[Federal Register: November 15, 2005 (Volume 70, Number 219)]
[Proposed Rules]
[Page 69293-69302]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15no05-13]
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DEPARTMENT OF THE INTERIOR
National Indian Gaming Commission
25 CFR Part 542
RIN 3141-AA27
Minimum Internal Control Standards
AGENCY: National Indian Gaming Commission.
ACTION: Proposed rule revisions.
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SUMMARY: In response to the inherent risks of gaming enterprises and
the resulting need for effective internal controls in Tribal gaming
operations, the National Indian Gaming Commission (Commission or NIGC)
first developed Minimum Internal Control Standards (MICS) for Indian
gaming in 1999, which have subsequently been revised. The Commission
recognized from the outset that periodic technical adjustments and
revisions would be necessary in order to keep the MICS effective in
protecting Tribal gaming assets and the interests of Tribal
stakeholders and the gaming public. To that end, the following proposed
rule revisions contain certain proposed corrections and revisions to
the Commission's existing MICS, which are necessary to clarify,
improve, and update other existing MICS provisions. The purpose of
these proposed MICS revisions is to address apparent shortcomings in
the MICS and various changes in Tribal gaming technology and methods.
DATES: Submit comments on or before December 30, 2005. After
consideration of all received comments, the Commission will make
whatever changes to the proposed revisions that it deems appropriate
and then promulgate and publish the final revisions to the Commission's
MICS Rule, 25 CFR part 542.
ADDRESSES: Mail comments to ``Comments Proposed MICS Rule Revisions,
National Indian Gaming Commission, 1441 L Street NW., Washington, DC
20005, Attn: Acting General Counsel, Penny J. Coleman.'' Comments may
be transmitted by facsimile to (202) 632-7066.
FOR FURTHER INFORMATION CONTACT: Vice-Chairman Nelson Westrin, (202)
632-7003 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
On January 5, 1999, the Commission first published its Minimum
Internal Control Standards (MICS) as a Final Rule. As gaming Tribes and
the Commission gained practical experience applying the MICS, it became
apparent that some of the standards required clarification or
modification to be effective, operate as the Commission had intended,
and accommodate changes and advances in gaming technology and methods.
Consequently, the Commission, working with an Advisory Committee
composed of Commission and nominated Tribal representatives, published
the new final revised MICS rule on June 27, 2002. Based on the
practical experiences of the Commission and Tribes working with the
newly revised MICS, it has once again become apparent that additional
corrections, clarifications, and modifications are needed to ensure
that the MICS continue to be effective and operate as the Commission
intended. To identify which of the current MICS need correction,
clarification or modification, the Commission initially solicited input
and guidance from NIGC employees, who have extensive gaming regulatory
expertise and experience and work closely with Tribal gaming regulators
in monitoring the implementation, operation, and effect of the MICS in
Tribal gaming operations. The resulting input from NIGC staff convinced
the Commission that the MICS require continuing review and prompt
revision on an ongoing basis to keep them effective and up-to-date. To
address this need, the Commission decided to establish a Standing MICS
Advisory Committee to assist it in both identifying and developing
necessary MICS revisions on an ongoing basis.
In recognition of its government-to-government relationship with
Tribes, and related commitment to meaningful Tribal consultation, the
Commission asked gaming Tribes in January of 2004 for nominations of
Tribal representatives to serve on its Standing MICS Advisory
Committee. From the twenty-seven (27) Tribal nominations that it
received, the Commission selected nine (9) Tribal representatives in
March 2004 to serve on the Committee. The Commission's Tribal Committee
member selections were based on several factors, including the
regulatory experience and background of the individuals nominated; the
size(s) of their affiliated Tribal gaming operation(s); the types of
games played at their affiliated Tribal gaming operation(s); and the
areas of the country in which their affiliated Tribal gaming
operation(s) are located. The selection process was very difficult
because numerous highly qualified Tribal representatives were nominated
to serve on this important Committee. As expected, the benefit of
including
[[Page 69294]]
Tribal representatives on the Committee, who work daily with the MICS,
has been invaluable.
Tribal representatives selected to serve on the Commission's
Standing MICS Advisory Committee are: Tracy Burris, Gaming
Commissioner, Chickasaw Nation Gaming Commission, Chickasaw Nation of
Oklahoma; Jack Crawford, Chairman, Umatilla Gaming Commission,
Confederated Tribes of the Umatilla Indian Reservation; Patrick Darden,
Executive Director, Chitimacha Gaming Commission, Chitimacha Indian
Tribe of Louisiana; Mark N. Fox, former Compliance Director, Four Bears
Casino, Three Affiliated Tribes of the Fort Berthold Reservation;
Sherrilyn Kie, Senior Internal Auditor, Pueblo of Laguna Gaming
Authority, Pueblo of Laguna; Patrick Lambert, Executive Director,
Eastern Band of Cherokee Gaming Commission, Eastern Band of Cherokee
Indians; John Meskill, Director, Mohegan Tribal Gaming Commission,
Mohegan Indian Tribe; Jerome Schultze, Executive Director, Morongo
Gaming Agency, Morongo Band of Mission Indians; and Lorna Skenandore,
Assistant Gaming Manager, Support Services, Oneida Bingo and Casino,
formerly Gaming Compliance Manager, Oneida Gaming Commission, Oneida
Tribe of Indians of Wisconsin. The Advisory Committee also includes the
following Commission representatives: Philip N. Hogen, Chairman; Nelson
Westrin, Vice-Chairman; Cloyce V. Choney, Associate Commissioner; Joe
H. Smith, Acting Director of Audits; Ken Billingsley, Region III
Director; Nicole Peveler, Field Auditor; Ron Ray, Field Investigator;
and Katherine Zebell, Staff Attorney, Office of General Counsel.
In the past, the MICS were comprehensively revised on a broad,
wholesale basis. Such large-scale revisions proved to be difficult for
Tribes to implement in a timely manner and unnecessarily disruptive to
Tribal gaming operations. The purpose of the Commission's Standing
Committee is to conduct a continuing review of the operation and
effectiveness of the existing MICS. The primary purpose of the review
is to promptly identify and develop needed revisions of the MICS on a
manageable, incremental basis, in order to keep the MICS practical and
effective. By making more manageable incremental changes to the MICS on
an ongoing basis, the Commission hopes to be more prompt in developing
needed revisions, while, at the same time, avoiding larger-scale MICS
revisions which take longer to implement and can be unnecessarily
disruptive to Tribal gaming operations.
