Throughout the ages, advancements in technology have meant that change has to happen in what might have been thought of as stable and unchangeable industries. When the car was invented, horses and carts went out of favour. When the printing press came along, copying out books by hand was no longer required. When the internet was rolled out to everyone, almost everything changed including King Casino Bonus promotions; this was one of the biggest technological breakthroughs anyone had ever seen.
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Although now it’s commonplace to be able to go online whenever and wherever you want to, this was certainly not the case at the start, and many people felt that the internet was a fad – that it was a game for children to play but that it wouldn’t amount to much. Who would have foreseen the huge impact that being able to work and play online has had in every single area of life?
One of these areas is the casino industry. When the internet came along it wasn’t long before developer were able to take their casinos online, giving those who wouldn’t normally have access to games like poker, routette, blackjack, craps, or even slots the chance to play. This didn’t destroy the physical casinos, but it certainly meant that changes had to be made.
It was probably felt that this was as far as casinos could go. Moving out of the physical sphere and going online was a big step, but a hugely successful one, and it must have felt like peak achievement to have done it. Yet there was more to come – mobile gaming.
So just what impact has mobile gaming had on the online casino industry?
Improved The Reach
The word ‘impact’ might initially seem like a negative one. It might seem as though the advancements of technology that have meant mobile gaming can take place are bad because they change how online casinos have to function. But it’s not all negative; there are certainly some positive changes too.
Take the improved reach of online slots and other games, for example. It’s still true that not every household has a laptop of even a desktop computer. This might be due to funds, or it could be due to simply not needing one. Whatever the case, without a laptop, playing online games is impossible. Unless, of course, you play mobile games. Because even if there is no computer in a house, there is likely to be at least one mobile device, be it phone or tablet. So more people than ever have the chance to play these games and enjoy them.
It has been notoriously difficult for millennials to be enticed into the world of online gambling. Perhaps it’s because they have a lot of other things to spend their money on, or because they have read the horror stories about people who have lost all their money through gambling (maybe they’ve experienced it within their own families), and they just want to stay away. However, mobile gaming has meant that younger people are now becoming more interested in playing – they have the means to do so, they have the time to do so, and they have the funds to do so in many cases. And, because they are very aware of the dangers, they can make sure they are happy with every aspect of gameplay before they start.
Better Design
Spreading out from physical casinos to online to mobile gaming, developers have had a chance to develop their skills not only in gameplay itself but in the design and look of each game. This has led to some amazing slot games, and the graphics are unparalleled anywhere else.
Not only does this make playing the games more fun and enjoyable, and it sets them apart from each other (think of a physical casino – the slots all tend to look pretty much the same), but means that the developers have something more to get their teeth into, and that makes it fun for everyone.
There is also more money in this kind of work, so it can be a ‘real’ career rather than just something that someone does when they have a spare moment. This enhances the overall look immensely.
Enhancing Online Play
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The interesting thing about this new kind of developer and the ideas he or she might have about slots – or other online casino games – and how they should look and feel when being played is that eventually (and it might take a while, it’s true) these ideas will migrate from the mobile space to the general online one.
In effect, mobile gameplay has made online gameplay much better too, simply by its very presence. Therefore, even if you don’t play slots or other casino games on a mobile device, you’ll still be able to benefit from the great look and sound of these new games when they improve the online versions.
Much More Popular
One of the most interesting aspects of mobile gaming is that it has increased the popularity of the online casino industry hugely. It’s not just a handful of people who are now playing online when they wouldn’t have before, or now playing mobile games when they hadn’t even considered it in the past… the numbers are staggering. Think about this: in 2014, the mobile gaming industry have an increase of 42 percent (equating to around $25 billion). That’s impressive. But wait, there’s more – in 2019, that number increased to $50 billion. Imagine that. That’s a massive amount of money all thanks to the mobile gaming industry.
