equipment or
supplies for the purpose of examination or inspection.
(4) To demand access to and inspect, examine and audit all papers, books, and
records of all applicants and licensees or affiliates of an applicant or licensee respecting any
income produced or expenditures made by any licensed gaming establishment, and require
verification of income and all other matters affecting the enforcement of any provision of
this Chapter vested in the Commission.
(5) To demand access to and inspect, examine and audit all papers, books, and
records of any and all business conducted in a licensed gaming establishment whether or not
a license is required to conduct such business.

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(6) To refer to federal, state or Tribal prosecutors or the NIGC the results of any
investigation for possible prosecution, institution of civil remedial forfeiture proceedings, or
other remedial action.
(7) To conduct hearings authorized by this Chapter and to issue subpoenas and
compel the attendance of witnesses, to administer oaths and to require testimony under oath
at any such hearing. Any person making false oath in any matter before the Commission is
guilty of perjury. Any process or notice may be served in the manner provided for service of
process and notices in a civil action. The Commission may pay such transportation and
other expenses of witnesses as it may deem reasonable and proper.
(8) To promulgate regulations as authorized in this Chapter.
(9) To meet at least quarterly with the Director.
(10) To organize itself into such functional divisions as it may deems necessary or
expedient from time to time.
(11) To receive and investigate complaints from patrons and other persons of
violations of this Chapter or Commission regulations.
(12) To employ staff and consultants in carry out its duties, and to make other
expenditures consistent with its budget approved under '42.411.
(13) To keep and maintain a file of all applications for licenses, together with a
record of all action taken with respect to such applications.
(14) To keep and maintain such other files and records as deemed necessary, to be
open to public inspections as deemed appropriate.
(15) To review and oversee implementation of internal controls adopted by
management as required by '42.715.
(16) To take other action necessary and incidental to the enumerated powers and
duties.
42.403 Compensation for Commissioners.
Commissioners shall be compensated at a rate to be established annually by the
Commission and approved by the Board of Directors. Commissioners shall be reimbursed
for actual expenses incurred on Commission business, including necessary travel expenses.
In no event shall compensation be based on the profitability of gaming enterprises.
42.404 Commission Chairperson.

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The Chairman of the Board of Directors shall serve as Chairman of the Tribal
Gaming Commission. The Chairman shall chair meetings of the Commission pursuant to its
bylaws should there be any. Where the Chairman can not chair a meeting the ViceChairman of the Board of Directors shall chair the meeting and then the Secretary of the
Board of Directors and finally the Treasurer of the Board of Directors. The Chairman, or a
majority of the Commissioners, shall have the power to convene special meetings of the
Commission. The Chairman shall vote only in the event of a tie.
42.405 Meetings.
(1) The Commission shall hold quarterly meetings on the first Tuesday of each
quarter, starting with March 4, 2008, and the first Tuesdays of June, September and
December 2008 and thereafter. Regular meetings shall be open to the general membership
of the Tribe. Meetings shall be conducted according to bylaws adopted by the Commission
and approved by the Board of Directors for that purpose.
(2) A quorum shall consist of a simple majority of the Commissioners then holding
office. All decisions shall be made by a majority vote of the Commissioners attending a
meeting, provided a quorum is present, unless otherwise provided in this Chapter.
(3) Matters dealing with personnel, security, particular applicants or licensees,
enforcement, or the fiscal integrity of the licensed gaming establishment shall be conducted
in executive session and shall not be open to the public.
(4) Regardless of Chapter 14, Section 14.103, a special meeting may be convened
by:
(a)

The Chairperson given 48 hours written notice; or

(b)

The Commissioners, upon majority consent, with 48 hours written
notice.

(5) The Commission shall cause to be made and kept a record of all proceedings at
its regular and special meetings. Those records shall be open to inspection by the Board of
Directors.
42.406 Quarterly Report.
The Commission shall make quarterly reports to the Board of Directors within thirty
(30) days after the close of the quarter. The report shall include a summary of all licensing
and completed investigative actions and a financial report on the Commission budget.
42.407 Appointment of Director.

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The Board of Directors, with the advice and consent of the Commission, shall
appoint a Director who shall be responsible for the day-to-day management of the affairs of
the Commission. A detailed background investigation shall be conducted on the Director
before his appointment and the Commission shall maintain oversight of the director on an
ongoing basis. Preference shall be given to applicants with experience in legal gaming or
law enforcement. The Director shall meet the requirements of '42.505(3). The Director shall
not have any personal interest in any Tribal gaming enterprises.
42.408 Director's Contract.
The Director shall be hired on a contract for a period of at least two (2) years. The
terms of the contract, including compensation, shall be approved by the Board of Directors.
Compensation for the Director shall not be based, in whole or in part, on the profitability of
the gaming enterprises.
42.409 Termination of Director.
The Director shall be terminated immediately and without the necessity of a vote or
hearing upon conviction of or entry of a plea of guilty or no contest to any criminal offense.
Otherwise, the Director shall be suspended or terminated upon the same grounds and under
the same terms, conditions and procedures as are set forth in '42.515, except suspensions and
initiation of termination proceedings shall be the function of the Commission, and the
hearing and decision shall be the function of the Board of Directors.
42.410 Duties of Director.
The Director shall, subject to the supervision of the Commission, perform all duties,
exercise all powers, and assume and discharge all responsibilities imposed by this Chapter or
delegated by the Commission. The Director's duties shall include but not be limited to the
following:
(1) Serve as the chief executive officer of the Commission and supervise its staff.
(2) Negotiate contracts for the provision of services necessary for the operation of
the Commission as approved by the Commission and expend funds for its operation within
its budget.
(3) Arrange for an annual outside audit of authorized gaming and provide a copy to
the NIGC and the Board of Directors.

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(4) Provide for an adequate system which ensures that the background investigations
required by this Chapter are conducted in a manner which complies with this Chapter and
with NIGC regulations.
(5) Make a decision on all applications for licenses, subject to appeal to the
Commission.
(6) Provide for investigations and oversight of licensees, make decisions on
suspension of licenses, and initiate license revocation proceedings.
(7) Provide for investigation of complaints relating to activities which fall within the
regulatory authority of the Commission.
(8) Send notice to the NIGC of all actions or matters for which such notice is
required by this Chapter, IGRA or NIGC regulations.
(9) Prepare reports and make recommendations to the Commission about any other
matter within the Commission's jurisdiction.
42.411 Commission Budget.
(1) The Commission shall prepare an annual budget for operations, including the
Director, staff, consulting services, equipment, supplies and such other items as are deemed
necessary or desirable in carrying out its functions.
(2) The budget shall be submitted to the Board of Directors for approval. The Board
of Directors shall appropriate such sums as are reasonable and necessary to allow the
Commission to perform its duties. The Board of Directors may review and modify the
budget from time to time.
42.412 Restrictions on Commissioners and Director.
(1) The Director and the Commissioners may hold another Tribal position or engage
in any business which does not conflict with their responsibilities under this Chapter.
However, neither the Director nor any Commissioner may be engaged in or have any
pecuniary interest in any business which is subject to the provisions of this Chapter or which
does business with any licensed gaming establishment.
(2) A Gaming Commissioner, a Gaming Commission staff member, or a Director or
a member of the Director’s household, shall not be able to gamble in any Sault Ste. Marie
Tribe of Chippewa Indians’gaming establishment licensed pursuant to this Chapter, or have
any personal financial interest in any gambling by any patron in an establishment licensed
pursuant to this Chapter.