In accordance with this approach, the Commission has developed the
following set of proposed MICS rule revisions with the assistance of
its Standing MICS Advisory Committee. In doing so, the Commission is
carrying out its statutory mandate under the Indian Gaming Regulatory
Act (Act or IGRA), 25 U.S.C. 2706(b)(10), to promulgate necessary and
appropriate regulations to implement the provisions of the Act. In
particular, the following proposed MICS rule revisions are intended to
address Congress' purpose and concerns, stated in Section 2702(2) of
the Act, that it ``provide a statutory basis for the regulation of
gaming by an Indian tribe adequate to shield it from organized crime
and other corrupting influences, to ensure the Indian tribe is the
primary beneficiary of the gaming operation, and to ensure the gaming
is conducted fairly and honestly by both the operator and the
players.''
The Commission, with the Committee's assistance, identified three
specific objectives for the following proposed MICS rule revisions: (1)
To ensure that the MICS are reasonably comparable to the internal
control standards of established gaming jurisdictions; (2) to ensure
that the interests of the Tribal stakeholders are adequately
safeguarded; and (3) to ensure that the interests of the gaming public
are adequately protected.
It should be noted that the NIGC's authority to issue and enforce
MICS for Class III gaming was recently challenged in Federal district
court in Colorado River Indian Tribes v. NIGC (CRIT), Case No. 1:04-cv-
00010-JDB. The case arose after the Colorado River Indian Tribes
objected to an NIGC audit of its Class III gaming operation, which led
to the audit's discontinuation. The NIGC subsequently cited the Tribe
for an access violation and imposed a fine. The Court ruled that the
NIGC's notice of violation and imposition of a civil fine were
improper, finding that, under IGRA, the NIGC lacked the authority to
issue or enforce MICS for Class III gaming. While the Court held that
the NIGC could not penalize the Colorado River Indian Tribes for
resisting the NIGC's attempt to conduct an audit of its Class III
gaming, it did not enjoin the NIGC from applying its MICS to other
Class III operations, nor did the Court prohibit the NIGC from
conducting audits to monitor compliance with those MICS. The CRIT
decision applies only to the Colorado River Indian Tribes. A notice of
appeal was recently filed in the case.
In order to uphold the integrity of Indian gaming, it is important
to maintain the continuity of the system of regulation that has been in
place since 1999. This system has helped ensure adequate regulation and
facilitated growth and prosperity in the industry. Thus, with the
exception of the gaming operations of the Colorado River Indian Tribes,
the NIGC will continue to monitor Tribal compliance with the MICS with
respect to Class II and III gaming, pending the results of our appeal
in the CRIT case or further judicial or legislative direction.
The Advisory Committee met on January 25, 2005, May 10, 2005, and
September 26, 2005, to discuss the revisions set forth in the following
proposed MICS rule revisions. The input received from the Committee
Members has been invaluable to the Commission in its development of the
following proposed MICS rule revisions. In accordance with the
Commission's established Government-to-Government Tribal Consultation
Policy, the Commission provided a preliminary working draft of all of
the proposed MICS rule revisions contained herein to gaming Tribes on
August 26, 2005, for a thirty (30)-day informal review and comment
period, before formulation of this proposed rule. In response to its
requests for comments, the Commission received twenty two (22) comments
from Commission and Tribal Advisory Committee members, individual
Tribes, and other interested parties regarding the proposed revisions.
A summary of these comments is presented below in the discussion of
each proposed revision to which they relate.
General Comments to Proposed MICS Revisions
For reasons stated above in this preamble, the NIGC proposes to
revise the following specific sections of its MICS rule, 25 CFR part
542. The following discussion includes the Commission's responses to
general comments concerning the MICS and is followed by a discussion
regarding each of the specifically proposed revisions, along with
previously submitted informal comments to the proposed revisions and
the Commission's responses to those comments. As noted above, prior
commenters include Commission and Tribal Advisory Committee members,
gaming Tribes, and others.
Comments Questioning NIGC Authority To Promulgate MICS for Class III
Gaming
Many of the previous informal comments to the preliminary working
draft of the MICS revisions pertained to the Commission's authority to
promulgate rules governing proposed
[[Page 69295]]
the conduct of Class III gaming. Positions were expressed asserting
that Congress intended the NIGC's Class III gaming regulatory authority
to be limited exclusively to the approval of Tribal gaming ordinances
and management contracts. Similar comments were received concerning the
first proposed MICS back in 1999. The Commission, at that time,
determined in its publication of the original MICS in 1999 that it
possessed the statutory authority to promulgate Class III MICS.
As stated in the preamble to those MICS: ``The Commission believes
that it does have the authority to promulgate this final rule. * * *
[T]he Commission's promulgation of the MICS is consistent with its
responsibilities as the Federal regulator of Indian gaming.'' 64 FR
509.
The current Commission reaffirms that determination. The IGRA,
which established the regulatory structure for all classes of Indian
gaming, expressly provides that the Commission shall promulgate such
regulations as it deems appropriate to implement the provisions of (the
Act).'' 25 U.S.C. 2706(b)(10). Pursuant to this clearly stated
statutory duty and authority under the Act, the Commission has
determined that MICS are necessary and appropriate to implement and
enforce the regulatory provisions of the Act governing the conduct of
both Class II and Class III gaming and accomplish the purposes of the
Act.
The Commission believes that the importance of internal control
systems in the casino operating environment cannot be overemphasized.
While this is true of any industry, it is particularly true and
relevant to the revenue-generation processes of a gaming enterprise,
which, because of the physical and technical aspects of the games and
their operation, and the randomness of game outcomes, makes exacting
internal controls mandatory. The internal control systems and standards
are the primary management procedures used to protect the operational
integrity of gambling games; account for and protect gaming assets and
revenues; and assure the reliability of the financial statements for
Class II and III gaming operations. Consequently, internal control
systems are a vitally important part of properly regulated gaming.
Internal control systems govern the gaming enterprise's governing
board, management, and other personnel who are responsible for
providing reasonable assurances regarding the achievement of the
enterprise's objectives. These objectives typically include operational
integrity, effectiveness and efficiency, reliable financial statement
reporting, and compliance with applicable laws and regulations.
