Class Ii Gaming

Jeff Halloran, Colin Lawrence and Mat Halloran, founders of these interactive products, have now focused on providing Class II certified content to the Native American community who are looking at expanding into the North American online gaming market. This team has been involved in pioneering the mobile gaming sector since 2000.

1. Class Ii Gaming Rules

Class II gaming activities, e.g., bingo, pull tabs, lotto, punch boards, tip jars, and certain card games, are regulated by the Tribe in conjunction with the National Indian Gaming Commission, although tribes, under certain circumstances, may self-regulate these activities. Class II gaming is thriving in Oklahoma and other Native American casinos across the country. The Indian Gaming Regulatory Act (IGRA), which established the classes of gaming for Indian tribes in the United States, allows tribes to retain their authority to conduct, license and regulate Class II gaming.

For Immediate Release
Contact: Sarah Walters
(202) 632-7003

NIGC Announces Publication of Final Rules for Class II Gaming Regulations Parts 543 and 547

Revised Rules to Provide NIGC and Tribes with Essential Tools to Further Protect Indian Gaming

Washington, DC September 21, 2012 —Today, the National Indian Gaming Commission (NIGC/Commission) announced the publication of highly-anticipated revisions to two regulations crucial to safeguarding Indian gaming: 25 CFR Part 543 Minimum Internal Control Standards for Class II Gaming (MICS) and 25 CFR Part 547 Minimum Technical Standards for Class II Gaming Systems and Equipment.

The revised final rules make critical updates and changes to the regulations governing Class II MICS and gaming equipment. As the agency charged with Federal regulation of Indian gaming, the NIGC is responsible for protecting gaming revenue, helping to ensure that tribes are the primary beneficiaries of that revenue, and overall, keeping Indian gaming safe.

“Minimum Controls and Technical Standards provide a solid, comprehensive framework that the NIGC, Tribal Gaming Regulatory Authorities (TGRA) and operators alike can use to strengthen the security of their operations,” Chairwoman Tracie Stevens stated. “The safeguarding of tribal assets, as well as game and player protection, is essential in ensuring the integrity of tribal gaming operations.”

Part 543 and 547 establish standards that are designed to protect Class II gaming operations from theft, fraud, and loss, while also preserving safety and fairness to patrons. These final rules update and revise partial, outdated standards with comprehensive standards that take into account advances in technology and recognize the significant role of TGRAs.

In addition to updating sections that were previously included, Part 543 incorporates all aspects of Class II gaming, such as procedures for card games, drop and count, surveillance, gaming promotions and player tracking. The new MICS also take into account the diverse Indian gaming industry by providing more flexibility to TGRAs.

“These newly revised regulations more clearly define the responsibilities of TGRAs and the NIGC. They better reflect the intent of Congress to incorporate a multi-tiered regulatory scheme for the establishment of Indian gaming,” said Vice Chairwoman Steffani Cochran. “In these Standards,” she continued, “the NIGC establishes the fundamental framework with which tribes are required to comply, while also recognizing TGRA’s role as the day-to-day regulators to more closely meet individual tribes’ regulatory needs. These rules are sufficiently detailed, yet flexible, so that they can be implemented by all Class II gaming operations, regardless of size.”

Part 547 makes much-needed updates to account for advances in technology. In addition, by no longer referencing “Underwriters Laboratory,” Part 547 increases flexibility and facilitates compliance. Finally, Part 547 revises the “grandfather clause” to allow machines that have been certified “grandfathered” an additional five years to come into full compliance with the technical standards, and allows certification of eligible Class II systems that may have missed the original certification deadline.

Like any other regulated community, stakeholders are afforded the opportunity to provide input regarding rules and regulations with which they must comply. For tribes that participate in gaming pursuant to IGRA, this is especially important, not only because tribes are part of a three layered gaming regulatory system, but also because of the unique government-to-government relationship tribes have with the Federal government.