The Future
Now that gaming has gone online, there really seems to be no limit to what can happen next. Just because we can’t imagine there will be any more changes certainly doesn’t mean that this is the case – it’s far from that. Remember, there were people who didn’t think the car would catch on, or the printing press, or the internet… so never assume we have come to the end of the road in terms of mobile gaming; there is sure to be plenty more just around the corner, and it will be fascinating to see just what that is.
Samantha
Samantha hails from Virginia and is a proud wife to a retired Deputy Sheriff and mother to two amazing little boys named Jack & William. A veteran product reviewer; Samantha has been reviewing products for 8 years and offers high quality product reviews with original photography.
Item 1. Business
General
The Mississippi Band of Choctaw Indians established the Choctaw Resort Development Enterprise to operate the Silver Star Hotel and Casino (the 'Silver Star'), and to develop and operate the Golden Moon Hotel and Casino (the 'Golden Moon'), and related businesses. References in this annual report to (1) the 'Tribe' refer to the Mississippi Band of Choctaw Indians, and (2) the 'Enterprise,' 'we,' 'our,' 'ours' and 'us' refer to the Choctaw Resort Development Enterprise, a business enterprise of the Tribe.
The Tribe is a federally recognized, self governing Indian tribe with approximately 9,100 enrolled members, most of whom live on or near the Tribe's approximately 31,000-acre reservation in east-central Mississippi. The Indian Gaming Regulatory Act of 1988 permits federally recognized Indian tribes to conduct full-scale casino gaming operations on certain Indian lands, subject to, among other things, the negotiation of a compact with the affected state. The Tribe and the State of Mississippi entered into a compact in 1992, which was approved by the U.S. Secretary of the Interior. The compact authorizes full Class III gaming to the same extent as non-Indian casinos in the State of Mississippi. The compact is not subject to a term of years and will continue unless mutually terminated, imposes no required payments to the State of Mississippi other than for certain agreed upon reimbursement of expenses and limits distributions from gaming revenues to each Tribal member to $1,000 per year. The Tribe is currently the only entity legally authorized to operate land-based casinos in the State.
Description of Business
The Enterprise is a business enterprise of the Tribe that was created on October 12, 1999 to operate the Silver Star and to develop and operate the Golden Moon and related businesses. Effective July 1, 2001, the Tribe contributed the Dancing Rabbit Golf Club (the 'Dancing Rabbit'), to the Enterprise and effective July 8, 2002, the Tribe contributed the Geyser Falls Water Theme Park (the 'Geyser Falls'), to the Enterprise. No consideration was or is intended to be given to the Tribe for such contributions.
The Silver Star Hotel and Casino
The Silver Star is a full service gaming and entertainment complex located on a 32-acre site on the Tribe's reservation on Highway 16 West approximately 70 miles northeast of Jackson, Mississippi. The Silver Star, along
with the Golden Moon, are currently the only land-based casinos in the state and the casinos closest to Birmingham and Tuscaloosa, Alabama. Also, currently there are no legally authorized casinos in Alabama or Georgia.
The Silver Star opened in July 1994 at a total cost of approximately $32 million. The Silver Star originally opened with 100 hotel rooms and has increased its size through three major expansions, increasing the number of rooms to 496 and adding additional gaming space and conference facilities.
The Silver Star is an approximately 518,000 square foot facility that, as of September 30, 2002, featured: a 12-story hotel with 496 rooms, including 89 suites; approximately 82,500 square feet of gaming space with 3,094 slot machines, 82 table games and 11 poker tables; approximately 30,000 square feet of meeting and convention space, which also serves as a 2,000 seat live entertainment and sports venue with sky boxes; 2,740 parking spaces, including an approximately 1,100 space parking garage; seven restaurants with a total of 925 seats; three lounges; three retail outlets; an arcade; an outdoor swimming pool; a full-service spa; fitness facilities; and guest access to the adjacent Dancing Rabbit Golf Club and Geyser Falls.
