The Chairman may approve a management contract if it meets the standards of part 531 of this chapter and § 533.3 of this part. Failure to comply with the standards of part 531 of this chapter or § 533.3 may result in the Chairman's disapproval of the management contract.

The Chairman shall disapprove a management contract for class II gaming if he or she determines that—

Any person with a direct or indirect financial interest in, or having management responsibility for, a management contract:

Is an elected member of the governing body of the tribe that is party to the management contract;

Has been convicted of any felony or any misdemeanor gaming offense;

Has knowingly and willfully provided materially false statements or information to the Commission or to a tribe;

Has refused to respond to questions asked by the Chairman in accordance with his or her responsibilities under this part; or

Is determined by the Chairman to be a person whose prior activities, criminal record, if any, or reputation, habits, and associations pose a threat to the public interest or to the effective regulation and control of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gaming or the carrying on of related business and financial arrangements;

The management contractor or its agents have unduly interfered with or influenced for advantage, or have tried to unduly interfere with or influence for advantage, any decision or process of tribal government relating to the gaming operation;

The management contractor or its agents has deliberately or substantially failed to follow the terms of the management contract or the tribal gaming ordinance or resolution adopted and approved pursuant to the Act; or

A trustee, exercising the skill and diligence to which a trustee is commonly held, would not approve the contract.

The Chairman may disapprove a management contract for class III gaming if he or she determines that a person with a financial interest in, or management responsibility for, a management contract is a person whose prior activities, criminal record, if any, or reputation, habits, and associations pose a threat to the public interest or to the effective regulation and control of gaming, or create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gaming or the carrying on of related business and financial arrangements.