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20072007

Letter from the Principal ChiefDear Cherokee Citizen,

When I travel this beautiful Cherokee Nation, I am constantly remindedof the rich culture and history that makes our Nation great. Throughout thathistory, Cherokees have led the way in education, commerce, language andlaw. To keep that legacy and culture strong, we must strengthen ourCherokee communities by promoting economic self-reliance.

We know that Cherokee people want to be self-reliant, working to sup-port themselves, their communities and their Nation. That is why one of thegreatest things the Cherokee Nation can do for its citizens is to providejobs and economic opportunities for our citizens. To this end, the CherokeeNation is a multi-faceted government entity with many business enterpris-es whose main goal is to employ Cherokees and provide money for govern-ment services for our citizens. This past year, that meant helping out whennatural disasters like fires, ice storms and tornadoes ravaged Cherokeecommunities. We also continued to fund health care, housing, educationand other programs at record levels.

Cherokee Nation Enterprises is the most visible of all Cherokee Nationbusiness entities, operating Cherokee Casinos and other retail and hospi-tality businesses. Cherokee Nation Enterprises is in an exciting time ofgrowth, expanding facilities and creating unprecedented job opportunitiesfor Cherokee people. What often isn’t as visible, however, is the impactthat gaming has on the Cherokee Nation, its citizens and its communities.

For the second year, I have asked Cherokee Nation Enterprises to prepare a report that allows Cherokee people to know exactly how muchmoney the Cherokee Nation makes from gaming and what we do with it. Very simply put, “Where does the casino money go?” This reportwill show the many ways in which gaming money is used to create jobs, bolster economic growth and fund vital government services forCherokee citizens.

Sincerely,

Chad SmithPrincipal Chief

Joe Grayson Jr.Deputy Chief

CONTENTS

1

Where the Casino Money Goes 2

Board of Directors: CNE’s Decision Makers 3

Cherokee Nation Enterprises: Gaming, Hospitality, Retail and Cultural Tourism 4

How Much Money do Cherokee Casinos Make? 5

Employing Cherokees, Improving Lives 6 - 10

Contributing to Public Education and Oklahoma’s Horse Racing Industry 11

Casino Money Benefits Cherokee Communities 12

Casino Money Benefits Cherokee People 13

Sustaining a Nation Through Services to Our People 14 - 23

Creating Jobs, Building Futures Through the Jobs Growth Fund 24 - 29

Cherokee Casinos: Generating Profits for Cherokee Citizens 30 - 31

Supporting Local Communities 32

Indian gaming is increasingly making a larger positive impact on the economyof Oklahoma, showing unprecedented growth in a relatively brief amount of time.The newest figures from an industry report show that Oklahoma now ranksfourth nationally in gaming revenues, behind only Nevada, Connecticut andCalifornia. Much of that extraordinary growth in Oklahoma can be attributed toCherokee Nation Enterprises’ gaming venture, Cherokee Casinos.

Revenues from Cherokee Casino directly benefit the Cherokee Nation and itscitizens by contributing 100 percent of its profits to job growth initiatives andvital government programs and services. This publication will show exactly howthose profits are generated, what they are spent on and exactly Where theMoney Goes. It will also illustrate how Cherokee Nation Enterprises has becomeone of the largest employers in northeast Oklahoma, providing thousands of sta-ble jobs with good benefits.

Cherokee Nation Enterprises is the gaming, hospitality and retail company wholly owned by the Cherokee Nation. Unlike many tribes whouse well-known companies from Las Vegas and other areas to operate their casinos, Cherokee Nation Enterprises uses no outside compa-ny to manage its facilities. The company follows a corporate model, with a board of directors appointed by the Principal Chief and confirmedby the Tribal Council. This structure ensures there are no political or outside influences on business decisions, which are made throughsound business judgment.

Where the Casino Money Goes

2006 CHEROKEE NATION TRIBAL COUNCILBack row, L-R: Bill John Baker, Jackie Bob Martin, David Thornton, Deputy Chief Joe Grayson, Principal Chief Chad Smith, Melvina Shotpouch, Meredith Frailey,Buel Anglen, Chuck Hoskin. Front row, L-R: Audra Smoke-Connor, Joe Crittenden, Phyllis Yargee, Don Garvin, Linda Hughes O'Leary, Johnny Keener, Cara Cowan-Watts, Bill Johnson.

Taylor Keen Jack Baker

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Board of Directors: CNE’s Decision MakersCherokee Nation Enterprises is a company owned entirely by the Cherokee Nation. CNE is run by a board of directors, which sets policy

for the company, makes decisions about the vision and future direction of CNE and hires the executive management staff who run CNE on aday-to-day basis. CNE, and other tribally owned companies, are designed to operate independently from the elected leadership of theCherokee Nation. Such a system ensures the company can make sound business decisions without having to worry about political pressures.Members of the board are appointed by the Principal Chief and confirmed by the Tribal Council. This structure allows the Cherokee Nation’sleaders to select qualified board members to make business decisions for CNE, while the elected leaders concentrate on running the govern-ment. The board of directors meets regularly to monitor CNE's business practices and future plans. Cherokee Nation Enterprises board mem-bers include:

Cherokee Nation Enterprises BoardChairman Jay Hannah is the executivevice-president of financial services atBancFirst in Oklahoma City. Hannah, aCherokee citizen, was co-chair of theCherokee Nation Private IndustryCouncil, a commissioner on theConstitution Convention Commission,and chairman of the 1999 ConstitutionConvention. He is also a board mem-ber for Cherokee Nation Businesses.