The Golden Moon Hotel & Casino
The Golden Moon is a full service gaming and entertainment complex located on a 15 acre site that opened on August 26, 2002 at a cost of $254.1 million incurred through September 30, 2002. The Golden Moon, located on directly across from the Silver Star, is connected to the Silver Star via an enclosed walkway bridge that spans the highway separating the two casinos. The bridge is enclosed and climate controlled and features moving ramps to ease movement from one casino to the other.
The Golden Moon is an approximately 843,000 square foot facility that, as of September 30, 2002, featured: a 28-story hotel with 571 rooms, including 112 suites and 32 VIP luxury suites; approximately 90,000 square feet of gaming and related circulation area space with 1,754 slot machines and 52 table games; approximately 11,600 square feet of meeting space; 2,593 parking spaces; seven restaurants with a total of 905 seats; five lounges; approximately 8,000 square feet of retail space; a 315-foot tower topped by an 80-foot geodesic sphere housing a restaurant and lounge; an aqua-scape, including fountains and other water effects; an indoor/outdoor swimming pool; fitness facilities; and guest access to the nearby Dancing Rabbit Golf Club and Geyser Falls.
The Dancing Rabbit Golf Club
Adjoining the Silver Star is Dancing Rabbit, a 750-acre property containing two 18-hole championship golf courses designed by golf course designer Tom Fazio and PGA veteran Jerry Pate. Each 18-hole golf course spans over 7,000 yards and offers five tee locations on each hole. The golf club also contains a full-service golf shop, a teaching and practice facility, eight guestrooms, event coordinators and a restaurant and bar. The Dancing Rabbit was ranked 35th in Golf Magazine's 2002 list of the 'Top 100 You Can Play' courses, up from 37th in 2000. Additionally, the Dancing Rabbit was listed among Golf Digest's 'America's Top 75 Golf Courses' in May 2002 and ranked 25th in Golf Week's 'America's Top 40 Resort Courses' in November 2002. Effective July 1, 2001, the Tribe contributed the Dancing Rabbit to the Enterprise. No consideration was or is intended to be given to the Tribe for such contribution.
The Geyser Falls Water Theme Park
Geyser Falls opened July 8, 2002 at a cost of $17.6 million incurred through September 30, 2002. This modern water park spans 15 acres and is capable of accommodating 5,000 guests per day. The park consists of 12 water slides, a wave pool and a lazy river. There is over 1,000 square feet of retail outlet space and numerous food and beverage carts located throughout the park. The nearest competitor is Rapids on the Reservoir, located approximately 70 miles away in Jackson, MS, a 15-year old park that is similar in size to Geyser Falls. The park was contributed to the Enterprise by the Tribe effective July 8, 2002. No consideration was or is intended to be given to the Tribe for such contribution.
The Choctaw Hospitality Institute
The primary purpose of the Choctaw Hospitality Institute ('CHI') is to provide training and education for current and new employees of the Enterprise. CHI and its staff provide classroom and hands-on training for gaming,
hospitality and professional employees of the Enterprise. CHI operates from an approximately 27,000 square foot facility located near the Golden Moon and includes classroom space, computer laboratories, slot and table games training areas, a culinary training laboratory and a gift shop. CHI has contracts with various public agencies that provide for reimbursement of certain costs incurred in connection with its training activities and these reimbursements are recognized as revenue when received. CHI officially opened November 9, 2001 at a cost of approximately $2,250,000.
Pearl River Resort
The Tribe markets the Silver Star, Golden Moon, Dancing Rabbit and Geyser Falls under the Pearl River Resort trade name and intends to establish these collective properties as a premier regional entertainment and destination resort.