“When drafting regulations, it is absolutely necessary to get insight from the regulated community--the people who implement the regulations on the ground, and know what works and doesn't work in real life,” stated Chairwoman Stevens.

The finalized regulations are the result of a deliberative process that the Commission began in November 2010 as part of its Regulatory Review initiative. Using an improved consultation process that involved tribes and stakeholders early in the rulemaking process, the Commission was able to gather vital information before beginning the formal rulemaking process.

“Making regulations fit such a diverse industry did pose some challenges,” Associate Commissioner Dan Little said. “However, working with tribal operators, regulators, manufacturers and other industry experts, the Commission was able to formulate regulations that establish clear direction, while taking into account varying types of gaming venues. The regulations were crafted with some flexibility so tribal gaming regulatory agencies can fully implement the regulations in a way that best protects their operations.”

After engaging the help of a Tribal Advisory Committee (TAC), participating in informative conversations with tribes, and receiving public comments during the informal drafting phase, the Commission released Notices of Proposed Rule Making (NPRM) for both Part 543 and Part 547 on June 1, 2012 with the comment period closing on July 31, 2012. In response to initial comments requesting an extension of the deadline, the Commission extended the deadline to August 15, 2012. The Commission reviewed and considered all comments on the NPRM received by August 15.

“The Tribal Advisory Committee, tribal, and public comments were extremely useful in developing these standards, but the TAC especially,” Associate Commissioner Little stated further. “The Committee was comprised of 15 diverse and knowledgeable Indian gaming professionals who provided valuable and practical insight during the drafting process. While not all recommendations were included, the end product includes many components recommended by the industry. As a result, the final regulations reflect their experience and make the revised regulations relevant to today’s gaming industry.”

“These regulations help strengthen the foundation of Indian gaming by ensuring that solid controls and clear responsibilities are established, providing a strong Class II industry and stability to tribal government gaming,” Chairwoman Stevens concluded.

The NIGC is dedicated to assisting tribes to maintain compliance with all NIGC regulations. At a later date, the NIGC intends to issue guidance and offer training and technical assistance to facilitate compliance with these rules. Information will be posted on the NIGC website and circulated to tribes in the near future.

Parts 543 and 547 are available for public inspection and comment by clicking here and here. Both rules will become effective on October 22, 2012. Existing facilities will have one year to come into compliance with the MICS; however, facilities opened after the effective date of the regulation must comply with the MICS upon opening. All related regulatory review information can be found on our website at www.nigc.gov under the Tribal Consultation/Regulatory Review 2011-12/Discussion Drafts.

The NIGC is an independent regulatory agency established within the Department of the Interior pursuant to the Indian Gaming Regulatory Act of 1988.

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(a)Supervision. Supervision must be provided as needed for surveillance by an agent(s) with authority equal to or greater than those being supervised.

(b)Surveillance equipment and control room(s). Controls must be established and procedures implemented that include the following:

(1) For Tier A, the surveillance system must be maintained and operated from a secured location, such as a locked cabinet. For Tiers B and C, the surveillance system must be maintained and operated from a staffed surveillance operation room(s).

(2) The surveillance operation room(s) must be secured to prevent unauthorized entry.

(3) Access to the surveillance operation room(s) must be limited to surveillance agents and other authorized persons.

(4)Surveillance operation room(s) access logs must be maintained.

(5) Surveillance operation room equipment must have total override capability over all other satellite surveillance equipment.

(6) Power loss to the surveillance system:

(i) For Tier A, in the event of power loss to the surveillance system, alternative security procedures, such as additional supervisory or security agents, must be implemented immediately.

(ii) For Tier B and C, in the event of power loss to the surveillance system, an auxiliary or backup power source must be available and capable of providing immediate restoration of power to the surveillance system to ensure that surveillance agents can observe all areas covered by dedicated cameras.

(7) The surveillance system must record an accurate date and time stamp on recorded events. The displayed date and time must not significantly obstruct the recorded view.

(8) All surveillance agents must be trained in the use of the equipment, games, and house rules.