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42.413 Applications and Investigations.
(1) The following notice shall be placed on the Tribe’s license application form for a
key employee, primary management official, or gaming consultant before it is filled out by
the applicant:
In compliance with the Privacy Act of 1974, the following information is provided:
Solicitation of the information on this form is authorized by 25 U.S. C. §§2701 et seq. The
purpose of the requested information is to determine the eligibility of individuals to be
granted a gaming license. The information will be used by the tribal gaming regulatory
authorities and by the NIGC members and staff who have need for the information in the
performance of their official duties. The information may be disclosed by the Tribe or the
NIGC to appropriate federal, tribal, state, local or foreign law enforcement and regulatory
agencies when relevant to civil, criminal, or regulatory investigations or prosecutions or
when pursuant to a requirement by a tribe or the NIGC in connection with the issuance,
denial, or revocation of a gaming license, or investigations of activities while associated
with a tribe or a gaming enterprise. Failure to consent to the disclosures indicted in this
notice will result in the Tribe being unable to license you for a primary management official
or key employee position.
The disclosure of your Social Security Number (SSN) is voluntary. However, failure to
supply a SSN may result in errors in processing your application.
A false statement on any part of your license application may be grounds for denying a
license or the suspension or revocation of a license. Also, you may be punished by fine or
imprisonment (U.S. Code, title 18, section 1001).
(2) The Director shall conduct a background investigation on each primary
management official, key employee or gaming consultant sufficient to make a licensing
determination under section 42.505.
(3) The Director shall investigate the qualifications of each applicant under this
Chapter before any license is issued or any approval of acts or transactions for which
Director or Commission approval is required or permission granted, and shall continue to
observe the conduct of all licensees and other persons having a material involvement directly
or indirectly with a licensed gaming establishment to ensure that licenses are not issued to or
held by, nor is there any material involvement directly or indirectly with a licensed gaming
enterprise by, unqualified, disqualified or unsuitable persons, or persons whose operations
are conducted in an unsuitable manner.
(4)
The Director shall obtain from each primary management official, key
employee, and gaming consultant all of the following information:
(a) Full name, other names used (oral or written), social security number,
birth date, place of birth, citizenship, gender, and all languages spoken and/or written;

42-23

(b) Currently, and for the previous five (5) years, business and employment
positions held, ownership interests in those businesses, business and residential addresses,
and driver’s license numbers;
(c) The names and current addresses of at least three (3) personal references,
including one (1) personal reference who was acquainted with the applicant during each
period of residence listed under paragraph (4)(b) of this section;
(d) Current business and residential telephone numbers, and all cell phone numbers;
(e) A description of any existing and previous business relationships with other
tribes, including any ownership interests in the business;
(f) A description of any existing and previous business relationships with the gaming
industry generally, including ownership interests in the businesses;
(g) The name and address of any licensing or regulatory agency with which the
person has filed an application for a license or permit related to gaming, whether or not such
license or permit was granted;
(h) For each felony for which there is an ongoing prosecution or conviction, the
charge, the name and address of the court involved, and the date of disposition, if any;
(i) For each misdemeanor conviction or ongoing misdemeanor prosecution
(excluding minor traffic violations) within (10) years of the date of the application, the name
and address of the court involved, and the date of disposition, if any;
(j) For each criminal charge (excluding minor traffic charges), whether or not there
is a conviction, if such criminal charge is within ten (10) years of the date of the application,
and is not otherwise listed pursuant to paragraphs (4)(h) and (i) of this section, the criminal
charge, the name and address of the court involved, and the date of disposition, if any;
(k) The name and address of any licensing or regulatory agency with which the
person has filed an application for an occupational license or permit, whether or not such
license or permit was granted;
(l) A photograph;
(m) Any other information the Tribe deems relevant; and
(n) Fingerprints obtained in accordance with procedures adopted by the Tribe
pursuant to 25 C.F. R. § 522.2 (h).

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42.414 Licensing Decisions.
The Director shall make the decision regarding the approval, disapproval,
suspension, initiation of revocation proceedings regarding, or imposition of limit or
condition upon a license. Any licensing decision made by the Director may be appealed to
the Commission as provided in '42.415.
42.415 Right to a Hearing.
(1) Any person aggrieved by a decision or determination made by the Director or by
the Commission without a hearing may appeal that decision or determination to the
Commission by filing a written notice of appeal with the Commission within ten (10) days
after the decision or determination is made.
(2) The Commission shall hold a hearing to review the matter within thirty (30) days
after receipt of a notice of appeal. At the hearing, the burden shall be upon the aggrieved
party to show why the decision or determination was incorrect. The Commission shall issue
regulations providing procedures for such hearings.
(3) The Commission shall make its decision and issue written findings and
conclusions within eight (8) working days after the hearing.
(4) The decision of the Commission shall be final, and no further appeal may be had.
The Tribal Court shall not have jurisdiction to hear appeals of Commission decisions, nor to
review the Commission actions in any other way.
42.416 Confidentiality.
The Commission and the Director may refuse to reveal in any court proceeding the
identity of any informant, or the information obtained from the informant, or both the
identity and the information.
42.417 Commission Regulations.
The Commission shall, from time to time, adopt, amend or repeal such regulations,
consistent with the policy, objects and purposes of this Chapter, as it may deem necessary or
desirable in the public interest in carrying out the duties of the Commission as defined by
this Chapter. Commission regulations shall be submitted to the Board of Directors for
review and shall not take effect until approved by resolution of the Board of Directors,
except as provided in '42.418(2). These regulations must at a minimum include the
following:
(1) The method and form of application which any applicant for a license must
follow and complete before consideration of the application by the Director.

42-25

(2) The information to be furnished by any applicant or licensee concerning his or
her antecedents, habits, character, associates, criminal record, business activities and
financial affairs, past or present and any additional information required by the IRGA, NIGC
regulations, the Tribal-State Compact, or this Chapter.
(3) The information to be furnished by a licensee relating to employees.
(4) Fingerprinting of an applicant or licensee or employee of a licensed gaming
establishment and other methods of identification as the Commission deems appropriate.
(5) The manner and method of collection and payment of fees and issuance of
licenses.
(6) Requiring an applicant to pay all or any part of the fees and costs of
investigation of such applicant as may be determined by the Commission.
(7) Prescribing the manner and procedure of all hearings conducted by the
Commission.
(8) Protecting due process rights of all individuals subject to the enforcement of this
Chapter by the Commission. Such regulations shall, at a minimum:
(a) provide standards for emergency or summary suspension of license;
and
(b) provide fair notice and opportunity for hearing regarding any revocation
or suspension of license, and regarding any enforcement action taken pursuant to this
Chapter by the Director or the Commission.
42.418 Prior Notice of Actions.
(1) In adopting, amending, and repealing regulations, the Commission shall give
prior notice of the proposed action to all licensees and other persons whom the Commission
or Director has reason to believe have a legitimate and bona fide interest in such proposed
action. The notice shall inform such persons as to the general nature of the proposed action
and advise them as to the manner in which comments on the proposed action shall be
received by the Commission.
(2) In emergencies, the Commission may summarily adopt, amend or repeal any
regulation if at the time the Commission determines such action is necessary for the
immediate preservation of the public peace, health, safety, morals, and good order or general
welfare, together with a statement of facts constituting the emergency. Such regulation shall
take effect immediately but shall expire ten days after the date of adoption unless reviewed
and approved by the Board of Directors within that ten-day period. The Commission shall
schedule such emergency action for regular comment and action within sixty (60) days after
any such emergency action.

