**NATIONAL INDIAN GAMING COMMISSION**

**25 CFR Part 542**

**Minimum Internal Control Standards (MICS)**

**AGENCY: National Indian Gaming Commission**

**ACTION: Final rule**

**MICS Updated as of October 10, 2008**

**[§[542.1 What does this part cover?]{.underline}]{.mark}**

This part establishes the minimum internal control standards for gaming
operations on Indian land.

**[[§542.2 What are the definitions for this
part?]{.underline}]{.mark}**

The definitions in this section shall apply to all sections of this part
unless otherwise noted.

***[Account access card]{.underline} 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.\'\' (Revised May
11, 2006)

***[Accountability]{.underline} means*** all items of cash, chips,
coins, tokens, plaques, receivables, and customer deposits constituting
the total amount for which the bankroll custodian is responsible at a
given time.

***[Accumulated credit payout]{.underline} means*** credit earned in a
gaming machine that is paid to a customer manually in lieu of a machine
payout.

***[Actual hold percentage]{.underline}*** ***means*** the percentage
calculated by dividing the win by the drop or coin-in (number of credits
wagered). Can be calculated for individual tables or gaming machines,
type of table games, or gaming machines on a per day or cumulative
basis.

***[Ante]{.underline} means*** a player\'s initial wager or
predetermined contribution to the pot before the dealing of the first
hand.

***[Betting station]{.underline} means*** the area designated in a
pari-mutuel area that accepts wagers and pays winning bets.

***[Betting ticket]{.underline} means*** a printed, serially numbered
form used to record the event upon which a wager is made, the amount and
date of the wager, and sometimes the line or spread (odds).

***[Bill acceptor]{.underline} means*** the device that accepts and
reads cash by denomination in order to accurately register customer
credits.

***[Bill acceptor canister]{.underline} means*** the box attached to the
bill acceptor used to contain cash received by bill acceptors.

***[Bill acceptor canister release key]{.underline} means*** the key
used to release the bill acceptor canister from the bill acceptor
device.

***[Bill acceptor canister storage rack key]{.underline} means*** the
key used to access the storage rack where bill acceptor canisters are
secured.

***[Bill acceptor drop]{.underline} means*** cash contained in bill
acceptor canisters.

***[Bill-in meter]{.underline} means*** a meter included on a gaming
machine accepting cash that tracks the number of bills put in the
machine.

***[Boxperson]{.underline} means*** the first-level supervisor who is
responsible for directly participating in and supervising the operation
and conduct of a craps game.

***[Breakage]{.underline} means*** the difference between actual bet
amounts paid out by a racetrack to bettors and amounts won due to bet
payments being rounded up or down. For example, a winning bet that
should pay \$4.25 may be actually paid at \$4.20 due to rounding.

***[Cage]{.underline} means*** a secure work area within the gaming
operation for cashiers and a storage area for the gaming operation
bankroll.

***[Cage accountability form]{.underline} means*** an itemized list of
the components that make up the cage accountability.

***[Cage credit]{.underline} means*** advances in the form of cash or
gaming chips made to customers at the cage. Documented by the players
signing an IOU or a marker similar to a counter check.

***[Cage marker form]{.underline} means*** a document, signed by the
customer, evidencing an extension of credit at the cage to the customer
by the gaming operation.

***[Calibration module]{.underline} means*** the section of a weigh
scale used to set the scale to a specific amount or number of coins to
be counted.

***[Call bets]{.underline} means*** a wager made without cash or chips,
reserved for a known customer and includes marked bets (which are
supplemental bets made during a hand of play). For the purpose of
settling a call bet, a hand of play in craps is defined as a natural
winner (e.g., seven or eleven on the come-out roll), a natural loser
(e.g., a two, three or twelve on the come-out roll), a seven-out, or the
player making his point, whichever comes first.