The Commission believes that strict regulations, such as the MICS,
are not only appropriate, but necessary, for it to fulfill its
responsibilities under the IGRA to establish necessary baseline, or
minimum, Federal standards for all Tribal gaming operations on Indian
lands. 25 U.S.C. 2702(3). Although the Commission recognizes that many
Tribes had sophisticated internal control standards in place prior to
the Commission's original promulgation of its MICS, many tribes did
not. This absence of minimum Federal internal control standards in all
Tribal casinos adversely affected the adequacy of Indian gaming
regulation nationwide, and reasonably threatened gaming as a means of
providing the expected Tribal benefits intended by IGRA. The Commission
continues to strongly believe that promulgation and revision of these
standards is necessary and appropriate to effectively implement the
provisions of the IGRA, and, therefore, within the Commission's clearly
expressed statutory power and duty under Section 2706(b)(10) of the
Act.
Comments Recommending Voluntary Tribal Compliance With MICS
Comments were also received suggesting that the NIGC should re-
issue the MICS as a bulletin or guideline for Tribes to use
voluntarily, at their discretion, in developing and implementing their
own Tribal gaming ordinances and internal control standards.
The Commission disagrees. The MICS are common in established gaming
jurisdictions, and, to be effective in establishing a minimum baseline
for the internal operating procedures of Tribal gaming enterprises, the
rules must be concise, explicit, and uniform for all Tribal gaming
operations to which they apply. Furthermore, to nurture and promote
public confidence in the integrity and regulation of Indian gaming, and
ensure its adequate regulation to protect Tribal gaming assets and the
interests of Tribal stakeholders and the public, the Commission's MICS
regulations must be reasonably uniform in their implementation and
application, and regularly monitored and enforced by Tribal regulators
and the NIGC to ensure Tribal compliance.
Proposed New, Revised, or Removed Definitions in Section 542.2 of the
MICS
The Commission has added or revised definitions of the following
six terms in section 542.2 and has removed the following one term in
Sec. 542.2. A discussion of each new, revised, or removed definition
follows in alphabetical order.
``Account Access Card''
The Commission has revised the existing MICS definition of this
term to more accurately define the applicability of the referenced
term. Committee members recommended that the definition of ``account
access card'' be revised to include the reference that account access
cards are not smart cards. No comments were received concerning this
proposed revision.
``Cash Equivalent''
This is a new definition. Several Commission Committee members
recommended that a definition of the term ``cash equivalent'' be added
to the current MICS definitions. In conjunction with other proposed
rule revisions to the MICS, which include the term and existing
standards, the NIGC has determined that to ensure that the rules are
clear and unambiguous, insertion of the definition in the MICS is
worthwhile.
Comment was received in previous revisions recommending that the
definition be added. The Commission agreed with this suggestion and
developed the definition.
``Counter Game''
This is a new definition. Several Tribal and Commission Committee
members recommended that a definition of the term ``counter game'' be
added to the current MICS definitions. In conjunction with the proposal
to add accounting standards to the MICS, which include the term, the
NIGC has determined that to ensure that such revisions and existing
rules are clear and unambiguous, insertion of the definition is
worthwhile. No comments were received concerning this proposed
revision.
``Common Intermediate Format''
This is a new definition. Commission Committee members recommended
that a definition of the term ``common intermediate format'' be added
to the current MICS definitions. In conjunction with the proposed
rule's addition of digital surveillance standards to the MICS, which
include the term, the NIGC has determined that to ensure that the
revisions are clear and unambiguous, insertion of the definition is
worthwhile.
``Digital Video Recording (DVR)''
This is a new definition. Commission Committee members recommended
that
[[Page 69296]]
a definition of the term ``digital video recording (DVR)'' be added to
the current MICS definitions. In conjunction with the proposed rule
adding digital surveillance standards to the MICS, which include the
term, the NIGC has determined that to ensure the revisions and existing
rule are clear and unambiguous, insertion of the definition is
worthwhile. No comments were received concerning this proposed
revision.
``Network Video Recording (NVR)''
This is a new definition. Commission Committee members recommended
that a definition of the term ``network video recording (NVR)'' be
added to the current MICS definitions. In conjunction with the proposed
rule revisions adding digital surveillance standards to the MICS, which
include the term, the NIGC has determined that to ensure that the
revisions and existing rule are clear and unambiguous, insertion of the
definition is worthwhile. One Commenter noted that although cameras can
have IP addresses, most often it is the encoders that have IP
addresses. It was recommended that the definition be changed to
``utilizing individual IP addresses for each camera `or encoder' on a
closed network system.'' The Commission disagrees and considers the
additional clarification to be unnecessary.
``Sufficient Clarity''
This definition is removed. Several Tribal and Commission Committee
members recommended that a definition of the term ``sufficient
clarity'' be removed from the current MICS definitions. The term
``sufficient clarity'' is being replaced by a more comprehensive
definition contained within the proposed revision to the surveillance
section. No comments were received concerning this proposed revision.
Proposed Addition to Sections 542.7(g)(1) and 542.8(h)(1) Electronic
Equipment
The Commission proposes to revise the noted regulations to clarify
the intent of the existing regulation. The amendment has been proposed
to explicitly state that bingo electronic systems and pull tab
electronic systems utilizing patron account access cards will be
required to comply with the applicable standards contained within the
MICS. No comments were received concerning this proposed revision.
Proposed Addition and Revisions to Section 542.13(o)(4) Customer
Account Generation Standards
The Commission proposes to revise the noted regulation to clarify
the intent of the existing regulation. The amendment has been proposed
which will explicitly represent that the patron's identification must
be verified and the account must identify the patron's name. The
standard is consistent with the Bank Secrecy Act and other gaming
jurisdictions, which also requires that such patron identification
information be recorded and verified at the time of setting up the
account. The revision to obtaining a new PIN is intended to clarify
that the Gaming Machine Information Center is a clerk who has access to
a customer file for changing the PIN. No comments were received
concerning this proposed revision.
Proposed Removal of Section 542.16(f)(vi) Document Storage of Original
Documents Until Audited
The Commission proposes to remove the noted regulation since it is
in conflict with the proposed addition of Sec. 542.19 on accounting
standards, specifically the maintenance and preservation of books,
records and documents. No comments were received concerning this
proposed revision.
Proposed Addition of Section 542.19 What Are the Minimum Internal
Control Standards for Accounting?
The Commission proposes to add this new regulation to establish the
basic required tenets for a casino accounting function. The proposed
addition is common to established gaming jurisdictions. Furthermore,
since the MICS were initially adopted, many questions have arisen
regarding the relationship of Section 571.7 Maintenance and
preservation of papers and records to the MICS. The proposed addition
is also intended to clarify and define the scope of the five (5)-year
record retention requirement, as the requirement relates to casino
records.