42-26

42.419 Request for Commission Action.
Any person who is determined by the Commission or Director to be a bona fide
interested party may file a petition in a manner and form approved by the Commission
requesting the adoption, amendment or repeal of a regulation. Upon receipt of the petition,
the Commission shall within thirty (30) days deny the request in writing or proceed with the
requested action.
42.420 Independence of Commission.
The Commission is constituted as an independent regulatory agency of the Tribe. It
shall not be subject to political direction or influence in the performance of its duties from
the Board of Directors or any member of the Board or officer of the Tribe.
42.421 Relation to Gaming Management.
Neither the Commission nor the Director has any role in the management of any
licensed gaming establishment. Aside from the specific duties of the Commission and
Director as defined in this Chapter all decisions, policies and actions with regard to the
operation of any licensed gaming establishment are the prerogative and responsibility of
gaming management as described in Subchapter III of this Chapter.
42.422 Legal Advisor.
The Board of Directors shall appoint an attorney as legal advisor for the Commission.
Such attorney shall represent the Commission in any proceedings to which the Commission
is a party.
42.423 Approval of Gaming Devices.
The Commission may, in its discretion, review and approve all gaming devices used
in any licensed gaming establishment to assure compliance with the minimum standards
imposed in '42.704.
42.424 List of Undesirables.
(1) The Commission shall, by regulation, provide for the establishment of list of
persons who are to be excluded or ejected from any licensed gaming establishment. The list
may include any person whose presence is determined by gaming management to pose a
threat to the interests of the Tribe or to licensed gaming.
(2) The Commission shall promulgate regulations providing fair notice and
opportunity to be heard to any individual whose name has been placed on the list by gaming

42-27

management. Such regulations must provide the person an opportunity to show cause why
the person's name should be deleted from the list.
42.425 Patron Dispute Resolution.
Patrons with complaints against a Licensed Gaming Establishment shall have as their sole
remedy the right to file a complaint with the Commission as follows.
(1)
A complaint shall be submitted in writing to the Director within thirty days of the
incident that gave rise to the complaint.
(2)
Within three business days of receipt of the complaint, the Commission shall notify
casino management of the complaint.
(3)
Within five business days after the subsection (2) notice, the Director or the
Director’s designee, the gaming manager in whose facility the underlying incident occurred,
and the chief executive officer shall develop a proposed remedy and shall provide the
complainant with written notice of that proposed remedy by first class mail. Complainant
shall than have thirty days from the date of that notice to respond in writing either accepting
the proposed remedy or electing to request a hearing under subsection (4). If the thirty-day
time frame expires and complainant has not made a written response under this subsection,
the complainant forfeits all rights in connection with the complaint.
(4)
If complainant is not satisfied with the proposed remedy, the complainant may make
a written request for a hearing in front of the Commission. The hearing shall occur no later
than sixty days following the request. The complainant may have counsel present at the
hearing. The complainant may be allowed to present evidence, at the discretion of the
Commission. After the hearing, the Commission shall render a decision in a timely fashion.
All such decisions shall be final when issued and shall constitute the complainant’s final
remedy.
(5)
Nothing contained herein shall be construed to be a waiver of immunity under Tribal
Code Chapter 44: Waiver of Tribal Immunities and Jurisdictions in Commercial
Transactions.
(6)

The Director shall promulgate procedures to effectuate this section.

SUBCHAPTER V: LICENSES
42.501 Types of Licenses.

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(1) Each gaming establishment on Indian land shall obtain a license. Any person
wishing to conduct class II or class III gaming on Indian land shall apply for a license
authorizing such gaming.
(2) Any person who has been hired for a position in or is employed in any licensed
gaming establishment as a primary management official or a key employee, and all gaming
consultants shall apply for a license authorizing such employment or consulting.
(3) Any gaming device supplier shall apply for and obtain a license before
supplying, assembling, or installing any gaming device, equipment or supply to or in a
licensed gaming establishment.
(4) Any person seeking to conduct, operate or manage any gaming on Indian land
shall apply for, and receive, all required licenses prior to engaging in such activity, except as
provided in '42.511.
42.502 Class I Gaming.
Class I gaming may be conducted on Indian land without a license. The Commission
may investigate such activity to insure that it meets all requirements for class I gaming, and
may promulgate regulations concerning such gaming.
42.503 Licensing of Class II Gaming.
(1) A separate license shall be required for each place, facility, or location on Indian
land at which any class II gaming is conducted.
(2) The Director or Commission may license a Tribally owned class II gaming
establishment if:
(a) such establishment is located on land as provided in '42.801;
(b) the State of Michigan continues to permit such gaming for any purpose
by any person, organization or entity, and such gaming is not otherwise specifically
prohibited on Indian land by federal law;
(c) subject to any management contract approved under Subchapter VI, the
Tribe has the sole proprietary interest and responsibility for the conduct of such
gaming;
(d) net revenues from such gaming are used in accordance with '42.302(3);

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(e) such gaming activity is subject to annual outside audits, which may be
encompassed within existing independent Tribal audit systems, and provided to the
Board of Directors;
(f) all contracts for supplies, services or concessions for any aggregated
amount in excess of $25,000 annually relating to such class II gaming (except
contracts for legal or accounting services) are also subject to independent audits;
(g) the construction and maintenance of the gaming facility, and the
operation of the gaming, is conducted in a manner which adequately protects the
environment and the health and safety of the public;
(h) background investigations are conducted on all primary management
officials, key employees and gaming consultants of the class II gaming enterprise in
the manner provided in '42.413 and this Subchapter; and
(i) oversight of primary management officials, key employees and gaming
consultants, and their management, is conducted on an ongoing basis.
42.504 Licensing of Class III Gaming.
(1) The Director or Commission may license class III gaming if such gaming is
conducted in conformity with the IGRA, NIGC regulations, the Tribal-State Compact, and
this Chapter. In addition, the applicant shall meet and comply with all of the requirements of
'42.503(2). Any gaming establishment wishing to conduct class III gaming must be licensed.
(2) A class III licensed gaming establishment may lawfully conduct the following
games:
(a) craps and related dice games;
(b) wheel games, including "Big Wheel" and related games;
(c) roulette;
(d) banking card games that are not otherwise treated as class II gaming in
Michigan pursuant to 25 USC '2703(7)(c), and non-banking card games played by
any Michigan tribe on or before May 17, 1988;
(e) electronic games of chance; and
(f) keno.