***[Card game]{.underline} means*** a game in which the gaming operation
is not party to wagers and from which the gaming operation receives
compensation in the form of a rake, a time buy-in, or other fee or
payment from a player for the privilege of playing.

***[Card room bank]{.underline} means*** the operating fund assigned to
the card room or main card room bank.

***[Cash-out ticket]{.underline} means*** an instrument of value
generated by a gaming machine representing a cash amount owed to a
customer at a specific gaming machine. This instrument may be wagered at
other machines by depositing the cash-out ticket in the machine bill
acceptor.

***[Chips]{.underline} mean[s]{.underline}*** cash substitutes, in
various denominations, issued by a gaming operation and used for
wagering.

***[Coin-in meter]{.underline} means*** the meter that displays the
total amount wagered in a gaming machine that includes coins-in and
credits played.

***[Coin meter count machine]{.underline} means*** a device used in a
coin room to count coin.

***[Coin room]{.underline} means*** an area where coins and tokens are
stored.

***[Coin room inventory]{.underline} means*** coins and tokens stored in
the coin room that are generally used for gaming machine department
operation.

***[Commission]{.underline} means*** the National Indian Gaming
Commission.

***[Complimentary]{.underline} means*** a service or item provided at no
cost, or at a reduced cost, to a customer.

***[Count]{.underline} means*** the total funds counted for a particular
game, gaming machine, shift, or other period.

***[Count room]{.underline} means*** a room where the coin and cash drop
from gaming machines, table games, or other games are transported to and
counted.

***[Count team]{.underline} means*** personnel that perform either the
count of the gaming machine drop and/or the table game drop.

***[Counter check]{.underline} means*** a form provided by the gaming
operation for the customer to use in lieu of a personal check.

***[Counter]{.underline} 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. (Adopted May 11, 2006)

***[Credit]{.underline} means*** the right granted by a gaming operation
to a customer to defer payment of debt or to incur debt and defer its
payment.

***[Credit limit]{.underline} means*** the maximum dollar amount of
credit assigned to a customer by the gaming operation.

***[Credit slip]{.underline} means*** a form used to record either:

**(1)** The return of chips from a gaming table to the cage; or

**(2)** The transfer of IOUs, markers, or negotiable checks from a
gaming table to a cage or bankroll.

***[Customer deposits]{.underline} means*** the amounts placed with a
cage cashier by customers for the customers\' use at a future time.

***[Deal]{.underline} means*** a specific pull tab game that has a
specific serial number associated with each game.

***[Dealer]{.underline} means*** an employee who operates a game,
individually or as a part of a crew, administering house rules and
making payoffs.

***[Dedicated camera]{.underline} means*** a video camera required to
continuously record a specific activity.

***[Deskman]{.underline} means*** a person who authorizes payment of
winning tickets and verifies payouts for keno games.

***[Draw ticket]{.underline} means*** a blank keno ticket whose numbers
are punched out when balls are drawn for the game. Used to verify
winning tickets.

***[Drop (for gaming machines)]{.underline} means*** the total amount of
cash, cash-out tickets, coupons, coins, and tokens removed from drop
buckets and/or bill acceptor canisters.

***[Drop (for table games)]{.underline} means*** the total amount of
cash, chips, and tokens removed from drop boxes, plus the amount of
credit issued at the tables.

***[Drop box]{.underline} means*** a locked container affixed to the
gaming table into which the drop is placed. The game type, table number,
and shift are indicated on the box.

***[Drop box contents keys]{.underline} means*** the key used to open
drop boxes.

***[Drop box release keys]{.underline} means*** the key used to release
drop boxes from tables.

***[Drop box storage rack keys]{.underline} means*** the key used to
access the storage rack where drop boxes are secured.

***[Drop bucket]{.underline} means*** a container located in the drop
cabinet (or in a secured portion of the gaming machine in
coinless/cashless configurations) for the purpose of collecting coins,
tokens, cash-out tickets, and coupons from the gaming machine.