B.J. Dumond, a Cherokee citizen,was born and raised in Tahlequah. Hiscompany, Simple Simon’s Pizza, hasbeen recognized as the NationalMinority Retail Firm of the Year by theU.S. Government. Dumond also ownsB&B Real Estate, LLC and has interestin Tulsa 5-Star, which owns two fran-chise Music-Go-Round retail stores.

Dennis Dowell is the executive direc-tor of The Native American ResourceCenter, Inc. TNARC is a Tulsa-basednon-profit organization that providesservices across the state of Oklahomafor American Indians and other minori-ties in marketing, finance, businessmanagement, employment searchesand job training. Dowell is a citizen ofthe Cherokee Nation.

M.A. Lechtenberger, a citizen ofthe Cherokee Nation, is a retiredpetroleum professional who spent20 years with Exxon and 13 yearswith CITGO Petroleum, Inc. Duringhis career he had the opportunity towork at six world-class refineriesand held senior management posi-tions at four refineries.

Bob McSpadden, a citizen of theCherokee Nation, has a long historywith the Cherokee Nation, as a for-mal tribal council member and activecitizen. He has enjoyed a long careerin banking, joining First NationalBank and Trust Company in Vinita in1963 where he is still employedtoday. McSpadden has also servedas a board member for CherokeeNation Industries.

Michael “Mick” Webber, a Cherokeecitizen, is currently president and CEOof HydroHoist Inc. International, basedout of his hometown of Claremore,Okla. Webber also serves as aClaremore city council member, aswell as on the City Manager's AdvisoryCouncil, the Mayor's Advisory Council,Claremore Public Schools BuildingCommittee and the Home of HopeBoard of Directors.

Dave Tippeconnic, former chief exec-utive officer of CNE, has been funda-mental in CNE’s recent growth.Highlighting Tippeconnic’s 39 years inthe petroleum industry was his role aspresident and CEO of CITGOPetroleum Corporation, one of thelargest oil companies in the world.Tippeconnic also previously served aspresident of UNO-VEN Company andexecutive vice president of PhillipsPetroleum Company for three years.

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Cherokee Nation Enterprises: Gaming, Hospitality, Retail and Cultural Tourism

Cherokee Nation Enterprises’ executive management team, led by Chief Executive Officer David Stewart, has assembled askilled group of employees, the majority of whom are Cherokee, to manage and run each facility the company owns. In north-east Oklahoma, Cherokee Nation Enterprises owns seven casinos, a horse racing track, three hotels, two golf courses, two con-venience stores, six tobacco retailers, the Cherokee Nation gift shop and the Cherokee Heritage Center.

David Stewart is chief executiveofficer for Cherokee NationEnterprises. Stewart, a Cherokee citi-zen, is a native of Sallisaw graduatingfrom Sallisaw High School in 1973.Stewart began his tenure at CNE in2002. Since that time, the companyhas grown from just over 1,000employees to more than 3,100.Stewart previously served as CEO ofCherokee Nation Industries, theCherokee Nation’s manufacturing, dis-tribution and telecommunicationscompany. Stewart earned his Masterof Science in accounting and Bachelorof Arts in business degrees in 1978and 1977 respectively, fromOklahoma State University. Hebecame an Oklahoma certified publicaccountant in 1978. Stewart heldsenior accounting positions at severalmajor firms such as Coopers Lybrand,now PricewaterhouseCoopers, andArthur Anderson & Co. Stewart alsoserved as CEO of Sunbelt FireProtection in Tulsa.


How Much Money do Cherokee Casinos Make?In 2006, Cherokee Nation Enterprises generated $353 million in revenue. That revenue is used for expenditures to three basicareas: Operating costs, payroll and contributions to the state of Oklahoma for education and horse racing industry. The remain-ing amount, $87 million, is profit reinvested in the Cherokee Nation in the form of jobs or government services.

It takes many millions of dollars to effec-tively run a company the size of CNE, there-fore the largest portion of revenue is usedto pay operating costs. Operating costsinclude such expenditures as utilities,equipment purchases, facility repairs, officesupplies, hotel furnishings, food for restau-rants and convenience stores and paymentsto local municipalities for emergency servic-es. Operating costs for 2006 totaled$148.7 million.

The next largest category is payroll, whichaccounted for nearly 30 percent of the totalrevenue for 2006. Cherokee NationEnterprises employs more than 3,100 peo-ple company-wide and had a payroll of $101million in 2006. The goal of CherokeeCasinos, in addition to generating revenuefor Cherokee Nation, is to employ Cherokeecitizens. Seventy-three percent of CherokeeCasino employees are Native American,which means Cherokees can stay in theirhome communities to raise their families.


Employing Cherokees, Improving LivesEmploying Cherokees, Improving Lives

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Each year, several million dollars are brought back to the communities where Cherokees live. Nine counties even saw pay-checks totaling more than a million dollars apiece brought back to their communities in 2006. The remaining payroll goes toemployees spread over dozens of counties in Oklahoma and surrounding communities. These payroll figures on the map do notinclude the out-of-pocket expense CNE incurs for benefits packages on behalf of employees.

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CNE creates career-path jobs with excellent benefits in Cherokee communities. In 2006, CNE’s payroll was $101 million.Stable jobs can be found at CNE in a variety of fields, allowing employees to establish long-term careers.

