12111324 - Level II Training Book

Commissioner Certification Training Level II AGENDA December 11-13, 2024 NYNY Hotel Casino, Las Vegas, Nevada PST Time

Wednesday, December 11

8:00 AM 9:00 AM 9:00 AM 10:30 AM 10:30 AM 10:45 AM 10:45 AM 12:15 PM 12:15 PM 1:15 PM 1:15 PM 2:45 PM 2:45 PM 3:00 PM 3:00 PM 4:30 PM

Breakfast to be provided Licensing: Key Employees & Primary Officials Billy David, Bo-Co-Pa Break Licensing: Vendors & Facilities Billy David, Bo-Co-Pa Lunch Break Gaming Crimes Liz Homer, Homer Law Break Journey of Submission Peter Nikiper, Director of Technical Compliance, BMM Test Labs Thursday, December 12

8:00 AM 9:00 AM

Breakfast to be provided

Internal Auditing-What's Required & How it Should Be Approached Ryan Burns, CPA, Partner Blue Bird CPA's

9:00 AM 10:30 AM

10:30 AM 10:45 AM Break 10:45 AM 12:15 PM

Financial Controls & Accounting Standards Ryan Burns, CPA, Partner Blue Bird CPA's

12:15 PM 1:15 PM Lunch Break 1:15 PM 2:45 PM

Tribal Sovereign Immunity and The Gaming Regulator Liz Homer, Homer Law

2:45 PM 3:00 PM Break 3:00 PM 4:30 PM

Effective Regulatory Writing Liz Homer, Homer Law Friday, December 13

8:00 AM 9:00 AM

Breakfast to be provided

Creating a new Approach to Surveillance Abe Martin, CFE, CSP Casino Cryptology

9:00 AM 10:30 AM

10:30 AM 10:45 AM Break 10:45 AM 12:15 PM

Surveillance Cheats & Scams Abe Martin, CFE, CSP Casino Cryptology

Please plan to stay for the entire class on each day to get your certificate of completion. Please be on time for sessions

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LICENSING

LICENSING AUTHORITY:

WHERE DOES IT COME FROM?

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YOUR DOCUMENTS • The governing documents of licensing regulations:

• Indian Gaming Regulatory Act • Tribal Gaming Ordinance • Compact Licensing Requirements • Tribal Gaming Authority Gaming Requirements

• Gaming Commissions/ers Ø Licensing Authority Ø Enforcement

Ø Promulgate Rules and Regulations Ø Approve and develop Internal Controls Ø Higher appropriate Commission staff and Delegate Authority to the team. Ø Conduct hearings Ø Act as the official Tribal authority as prescribed in the Tribal Gaming ordinance Ø Protect the Fairness, Integrity, Security, and Honesty of the Tribal Gaming Operation (F.I.S.H) Ø Ensure Compliance with all required regulating documents

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OTHER GOVERNMENTAL AGENCIES

• National Indian Gaming Commission • State Department of Gaming

• We are not law enforcement • We are, however,Administrative Enforcement Officers • Work within your scope of authority: Discussion

ENFORCEMENT:

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• What is your responsibility with licensing? • Gaming Commission, • Gaming Commission Staff, • Management, • Potential Licensee

LICENSING: SCOPE OF AUTHORITY

Most licensing regulations must comply with the Federal licensing standards. Those standards are found in the Indian Gaming Regulatory Act 1988

GOVERNING DOCUMENTS: IGRA

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Not all licensing regulations need to comply with IRGA

LICENSING: IGRA

National Indian Gaming Commission can only enforce their own standards

IMPORTANT ITEMS TO KNOW ABOUT IGRA

The Tribal licensing authority is responsible to ensure that the Tribe is following all licensing documents

• 25 CFR Part 556 • – Addresses Background Investigations for Key and PMO. • • 25 CFR Part 558. • – Addresses Licensing for Key and PMO. • • Changes were published in the CFR January 25, 2013, with a compliance date of February 25, 2013.

IGRA REQUIREMENTS

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IGRA REQUIREMENTS

• 556.8 and 558.6 “Compliance with this part” both state: • – All tribal gaming ordinances and ordinance amendments approved by the Chair prior to the February 25, 2013, and that reference this part, do not need to be amended to comply with this part. All future ordinance submissions, however, must comply.

25 CFR 502.14 and 502.19 defines Key Employee and PMO minimums (this has recently changed)

• Tribes able to expand Key and PMO definitions through ordinance

IGRA REQUIREMENTS

– “Any other person designated by the tribe as a PMO”

• Ensure 556 and 558 Regulations apply to Key and PMO Employees

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IGRA REQUIREMENTS: APPLICATION PROCESS

• 556.4 (1 – 14) Sets forth what the application must contain: • Privacy Notice, False Statement Notice, name, social security number, address, employers, business relationships, previous gaming licenses, references, criminal history photograph and fingerprints (results).