Market
According to the Mississippi Gaming Commission, the Mississippi gaming market, excluding the Silver Star, generated $2.7 billion of annual gaming revenues in 2001. Including the Silver Star and Golden Moon, there are currently 31 casinos operating in Mississippi, covering 1.46 million square feet of gaming space and offering approximately 40,000 slot machines and 1,100 table games. Of the 31 casinos, the Silver Star and Golden Moon are the only land-based casinos in the state. Other casinos in the State must operate as dockside casinos and are moored on either the Mississippi River or the Mississippi Gulf Coast. The Silver Star and Golden Moon are separated by an approximately two and one-half hour drive from its nearest significant competitor.
Competition
The Tribe is currently the only legally authorized operator of land-based casinos in Mississippi. The primary competitors of the Silver Star and Golden Moon are the 29 casinos concentrated in Mississippi's three regional gaming markets: the North River Region, the South River Region and the Coastal Region. The Silver Star and Golden Moon currently draw most of their customers from within a 150-mile radius, including Jackson, Mississippi, and also have established customer bases in Birmingham, Montgomery and Tuscaloosa, Alabama.
The North River Region is located in Tunica County, approximately 180 miles northwest of the Silver Star and Golden Moon, and currently has ten dockside casinos along the Mississippi River. Major operators in this market include Boyd Gaming Corporation, Harrah's Entertainment, Inc., Hollywood Casino Corporation, Horseshoe Gaming, LLC, Mandalay Resort Group and Park Place Entertainment, Inc. Casinos in the North River Region attract a significant number of their customers from nearby Memphis, Tennessee and Little Rock, Arkansas.
The South River Region is located along the southern portion of the Mississippi River, approximately 125 miles west of the Silver Star and Golden Moon, and currently has seven dockside casinos in the cities of Vicksburg, Greenville and Natchez. Major operators in this market include Ameristar Casinos, Inc., Harrah's Entertainment, Inc. and Isle of Capri Casinos, Inc. The South River market customer base is primarily regional, with most customers coming from within a 50-mile radius.
The Coastal Region is located approximately 200 miles south of the Silver Star and Golden Moon along the Mississippi Gulf Coast and is the largest gaming market in Mississippi with dockside and riverboat casinos in Biloxi, Gulfport and Bay St. Louis. Major operators in this market include Park Place Entertainment Corporation, Pinnacle Entertainment, Inc., Penn National Gaming, Inc. and Isle of Capri Casinos, Inc. MGM Mirage entered the market in March 1999 with the opening of the Beau Rivage in Biloxi, Mississippi. In addition to attracting gaming customers from the local area, Gulf Coast casinos, particularly the Beau Rivage, which is located in a traditional regional beach resort area, tend to draw a significant number of customers from greater Mississippi and from outside the State.
Description of Material Agreements
Tribal-State Compact
The Tribe entered into the Tribal-State Compact for Regulation of Class III Gaming on the Mississippi Band of Choctaw Indians Reservation (the 'Compact') in Mississippi on December 4, 1992, which became effective on January 4, 1993 and was subsequently amended on August 26, 1994 and May 24, 1996. The Compact by its terms remains in effect until terminated by mutual consent of the parties or by Act of Congress. The Compact does not require the Tribe to make any contribution to the State of Mississippi except for reimbursement of expenses incurred by the State.
Under the Compact, the Tribe is permitted to operate all Class III gaming allowed by Mississippi law and under the IGRA. This allows the Tribe to conduct most forms of Class III gaming, including slot machines. The Tribe currently has no Class II gaming operations.
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The Tribe is authorized to own and operate one or more casinos on its reservation. Reservation lands are land which are held in trust by the United States for the benefit of the Tribe as of October 17, 1988. The Tribe may not conduct Class III gaming on lands acquired by the United States in trust for the benefit of the Tribe after October 17, 1988, unless such lands are located within or contiguous to the boundaries of the Tribe's reservation as of October 17, 1988 and the Secretary of the Interior and the Governor of the State of Mississippi determine that gaming on such lands would be in the Tribe's best interest and not be detrimental to the surrounding community. The Silver Star and Golden Moon are wholly located on the Tribe's reservation.