BUILDING LONG-TERM CAREERS“At CNE, the best part is that we are always improving and overcoming challenges. It makes it an exciting place to work because

there is always something going on.” – Carlos Crittenden, Cherokee citizen, senior systems analyst

The growth of Cherokee Casinos, and subsequently, Cherokee Nation Enterprises, has presented countless new and challengingcareer opportunities for CNE employees. CNE is dedicated to providing career options for Cherokee citizens in many fields, partic-ularly for aspiring professionals. For proof that CNE is achieving that goal, look no further than Carlos Crittenden, senior systemsanalyst. Carlos has worked for CNE for eight years in the information technology department keeping CNE’s computer and phonesystems up to speed. That means being in constant control of computer networks that operate the various properties’ electronicgames, phone systems and hotel reservation call systems. “When I started working for CNE there were two people in the IT depart-ment and only 15 people in the corporate office,” says Carlos. “We had paper bingo back then and I’ve seen the growth since theelectronic games were installed.” Carlos began his career for CNE in 1995 when the corporate office was located in Stilwell, Okla.Since then he has moved offices with the company to Tahlequah and now to Catoosa, Okla. Carlos enjoys the exciting opportunitiesthat reinvestment into Cherokee Casinos brings. “Because of the upcoming expansions in Catoosa and West Siloam Springs, wewill be very busy for a while. We have everything in place but we will be adding to and improving our systems.” Carlos, born andraised near Stilwell, Okla., still resides there with his family, including his wife, two children and three grandchildren.

Employing Cherokees, Improving Lives



In the past five years, CNE has more than tripled its number of employees while posting record profits every year. Back in 1992,CNE operated only one gaming facility in Roland staffed by a mere 86 employees. Today, that number has skyrocketed to 3,149with workers at more than 20 locations, ranging from casinos, golf clubs, hotels, convenience stores and more. More than 300of CNE’s new jobs came in 2006 alone. This graph illustrates the tremendous growth of employees for our area since 1992.



Only through continually rein-vesting profits in job creation andexpansion has CNE been able tocreate so many jobs. That reinvest-ment and expansion strategy hasbeen proven to generate largerprofits down the road, making moremoney for services to Cherokeepeople and creating more jobs toemploy more Cherokees.




HOTEL PURCHASE CREATES JOBS FOR CHEROKEE CITIZENS

“It’s good to come to work and love your job and love the people. I’ll be here until I retire, I’d be crazy not to!” – Kim Fiddelke,Cherokee citizen, Cherokee Casino Inn Roland housekeeping supervisor

Loving your job means differentthings to different people. But to KimFiddelke, housekeeper supervisor atCherokee Casino Inn Roland, it meansfeeling appreciated and having jobgrowth opportunity. Kim started hercareer with Cherokee Casino Roland inthe environmental services depart-ment. She worked at the casino foreight months before being promoted tosupervisor in the housekeeping depart-ment for the casino’s hotel property.Cherokee Casino Inn Roland was pur-chased by CNE in 2006, creating newjobs for Kim and dozens of otheremployees. “I have never worked at abetter place. Here, they complimentyou quite a bit, make you feel appreci-ated. The people care,” says Kim. Shewill tell you that CNE is “good to itspeople,” hiring from within and offeringgreat benefits to its employees andfamilies. Through expansion and rein-vesting in CNE and its properties,many more jobs like Kim’s will be cre-ated for Cherokees in the future,expanding the CNE family even more.And at Cherokee Casino your col-leagues can start to feel like family,Kim says. But Kim also knows thatbalancing work and family is important,which is another reason she loves herjob with Cherokee Casino Inn Roland. “Ihave more opportunity to spend timewith my family than I did before.”Family for this Muldrow residentincludes a 14-year old daughter thatkeeps her very busy. But Kim alsoenjoys a unique hobby of arrowheadhunting in her spare time. For morelively pursuits, Kim also enjoys bowlingand watching wrestling – WWE-style!

Contributing to Public Education and Oklahoma’s Horse Racing Industry


Contributing to Public Education and Oklahoma’s Horse Racing Industry

Cherokee Nation Enterprises has agreements with the state of Oklahoma to allocate a portion of revenues back to thestate to fund public education, as well as the state’s horse racing industry. In 2006, CNE paid $16.3 million to the state tofund those areas.


Casino Money Benefits Cherokee Communities

CNE’s $87 million in profit is returned to the Cherokee Nation in two ways. The first is a payment to the Cherokee Nation’sgeneral fund to help expand important government services for our citizens. The other way profit from Cherokee Casinos isreturned to the Cherokee Nation and its citizens is by reinvesting in our businesses. That allows the Cherokee Nation to reap thebenefits in several ways: creating jobs for Cherokees, stimulating the economies of Cherokee communities and growing business-es so more profits are returned to Cherokee Nation in the form of services.


Casino Money Benefits Cherokee People

One hundred percent of the profit from Cherokee Casinos benefits Cherokees through either government services or job cre-ation. Per Cherokee Nation law, beginning January 1, 2006, Cherokee Nation-owned businesses are required to contribute 30percent of their profits in a direct payment to the Cherokee Nation for education, health care, social services and other funda-mental government programs. The amount CNE contributed to Cherokee Nation in 2006 was $25.4 million. The remaining 70 per-cent is reinvested into the Jobs Growth Fund for job creation, expansion and business diversification. The Jobs Growth Fund helpscreate jobs for Cherokee citizens, while also generating dollars for the Cherokee Nation’s general fund.