One Commenter requested that ``any other records specifically
required to be maintained'' under preparing general accounting records
include more details as to the phrase ``specifically required by
whom.'' The Commission disagrees, and considers the representation to
be clear in that the language pertains to other records required by the
MICS.
Proposed Revisions to the Following Sections: 542.21(f)(12) (Tier
A--Drop and Count) Gaming Machine Bill Acceptor Count Standards;
542.31(f)(12) (Tier B--Drop and Count) Gaming Machine Bill Acceptor
Count Standards; 542.41(f)(12) (Tier C--Drop and Count) Gaming Machine
Bill Acceptor Count Standards.
The referenced standards represent a duplicate control to an
identical requirement contained within each of the respective section's
Gaming Machine Bill Acceptor Drop Standards, refer Sec. Sec.
542.21(e)(4), 542.31(e)(5), and 542.41(e)(5). Specifically, the
standard requires the bill acceptor canisters to be posted with a
number corresponding to that of the machine from which it was
extracted. The subject control pertains to a drop function, as opposed
to the count process. Therefore, the Commission is proposing to delete
the above subsections. No comments were received pertaining to the
proposed revision.
Proposed Additions of: 542.23(i) Technical Standards for
Surveillance Systems--Tier A; 542.33(j) Technical Standards for
Surveillance Systems --Tier B; 542.43(k) Technical Standards for
Surveillance Systems--Tier C.
The Commission proposes to add the referenced regulations to the
MICS for the analog surveillance standard governing sufficient clarity
in order to make the frame rate more consistent with industry practice.
The frame-rate change is deemed necessary for critical functions
performed in the gaming areas. Furthermore, with the increasing
utilization of digital surveillance systems, the Commission proposes to
add the referenced regulation to the MICS. The objective is to ensure
uniformity commensurate with the generally accepted digital
surveillance standards of established gaming jurisdictions, and to
ensure that such systems will facilitate compliance with other relevant
sections of the MICS. After consultation with Tribal regulators and
operators experienced with digital systems, state gaming regulatory
authorities, private gaming operators and digital surveillance vendors,
the proposed regulation was formulated.
One Commenter suggested that the requirement of satisfying
sufficient clarity for 30 FPS or 30 IPS be required for essential areas
such as Table Games, Cage, Soft Count Room, Hard Count Room, etc. The
Commission disagrees on adding this to the section on technical
standards for surveillance systems. The MICS utilization of the term
``sufficient clarity'' is limited to specific functions within the
gaming areas, which directly relate to the risk posed by the particular
function. A general application of the 30 FPS or 30 IPS to the gambling
games would be difficult for the operator and the
[[Page 69297]]
regulator to measure and confirm compliance.
One Commenter suggested changing the wording of ``real motion'' to
``live-action'' in the following way: ``Any area covered by cameras
activated by motion detection must record `live-action' at the frame
rate of 30 FPS.'' The Commission agrees and has changed the term used.
One Commenter suggested that the requirement under the digital
systems for both audible and visual warning devices was too high of a
standard, as well as cost prohibitive, and recommended it be changed to
``of either an audible or visual warning device.'' The Commission
disagrees. Based on research performed, it has been determined that
industry practice dictates that both methods of notification are
needed.
One Commenter suggested that the terms ``viewable'' and ``view'' be
added to the digital systems section for satisfying sufficient clarity
on producing a video record. The Commission agrees and has added these
terms to the section.
One Commenter suggested adding to the use of a network video
recorder (NVR) system section that access to the network be limited to
not only authorized personnel, but also be password protected. The
Commission agrees and has added this to the use of an NVR system that
requires access.
Regulatory Matters
Regulatory Flexibility Act
The Commission certifies that the proposed revisions to the Minimum
Internal Control Standards contained within this regulation will not
have a significant economic impact on small entities, 5 U.S.C. 605(b).
The factual basis for this certification is as follows:
Of the 330 Indian gaming operations across the country,
approximately 93 of the operations have gross revenues of less than $5
million. Of these, approximately 39 operations have gross revenues of
under $1 million. Since the proposed revisions will not apply to gaming
operations with gross revenues under $1 million, only 39 small
operations may be affected. While this is a substantial number, the
Commission believes that the proposed revisions will not have a
significant economic impact on these operations for several reasons.
Even before implementation of the original MICS, Tribes had internal
controls because they are essential to gaming operations in order to
protect assets. The costs involved in implementing these controls are
part of the regular business costs incurred by a gaming operation. The
Commission believes that many Indian gaming operation internal control
standards are more stringent than those contained in these regulations.
Further, these proposed rule revisions are technical and minor in
nature.
Under the proposed revisions, small gaming operations grossing
under $1 million are exempted from MICS compliance. Tier A facilities
(those with gross revenues between $1 and $5 million) are subject to
the yearly requirement that independent certified public accountant
testing occur. The purpose of this testing is to measure the gaming
operation's compliance with the Tribe's internal control standards. The
cost of compliance with this requirement for small gaming operations is
estimated at between $3,000 and $5,000. The cost of this report is
relatively minimal and does not create a significant economic effect on
gaming operations. What little impact exists is further offset because
other regulations require yearly independent financial audits that can
be conducted at the same time. For these reasons, the Commission has
concluded that the proposed rule revisions will not have a significant
economic impact on those small entities subject to the rule.
Small Business Regulatory Enforcement Fairness Act
These following proposed revisions do not constitute a major rule
under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement
Fairness Act. The revisions will not have an annual effect on an
economy of $100 million or more. The revisions also will not cause a
major increase in costs or prices for consumers, individual industries,
Federal, state or local government agencies or geographic regions, and
do not have a significant adverse effect on competition, employment,
investment, productivity, innovation, or the ability of U.S.-based
enterprises to compete with foreign-based enterprises.
Unfunded Mandates Reform Act
The Commission is an independent regulatory agency, and, as such,
is not subject to the Unfunded Mandates Reform Act. Even so, the
Commission has determined that the proposed rule revisions do not
impose an unfunded mandate on State, local, or Tribal governments, or
on the private sector, of expenditures more than $100 million per year.
Thus, this is not a ``significant regulatory action'' under the
Unfunded Mandates Reform Act, 2 U.S.C. 1501 et seq.