Other provisions of the Compact provide as follows:
(1) The Tribe, the United States and the State of Mississippi exercise concurrent civil jurisdiction over Class III gaming activities at the Tribe's casinos. The Tribe exercises exclusive criminal and civil jurisdiction over Tribal members and all other Indians to the extent allowed by federal law, the United States retains its criminal jurisdiction over all of the Class III gaming on the reservation, and the State of Mississippi exercises exclusive or concurrent criminal jurisdiction over non-Indians as to some crimes to the extent allowed by federal law.
(2) No person under the age of 21 is permitted to play any Class III game.
(3) Net revenues to the Tribe from Class III gaming will be used only in accordance with budgets adopted by resolution of the Tribal Council and to fund tribal government operations and programs, to provide for the general welfare of the members of the Tribe, to promote economic development, to donate to charitable organizations and to help fund the operations of local government agencies. Per capita payments to tribal members from gaming revenues are limited to $1,000 per year.
(4) The Choctaw Gaming Commission, as established by the tribal government, has primary regulatory authority over the gaming activities of the Tribe. The Mississippi Gaming Commission cooperates with the Choctaw Gaming Commission and its agents have the right to inspect the operations of Class III gaming on reservation lands upon the presentation of appropriate identification to the on-site Choctaw Gaming Commission official without any further notice to the Choctaw Gaming Commission during normal business hours.
(5) The Tribe and the State of Mississippi shall mutually agree upon a budget for necessary and actual expenses that may be reasonably incurred by the State during the calendar year in connection with the gaming activities for regulation, enforcement and state-funded capital improvements that benefit the Tribe's casinos. The Tribe shall reimburse actual expenses specified in such budget incurred by the State within 30 days after the State submits a quarterly payment request. The Tribe and the State shall separately provide
$250,000 each year in matching funds to be used for the advertising and promotion of tourism. The Tribe's contribution shall be paid in quarterly installments, conditioned on the Tribe receiving profits of at least $62,500 for the preceding quarter.
(6) The sale of alcoholic beverages on reservation lands designated by the Tribal Council as a resort area is permitted by the State of Mississippi. The Tribe is required to purchase alcoholic beverages exclusively from the State warehouse.
(7) All management officials and key employees and any other person who enters into a management contract with the Tribe is required to have a Class III gaming license or work permit issued by the Choctaw Gaming Commission.
Government Regulation
General
The Enterprise is subject to special federal, state and tribal laws applicable to both commercial relationships with Indians generally and to Indian gaming and the management and financing of casinos owned by an Indian tribe specifically. In addition, the Enterprise is regulated by federal and state laws applicable to the gaming industry generally and to the distribution of gaming equipment. The following description of the regulatory environment in which Indian gaming takes place and in which the Enterprise operates is only a summary and not a complete recitation of all applicable law. Moreover, this particular regulatory environment is very susceptible to changes in public policy. It is impossible to predict how particular provisions will be interpreted from time to time or whether they will remain intact. Changes in such laws could have a material adverse effect on the Enterprise's business, results of operations and financial position.
Possible Changes in Federal Law
Several bills have been introduced in Congress which would amend IGRA. While there have been a number of technical amendments to the law, to date there have been no material changes to the IGRA. Any amendment of IGRA could change the governmental structure and requirements within which the Tribe could conduct gaming, and may have a material adverse effect on our results of operations or impose additional regulatory or operational burdens.
Tribal Law and Legal Systems
Applicability of Federal Law. Federally recognized Indian tribes are independent governments, subordinate to the United States, with sovereign powers, except as those powers may have been limited by treaty or by the United States Congress. The power of Indian tribes to enact their own laws to regulate gaming, subject to Federal laws, derives from the exercise of tribal sovereignty. Indian tribes maintain their own governmental systems and often their own judicial systems. Indian tribes have the right to tax persons and businesses conducting business on Indian lands, and also have the right to require licenses and to impose other forms of regulations and regulatory fees on persons and businesses operating on their lands.