The $25.4 million payment made to Cherokee Nation from CNE goes into the Cherokee Nation’s general fund. The CherokeeNation’s general fund has sources of revenue other than gaming, and in 2006 the total general fund budget was $40.1 million.Thanks to CNE’s continued growth, the company’s contribution to the general fund increased by more than $8 million dollars in2006, a boost of nearly 50 percent over the previous year. The Cherokee Nation uses both general fund dollars and federal dol-lars to operate its government. Since federal funds from the U.S. government are earmarked for specific areas, the general fundgives the Cherokee Nation the freedom and flexibility to fund innovative programs that citizens need the most.

Sustaining a Nation Through Services to Our People



Health ServicesThe Cherokee Nation is dedicated tothe health and well being of its citi-zens. Healthy citizens will ensure theCherokee Nation’s success for genera-tions to come. For that reason, 16percent of the general fund, or $6.2million, was dedicated to health pro-grams in 2006. Of that $6.2 million,close to $4 million came directly fromgaming to fund vital health serviceslike detection and screening of dis-eases that affect Cherokee communi-ties the most, like diabetes and can-cer. Specialized treatments and oppor-tunities such as the Back-to-Work pro-gram would not be possible if not forgeneral fund gaming dollars. Nearcompletion right now is a state-of-theart health center in Muskogee, a newhigh-tech health clinic in Nowata andmajor upgrades to the Redbird Smithclinic in Sallisaw. In 2006, theCherokee Nation spent more than$134 million in general fund and feder-al money on health care.



CHEROKEE NATION SAVES CITIZEN’S LEG, LIFE“If not for the Cherokee Nation, I probably wouldn’t be here today. I know I wouldn’t have my leg, that’s for sure.”—Daryl Bailey,Cherokee citizen, Back-to-Work program participant

Life can change in an instant, and no oneknows that better than 35 year-old Daryl Baileyof Roland. At one moment, he was enjoying amotorcycle ride on a crisp February afternoon,the next, he found himself crushed by anoncoming vehicle that ran a stop sign. “Thislady didn’t stop and hit me and just wrapped mearound a pole,” Bailey says. His leg injurieswere extensive. “It broke my femur, welldestroyed it really. They had to replace it withtitanium.” The person who hit Daryl had noinsurance, and Daryl’s employer let him go ashe was unable to work. Left with no insurance,Daryl was sent home from the hospital with nomedical care. Once home, Daryl’s conditionworsened. “I just knew I didn’t feel good andthere was rotten blood leaking out of my legand I didn’t have any feeling in it at all,” Darylsays. “So I went to the Redbird Clinic inSallisaw and they got me an appointment atHastings Hospital. Once I got there, they tookone look at it and admitted me right then.”Unbeknownst to Daryl, he’d developed a seriousand possibly fatal blood infection. “I was hospi-talized on Monday and had surgery byWednesday.” Ten surgeries later, Daryl sayshe’s lucky to be alive and even luckier to stillhave his leg. “They talked two or three timesabout cutting it off altogether. I know I wouldn’thave my leg if Cherokee Nation hadn’t steppedin, and I probably wouldn’t even be alive, as badas that blood infection was.” Even moreremarkable, Daryl is on the job once again andhis medical bills taken care of by the CherokeeNation’s Back-to-Work program, which wouldn’tbe possible if not for CNE’s gaming revenues.“Looking back to when those doctors told me I’dnever work again, I just feel proud to get up andgo to work again, like a normal person,” Darylsaid. Although one leg is now two inches short-er and Daryl will likely have a slight limp therest of his life, he says it’s a small price to payto lead a normal life. “I’m just really happy andthankful to the Cherokee Nation to be workingagain.”


THE GIFT OF LIFE“Well, it saves lives. It’s really been the gift of life for me. I feel very grateful that I am a member of Cherokee Nation that I amafforded a clinic and hospital where I can have heart surgery.”— Sallie Dietrich, Cherokee citizen, heart patient

For two years Sallie Dietrich hadbeen suffering from chest pains. Beingself-employed and having no insurance,Sallie knew her options for treatmentwere limited, but she also knew herhealth issues desperately neededaddressed. Fortunately for Sallie, aCherokee citizen, the Cherokee Nationwas able to schedule her for tests thatcheck for heart disease. The resultswere sobering. “The test was positivefor coronary heart disease,” Sallie says.“It showed that I had two blocked arter-ies in my heart.” Test results in hand,Sallie was rushed through the system.“It showed that I really could fall deadfrom this, so they just took the ball andran with it.” Almost immediately, Salliewas admitted to the hospital for anangioplasty, where doctors removedblockage to two arteries. “The team wasexcellent,” Sallie says. “I was reallyscared, thinking I was possibly going tohave open heart surgery or severalstints placed in my heart. But anytime Ihad any questions, whether it was day,night or whatever, the whole team wasthere for me.” Sallie was released justone day after her angioplasty. “They gotme in and out almost immediately, therewas no waiting,” Sallie says. “Everyonewas just so professional and made mefeel important.” Programs like the oneSallie took advantage of are paid forthrough the general fund, which con-sists mostly of gaming profits. Sallie isnow on medication and following a rigor-ous diet so she can stay healthy. “Icouldn’t have gotten better treatment.To be a member of Cherokee Nationwhere you have medical, dental andother health care, plus prescriptions,it’s invaluable. We’re a very lucky popu-lation of people.”