(9) Each camera required by the standards in this section must be installed in a manner that will prevent it from being readily obstructed, tampered with, or disabled.

(10) The surveillance system must:

(i) Have the capability to display all camera views on a monitor;

(ii) Include sufficient numbers of recording devices to record the views of all cameras required by this section;

(iii) Record all camera views; and

(iv) For Tier B and C only, include sufficient numbers of monitors to simultaneously display gaming and count room activities.

(11) A periodic inspection of the surveillance systems must be conducted. When a malfunction of the surveillance system is discovered, the malfunction and necessary repairs must be documented and repairs initiated within seventy-two (72) hours.

(i) If a dedicated camera malfunctions, alternative security procedures, such as additional supervisory or security agents, must be implemented immediately.

(ii) The TGRA must be notified of any surveillance system and/or camera(s) that have malfunctioned for more than twenty-four (24) hours and the alternative security measures being implemented.

(c)Additional surveillance requirements. With regard to the following functions, controls must also include:

(1) Surveillance of the progressive prize meters for Class II gaming systems at the following thresholds:

(i) Wide area progressives with a reset amount of $1 million; and

(ii) In-house progressives with a reset amount of $250,000.

(2) Manual bingo:

(i) For manual draws, the surveillance system must monitor the bingo ball drawing device or mechanical random number generator, which must be recorded during the course of the draw by a dedicated camera to identify the numbers or other designations drawn; and

(ii) The surveillance system must monitor and record the activities of the bingo game, including drawing, and entering the balls, numbers or other designations drawn.

(3) Card games:

(i) Except for card game tournaments, a dedicated camera(s) with sufficient clarity must be used to provide:

(A) An overview of the activities on each card table surface, including card faces and cash and/or cash equivalents;

(B) An overview of card game activities, including patrons and dealers; and

(C) An unobstructed view of all posted progressive pool amounts.

(ii) For card game tournaments, a dedicated camera(s) must be used to provide an overview of tournament activities, and any area where cash or cash equivalents are exchanged.

(4)Cage and vault:

(i) The surveillance system must monitor and record a general overview of activities occurring in each cage and vault area with sufficient clarity to identify individuals within the cage and patrons and staff members at the counter areas and to confirm the amount of each cash transaction;

(ii) Each cashier station must be equipped with one (1) dedicated overhead camera covering the transaction area; and

(iii) The cage or vault area in which exchange and transfer transactions occur must be monitored and recorded by a dedicated camera or motion activated dedicated camera that provides coverage with sufficient clarity to identify the chip values and the amounts on the exchange and transfer documentation. Controls provided by a computerized exchange and transfer system constitute an adequate alternative to viewing the amounts on the exchange and transfer documentation.

(5)Count rooms:

(i) The surveillance system must monitor and record with sufficient clarity a general overview of all areas where cash or cash equivalents may be stored or counted; and

(ii) The surveillance system must provide coverage of count equipment with sufficient clarity to view any attempted manipulation of the recorded data.

(6) Kiosks: The surveillance system must monitor and record a general overview of activities occurring at each kiosk with sufficient clarity to identify the activity and the individuals performing it, including maintenance, drops or fills, and redemption of wagering vouchers or credits.

(d)Reporting requirements.TGRA-approved procedures must be implemented for reporting suspected crimes and suspicious activity.

(e)Recording retention. Controls must be established and procedures implemented that include the following:

(1) All recordings required by this section must be retained for a minimum of seven days; and

(2) Suspected crimes, suspicious activity, or detentions by security agents discovered within the initial retention period must be copied and retained for a time period, not less than one year.

(f)Logs. Logs must be maintained and demonstrate the following:

(1) Compliance with the storage, identification, and retention standards required in this section;

(2) Each malfunction and repair of the surveillance system as defined in this section; and

(3) Activities performed by surveillance agents as required by the controls in this section.

Class Ii Gaming Rules

Class Ii Gaming