Waiver of Sovereign Immunity; Jurisdiction; Exhaustion of Tribal Remedies. Indian tribes enjoy sovereign immunity from unconsented suit similar to that of the states and the United States. In order to sue an Indian tribe (or an agency or instrumentality of an Indian tribe such as the Enterprise), the tribe must have effectively waived its sovereign immunity with respect to the matter in dispute. Further, in most commercial disputes with Indian tribes, the jurisdiction of the federal courts, which are courts of limited jurisdiction, may be difficult or impossible to obtain. A commercial dispute is unlikely to present a federal question, and some courts have ruled that an Indian tribe as a party is not a citizen of any state for purposes of establishing diversity jurisdiction in the federal courts. The remedies available against an Indian tribe also depend, at least in part, upon the rules of comity requiring initial exhaustion of remedies of tribal tribunals and, as to some judicial remedies, the tribe's consent to jurisdictional provisions contained in the disputed agreements. The United States Supreme Court has held that where a tribal court exists, the jurisdiction in that forum must first be exhausted before any dispute arising on or involving the affected tribe's reservation and to which the tribe, a tribal entity such as the Enterprise or a tribal member is a party, can be properly heard by federal courts which would otherwise have jurisdiction. Generally, where a dispute as to the existence of jurisdiction in the tribal forum exists, the
tribal court must first rule as to the limits of its own jurisdiction, subject to specific limited exceptions enumerated by the United States Supreme Court.
The Indian Gaming Regulatory Act of 1988
Regulatory Authority. The operation of casinos and of all gaming on Indian land are subject to the Indian Gaming Regulatory Act of 1988. IGRA is administered by the National Indian Gaming Commission, or NIGC, an independent agency within the U.S. Department of Interior, which exercises primary federal regulatory responsibility over Indian gaming. The NIGC has exclusive authority to issue regulations governing tribal gaming activities, approve tribal ordinances for regulating Class II and Class III Gaming (as described below), approve management agreements for gaming facilities, conduct investigations and generally monitor tribal gaming. Certain responsibilities under IGRA (such as the approval of per capita distribution plans to tribal members and the approval of transfer of lands into trust status for gaming) are retained by the Bureau of Indian Affairs, or BIA, which is a bureau of the United States Department of the Interior. The BIA also has responsibility to review and approve land leases and other agreements relating to Indian lands. Criminal enforcement is a shared responsibility of the United States Department of Justice, the state in which the Tribe is located and the Tribe, in accordance with federal law.
The NIGC is empowered to inspect and audit all Indian gaming facilities, to conduct background checks on all persons associated with Indian gaming, to hold hearings, issue subpoenas, take depositions, adopt regulations and assess fees and impose civil penalties for violations of IGRA. IGRA also provides for federal criminal penalties for illegal gaming on Indian land and for theft from Indian gaming facilities. The NIGC has adopted rules implementing specific provisions of IGRA. These rules govern, among other things, the submission and approval of tribal gaming ordinances or resolutions and require an Indian tribe to have the sole proprietary interest in and responsibility for the conduct of any gaming. Tribes are required to issue gaming licenses only under articulated standards, to conduct or commission financial audits of their gaming enterprises, to perform or commission background investigations for primary management officials and key employees and to maintain facilities in a manner that adequately protects the environment and the public health and safety. These rules also set out review and reporting procedures for tribal licensing of gaming operation employees.
Classes of Gaming. IGRA classifies games that may be conducted on Indian lands into three categories. 'Class I Gaming' includes social games solely for prizes of minimal value or traditional forms of Indian gaming engaged in by individuals as part of, or in connection with, tribal ceremonies or celebrations. 'Class II Gaming' includes bingo, pulltabs, lotto, punch boards, non-banked card games, tip jars, instant bingo and other games similar to bingo, if those games are played at the same location as bingo is played. 'Class III Gaming' includes all other forms of gaming, such as slot machines, video casino games, table games and other commercial gaming, such as sports betting and pari-mutuel wagering.