EducationCherokees have always placed a great

deal of value on education. Cherokee states-man Sequoyah created the first NativeAmerican syllabary, and Northeastern StateUniversity was founded as the CherokeeFemale Seminary, the first institution ofhigher learning west of the MississippiRiver. In 2006, Cherokee Nation spent 14percent of its general fund, or $5.6 millionon education. Nearly $3.6 million of thosedollars came directly from casino money.Thanks to gaming dollars and the growth ofCNE, the Cherokee Nation general fund hasmore money than ever for higher educationscholarships, Cherokee language preserva-tion programs and the Johnson O’Malleyprogram, which provides Cherokee studentswith school supplies, educational materials,summer programs, cultural programs andmuch more. The education budget alsoincludes unprecedented funding forSequoyah High School. Through CherokeeNation support, Sequoyah High School hasbecome one of the finest private schools inthe area, known both for academics and ath-letics. Overall, more than $37.7 million wasspent on education from both general andfederal funds.



MAPPING OUT A FUTURE“I don’t know where I’d be without all of this. It would be really tough.” – Derrick Stanley, Cherokee citizen, NSU student

As 21 year-old Derrick Stanley ofTahlequah planned the roadmap of hislife, a college degree was always a stopalong the way. Getting to that point,however, might have required someextra twists and turns if not for the helpof the Cherokee Nation’s undergraduatescholarship program. The CherokeeNation undergraduate scholarship, com-bined with other financial aid, have beeninstrumental in helping Derrick pay forcollege. “My parents haven’t had to payany money out of pocket and neitherhave I. It’s made it a lot easier, obvious-ly,” Derrick says. Derrick, a senior atNortheastern State University, appliedfor Cherokee Nation higher educationfunds upon graduating from SequoyahHigh School in 2004 and has been ableto renew the scholarship every semes-ter since. Some of Cherokee Nation’sgaming proceeds are used to fund high-er education scholarships like Derrick’s.In addition to the scholarship, this for-mer Little Kansas resident is serving asan intern with Cherokee NationEnterprises’ corporate accounting officein Tahlequah, earning competitive wageswhile gaining real world experience. “Idon’t know where I’d be without workinghere,” Derrick says. “It would be tough,because they’re so flexible with my col-lege schedule. I don’t know of anotherplace that would work so well with me.”Derrick is on track to graduate asscheduled in the spring of 2008 with adegree in accounting. But as he passesthis stop on the roadmap of his life, he’sgoing to give some directions along theway to someone else. “I’m just so thank-ful to the higher ed department. I have alittle brother who graduated fromSequoyah High School and I’m going tomake sure he applies for this scholar-ship too. It really, really helps.”




Housing and Community ServicesOne of the most fundamental needs for any person to be

successful and self-sustaining is adequate housing and astrong community infrastructure. Without a proper homeor community to live in, Cherokees may find it difficult tokeep a steady job or provide a healthy environment for theirchildren to live in. The Cherokee Nation general fund, bol-stered by gaming revenues, has many creative programs tohelp Cherokee citizens build and maintain strong homes andcommunities. Nearly $3.8 million, or 9 percent of theCherokee Nation’s general fund, is dedicated to housing andcommunity services. Of that $3.8 million, $2.4 millioncame directly from CNE and its gaming revenues, makingmany housing and community services programs possible.One such program not possible without gaming revenues isthe self-help housing program, in which homeowners areprovided materials at no charge and perform the labor withfriends and family helping out. Housing and community serv-ices programs also include the community water line pro-gram, which allows Cherokee communities to build waterline systems from materials provided by Cherokee Nation.Some families can also get assistance from the CherokeeNation to drill their own wells and connect to water lines.Overall, the Cherokee Nation spends $85.4 million from thegeneral fund and federal fund on housing and communityservice programs.



COMMUNITIES PULL TOGETHER TO IMPROVE LIFE FOR EVERYONE“There’s no telling what this water is doing to your health. Without Cherokee Nation, we’d be stuck dealing with it forever.” -Tammy Marshall, Cherokee citizen, Tailholt community

Water. It’s a simple necessity, one thatfew people ever think twice about. Butimagine if that necessity actually damagedyour water lines, plumbing, dishwashers,clothes, even your coffee pots. If you won-der what that might feel like, you couldalways ask the residents of Tailholt.Without a working water line system, thissmall Cherokee County community hasbeen plagued by water problems for aslong as anyone can remember. “Some peo-ple have sulfur water or lime water thatruins plumbing, washers and coffee potseven with a filter system,” says TammyMarshall, life-long resident of Tailholt. “Andthere’s no telling what it’s doing to yourhealth.” Tammy, like many Tailholt resi-dents, has had to spend a lot of moneyover the years just to maintain a safe homewater system. But today, residents likeTammy are getting just what they need, aworking water line thanks to the CherokeeNation. Through one of many self-help pro-grams, the Cherokee Nation is making surethis community of fewer than 200 resi-dents doesn’t have to worry about what’spouring out of the tap. The CherokeeNation purchased seven and a half miles ofwater lines worth $70,000 for this tight-knit community. In return, residents pro-vide the labor. “If the Cherokee Nation had-n’t stepped in we would be forced to con-tinue to deal with the water problems thataffect us now,” says Tammy. Self-help pro-grams such as the Tailholt water line proj-ect come from the general fund of theCherokee Nation, which receives most ofits revenue from gaming profits. Thegrowth of gaming means that CNE can pro-vide more projects like this all over the Cherokee Nation. Since installation of the Tailholt water line project began, community vol-unteers have been working hard each Saturday from morning to night to install the water lines. This project, which is expected tobe complete sometime this year, will help 70 Tailholt families, 40 of whom are Cherokee. “There’s so many people to thank for get-ting the project out to Tailholt,” said Tammy. “There’s no way our small community would’ve gotten the funding and equipment with-out Cherokee Nation’s support. They’ve even provided some manpower to help our volunteers. If it weren’t for the Cherokee Nationwe wouldn’t be getting water lines for our community.”



