**§542.8 What are the minimum internal control standards for pull
tabs?**

\(a\) *Computer applications*. For any computer application utilized,
alternate documentation and/or procedures that provide at least the
level of control described by the standards in this section, as approved
by the Tribal gaming regulatory authority **[in writing]{.underline}**,
will be acceptable.

\(b\) *Pull tab inventory*. (1) Pull tab inventory (including unused
tickets) shall be controlled to assure the integrity of the pull tabs.

\(2\) Purchased pull tabs shall be inventoried and secured by a person
or persons independent of the pull tab sales.

\(3\) The issue of pull tabs to the cashier or sales location shall be
documented and signed for by the person responsible for inventory
control and the cashier. The document log shall include the serial
number of the pull tabs issued.

\(4\) Appropriate documentation shall be given to the redemption booth
for purposes of determining if the winner purchased the pull tab from
the pull tabs issued by the gaming operation. Electronic verification
satisfies this requirement.

\(5\) At the end of each month, a person or persons independent of pull
tab sales and inventory control shall verify the accuracy of the ending
balance in the pull tab control by reconciling the pull tabs on hand.

\(6\) A monthly comparison for reasonableness shall be made of the
amount of pull tabs sold from the pull tab control log to the amount of
revenue recognized.

\(c\) *Access.* Access to pull tabs shall be restricted to authorized
persons.

\(d\) *Transfers.* Transfers of pull tabs from storage to the sale
location shall be secured and independently controlled.

\(e\) *Winning pull tabs*. (1) Winning pull tabs shall be verified and
paid as follows:

**(i)** **[Prize]{.underline}** payouts **[of \$600 or
more]{.underline}**, **[or a lesser amount established by the gaming
operation,]{.underline}** shall be verified by at least two employees,
**[documentation required]{.underline}**. **[Tribal gaming regulatory
authority approval of this amount is recommended.]{.underline}**

**~~(iii)~~ (ii) Prize payouts over a predetermined amount shall require
the signature and verification of two employees, one of whom must be a
supervisory or management employee independent of the pull tab
department. This predetermined amount (Tribal gaming regulatory
authority approval recommended) shall be authorized by management,
documented, and maintained.**

**~~(ii)~~** **[(iii)]{.underline}** Total payout shall be computed and
recorded by shift.

**~~(iii)~~** **[(iv)]{.underline}** The winning pull tabs shall be
voided so that they cannot be presented for payment again.

\(2\) Personnel independent of pull tab operations shall verify the
amount of winning pull tabs redeemed each day.

\(f\) *Accountability form*. (1) All funds used to operate the pull tab
game shall be recorded on an accountability form.

\(2\) All funds used to operate the pull tab game shall be counted
independently by at least two persons and reconciled to the recorded
amounts at the end of each shift or session. Unverified transfers of
cash and/or cash equivalents are prohibited. (Revised August 12, 2005)

\(g\) *Standards for statistical reports*. (1) Records shall be
maintained for each deal or type of game, which include (for games sold
in their entirety) a win-to-write hold percentage as compared to the
expected hold percentage derived from the flare. Records shall also
include win and write (sales) for each deal or type of game for the
following:

\(i\) Each shift;

\(ii\) Each day;

\(iii\) Month-to-date; and

\(iv\) Year-to-date or fiscal year-to-date as applicable.

\(2\) A manager independent of the pull tab operations shall review
statistical information at least on a monthly basis and shall
investigate any large or unusual statistical fluctuations. These
investigations shall be documented, maintained for inspection, and
provided to the Tribal gaming regulatory authority upon request.

\(h\) *Electronic equipment*.

\(1\) If the gaming operation utilizes electronic equipment in
connection with the play of pull tabs, then the following standards
shall also apply.

\(i\) If the electronic equipment contains a bill acceptor, then
§542.21(e) and (f), §542.31(e) and (f), or §542.41(e) and (f) (as
applicable) shall apply. (Revised May 4, 2005)

\(ii\) If the electronic equipment uses a bar code or microchip reader,
the reader shall be tested periodically to determine that it is
correctly reading the bar code or microchip.

\(iii\) If the electronic equipment returns a **~~voucher~~**
**[cash-out ticket]{.underline}** or a payment slip to the player, then
§542.13(n) (as applicable) shall apply.

\(iv\) If the electronic equipment utilizes ***~~patron~~***
**[customer]{.underline}** account access cards for activation of play,
then §542.13(o) (as applicable) shall apply. (Adopted May 11, 2006)

\(2\) \[Reserved\]