Class I Gaming on Indian lands is within the exclusive jurisdiction of the Indian tribes and is not subject to IGRA. Class II Gaming is permitted on Indian lands if: the state in which the Indian lands lie permits such gaming for any purpose by any person, organization or entity; the gaming is not otherwise specifically prohibited on Indian lands by federal law; the gaming is conducted in accordance with a tribal ordinance or resolution which has been approved by the NIGC; an Indian tribe has sole proprietary interest and responsibility for the conduct of gaming; the primary management officials and key employees are tribally licensed; and several other requirements are met.
Class III Gaming is permitted on Indian lands if the conditions applicable to Class II Gaming are met and, in addition, the gaming is conducted in conformity with the terms of a tribal-state compact, which is a written agreement between the tribal government and the government of the state within whose boundaries the tribe's lands lie.
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Tribal-State Compacts. IGRA requires Indian tribes to enter into tribal-state compacts in order to conduct Class III Gaming. Such tribal-state compacts may include provisions for the allocation of criminal and civil jurisdiction between the state and the Indian tribe necessary for the enforcement of such laws and regulations, taxation by the Indian tribe of such activity in amounts comparable to those amounts assessed by the state for comparable activities, remedies for breach, standards for the operation of such activity and maintenance of the gaming facility, including licensing and any other subjects that are directly related to the operation of gaming activities. While the terms of tribal-state compacts vary from state to state, compacts within one state tend to be substantially similar. Tribal-state compacts usually specify the types of permitted games, establish technical standards for video gaming machines, set maximum and minimum
machine payout percentages, entitle the state to inspect casinos, require background investigations and licensing of casino employees and may require the tribe to pay a portion of the state's expenses for establishing and maintaining regulatory agencies. Some tribal-state compacts are for set terms, while others are for indefinite duration. The Tribe's Compact has no fixed termination date and will continue in force until terminated by mutual agreement of the State of Mississippi and the Tribe or by Act of Congress.
There has been litigation challenging the authority of governors, under state law, to enter into tribal-state compacts. Federal courts have upheld the authority of the governors of Louisiana and Mississippi to enter into compacts, while the highest state courts of New Mexico and Kansas have held that the governors of those states did not have authority to enter into such compacts without the consent or authorization of the legislatures of those states. In the New Mexico and Kansas cases, the courts held that compacting is a legislative function under the respective state constitutions. The court in the New Mexico case also held that then existing state law did not permit casino-style gaming.
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The Enterprise's operation of gaming is subject to the requirements and restrictions contained in the Compact. The Compact authorizes the Tribe to conduct most forms of Class III gaming. For additional information, see 'Description of Material Agreements-The Compact'.
Tribal Ordinances. Under IGRA, except to the extent otherwise provided in a tribal-state compact as described below, Indian tribal governments have primary regulatory authority over Class III Gaming on land within a tribe's jurisdiction. Therefore, the Enterprise's gaming operations, and persons engaged in gaming activities, are guided by and subject to the provisions of the Tribe's ordinances and regulations regarding gaming.
IGRA requires that the NIGC review tribal gaming ordinances and authorizes the NIGC to approve such ordinances only if they meet specific requirements relating to (1) the ownership, security, personnel background, recordkeeping and auditing of a tribe's gaming enterprises; (2) the use of the revenues from such gaming; and (3) the protection of the environment and the public health and safety.
Employee and Labor Relations
As of September 30, 2002, the Enterprise had 4,695 full-time employees. The number of employees has increased from September 30, 2001 due to the openings of the Golden Moon and Geyser Falls. Pursuant to the ordinance establishing the Enterprise, we are required to extend preferential treatment to qualified members of the Tribe in recruitment, employment and promotion. Our employees are not covered by any collective bargaining agreements. The Enterprise believes that our labor relations with our employees are good.