Devastating grass fires broughton by Oklahoma’s ongoing droughtput a critical strain on Oklahoma’sfire departments last year.Luckily, the Cherokee Nation wasable to step in and help rural firedepartments, most of which oper-ate on a volunteer basis. Thedonation to fire departments wastaken from Cherokee Nation’sgeneral fund, which is funded pri-marily by gaming dollars. Thanksto those gaming profits, theCherokee Nation was able to givemore than half a million to theserural fire departments that wereso desperately in need. Here is abreakdown of the amounts givento fire departments in each coun-ty located in the 14-county juris-diction of the Cherokee Nation.

Natural Resources Preserving and improving the environment within the Cherokee Nation is more important today than ever before. The environmental deci-sions the Cherokee Nation makes today will impact generations to come. The natural resources office leads the way in conservation effortsand provides environmental surveys of land. The office also oversees land management, timber leases, upkeep of trust land, land purchas-es and facilities management. Nearly $5.2 million of the general fund, or 13 percent, was spent on preserving our natural resources. Ofthat $5.2 million, $3.3 million was funded directly by CNE and Cherokee Casino. Overall, $7.3 million of general fund and federal money isdedicated to natural resources.



RELIEF EFFORTS SAVE CHEROKEE FAMILY“The water was just tremendous, then giving the disaster relief money. That’s helped so many people. Thank goodness for theCherokee Nation. They’re the only ones who came through for us.”—Colleen and Rodger Springer, Cherokee family, ice storm victims

Oklahoma weather can be unpredictable, and after January’s historic icestorm, no one knows that better than Colleen and Rodger Springer. “We hadno water, no heat and no electric for days. We couldn’t even get outside, wewere completely iced into our house,” Colleen says. After two days, Colleenand Rodger’s son came and chipped them out of their home in Strang inMayes County, but their troubles were just beginning. “Our cell phones andland lines weren’t working, so we couldn’t call for help. We have a wood stove,but without electricity the blowers weren’t working. We couldn’t carry woodand couldn’t leave our home because we’re both disabled.” The Springers,along with the five year-old granddaughter they’re raising, had to drink waterfrom ice boiled on that wood stove, because the local fire department couldonly give two bottles of water per person, per day. Luckily, the CherokeeNation was able to provide disaster relief funds and supplies before the situ-ation became too dire. Those funds were made available thanks to CNE andCherokee Casinos, which give the Cherokee Nation general fund the resourcesand flexibility to respond quickly in the event of an emergency. “Thank good-ness for the Cherokee Nation,” says Colleen. “They were the only ones whocame through for us. We got six cases of water in all, which we were able toshare with our neighbors too. You just don’t realize what you’ll need in anemergency.” The Cherokee Nation also came to the aid of local shelters, aswell as individuals, by starting an emergency program to reimburse citizensfor out-of-pocket expenses. “You just don’t know what that means to people.We lost all of our food from the freezer and refrigerator. And the workers atthe disaster relief center were so kind to us.” Colleen says in the event of thenext disaster, she won’t be unprepared. “People don’t know how importantwater is until they can’t get it. I won’t be unprepared again.”


Creating Jobs, Building Futures Through the Jobs Growth Fund

A central goal of the Cherokee Nation is to provide good, stable jobs for its citizens. By providing jobs, our young people won’tbe forced to leave their Cherokee communities in search of a successful career. That’s why 70 percent of CNE’s profit, or $61.6million, is placed into the Jobs Growth Fund. The Jobs Growth Fund gives back to the Cherokee Nation in several ways. It is usedto re-invest in existing businesses to create more jobs for Cherokees, while growing revenue to be given back in the form ofservices to the Cherokee people. It is also used to invest in non-gaming businesses, which can in turn employ Cherokees in var-ious other fields.



THE SATISFACTION OF HELPING OTHERS WHILE GIVING BACK TO CHEROKEE NATION“The exciting thing about coming to work is you meet people from all over. I enjoy helping people and taking the time to listen, takesuggestions, and solve problems.” – Jerry Long, Cherokee citizen, Cherokee Casino Tahlequah guest services manager