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(3) Additional class III games may be played by the licensee only if they have been
authorized under '3(B) of the Tribal-State Compact.
42.505 Licensing of Primary Management Officials, Key Employees, and Gaming
Consultants.
(1) Any person determined by the Director to be qualified to receive a license shall
be issued a license. No license shall be issued unless a background investigation has been
completed on the applicant.
(2) The Director shall review an applicant's prior activities, criminal record, if any,
and reputation, habits and associations to make a finding concerning the eligibility of a
primary management official, key employee or gaming consultant for a license.
(3) No license shall be granted to any person who:
(a) is under the age of 18; or
(b) has been convicted of or entered a plea of guilty or no contest to a
gambling related offense, fraud or misrepresentation; or
(c) has been convicted of or entered a plea of guilty or no contest to any
offense not specified in sub. (b) within the immediately preceding five years. This
provision shall not apply if that person has been pardoned by the Governor of the
state where the conviction occurred or, if a Tribal member, is determined to be a
person who is not likely again to engage in any offense or criminal course of
conduct
and the public good does not require that the applicant be denied a gaming
license;or
(d) is determined to have participated in organized crime or unlawful
gambling or whose prior activities, criminal record, if any, or reputation, habits, and
associations pose a threat to the public interest or to the effective regulation and
control of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal
practices, methods and activities in the conduct of gaming or the carrying on of the
business and financial arrangements incidental thereto.
42.506 Licensing of Gaming Device Suppliers.
(1) Any person who supplies gaming devices to any licensed gaming establishment
shall have a license issued by the Director or Commission. A person is a gaming device
supplier if the person sells, leases, assembles or installs any gaming device, equipment or
supplies for use at any licensed gaming establishment.
(2) Prior to entering into any lease or purchase agreement, the licensed gaming
establishment or the proposed gaming device supplier, and all persons holding a direct or
indirect financial interest in the gaming device supplier or the lease or purchase agreement,

42-31

shall provide to the Director such information as the Commission shall prescribe to permit
the Director to conduct a background investigation on those persons or entities. The
Director shall be provided any additional information that the Director may request.
(3) The Director shall review the information submitted and determine from the
applicant's prior activities, criminal record, if any, and reputation, habits and associations
whether to make a finding of the eligibility of the gaming device supplier for a license. No
license shall be issued if the applicant, or any manager or person holding direct or indirect
financial interest in the supplier or the proposed lease or purchase agreement is determined
to have:
(a) participated in or have involvement with organized crime; or
(b) been convicted of or entered a plea of guilty or no contest to a gambling
related offense, fraud or misrepresentation; or
(c) been convicted of or entered a plea of guilty or no contest to any other
felony offense within the immediately preceding five years, unless that person has
been pardoned.
42.507 Non-Transferability of License.
Any license issued pursuant to the provisions of this Subchapter is valid only for the
person or establishment at the place of business shown on its face. It is not assignable or
otherwise transferable.
42.508 Granting of License.
(1) Subject to appeal to the Commission as provided in Subchapter IV, all licenses
shall be issued by the Director.
(2) No license shall be issued to a person whose license has previously been revoked
pursuant to this Chapter, or to whom the issuance or renewal of a license has been denied,
except with the unanimous approval of the Commission members.
(3) Before a license is issued to a primary management official, key employee, or
gaming consultant, the Gaming Commission shall take the applicant’s fingerprints and shall
conduct a background investigation including a check of criminal history records
information maintained by each state in which the applicant has lived or worked as well as
criminal history records information maintained by the Federal Bureau of Investigation and
shall create an investigative report which shall make a finding concerning the eligibility of
that person for receiving a gaming license by reviewing the applicant’s prior activities,
criminal record, if any, and reputation, habits and associations. The investigative report shall
include all of the following:

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(a)
(b)
(c)
(d)

Steps taken in conducting the background investigation:
Results obtained;
Conclusion reached;
The basis for those conclusions.

(4) If the Director, in applying the standards adopted in this ordinance, determines
that licensing that person poses a threat to the public interest or the effective regulation of
gaming, or creates or enhances the dangers of unsuitable, unfair or illegal practices, methods,
and/or activities in the conduct of gaming, he or she shall not license that person in a primary
management official, key employee, or gaming consultant position.
(5) Copies of the eligibility determination and the investigative report shall be
included with the notice of results that must be submitted to the NIGC before the licensing of
a primary management official, or key employee.
(6) In conducting a background investigation, the Gaming Commission shall keep
confidential the identity of each person interviewed in the course of the investigation.
42.509 Consultation with Law Enforcement.
The Director shall consult with appropriate law enforcement officials concerning any
application for a license before the license is issued.
42.510 Fees.
The Commission shall set a fee for applications, background investigations and
licenses. All such fees shall be made payable to the Tribe.
42.511 Ninety Day Limitation; Grace Period.
(1) No licensed gaming establishment shall employ a primary management official
or key employee who does not obtain a license within ninety (90) days of being hired or
upon the clearance of the fingerprints from the background checks submitted to the Federal
Bureau of Investigation. No such person may begin employment without having had
completed an application for a license. No gaming consultant shall perform any services for
a licensed gaming establishment prior to issuance of a license. If any information is received
that would disqualify the applicant from receiving a license, the applicant will no longer be
employed.
(2) Notwithstanding any other provision of this Chapter, primary management
officials, key employees and gaming consultants employed by the Tribe in gaming prior to
the effective date of this Chapter shall not be required to have a license upon the effective
date. All such persons shall apply for a license within ten (10) working days after the
effective date. The Director shall make a determination whether to grant a license within

42-33

ninety (90) days of the effective date; provided, that if the Director needs additional time, a
temporary license may be issued to an applicant for thirty (30) days, so long as such action
will not endanger the effective regulation of gaming under this Chapter.
(3) Notwithstanding any other provision of this Chapter, gaming facilities operated
by the Tribe on the effective date of this Chapter shall not be required to be licensed upon
the effective date. Each Tribal facility shall apply for a license within five (5) working days
after the effective date. The Director shall make a determination to grant a license within
thirty (30) days of the effective date. Upon issuance of the license the gaming facility shall
comply fully with all provisions of this Chapter.
42.512 Reports to NIGC; Processing of Applications.
(1) Before issuing a license to a primary management official or key employee, the
Director shall prepare notice of results of the applicant’s background investigation to submit
to the NIGC. The notice of results must be submitted to the NIGC no later than 60 days after
the applicant begins working for the Tribe.
(2) The notice of results shall include the following information:
(a) the applicant’s name, date of birth, and social security number;
(b) the date on which the applicant began, or will begin, working as a
primary management official or key employee;
(c) A summary of the information presented in the investigative report,
including,
(i) Licenses that have been previously denied;
(ii) Gaming licenses that have been revoked, even if
subsequently reinstated;
(iii) every known criminal charge brought against the applicant
within the last ten (10) years of the date of the application; and
(iv) every felony offense of which the applicant has been convicted
or any ongoing prosecution; and
(d) A copy of the eligibility determination made in accordance with
Section 402.508.
(3) The Director may license a primary management official or key employee
applicant after submitting an investigative report and a notice of results of the applicant’s
background investigation to the NIGC.

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(4) The Director shall notify the NIGC of the issuance of a license to a primary
management official or key employee within 30 days of issuance.
(5) The Tribe shall not employ an individual as a primary management official or
key employee who does not have a license after ninety (90) days of beginning work at a
gaming operation.
(6) The Director shall reconsider a license application for a primary management
official or key employee if he or she receives a statement of itemized objections to issuing
such a license from the NIGC, and those objections are received within thirty (30) days of
the NIGC receiving a notice of results of the applicant’s background investigation. The
Director shall take the NIGC’s objections into account when reconsidering the application.
The Director may refer the matter to the Commission for reconsideration. The Director or
the Commission shall make the final decision whether to issue a license to the applicant.
(7) If the Director or Commission does not license an applicant for a primary
management official or key employee position, the Director shall notify the NIGC of that
action and forward copies of its eligibility determination and notice of results of the
applicant’s background investigation to the NIGC for inclusion in the Indian Gaming
Individuals Record System.
42.513 Disclosure by Applicant.
The burden of providing eligibility to receive any license is on the applicant. An
applicant for licensing shall make true and full disclosure of all information to the Director
as required by this Chapter, necessary and appropriate in the public interest or as required in
order to carry out the policies of the Tribe relating to licensing and control of the gaming
industry. It is the duty of the applicant to disclose all information material to whether the
applicant's involvement with gaming would jeopardize or compromise the Tribal interest,
whether or not the applicant has been specifically requested to provide that information.
42.514 Violations by Licensee.
(1) Violation of any material provision of this Chapter or of any Commission
regulation by a licensee or its agent or employee shall be deemed contrary to the public
health, safety, morals, good order, and general welfare of the Tribe, and shall be deemed
grounds for refusing to grant or renew a license or suspension or revocation of a license.
(2) Acceptance of a license or renewal on the part of the licensee shall constitute the
licensee's agreement to be bound by all of the regulations and conditions of the Commission
and Director and by the provisions of this Chapter and any amendments hereafter
promulgated, and to cooperate fully with the Director and Commission. It is the responsibil-