The Commission has, however, determined that the proposed rule
revisions may have a unique effect on Tribal governments, as they apply
exclusively to Tribal governments whenever they undertake the
ownership, operation, regulation, or licensing of gaming facilities on
Indian lands, as defined by IGRA. Thus, in accordance with Section 203
of the Unfunded Mandates Reform Act, the Commission undertook several
actions to provide Tribal governments with adequate notice and
opportunities for ``meaningful'' consultation, input, sharing of
information, advice and education regarding compliance.
These actions included the formation of a Tribal Advisory Committee
and the request for input from Tribal leaders. Section 204(b) of the
Unfunded Mandates Reform Act exempts from the Federal Advisory
Committee Act (5 U.S.C. App.) meetings with Tribal elected officials
(or their designees) for the purpose of exchanging views, information,
and advice concerning the implementation of intergovernmental
responsibilities or administration. In selecting Committee members,
consideration was placed on the applicant's experience in this area, as
well as the size of the Tribe the nominee represented, the geographic
location of the gaming operation, and the size and type of gaming
conducted. The Commission attempted to assemble a Committee that
incorporates diversity and is representative of Tribal gaming
interests. The Commission will meet with the Advisory Committee to
discuss the public comments that are received as a result of the
publication of the following proposed MICS rule revisions, and will
consider all Tribal and public comments and Committee recommendations
before formulating the final rule revisions. The Commission also plans
to continue its policy of providing necessary technical assistance,
information, and support to enable Tribes to implement and comply with
the MICS as revised.
The Commission also provided the proposed revisions to Tribal
leaders for comment prior to publication of this proposed rule and
considered these comments in formulating the proposed rule. 69 FR
69857.
Takings
In accordance with Executive Order 12630, the Commission has
determined that the following proposed MICS rule revisions do not have
significant takings implications. A takings implication assessment is
not required.
Civil Justice Reform
In accordance with Executive Order 12988, the Office of General
Counsel has determined that the following proposed
[[Page 69298]]
MICS rule revisions do not unduly burden the judicial system and meet
the requirements of sections 3(a) and 3(b)(2) of the Order.
Paperwork Reduction Act
The following proposed MICS rule revisions require information
collection under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.,
as did the rule it revises. There is no change to the paperwork
requirements created by these proposed revisions. The Commission's
OMBControl Number for this regulation is 3141-0009.
National Environmental Policy Act
The Commission has determined that the following proposed MICS rule
revisions do not constitute a major Federal action significantly
affecting the quality of the human environment, and that no detailed
statement is required pursuant to the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.).
List of Subjects in 25 CFR Part 542
Accounting, Auditing, Gambling, Indian-lands, Indian-tribal
government, Reporting and recordkeeping requirements.
Accordingly, for all of the reasons set forth in the foregoing
preamble, the National Indian Gaming Commission proposes to amend 25
CFR part 542 as follows:
PART 542--MINIMUM INTERNAL CONTROL STANDARDS
1. The authority citation for part 542 continues to read as
follows:
Authority: 25 U.S.C. 2701 et seq.
2. Amend Sec. 542.2 to add, in alphabetical order, the definitions
for ``Cash Equivalent,'' ``Counter Game,'' ``Common Intermediate
Format,'' ``Digital Video Recording (DVR),'' ``Network Video Recording
(NVR),'' by revising the definition for ``Account Access Card'' and by
removing the definition for ``Sufficient Clarity'' to read as follows:
Sec. 542.2 What are the definitions for this part?
* * * * *
Account access card means an instrument used to access customer
accounts for wagering at a gaming machine. Account access cards are
used in connection with a computerized account database. Account access
cards are not smart cards.
* * * * *
Cash Equivalent means the monetary value that a gaming operation
may assign to a document or anything else of representative value other
than cash, tokens, or chips. A cash equivalent includes, but is not
limited to, coupons, vouchers, wagering or payout slips and tickets,
debit and credit card receipts, and other items to which a gaming
operation has assigned an exchange value.
* * * * *
Common Intermediate Format (CIF) or Full Common Intermediate Format
(FCIF) means a set of standard video formats used in DVR systems,
defined by their resolution. The original CIF is also known as Full CIF
(FCIF).
* * * * *
Counter Game means a game in which the gaming operation is a party
to wagers and wherein the gaming operation documents all wagering
activity. The term includes, but is not limited to, bingo, keno, and
pari-mutuel race books. The term does not include table games, card
games and gaming machines.
* * * * *
Digital video recording (DVR) system means a digital video
surveillance system consisting of video cameras, monitors, recorders,
video printers, computer hardware and software, switches, selectors,
and other ancillary equipment used for casino surveillance. Size of
gaming operation will dictate quantities of cameras, etc.
* * * * *
Network video recording (NVR) means a digital video surveillance
system utilizing individual IP addresses for each camera on a closed
network system.
* * * * *
3. Amend Sec. 542.7 to add paragraph (g)(1)(iv) to read as
follows:
Sec. 542.7 What are the minimum internal control standards for bingo?
* * * * *
(g) Electronic equipment.
(1) * * *
* * * * *
(iv) If the electronic equipment utilizes patron account access
cards for activation of play, then Sec. 542.13(o) (as applicable)
shall apply.
* * * * *
4. Amend Sec. 542.8 to add paragraph (h)(1)(iv) to read as
follows:
Sec. 542.8 What are the minimum internal control standards for pull
tabs?
* * * * *
(h) Electronic equipment.
(1) * * *
* * * * *
(iv) If the electronic equipment utilizes patron account access
cards for activation of play, then Sec. 542.13(o) (as applicable)
shall apply.
* * * * *
5. Amend Sec. 542.13 to redesignate paragraphs (o)(4)(ii) and
(o)(4)(iii) as (o)(4)(iii) and (o)(4)(iv), add new paragraph
(o)(4)(ii), and revise newly designated (o)(4)(iv) to read as follows:
Sec. 542.13 What are the minimum internal control standards for
gaming machines?
* * * * *
(o) * * *
(4) * * *
* * * * *
(ii) For each customer file, an employee shall:
(A) Record the customer's name and current address; and
(B) The date the account was opened.
(C) At the time the initial deposit is made, account opened, or
credit extended, the identity of the customer shall be verified by
examination of a valid driver's license or other reliable photographic
identity credential.