Jerry Long has had a lengthycareer in education, helping childrenand teenagers grow into adults bytackling tough problems and seizingopportunities. Jerry graduated fromNSU with a bachelor’s degree in sec-ondary education and a minor in bilin-gual and multi-cultural education.Before coming to CNE, he worked atCherokee Nation Head Start andSequoyah High School as a counselorand assistant coach. Watching CNEgrow over the years, Jerry finallydecided to seize his own opportunity.When Cherokee Casino Tahlequahwas expanded in 2006, Jerry jumpedat the chance to take the newly cre-ated guest services manager posi-tion. “I always wanted to still beworking with the Cherokee Nation butthis position offered me the chanceto work with CNE, which I have seengrow so much over the years. It wasa nice fit,” says Jerry. “It’s never thesame job, always different people,different games.” Working at CNEhas also meant flexibility to still beinvolved in what he loves—SequoyahHigh School basketball. Jerry volun-teers as Sequoyah High School’sboys and girls varsity basketball stat-istician. “I appreciate the opportunityto give back,” Jerry said. “I’m thank-ful to the Sequoyah High School bas-ketball program and my general man-ager who helps adjust my scheduleso that I can continue to volunteer forthe high school sports.” Coming towork at CNE, Jerry’s passion for education hasn’t faltered. He is currently seeking a master’s degree in hospitality through theUniversity of Nevada Las Vegas’ unique partnership with CNE. In his downtime, this Muskogee native who has lived in Tahlequah,Hulbert and now Ft. Gibson, can be found with his wife Nikki coaching his two daughters’ softball and basketball teams and cheer-ing for OU sports.



Expanding CNE Means More Jobs for CherokeesBy using the Jobs Growth Fund to expand and improve facilities, CNE can create more jobs for Cherokees and generate more

money for government services at the same time. In 2006, the Jobs Growth Fund totaled $61.6 million.



NEW CHEROKEE CASINO SALLISAW OPENS, CHEROKEE CITZENS REPORT TO WORK“This job offers something new every day, new people, new challenges.” – Nancy Brown, Cherokee citizen, Cherokee Casino Rolandcustomer service administrator

Nancy Brown still feels chal-lenged and excited about herjob, even eight years in. Nancyis a customer service adminis-trator at the newest CNE casi-no, Cherokee Casino Sallisaw.She joined the team in Sallisawa year ago after a seven-yearrun at Cherokee Casino Roland,where she started as a cashier.What she loves about her pastand present positions is “meet-ing new people, all kinds of peo-ple!” Nancy enjoys the fun thateach new day brings atCherokee Casino Sallisaw andappreciates that it feels likefamily. “I enjoy my job. It’s myhome away from home,” saysNancy. If you ask her whatmakes CNE different from othercompanies, she is quick to tellyou that it comes down to twothings for her: communicationand benefits. “There is a lot ofcommunication, so you alwaysknow what’s going on.” Just asimportantly, the medical, dentaland vision insurance and otherbenefits that CNE offers itsemployees have been a hugesense of security for this mar-ried grandmother and mother ofthree boys. Nancy enjoyssports, football in particular, andwatching her grandkids playbaseball and softball. But sheplans on being with CNE forquite a while. As for her futurewith CNE, Nancy says she likes the position she has now. “I know there will be new opportunities that will come open, higher posi-tions and new challenges, but I am very satisfied now.”


Expansion Equals Job CreationThe Sallisaw area got a major boost when the $6 million Cherokee Casino Sallisaw opened. With it came more than 140 new jobs with

competitive benefits to the area. Cherokee Casino Tahlequah opened in September 2006, replacing the temporary structure that former-ly housed the casino. At a cost of $6.6 million, Cherokee Casino Tahlequah added more than a hundred jobs to the local economy. $10.6million was used to purchase two Cherokee Casino Inns, which employ 40 people, land near Cherokee Casino Resort in Catoosa for futuredevelopment and land to build the Roland travel plaza on. That $3.6 million project now employs 15 people.

Cherokee Casino Roland received a major facelift, making it more attractive to guests, for just under $1 million. Cherokee Casino WillRogers Downs continues to become more popular, thanks to $2.6 million in improvements. Part of that upgrade included replacing theold, dilapidated racing surface with a new base, sub-base and surface. The new track is luring many more trainers to Cherokee CasinoWill Rogers Downs, making it the premier racetrack in Oklahoma. Various capital maintenance and upgrades were made to all seven CNEfacilities in 2006, totaling $7 million. In 2006, $5.5 million was spent on a new parking garage at Cherokee Casino Resort in Catoosa.


Jobs Growth Fund Projects• New Cherokee Casino Sallisaw

• New Cherokee Casino Tahlequah

• Remodel of Cherokee Casino Roland

• Purchase of Cherokee Casino Inn-Catoosa

• Purchase of Cherokee Casino Inn-Roland

• Improvements to Cherokee Casino Will Rogers Downs

• Construction of a new travel plaza in Roland

• Construction of a new parking garage in Catoosa

• Expansion for Cherokee Casino Resort in Catoosa

• Expansion of Cherokee Casino West Siloam Springs




The parking garage will allow guests better access and covered parking during bad weather, as well as increase the total number ofparking spaces for guests expected as Cherokee Casino Resort grows in popularity. These various projects accounted for $42.9 millionof the Jobs Growth Fund. The remaining $18.7 million is dedicated to jump start future expansion at Cherokee Casino West SiloamSprings and Cherokee Casino Resort in Catoosa. Cherokee Casino West Siloam Springs’ expansion is currently underway and will costapproximately $83 million. When complete, the facility will double its current workforce to more than 800.

Cherokee Casino Resort in Catoosa breaks ground on its $125 million expansion in the summer of 2007 and needs nearly 500 addi-tional employees. The resort hotel complex already employs more than 1,700. Cherokee Nation Enterprises is such a large and growingcompany, it has jobs in nearly every field imaginable: legal, accounting, human resources, marketing, hotel and restaurant management,information technology, sales and everything in between. As the company grows with each expansion, more and more of these jobs willbe created, and more revenue will be generated for government services to Cherokee citizens.