42-35

ity of the Licensee to keep informed of the contents of such regulations, amendments,
provisions, and conditions, and ignorance will not excuse violations.
(3) The management of any licensed gaming establishment shall report to the
Director any known or suspected violation of this Chapter, regulations under this Chapter or
any criminal activity, whether related to gaming or otherwise, by any person licensed under
this Subchapter as soon as the information becomes known to management. The report must
be made regardless of whether disciplinary action or referral for prosecution is contemplated.
42.515 Suspension or Revocation of License.
(1) If, after issuance of a license, the Director receives reliable information that a
person licensed under this Chapter has violated or been charged with a violation of any
criminal law, any provision of this Chapter or regulation promulgated under this Chapter, or
is otherwise not eligible for a license, the Director shall conduct an investigation to
determine whether revocation proceedings should be initiated.
(2) The person's license shall be suspended and revocation proceedings shall be
initiated if:
(a) the person has been convicted of or pled guilty or no contest to any
criminal offense; or
(b) the person has been charged with a criminal offense related to gambling,
fraud or activities arising during the course of employment.
(3) The person’s license shall be immediately suspended and a revocation hearing
shall be initiated if the information came to the Director by notification from the NIGC that a
primary management official or key employee is not eligible for licensing;
(4) In all other cases, the Director may suspend the person’s license pending
completion of the investigation of circumstances warrant. The Director shall notify the
licensee in writing of any suspension.
(5) If the Director determines that a license revocation is warranted or required under
this section, the Director shall notify the licensee of a proposed revocation of the license.
The notice shall include the time and place for a hearing on the proposed revocation before
the Commission.
(6) At the hearing, the burden shall be on the licensee to establish continued
eligibility for a license. After the hearing, the Commission shall make one of the following
dispositions:
(a) revoke the license;
(b) reinstate the license; or

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(c) reinstate the license with conditions or limitations.
(7) The decision of the Commission is final. The Commission may revoke a license
regardless of whether:
(a) the license has been disciplined or discharged by the licensed gaming
establishment;
(b) criminal or civil remedial forfeiture proceedings have been initiated; or
(c) if criminal charges were brought, that resulted in dismal or acquittal.
(8) The Tribe shall notify the NIGC of its decision to revoke or reinstate a license
within 45 days of receiving notification from the NIGC that a primary management official
or key employee is not eligible for licensing.
(9) The Gaming Commission shall retain, for no less than three (3) years from the
date a primary management official, key employee, or gaming consultant is terminated for
employment with the Tribe, the following documentation:
(a) Application for licensing;
(b) Investigative Report; and
(c) Eligibility Determination.
SUBCHAPTER VI: MANAGEMENT CONTRACTS
42.601 Commission Approval Required.
(1) Any management contract entered into by the Tribe or by any licensed gaming
establishment for the operation and management of class II or III gaming activity must be
submitted to the Commission for approval and a finding a suitability. Before approving such
contract, the Commission shall require and obtain the following information:
(a) The name, address of each of the following:
(I) each person with management responsibility for a management
contract;
(ii) each person who is the director of a corporation that is a party
to a management contract;

42-37

(iii) each member of the Board of Directors of a corporation that
is a party to a management contract;
(iv) each stockholder of a corporation who holds either directly or
indirectly 10% or more of its issued and outstanding stock;
(v) each person who has a direct or indirect financial interest in an
entity that is a party to a management contract; and
(vi) each person who has a direct or indirect financial interest in
a management contract.
(b) For each of the individuals identified in sub. (a), the management
contractor shall provide to the Commission:
(I) full name, other names used, social security number(s), birth
date, place of birth, citizenship and gender;
(ii) a current photograph, driver's license number, and which
state(s) issued a driver's license;
(iii) business and employment positions held, and business and
residence addresses currently and for the previous ten (10) years; the city,
state and country of residence from age eighteen (18) until the present;
(iv) the names and current addresses of at least three (3) personal
references, including one personal reference who was acquainted with the
person at each different residence for the past five (5) years;
(v) current residence and business addresses and telephone
numbers;
(vi) a description of any previous business relationships with Indian
tribes, including ownership interests in those businesses;
(vii) a description of any previous business relationships with the
gaming industry generally, including ownership interests in those businesses;
(viii) the name and address of any licensing or regulatory agency
with which the person has filed an application for a license or permit
related to gaming, whether or not such license or permit was granted;
(ix) for each gaming related offense and for each felony for which
there is an ongoing prosecution or a conviction, or for which a plea of

42-38

guilty or no contest was entered, the name and address of the court involved,
the charge, and the dates of the charge and of the disposition;
(x) for each misdemeanor conviction or ongoing misdemeanor
prosecution (excluding minor traffic violations) within ten (10) years of the
date of the application, the name and address of the court involved, and the
dates of the prosecution and the disposition;
(xi) a complete financial statement showing all sources of income
for the previous three years, and assets, liabilities, and net worth as of the
date of the submission; and
(xii) the management contractor shall arrange with an appropriate
federal, state or Tribal law enforcement authority to supply the Commission
with a completed fingerprint form (form FD-258) which is supplied by the
NIGC for each of the individuals identified in sub. (a).
(2) The management contractor shall supply any further or additional information as
may be required by the IGRA, NIGC regulations or the Tribal-State Compact.
(3) The management contractor and any other person listed in sub. (1)(a) shall be
required to respond to such written or oral questions as the Commission may propound in
accordance with its responsibilities under this section.
(4) For purposes of this Chapter, any reference to the management contract
described in sub. (1) shall be considered to include all collateral agreements to such contract
that relate to the gaming activity.
42.602 Requirements for Approval.
The Commission may approve any management contract entered into by the Tribe or
a licensed gaming establishment under this Subchapter only if it determines that such
contract provides at a minimum:
(1) That all gaming covered by the contract will be conducted in accordance with the
IGRA, NIGC regulations, the Tribal-State Compact and this Chapter.
(2) For the establishment and maintenance of satisfactory accounting systems and
procedures that shall, at a minimum:
(a) include an adequate system of internal accounting controls;
(b) include the preparation of financial statements in accordance with
generally accepted accounting principles.