* * * * *
(iv) After entering a specified number of incorrect PIN entries at
the cage or player terminal, the customer shall be directed to proceed
to a clerk to obtain a new PIN. If a customer forgets, misplaces or
requests a change to their PIN, the customer shall proceed to a clerk
for assistance.
* * * * *
Sec. 542.16 [Amended]
6. Amend Sec. 542.16 by removing paragraph (f)(1)(vi).
7. Add Sec. 542.19 to read as follows:
Sec. 542.19 What are the minimum internal control standards for
accounting?
(a) Each gaming operation shall prepare accurate, complete,
legible, and permanent records of all transactions pertaining to
revenue and gaming activities.
(b) Each gaming operation shall prepare general accounting records
according to Generally Accepted Accounting Principles on a double entry
system of accounting, maintaining detailed, supporting, subsidiary
records, including, but not limited to:
(1) Detailed records identifying revenues, expenses, assets,
liabilities, and equity for each gaming operation;
(2) Detailed records of all markers, IOU's, returned checks, hold
checks, or other similar credit instruments;
(3) Individual and statistical game records to reflect statistical
drop, statistical win, and the percentage of statistical win to
statistical drop by each table game, and to reflect statistical drop,
statistical win, and the percentage of statistical win to statistical
drop for
[[Page 69299]]
each type of table game, by shift, by day, cumulative month-to-date,
and cumulative year-to-date, and individual and statistical game
records reflecting similar information for all other games;
(4) Gaming machine analysis reports which, by each machine, compare
actual hold percentages to theoretical hold percentages;
(5) The records required by Sec. 542 and by the Tribal internal
control standards;
(6) Journal entries prepared by the gaming operation and by its
independent accountants; and
(7) Any other records specifically required to be maintained.
(c) Each gaming operation shall establish administrative and
accounting procedures for the purpose of determining effective control
over a gaming operation's fiscal affairs. The procedures shall be
designed to reasonably ensure that:
(1) Assets are safeguarded;
(2) Financial records are accurate and reliable;
(3) Transactions are performed only in accordance with management's
general and specific authorization;
(4) Transactions are recorded adequately to permit proper reporting
of gaming revenue and of fees and taxes, and to maintain accountability
of assets;
(5) Recorded accountability for assets is compared with actual
assets at reasonable intervals, and appropriate action is taken with
respect to any discrepancies; and
(6) Functions, duties, and responsibilities are appropriately
segregated in accordance with sound practices by competent, qualified
personnel.
(d) Gross gaming revenue computations. (1) For table games, gross
revenue equals the closing table bankroll, plus credit slips for cash,
chips, tokens or personal/payroll checks returned to the cage, plus
drop, less opening table bankroll and fills to the table, and money
transfers issued from the game through the use of a cashless wagering
system.
(2) For gaming machines, gross revenue equals drop, less fills,
jackpot payouts and personal property awarded to patrons as gambling
winnings. Additionally, the initial hopper load is not a fill and does
not affect gross revenue. The difference between the initial hopper
load and the total amount that is in the hopper at the end of the
gaming operation's fiscal year should be adjusted accordingly as an
addition to or subtraction from the drop for the year.
(3) For each counter game, gross revenue equals:
(i) The money accepted by the gaming operation on events or games
that occur during the month or will occur in subsequent months, less
money paid out during the month to patrons on winning wagers (``cash
basis''); or
(ii) The money accepted by the gaming operation on events or games
that occur during the month plus money, not previously included in
gross revenue, that was accepted by the gaming operation in previous
months on events or games occurring in the month, less money paid out
during the month to patrons as winning wagers (``modified accrual
basis'').
(4) For each card game and any other game in which the gaming
operation is not a party to a wager, gross revenue equals all money
received by the operation as compensation for conducting the game.
(i) A gaming operation shall not include either shill win or loss
in gross revenue computations.
(ii) In computing gross revenue for gaming machines, keno and
bingo, the actual cost to the gaming operation of any personal property
distributed as losses to patrons may be deducted from winnings (other
than costs of travel, lodging, services, food, and beverages), if the
gaming operation maintains detailed documents supporting the deduction.
(e) Each gaming operation shall establish internal control systems
sufficient to ensure that currency (other than tips or gratuities)
received from a patron in the gaming area is promptly placed in a
locked box in the table, or, in the case of a cashier, in the
appropriate place in the cashier's cage, or on those games which do not
have a locked drop box or on card game tables, in an appropriate place
on the table, in the cash register, or other approved repository.
(f) If the gaming operation provides periodic payments to satisfy a
payout resulting from a wager, the initial installment payment, when
paid, and the actual cost of a payment plan that is funded by the
gaming operation may be deducted from winnings. The gaming operation is
required to obtain the approval of all payment plans from the Tribal
gaming regulatory authority. For any funding method which merely
guarantees the gaming operation's performance, and under which the
gaming operation makes payments out of cash flow (e.g. irrevocable
letters of credits, surety bonds, or other similar methods), the gaming
operation may only deduct such payments when paid to the patron.
(g) For payouts by wide-area progressive gaming machine systems, a
gaming operation may deduct from winnings only its pro rata share of a
wide area gaming machine system payout.
(h) Cash-out tickets issued at a gaming machine or gaming device
shall be deducted from gross revenue as jackpot payouts in the month
the tickets are issued by the gaming machine or gaming device. Tickets
deducted from gross revenue that are not redeemed within a period not
to exceed 180 days of issuance shall be included in gross revenue. An
unredeemed ticket previously included in gross revenue may be deducted
from gross revenue in the month redeemed.
(i) A gaming operation may not deduct from gross revenues the
unpaid balance of a credit instrument extended for purposes other than
gaming.
(j) A gaming operation may deduct from gross revenue the unpaid
balance of a credit instrument if the gaming operation documents or
otherwise keeps detailed records of compliance with the following
requirements. Such records confirming compliance shall be made
available to the Tribal gaming regulatory authority or the Commission
upon request:
(1) The gaming operation can document that the credit extended was
for gaming purposes;
(2) The gaming operation has established procedures and relevant
criteria to evaluate a patron's credit reputation or financial
resources and to then determine that there is a reasonable basis for
extending credit in the amount or sum placed at the patron's disposal;
(3) In the case of personal checks, the gaming operation has
established procedures to examine documentation, normally acceptable as
a means of identification when cashing checks, and has recorded a bank
check guarantee card number or credit card number, or has satisfied
paragraph (j)(2) of this section, as management may deem appropriate
for the check-cashing authorization granted;
(4) In the case of third party checks for which cash, chips, or
tokens have been issued to the patron, or which were accepted in
payment of another credit instrument, the gaming operation has
established procedures to examine documentation, normally accepted as a
means of identification when cashing checks, and has, for the check's
maker or drawer, satisfied paragraph (j)(2) of this section, as
management may deem appropriate for the check-cashing authorization
granted;
(5) In the case of guaranteed drafts, procedures should be
established to ensure compliance with the issuance
[[Page 69300]]
and acceptance procedures prescribed by the issuer;
(6) The gaming operation has established procedures to ensure that
the credit extended is appropriately documented, not least of which
would be the patron's identification and signature attesting to the
authenticity of the individual credit transactions. The authorizing
signature shall be obtained at the time credit is extended.