IGRA LICENSING REQUIREMENTS

556.2 Privacy notice.

• 556.3 Notice regarding false statements.

– Changes included replace all language referring to hiring and firing and replacing it with licensing language.

– Exact Language can be found in CFR 556 at NIGC.GOV

– All forms must be update by August 2013.

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IGRA LICENSING REQUIREMENTS

• Create and maintain an investigative report on

For every primary management official or a key employee, a tribe shall:

– Steps taken in conducting a background investigation;

each background investigation. An

investigative report shall include all of the following:

– The basis for those conclusions.

– Results obtained;

– Conclusions reached; and

IGRA LICENSING REQUIREMENTS

– A notice of results (NOR) of background investigations, 25 CFR 556

Regulations require aTWO- part submission

• Notifications submission methods.

– A notice of licensing determination, 25 CFR 558

• The two part submissions must not be made at the same time

– Encrypted Email to the Regional Office.

– Fax.

– Mail.

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• A tribe must notify NIGC of the results of the background investigation within 60 days of an individual beginning work. • – A tribe shall conduct an investigation sufficient to make an eligibility determination • • NOR must include: • – Applicants name • – DOB • – Social Security Number

IGRA LICENSING REQUIREMENTS

• – Date on which they will begin work • – Copy of the eligibility determination

• • An eligibility determination is to make a finding concerning the eligibility of a key employee or primary management official for granting of a gaming license, an authorized tribal official shall review the results of a person's investigation taking into consideration a person criminal history, reputation, habits, and associations.

• A summary and listing of the information presented in the investigative report must be included in the NOR: • – Previously denied licenses • – Revoked licenses • – Criminal Charges brought within 10 years of the application • – Every Felony conviction or on-going prosecution • • A deferred sentence is considered an ongoing prosecution.

IGRA LICENSING REQUIREMENTS

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A tribe shall retain the following for inspection by the Chair or his or her designee for no less than three years from the date of termination of employment: – Applications for licensing;

IGRA LICENSING REQUIREMENTS

– Investigative reports; and

– Eligibility determinations

This will differ and is subject to each individual State and Tribal negotiations. There are similar differences that can be found in many Tribal-State Compacts.

TRIBAL-STATE PROTOCOLS FOR LICENSING PMO AND KEYS

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COMPACT LICENSING SIMILARITIES

Many similarities would include:

Definition of how Class III licenses will be handled in the State

Who will the Tribe have to submit information to within the State

Who from the State will have availability to Tribal licensing records

GAMING ORDINANCE AND REGULATIONS. EXAMPLE ONLY

• (a) All Gaming Activities conducted under this Compact shall, at a minimum, comply (i) with a Gaming Ordinance duly adopted by the Tribe and approved in accordance with IGRA, (ii) with all rules, regulations, procedures, specifications, and standards duly adopted by the NIGC, the Tribal Gaming Agency, and the State Gaming Agency, and (iii) with the provisions of this Compact. • (b) The Tribal Gaming Agency shall transmit a copy of the Gaming Ordinance, and all its rules, regulations, procedures, specifications, ordinances, or standards applicable to the Gaming Activities and Gaming Operation, to the State Gaming Agency within twenty (20) days following execution of this Compact, or within twenty (20) days following their adoption or amendment. • ( c) The Tribe and the Tribal Gaming Agency shall make available an electronic or hard copy of the following documents to any member of the public upon request and in the manner requested: NIGC minimum internal control standards, the Gaming Ordinance, this Compact, including appendices hereto, the rules of each Class III game operated by the Tribe, the Tribe's constitution or other governing document(s), the tort ordinance specified in section 2.5, subdivision (b), the employment discrimination complaint ordinance specified in section 12.3, subdivision (f), and the regulations promulgated by the Tribal Gaming Agency pursuant to section 10.0 concerning patron disputes.

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• All persons in any way connected with the Gaming Operation or Facility who are required to be licensed or to submit to a background investigation under IGRA, and any others required to be licensed under this Compact, including, but not limited to, all Gaming Employees, Gaming Resource Suppliers, Financial Sources, and any other person having a significant influence over the Gaming Operation, must be licensed by the Tribal Gaming Agency and cannot have had any determination of suitability denied or revoked by the State Gaming Agency. The parties intend that the licensing process provided for in this Compact shall involve joint cooperation between the Tribal Gaming Agency and the State Gaming Agency, as more particularly described herein.

EXAMPLE SUMMARY OF LICENSING PRINCIPLES

• Every Financial Source shall be licensed by the Tribal Gaming Agency prior to extending any financing in connection with the Tribe's Gaming Operation or Facility….