42-39

(3) For immediate access to the gaming operation, including its books and records,
by appropriate Tribal officials who shall have a right to verify the daily gross revenues and
income made from any gaming activity.
(4) For verifiable financial reports that are prepared by or for the Board of Directors
on a monthly basis.
(5) For a minimum guaranteed payment to the Tribe that has preference over the
retirement of development and construction costs.
(6) For an agreed ceiling for repayment of development and construction costs.
(7) For a contract term not to exceed five years, except that, upon the request of the
Tribe, a contract term of not more than seven years may be approved where the capital
investment required and the income projections for the gaming activity require the additional
time.
(8) For grounds and mechanisms for terminating such contract.
(9) For preference to Native Americans in the hiring of employees for the licensed
gaming establishment in accordance with '42.708.
(10) For a fee based upon a percentage of the net revenues of a licensed gaming
establishment that is reasonable in light of surrounding circumstances. Such fee shall not
exceed thirty (30%) of the net revenues except that a management fee of not more than forty
percent (40%) of net revenues may be approved when requested by the Tribe only if the
capital investment required and income projections for such gaming activity require the
additional fee.
42.603 Contract Disapproval.
The Commission shall not approve any management contract if it determines that:
(1) Any person listed in '42.601(1)(a):
(a) is an elected member of the Board of Directors; or
(b) has been or subsequently is convicted of any felony or gaming offense;
or
(c) has knowingly and willfully provided materially important false
statements or information to the Commission or Tribal officials or has refused to
respond to questions propounded under '42.601(1)(b); or

42-40

(d) has been determined to be a person whose prior activities, criminal
record if any, or reputation, habits, and associations pose a threat to the public
interest or to the effective regulation and control of gaming, or create or enhance the
dangers of unsuitable, unfair, or illegal practices, methods, and activities in the
conduct of gaming or the carrying on of the business and financial arrangements
thereto;
(2) the management contractor has, or has attempted to, unduly interfere with or
influence for its gain or advantage any decision or process of Tribal government relating to
gaming activity; or
(3) the management contractor has deliberately or substantially failed to comply with
the terms of the management contract or the provisions of the IGRA, NIGC regulations, the
Tribal-State Compact or this Chapter.
42.604 Modify or Voiding Contract.
(1) The Commission, after notice and hearing, shall have the authority to require
appropriate contract modifications or may void any contract if it subsequently determines
that any of the provisions of this Subchapter have been violated.
(2) If the Tribe elects to agree contractually to resolve disputes in a manner other
than by revocation of a management contract, such contractual agreement shall supersede
sub. (1), so long as the agreement provides a reasonable avenue for the Tribe to insure a
contractor's compliance with all other aspects of this Chapter.
42.605 Conveying Interest in Land.
No management contract transfer or in any manner convey any interest in land or
other real property, unless specific statutory authority exists and unless clearly specified in
writing in the contract.
42.606 Fee for Costs of Investigation.
The Commission shall require a potential contractor to pay a fee to cover the cost of
investigation necessary to reach a determination required in '42.602.
42.607 Approval by Board of Directors.
No management contract shall be approved by the Commission unless first reviewed
and approved by resolution of the Board of Directors.
42.608 Submission to NIGC.

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After the Commission has given its approval of a management contract, the
Commission shall submit such contract to the NIGC for its approval. Any such contract
shall not take effect until the NIGC has approved it.
42.609 Notice to State of Michigan.
If the Tribe enters into a management contract for the operation of any class III
gaming or component thereof, the State of Michigan shall be given fourteen (14) days prior
written notice of such contract.
SUBCHAPTER VII: GENERAL PROVISIONS
42.701 Accounting Records.
All accounting records at any licensed gaming establishment shall be kept on a
double entry system of accounting, maintaining detailed supporting, subsidiary records. The
licensed gaming establishment shall maintain the following records for not less than three (3)
years:
(1) revenues, expenses, assets, liabilities and equity for each licensed gaming
establishment;
(2) daily cash transactions for each class III game, including but not limited to
transactions relating to each gaming table bank, game drop box and gaming room bank;
(3) all markers, IOU's, returned checks, hold checks or other similar credit
instruments;
(4) individual and statistical game records (except card games) to reflect statistical
drop and statistical win; for electronic, computer, or other technologically assisted games,
analytic reports which show the total amount of cash wagered and the total amount of prizes
won;
(5) contracts, correspondence and other transaction documents relating to all vendors
and contractors;
(6) records of all Tribal gaming enforcement activities;
(7) internal audits prepared by internal auditors on behalf of the licensed gaming
establishment and provided to the Commission;
(8) personnel information on all class III gaming employees or agents, including
rotation sheets, hours worked, employee profiles and background checks.
42.702 Independent Audit.

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(1) Every licensed gaming establishment shall be audited by independent certified
public accountants. Such audit must include an opinion that the financial statement fairly
and accurately presents the financial condition of the gaming operation in accordance with
generally accepted accounting principles. The audit report must be provided to the Board of
Directors, and shall be submitted to the NIGC.
(2) All gaming-related contracts that result in the purchase of supplies, services or
concessions for more than $25,000 in any year (except contracts for professional legal and
accounting services) shall be specifically included within the scope of the audit conducted
under subsection (1) of this section.
42.703 Notices to Patrons.
(1) The rules of each class III card game shall be posted in a prominent place in each
card room and must designate:
(a) the maximum rake-off percentage, time buy-in or other fee charged;
(b) the number of raises allowed;
(c) the monetary limit of each raise;
(d) the amount of ante; and
(e) other rules as may be necessary.
(2) In each licensed gaming establishment where class III gaming is conducted the
gaming establishment shall post in a prominent position a notice to patrons at least two (2)
feet by three (3) feet in dimension with the following language:
NOTICE
THIS FACILITY IS REGULATED BY ONE OR MORE OF THE FOLLOWING:
THE NATIONAL INDIAN GAMING COMMISSION, BUREAU OF INDIAN AFFAIRS OF THE U.S. DEPARTMENT OF THE INTERIOR, AND THE GOVERNMENT OF THE SAULT STE. MARIE TRIBE OF CHIPPEWA
INDIANS.
THIS FACILITY IS NOT REGULATED BY THE STATE OF MICHIGAN.
42.704 Minimum Standards for Gaming Devices.
No class III gaming device, equipment or supplies may be purchased, leased or
otherwise acquired by a licensed gaming establishment unless:

42-43

(1) the gaming device supplier has obtained a license under '42.506;
(2) the class III gaming device, equipment or supplies meet the technical equipment
standards of either the State of Nevada or the State of New Jersey; and
(3) the gaming device has been reviewed and approved by the Commission under
'42.423, if the Commission has required such approval.
42.705 Installation of Gaming Equipment.
A gaming device supplier shall provide, assemble. and install all class III gaming
devices, equipment and supplies in a manner approved and licensed by the Commission.
42.706 Compliance with Bank Secrecy Act.
Any licensed gaming establishment shall comply with all applicable provisions of the
Bank Secrecy Act, P.L. 91-508 84 Stat. 1122, 31 USC '5311-5314, as amended.
42.707 Sale of Alcoholic Beverages.
(1) All licensed gaming establishments shall comply with the Tribal Liquor Control
Ordinance, Tribal Code Chapter 41. In addition, the Board of Directors hereby adopts the
following rules and regulations, applicable to licensed class III gaming establishments only,
under its authority granted in Tribal Code '41.113:
Those laws of the State of Michigan, as amended, relating to the sale and regulation
of alcoholic beverages encompassing the following areas:
(a) sale to a minor; and
(b) sale to a visibly intoxicated individual; and
(c) sale of adulterated or misbranded liquor; and
(d) hours of operation; and
(e) all similar substantive provisions.
(2) The above laws, which are defined by reference to the substantive areas of the
laws of the State of Michigan referred to above, shall apply to licensed class III gaming
establishments in the same manner and to the same extent as such laws apply elsewhere in
the State of Michigan to off-reservation transactions.