Cherokee Casinos: Generating profits for Cherokee Citizens

Cherokee Casino Resort is Oklahoma’s premier entertainment and gaming destination. Located just minutes east of Tulsa, thisfacility attracts guests from across the country to enjoy exciting gaming, live entertainment, delicious dining and seemingly endless ameni-ties. Cherokee Casino Resort features:

• 1,500 Electronic Games• 72 Poker and Table Games• Cherokee Casino Resort Hotel• Cherokee Casino Inn• 18-hole Cherokee Hills Golf Club

• Dining:• McGill’s• Wild Potato Buffet• Cabin Creek Smokehouse• Sidewalk Cafe• Ante Pasta Italian Express

• Entertainment:• Twisters, which features suspended stage for live music• C:Note Piano Lounge• Margarita Bay• Cabin Creek, which showcases a live music stage and dance floor

Cherokee Casino Roland, the very first Cherokee Casino, is aregional hotspot. Conveniently located on I-40, just west of Fort Smith,this facility offers the best games, tasty meals and a comfortable night’sstay at Cherokee Casino Inn located next door. Travelers along I-40 alsoenjoy the added convenience of a newly constructed travel plaza. CherokeeCasino Roland boasts:

• 538 Electronic Games• 23 Poker and Table Games• Cherokee Casino Inn• Buck’s Grill

Cherokee Casino West Siloam Springs, nestled on the Oklahoma-Arkansasborder at Highway 412, is the area’s place to go for an exciting time. Northwest Arkansasis one of the country’s fastest growing areas, and this gaming facility is well equipped tomeet every guest’s entertainment needs. To keep up with this boom, Cherokee Casino WestSiloam Springs is undergoing a massive expansion, which is expected to be complete by late2008.

• 937 Electronic Games• 22 Poker and Table Games• Sidewalk Cafe• Twisters


Cherokee Casinos: Generating profits for Cherokee Citizens

Cherokee Casino Will Rogers Downs in Claremore has made an impressiveturnaround from the condition it was in when CNE purchased the facility in March 2004. Todayit stands as the premiere horseracing track in the state. Cherokee Casino Will Rogers Downsoffers a spring race meet every year and simulcast racing every day of the year. The thrills don’tstop there, as guests can enjoy electronic games, live music, dancing, great food, first-classbuffet with panoramic view of the track and even an extended stay at the state’s largest RVpark, located next to the casino.

• 250 Electronic Games• Live Horse Races• Simulcast Viewing• Pari-mutuel Wagering• Stall Rental• 60,000 square foot covered/open-aired grandstand with 2,700 seats• Turf Club Restaurant and Bar• Dog Iron Saloon, which features a bar and grill, stage and dance floor• Cafe Mercedes, showcasing full breakfast menu• RV park with more than 400 full hook-up sites

Gorgeous Cherokee Casino Tahlequah is located just south of the CherokeeNation Tribal Complex on Highway 62. Since the completion of the new facility in September2006, guests continue to return again and again for the great food, outstanding serviceand best live gaming.

• 405 Electronic Games• 9 Poker and Table Games• River City Cafe

Cherokee Casino Sallisaw is the latest addition to the Cherokee Casinofamily. Opening in July 2006, Cherokee Casino Sallisaw ushered in a new mix ofgaming excitement, tasty meals and is without a doubt Sequoyah County’s best spotto take in live music.

• 256 Electronic Games• 8 Poker and Table Games• Back 40 Bar and Grill, which includes a stage and dance floor

Cherokee Casino Fort Gibson, conveniently located along Highway 62,offers guests top-notch games in a cozy setting. Adjoining the casino is the CherokeeOutpost, a fully stocked convenience store and gas station that accommodates a trav-eler’s every need.

• 298 Electronic Games• Convenience Store • Gas Station• Retail Tobacco Shop


Supporting Local Communities

It’s important for Cherokee Nation Enterprises to be good neighbors in the communities in which our businesses reside. Toensure the safety of all of our guests and employees, as well as citizens who live near Cherokee Casinos, CNE makes substan-tial, regular payments to several cities. Among the recipients are law enforcement agencies, fire departments and school sys-tems.

CATOOSA• Police $6,512 monthly• Schools $2,500 monthly

DELAWARE COUNTY• Sheriff $25,000 one time payment

FORT GIBSON• Police $2,500 monthly

ROLAND• Police $4,000 monthly• Fire $1,000 monthly

TULSA• Fire $30,000 annually

SALLISAW• Police $3,000 annually

WEST SILOAM SPRINGS• Police $5,000 monthly• Fire $25,000 annually

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Below is a list of municipalities receiving funds in 2006:

32

WHERE THE MONEY GOESThe Cherokee Nation wants to make sure that

Cherokee citizens understand how the moneyfrom Cherokee Casinos is spent. CherokeeCasinos made $87 million in 2006. One hun-dred percent of that profit stays with theCherokee Nation. That money is used to eithercreate more jobs for Cherokees or to provideservices for Cherokees, and it’s a formula thatworks: Cherokee Nation employs more than6,500 people, compared with 3,000 just fouryears ago, and the Cherokee Nation has recordbudgets for service programs.

For more information on Cherokee Nation services, visit www.cherokee.org

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