FINANCIAL SOURCES

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• (a) Each Applicant for a tribal gaming license shall submit the completed application along with the required information and an application fee, if required, to the Tribal Gaming Agency in accordance with the rules and regulations of that agency. • (b) At a minimum, the Tribal Gaming Agency shall require submission and consideration of all information required under IGRA, including Part 556.4 of Title 25 of the Code of Federal Regulations, for licensing primary management officials and key employees • (c) For Applicants who are business entities, these licensing provisions shall apply to the entity as well as: (i) each of its officers and directors; (ii) each of its principal management employees, including any chief executive officer, chief financial officer, chief operating officer, and general manager; (iii) each of its owners or partners, if an unincorporated business; (iv) each of its shareholders who owns more than ten percent ( 10%) of the shares of the corporation, if a corporation; and (v) each person or entity (other than a Financial Source that the Tribal Gaming Agency has determined does not with others, has provided financing in connection with any Gaming Operation or gaming authorized under this Compact, if that person or entity provided more than ten percent (10%) of either the start-up capital or the operating capital, or of a combination thereof, over a twelve (12)-month period. For purposes of this subdivision, where there is any commonality of the characteristics identified in clauses (i) to (v), inclusive, between any two or more entities, those entities may be deemed to be a single entity. • (d) Nothing herein precludes the Tribe or Tribal Gaming Agency from requiring more stringent licensing requirements.

PROCESSING TRIBAL GAMING LICENSE APPLICATIONS

• (a) In reviewing an application for a tribal gaming license, and in addition to any standards set forth in the Tribal Gaming Ordinance, the Tribal Gaming Agency shall consider whether issuance of the license is inimical to public health, safety, or welfare, and whether issuance of the license will undermine public trust that the Tribe's Gaming Operation is free from criminal and dishonest elements and would be conducted honestly . • (b) A license may not be issued unless, based on all information and documents submitted, the Tribal Gaming Agency is satisfied that the Applicant, and in the case of an entity, everyone identified in the following requirements : (1) The person is of good character, honesty, and integrity. (2) The person's prior activities, criminal record (if any), reputation, habits, and associations do not 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, or activities in the conduct of gaming, or in the carrying on of business and financial arrangements incidental thereto. (3) The person is in all other respects qualified to be licensed as provided, and meets the criteria established in this Compact, IGRA, NIGC regulations, the Tribal Gaming Ordinance, and any other criteria adopted by the Tribal Gaming Agency or the Tribe; provided.

SUITABILITY STANDARD REGARDING GAMING LICENSES.

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TRIBAL ORDINANCE: LICENSING REQUIREMENTS

In many Tribal Gaming Ordinances there are criteria that the Tribe has lined out for the regulatory authority regarding Licensing

Do you know what your Tribal licensing standards are??? Discussion

GAMING ORDINANCE

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• A. Establishment of Commission • Powers.The Commission shall exercise all powers necessary to effectuate the purposes of this Ordinance and all other powers provided for in this Ordinance. In all decisions, the Commission shall act to promote and ensure the integrity, security, honesty and fairness of the operation and administration of all Gaming.The Commission shall have the power to • grant, conditionally grant or deny any application for License ; • limit, cancel, revoke, terminate, condition, modify, suspend, or restrict any License • make findings of suitability or unsuitability ; • conduct, or cause to be conducted, background investigations on all Applicants and Licensees;

GAMING COMMISSION; ESTABLISHMENT, ADMINISTRATION AND POWERS

1. Key Employee means • a) A person who performs one or more of the following functions: • bingo caller; • counting room supervisor; • chief of security; • custodian of gaming supplies or cash; • floor manager; • pit boss; • dealer; • croupier; • approver of credit; or • custodian of gambling devices including persons with access to cash and accounting records within such devices; • b) If not otherwise included, any other person whose total cash compensation is in excess of $50,000 per year; or • c) If not otherwise included, the four most highly compensated persons in the gaming operation.

LICENSES FOR KEY EMPLOYEES AND PRIMARY MANAGEMENT OFFICIALS

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Primary Management Official Means • a) the person having management responsibility for a management contract; • b) any person who has authority; • (1) to hire and fire employees; or • (2) to set up working policy for the gaming operation; or • c) the chief financial officer or other person who has financial management responsibility.

LICENSES FOR KEY EMPLOYEES AND PRIMARY MANAGEMENT OFFICIALS

• B.Application Forms • C. Background Investigations • D. Eligibility Determination

• E. Procedures for Forwarding Applications and Reports for Key Employees and Primary Management Officials to the National Indian Gaming Commission 3.The gaming operation shall not employ as a key employee or primary management official a person who does not have a license after 90 days. • F. Report to the National Indian Gaming Commission • G. Granting a Gaming License • H. License Suspension

LICENSES FOR KEY EMPLOYEES AND PRIMARY MANAGEMENT OFFICIALS

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Establishment and Authority of Commission. • Powers and Duties of the Commission • Process applications for tribal gaming licenses for Class II and Class III gaming licenses; • Establish gaming licensing criteria which at the minimum meet the requirements of all Applicable Gaming Laws and regulations; • Conduct investigations, suspensions, and hearings related to any licensee or gaming activity, as the Commission deems necessary in fulfilling its duties.