42-44

(3) The Tribe, for resale at all licensed class III gaming establishments, shall
purchase spirits from the Michigan Liquor Control Commission, and beer and wine from
distributors licensed by the Michigan Liquor Control Commission, at the same price and on
the same basis that such beverages are purchased by "Class C" licensees, as those licensees
are defined by Michigan law.
42.708 Native American Preference.
Preference in the hiring of all employees at licensed gaming establishments or the
Commission shall be given to Native Americans in accordance with the Tribe's employment
preference policy.
42.709 Employee Benefits.
The Tribe shall provide to any employee who is employed in conjunction with the
operation of any licensed gaming establishment at which class III gaming is conducted
pursuant to the Tribal-State Compact, such benefits to which the employee would be entitled
by virtue of Michigan Public Act No. 1 of 1936, as amended (being MCL 421.1 et. seq.), and
Michigan Public Act No. 317 of 1969, as amended (being MCL 418.101 et. seq.) if the
employee's employment services were provided to an employer engaged in a business
enterprise which is subject to, and covered by, the respective Public Acts of the State of
Michigan.
42.710 Altered Gaming Devices.
Any evidence that any gaming device, equipment or supply used in the conduct of
gaming has been tampered with or altered in any way which would affect its integrity,
fairness, honesty or suitability shall be immediately reported to the Commission.
42.711 Minimum Age of Gaming Participants and Patrons.
(1) No person under the age of 18 may participate in any class III game or any class
II game other than bingo.
(2) No person under the age of 16 may participate in bingo.
(3) No person under the age of 16 may be physically present during the play of
bingo, except children over 12 years of age when accompanied by a parent.
(4) No person under the age of 18 may be physically present on or in those portions
of the premises of a licensed gaming establishment where class III gaming or class II gaming
other than bingo or pull tabs is being played. Persons under the age of 18 may be physically
present on or in those portions of the premises of a licensed gaming establishment where
such gaming is not being played or in the restaurant area of such premises.

42-45

(5) This section establishes minimum age requirements. Nothing in this section shall
prevent the management of any licensed gaming establishment from imposing minimum
ages higher than those established in this section.
42.712 Visibly Intoxicated Patron.
A licensed gaming establishment may exclude or eject any individual who appears
visibly intoxicated.
42.713 Compliance with Federal Law and Regulations.
The Director, the Commission, and each Commissioner, licensed gaming establishment, licensee and management contractor shall comply with all provisions of the IGRA,
NIGC regulations, the Tribal-State Compact, and any other applicable provision of federal
law or regulations related to gaming.
42.714 Environment, Health and Safety.
All gaming under this Chapter shall be conducted in a manner which adequately
protects the environment and the health and safety of the public.
42.715 Internal Controls.
Each gaming manager and management contractor shall develop and implement a
system of internal controls which will protect and ensure the integrity, security, safety,
honesty and fairness of gaming and an effective and honest accounting of all revenues. The
internal controls shall be subject to the review and oversight of the Commission.
42.716 Background Checks on Vendors and Lessors.
(1) The Gaming Commission shall conduct a background check on any vendor or
lessor.
(a) provides any equipment, supplies or services, directly or indirectly, to a
licensed gaming establishment; and
(b) is not required to be licensed under Subchapter V; and
(c) is paid in excess of $25,000 in any one-year period for the provision of
such equipment, supplies or services.
(2) No gaming manager or management contractor shall contract with or purchase
any equipment, supplies or services from any lessor or vendor if the background check
reveals that such vendor or lessor, or any manager of or person holding a direct or indirect
financial interest in the vendor or lessor or the proposed lease or contract:

42-46

(a) has been convicted of or pled guilty or no contest to any felony offense
within the immediately preceding five years; or
(b) has participated in or has involvement with organized crime or unlawful
gaming; or
(c) whose prior activities, criminal record, if any, or reputation, habits, and
associations pose a threat to the public interest or to the effective regulation and
control of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal
practices, methods and activities in the conduct of gaming.
42.717 Offers and Gifts to Officials and Employees.
(1) No person doing business or seeking to do business with the Tribe, a licensed
gaming establishment, or a management contractor relating to gaming or the operation of a
licensed gaming establishment shall give, provide, or offer to give or provide to any person
listed in sub. (2) any of the following:
(a) any personal compensation, cash or payment of any kind;
(b) any gift, object, service or other thing whose value exceeds $100; or
(c) any number or series of gifts, objects, services or things of value within a
one-year period whose aggregate value exceeds $500.
(2) The prohibition in sub. (1) shall apply to the following persons as recipients or
offerees:
(a) the Director;
(b) a Commissioner;
(c) a member of the Board of Directors;
(d) a member of the Economic Development Commission;
(e) a primary management official of any licensed gaming establishment; or
(f) a member of the immediate family of any of the above.
(3) No person listed in sub. (2) shall accept or receive anything listed in sub. (1) (a) (c) if the person knows that the giver or offeror is violating sub. (1).

42-47

(4) No person shall offer, give or receive any compensation, cash, gift, service or any
other thing of value with the intent that the offeror or giver gain unfair advantage in any
authorized wager or gaming.
SUBCHAPTER VIII: ENFORCEMENT AND PENALTIES
42.801 Permitted Activity.
Class II and III gaming conducted in conformity with this Chapter is permitted at
tribally owned licensed gaming establishments located on the following lands:
(1) Indian Lands as defined by the Indian Gaming Regulatory Act and Part 42.217 of
this chapter, unless prohibited by 25 USC § 2719 (a); or
(2) Indian lands acquired by the Secretary of the Interior in trust on or before
October 17, 1988; or
(3) land which is acquired by the Secretary of the Interior is trust for the benefit of
the Tribe after October 17, 1988 and the land;
(a)

is located within or contiguous to the boundaries of the reservation as
they existed on October 17, 1988;

(b)

otherwise meets the requirements of 25 USC § 2719(b)(1)or(b)(2)

(c)

Includes, but is not limited to, the parcel of Indian lands known as Lot
2, Section 19, Town 41 North, Range 3 West, and the South ½ of the
Southwest ¼ of said Section 19, Town 41 North, Range 3 West, lying
Southerly of a line described as beginning at a point 650 feet
Northerly along the centerline of Mackinac Trail and South line of
Section 19, thence Northeasterly to the Southeast corner of the
Northwest ¼ of the Southwest ¼ of Section 19, Town 41 North, Range
3 West, Michigan Meridian, Michigan located at 3015 Mackinac
Trail, St. Ignace, Michigan.

42.802 Prohibited Activity - Generally.
All gaming except for that authorized by '42.801 is prohibited.
42.803 Exceptions.
(1) Class I gaming on Indian land is permitted and is not regulated by this Chapter,
except as provided in '42.502.

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(2) This Chapter does not apply to the conduct of games by the Michigan Bureau of
State Lottery, its agents and licensees, when such gaming is conducted in accordance with
State law.
42.804 Enumeration of Unlawful Acts.
It shall be unlawful and a violation of this Chapter for any person to:
(1) Alter or misrepresent the outcome of a game or other event on which wagers
have been made after the outcome is made sure but before it is revealed to the players.
(2) Place, increase, or decrease a bet or to determine the course of play after
acquiring knowledge, not available to all players, of the outcome of the game or knowledge
of any event that affects the outcome of the game or knowledge that is the subject of the bet
or wager.
(3) Aid anyone in acquiring such knowledge as set forth in sub. (2), for the purpose
of increasing or decreasing a bet or wager, or for the purpose of determining the course of
play contingent upon that event or outcome.
(4) Knowingly entice or induce another to go to any place where a gambling game is
being conducted or operated in violation of the provisions of this Chapter, with the intent
that the other person plays or participate in that gambling game.
(5) Claim, collect, take, or attempt to claim, collect, or take, money or anything of
value in or from a gambling game with intent to defraud, without having made a wager
contingent thereon, or to claim, collect, or take an amount greater than the amount won.
(6) Violate any regulation of the Commission.
(7) Conduct, participate in, permit, promote, or further in any way any gaming which
is prohibited under '42.802 and not excepted under '42.803.
(8) Impede or obstruct the Director, Commission or any special agent or law
enforcement officer in any investigation, proceeding or other exercise of authority or duty
authorized by this Chapter.
(9) Fail to disclose or report to the Director or Commission, or attempt to conceal or
mislead regarding, any fact or matter when this Chapter requires the reporting of such fact or
matter.
(10) Make any material false statement in any application, report or submission to the
Director or Commission that is required by this Chapter.