(7) The gaming operation has established procedures to effectively
document its attempt to collect the full amount of the debt. Such
documentation would include, but not be limited to, letters sent to the
patron, logs of personal or telephone conversations, presentation of
the credit instrument to the patron's bank for collection, settlement
agreements, or otherwise demonstrates that it has made a good faith
attempt to collect the full amount of the debt. Such records
documenting collection efforts shall be made available to the Tribal
gaming regulatory authority or the Commission upon request.
(k) Maintenance and preservation of books, records and documents.
(1) All original books, records and documents pertaining to the conduct
of wagering activities shall be retained by a gaming operation in
accordance with the following schedule. A record that summarizes gaming
transactions is sufficient, provided that all documents containing an
original signature(s) attesting to the accuracy of a gaming related
transaction are independently preserved. Original books, records or
documents shall not include copies of originals, except for copies that
contain original comments or notations on parts of multi-part forms.
The following original books, records and documents shall be retained
by a gaming operation for a minimum of five (5) years:
(i) Casino cage documents;
(ii) Documentation supporting the calculation of table game win;
(iii) Documentation supporting the calculation of gaming machine
win;
(iv) Documentation supporting the calculation of revenue received
from the games of keno, pari-mutuel, bingo, pull-tabs, card games, and
all other gaming activities offered by the gaming operation;
(v) Table games statistical analysis reports;
(vi) Gaming machine statistical analysis reports;
(vii) Bingo, pull-tab, keno and pari-mutuel wagering statistical
reports;
(viii) Internal audit documentation and reports;
(ix) Documentation supporting the write-off of gaming credit
instruments and named credit instruments;
(x) All other books, records and documents pertaining to the
conduct of wagering activities that contain original signature(s)
attesting to the accuracy of the gaming related transaction.
(2) Unless otherwise specified in Sec. 542, all other books,
records, and documents shall be retained until such time as the
accounting records have been audited by the gaming operation's
independent Certified Public Accountants.
(3) The above definition shall apply without regards to the medium
through which the book, record or document is generated or maintained
(paper, computer generated, magnetic media, etc.).
8. Amend Sec. 542.23 to redesignate paragraphs (i) through (r) as
(j) through (s), add new paragraph (i), and revise newly redesignated
paragraphs (m)(1) introductory text, (m)(2)(i), (o)(1) introductory
text, and (o)(4) to read as follows:
Sec. 542.23 What are the minimum internal control standards for
surveillance for Tier A gaming operations?
* * * * *
(i) Technical Standards for Surveillance Systems. (1) Analog
Systems:
(i) To satisfy the sufficient clarity requirement of this section,
continuous movement must be recorded at the frame rate of 30 FPS
(frames per second);
(ii) To satisfy the sufficient clarity requirement of this section,
the resolution must be sufficient to produce a video record that is a
complete, accurate and viewable representation of the activity being
observed; and
(iii) Any area covered by cameras activated by motion detection
must record live-action at the frame rate of 30 FPS.
(2) Digital Systems (referred to as DVR System):
(i) To satisfy the sufficient clarity requirement of this section,
the DVR System must capture, record and view continuous movement at the
minimum rate equivalent to 30 IPS (images per second);
(ii) To satisfy the sufficient clarity requirement of this section,
the resolution must be sufficient to produce a video record that is a
complete and accurate representation of the activity being observed;
(iii) The DVR System must have pre- and post-alarm activation at a
minimum of five (5) seconds (before and after event) for those areas in
which motion-activated cameras are allowed;
(iv) Viewing and recording size of images will be at a minimum of
CIF or FCIF for all inclusive areas of the DVR System;
(v) An internal backup system must be included in the configuration
to perform in the event that a hard drive failure will have negative
impact on the system's ability to record video images;
(vi) The DVR System must have a failure notification function
consisting, at a minimum, of both audible and visual warning devices
when system failure could negatively impact the ability to record, play
back, or store video images;
(vii) If the Casino Operation chooses to utilize a network (also
referred to as NVR System) for the interconnection of or playback from
digital recording devices, access to this network must be limited to
authorized personnel and be password or code protected in order to
maintain integrity and data network security;
(viii) If the Gaming Operation elects to utilize authentication/
encryption code software, the software must be submitted to the Tribal
Gaming Regulatory Authority (TGRA) for inspection and approval.
* * * * *
(m) Table games. (1) Operations with four (4) or more table games.
Except as otherwise provided in paragraphs (m)(3), (m)(4), and (m)(5)
of this section, the surveillance system of gaming operations,
operating four (4) or more table games, shall provide at a minimum one
(1) pan-tilt-zoom camera per two (2) tables and surveillance must be
capable of taping:
* * * * *
(2) * * *
(i) Comply with the requirements of paragraph (m)(1) of this
section; or
* * * * *
(o) Gaming machines. (1) Except as otherwise provided in paragraphs
(o)(2) and (o)(3) of this section, gaming machines offering a payout of
more than $250,000 shall be recorded by a dedicated camera(s) to
provide coverage of:
* * * * *
(4) Notwithstanding paragraph (o)(1) of this section, if the gaming
machine is a multi-game machine, the Tribal gaming regulatory
authority, or the gaming operation subject to the approval of the
Tribal gaming regulatory authority, may develop and implement
alternative procedures to verify payouts.
* * * * *
9. Amend Sec. 542.33 to redesignate paragraphs (j) through (y) as
(k) through (z), add a new paragraph (j), and revise newly redesignated
paragraphs (p)(1)
[[Page 69301]]
introductory text, (p)(2)(i), (r)(1) introductory text, and (r)(4) to
read as follows:
Sec. 542.33 What are the minimum internal control standards for
surveillance for Tier B gaming operations?