42-49

(11) Violate any restriction upon the Director and Commissioners imposed by
'42.412.
(12) Breach any obligation of confidentiality imposed by this Chapter.
(13) Enter into any lease or purchase agreement for any gaming device, equipment or
supplies with a gaming device supplier does not hold a license under '42.506.
(14) Enter into or engage in any game at a licensed gaming establishment when one's
name is in the list prepared under '42.424, or fail to exclude or eject any person so listed
from any licensed gaming establishment.
(15) Conduct, participate in, permit, promote or further in any way any class III game
not authorized under '42.504.
(16) Perform services as a primary management official, key employee, gaming
consultant or gaming device supplier without a license, or while such license is suspended,
except as provided in '42.511.
(17) Employ, contract with, or pay for services as a primary management official, key
employee or gaming consultant any person without a license issued under '42.505, or whose
license has been suspended, except as provided in '42.511.
(18) Operate or participate in the operation of any gaming establishment which is not
licensed under '42.503 or '42.504, except as provided in '42.511.
(19) Use or permit the use of, any class III gaming device, equipment or supply
which does not meet the minimum standards prescribed in '42.704.
(20) Provide, assemble or install any class III gaming device, equipment or supply in
violation of '42.705.
(21) Fail to comply with the Bank Secrecy Act as required in '42.706.
(22) Purchase, sell, supply or consume any alcoholic beverage in violation of
'42.707.
(23) Tamper with or alter any gaming device, equipment or supply in any way which
would affect the integrity, fairness, honesty or suitability of the device, equipment or supply.
(24) Participate in any gaming or be physically present on or in the premises of a
licensed gaming establishment if the person is less than the minimum age set in '42.711, or
fail to exclude or eject from a licensed gaming establishment any such person.

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(25) Violate any prohibition relating to offers or gifts to officials and employees
contained in '42.717.
(26) Violate any other duty, obligation, responsibility or prohibition of this Chapter.
Nothing in this section shall prevent the prosecution of any person for the violation of any
provision of the Law and Order Code or any provision of Tribal law contained in any other
chapter of the Tribal Code.
42.805 Jurisdiction and Procedure.
(1) Jurisdiction is hereby conferred upon the Tribal Court over criminal and civil
enforcement actions for violation of '42.804.
(2) A violation committed by a Native American shall constitute a crime, and
proceedings shall be governed by Chapters Two and Four of the Law and Order Code, Tribal
Code Chapters 71 and 72.
(3) A violation committed by a person who is not a Native American shall constitute
a civil infraction subject to civil remedial money penalty, civil forfeiture of property, or both.
Proceedings shall be governed by Chapter Seven of the Law and Order Code, Tribal Code
Chapter 81, and the Civil Remedial Forfeiture Code, Tribal Code Chapter 84.
42.806 Enforcement.
(1) The provisions of this Subchapter shall be enforced by Tribal law enforcement
officers, and by anyone authorized or deputized to enforce this Chapter or Tribal law
generally by ordinance or resolution of the Board of Directors.
(2) The Commission shall have the authority to authorize special agents to perform
services reasonably necessary to conduct investigations and surveillance within the scope of
Commission authority or monitor and assure compliance with the provisions of this Chapter
for which the Commission has responsibility. When acting as a special agent, a person shall
be accorded the privileges and protections of a Tribal law enforcement officer. The activities
of special agents shall be under the supervision and the direction of the Director, unless
otherwise determined by the Commission. Nothing in this subsection shall limit the normal
law enforcement functions of any special agent, nor of other Tribal law enforcement officers.
(3) Any person authorized to enforce this Chapter, and any employee of a licensed
gaming establishment authorized by management to perform the function, may seize and
impound any patron's winnings if there is reason to believe that they were won or obtained in
violation of this Chapter, pending disposition of the winnings under the Civil Remedial
Forfeiture Code, Tribal Code Chapter 84.

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42.807 Remedies.
(1) A violation of '42.804 by a Native American shall be punished by a fine of up to
Five Thousand Dollars ($5,000), or up to one (1) year in jail, or both. Each day of a
violation shall constitute a separate count or offense.
(2) A violation of '42.804 by a person who is not a Native American shall be
remedied by a civil remedial money penalty of up to Five Thousand Dollars ($5,000). Each
day of a violation shall constitute a separate violation.
(3) In addition to the remedies in sub. (1) or (2), any property used in the
commission of any violation may be forfeited under the provisions of the Civil Remedial
Forfeiture Code, Tribal Code Chapter 84. Any vehicle employed in transporting a violator to
or from the location of the violation shall be deemed to have been used in the commission of
such violation. Any winnings of a patron won or obtained in violation of this Chapter shall
also be subject to civil remedial forfeiture.
(4) In addition to any other remedy imposed, the Tribal Court shall order payment of
$25.00 in court costs.
(5) The Tribal Court may order any person found to have committed a violation to be
added to the list of undesirables banned from any licensed gaming establishment under
'42.424.
(6) If a violator obtained winnings as a result of the violation or otherwise obtained
money to which the violator was not entitled, or a licensed gaming establishment lost
revenue as a result of the violation, such sum may be ordered to be repaid to the Tribe,
Commission or licensed gaming establishment as restitution, or the Tribe, Commission or
licensed gaming establishment may seek a civil judgment for such sum, together with costs
and a reasonable attorneys fee.
(7) The remedies in this section are not intended to be exclusive, but shall be in
addition to and independent of:
(a) any applicable contractual remedy;
(b) any disciplinary action taken against a violator as an employee;
(c) any license action or other enforcement action taken by the Director or
Commission; and
(d) any prosecution or other enforcement action under federal or state law or
under the provisions of any other chapter of the Tribal Code.

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42.808 Limitation Period.
No remedial action shall be taken under this Subchapter unless such action is
commenced in the Tribal Court within the greater of:
(1) two (2) years of the commission of the violation; or
(2) one (1) year of the discovery of the commission of the violation, provided that
such discovery is within five (5) years of the commission of the violation.
42.809 Parties to a Violation.
(1) Any person who is concerned in the commission of a violation remediable under
this Subchapter is a principal and may be adjudged to have committed the violation although
such person did not directly commit it and although the person who did directly do so has not
been subjected to a remedial action under this Subchapter.
(2) A person is concerned in the commission of a violation if such person:
(a) directly commits the violation; or
(b) aids and abets the commission of a violation; or
(c) is a party to a conspiracy with one or more others to commit the violation
or advises, hires, counsels or otherwise procures another to commit the violation.
42.810 Agent for Service of Process.
The Tribe designates the Executive Director of the Gaming Commission as the agent
for service of any official determination, order, or notice of violation.

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/tribal%3Asault_ste_marie%3A9f68556fe60de4f7. Public record. Not legal advice.