* * * * *
(j) Technical Standards for Surveillance Systems. (1) Analog
Systems:
(i) To satisfy the sufficient clarity requirement of this section,
continuous movement must be recorded at the frame rate of 30 FPS
(frames per second);
(ii) To satisfy the sufficient clarity requirement of this section,
the resolution must be sufficient to produce a video record that is a
complete and accurate representation of the activity being observed;
and
(iii) Any area covered by cameras activated by motion detection
must record live-action at the frame rate of 30 FPS.
(2) Digital Systems (referred to as DVR System):
(i) To satisfy the sufficient clarity requirement of this section,
the DVR System must capture, record and view continuous movement at the
minimum rate equivalent to 30 IPS (images per second);
(ii) To satisfy the sufficient clarity requirement of this section,
the resolution must be sufficient to produce a video record that is a
complete, accurate and viewable representation of the activity being
observed;
(iii) The DVR System must have pre- and post-alarm activation at a
minimum of five (5) seconds (before and after event) for those areas in
which motion-activated cameras are allowed;
(iv) Viewing and recording size of images will be at a minimum of
CIF or FCIF for all inclusive areas of the DVR System;
(v) An internal backup system must be included in the configuration
to perform in the event that a hard drive failure will have a negative
impact on the system's ability to record video images;
(vi) The DVR System must have a failure notification function
consisting, at a minimum, of both audible and visual warning devices
when system failure could negatively impact the ability to record, play
back, or store video images;
(vii) If the Casino Operation chooses to utilize a network (also
referred to as NVR System) for the interconnection of or playback from
digital recording devices, access to this network must be limited to
authorized personnel and be password or code protected in order to
maintain integrity and data network security;
(viii) If the Gaming Operation elects to utilize authentication/
encryption code software, the software must be submitted to the Tribal
Gaming Regulatory Authority (TGRA) for inspection and approval.
* * * * *
(p) Table games. (1) Operations with four (4) or more table games.
Except as otherwise provided in paragraphs (p)(3), (p)(4), and (p)(5)
of this section, the surveillance system of gaming operations,
operating four (4) or more table games, shall provide at a minimum one
(1) pan-tilt-zoom camera per two (2) tables and surveillance must be
capable of taping:
* * * * *
(2) * * *
(i) Comply with the requirements of paragraph (p)(1) of this
section; or
* * * * *
(r) Gaming machines. (1) Except as otherwise provided in paragraphs
(r)(2) and (r)(3) of this section, gaming machines offering a payout of
more than $250,000 shall be monitored and recorded by a dedicated
camera(s) to provide coverage of:
* * * * *
(4) Notwithstanding paragraph (r)(1) of this section, if the gaming
machine is a multi-game machine, the Tribal gaming regulatory
authority, or the gaming operation subject to the approval of the
Tribal gaming regulatory authority, may develop and implement
alternative procedures to verify payouts.
* * * * *
10. Amend Sec. 542.43 to redesignate paragraphs (k) through (z) as
(l) through (aa), add a new paragraph (k), and revise newly
redesignated paragraphs (q)(1) introductory text, (q)(2)(i), (s)(1)
introductory text, and (s)(4) to read as follows:
Sec. 542.43 What are the minimum internal control standards for
surveillance for a Tier C gaming operation?
* * * * *
(k) Technical Standards for Surveillance Systems. (1) Analog
Systems:
(i) To satisfy the sufficient clarity requirement of this section,
continuous movement must be recorded at the frame rate of 30 FPS
(frames per second);
(ii) To satisfy the sufficient clarity requirement of this section,
the resolution must be sufficient to produce a video record that is a
complete and accurate representation of the activity being observed;
and
(iii) Any area covered by cameras activated by motion detection
must record live action at the frame rate of 30 FPS.
(2) Digital Systems (referred to as DVR System):
(i) To satisfy the sufficient clarity requirement of this section,
the DVR System must capture, record and view continuous movement at the
minimum rate equivalent to 30 IPS (images per second);
(ii) To satisfy the sufficient clarity requirement of this section,
the resolution must be sufficient to produce a video record that is a
complete, accurate and viewable representation of the activity being
observed;
(iii) The DVR System must have pre- and post-alarm activation at a
minimum of five (5) seconds (before and after event) for those areas in
which motion-activated cameras are allowed;
(iv) Viewing and recording size of images will be at a minimum of
CIF or FCIF for all inclusive areas of the DVR System;
(v) An internal backup system must be included in the configuration
to perform in the event that a hard drive failure will have negative
impact on the system's ability to record video images;
(vi) The DVR System must have a failure notification function
consisting, at a minimum, of both audible and visual warning devices
when system failure could negatively impact the ability to record, play
back, or store video images;
(vii) If the Casino Operation chooses to utilize a network (also
referred to as NVR System) for the interconnection of or playback from
digital recording devices, access to this network must be limited to
authorized personnel and be password or code protected in order to
maintain integrity and data network security;
(viii) If the Gaming Operation elects to utilize authentication/
encryption code software, the software must be submitted to the Tribal
Gaming Regulatory Authority (TGRA) for inspection and approval.
* * * * *
(q) Table games. (1) Operations with four (4) or more table games.
Except as otherwise provided in paragraphs (q)(3), (q)(4), and (q)(5)
of this section, the surveillance system of gaming operations,
operating four (4) or more table games, shall provide at a minimum one
(1) pan-tilt-zoom camera per two (2) tables and surveillance must be
capable of taping:
* * * * *
(2) * * *
(i) Comply with the requirements of paragraph (q)(1) of this
section; or
* * * * *
[[Page 69302]]
(s) Gaming machines.
(1) Except as otherwise provided in paragraphs (s)(2) and (s)(3) of
this section, gaming machines offering a payout of more than $250,000
shall be monitored and recorded by a dedicated camera(s) to provide
coverage of:
* * * * *
(4) Notwithstanding paragraph (s)(1) of this section, if the gaming
machine is a multi-game machine, the Tribal gaming regulatory
authority, or the gaming operation subject to the approval of the
Tribal gaming regulatory authority, may develop and implement
alternative procedures to verify payouts.
* * * * *
Signed in Washington, DC, this 1st day of November, 2005.
Philip N. Hogen,
Chairman.
Nelson Westrin,
Vice Chairman.
Cloyce Choney,
Commissioner.
[FR Doc. 05-22506 Filed 11-14-05; 8:45 am]
BILLING CODE 7565-01-P