***[Drop cabinet]{.underline} means*** the wooden or metal base of the
gaming machine that contains the gaming machine drop bucket.

***[Drop period]{.underline}*** ***means*** the period of time that
occurs between sequential drops. (Adopted May 4, 2005)

***[Earned and unearned take]{.underline} means*** race bets taken on
present and future race events. Earned take means bets received on
current or present events. Unearned take means bets taken on future race
events.

***[EPROM]{.underline} means*** erasable programmable read-only memory
or other equivalent game software media.

***[Fill]{.underline} means*** a transaction whereby a supply of chips,
coins, or tokens is transferred from a bankroll to a table game or
gaming machine.

***[Fill slip]{.underline} means*** a document evidencing a fill.

***[Flare]{.underline} means*** the information sheet provided by the
manufacturer that sets forth the rules of a particular pull tab game and
that is associated with a specific deal of pull tabs. The flare shall
contain the following information:

**(1)** Name of the game;

**(2)** Manufacturer name or manufacturer\'s logo;

**(3)** Ticket count; and

**(4)** Prize structure, which shall include the number of winning pull
tabs by denomination, with their respective winning symbols, numbers, or
both.

***[Future wagers]{.underline} means*** bets on races to be run in the
future (e.g., Kentucky Derby).

***[Game server]{.underline} means*** an electronic selection device,
utilizing a random number generator.

***[Gaming machine]{.underline}*** ***means*** an electronic or
electromechanical machine that allows a player to play games of chance,
some of which may be affected by skill, which contains a microprocessor
with random number generator capability for outcome selection or
computer terminal that accesses an outcome that is subsequently and
randomly selected in drawings that are electronically conducted by
central computer or other such methods of chance selection, whether
mechanical or electronic. The machine is activated by the insertion of
cash or cash equivalents and which awards cash, cash equivalents,
merchandise, or a written statement of the player\'s accumulated
credits, which written statements may be redeemable for cash. (Revised
May 4, 2005)

***[Gaming machine analysis report]{.underline} means*** a report
prepared that compares theoretical to actual hold by a gaming machine on
a monthly or other periodic basis.

***[Gaming machine booths and change banks]{.underline} means*** a booth
or small cage in the gaming machine area used to provide change to
players, store change aprons and extra coin, and account for jackpot and
other payouts.

***[Gaming machine count]{.underline} means*** the total amount of
coins, tokens, and cash removed from a gaming machine. The amount
counted is entered on the Gaming Machine Count Sheet and is considered
the drop. Also, the procedure of counting the coins, tokens, and cash or
the process of verifying gaming machine coin and token inventory.

***[Gaming machine pay table]{.underline} means*** the reel strip
combinations illustrated on the face of the gaming machine that can
identify payouts of designated coin amounts.

***[Gaming operation accounts receivable (for gaming operation
credit)]{.underline} means*** credit extended to gaming operation
customers in the form of markers, returned checks, or other credit
instruments that have not been repaid.

***[Gross gaming revenue]{.underline} means*** annual total amount of
cash wagered on class II and class III games and admission fees
(including table or card fees), less any amounts paid out as prizes or
paid for prizes awarded.

***[Hold]{.underline} means*** the relationship of win to coin-in for
gaming machines and win to drop for table games.

***[Hub]{.underline} means*** the person or entity that is licensed to
provide the operator of a pari-mutuel wagering operation information
related to horse racing that is used to determine winners of races or
payoffs on wagers accepted by the pari-mutuel wagering operation.

***[Internal audit]{.underline} means*** persons who perform an audit
function of a gaming operation that are independent of the department
subject to audit. Independence is obtained through the organizational
reporting relationship, as the internal audit department shall not
report to management of the gaming operation. Internal audit activities
should be conducted in a manner that permits objective evaluation of
areas examined. Internal audit personnel may provide audit coverage to
more than one operation within a Tribe\'s gaming operation holdings.

***[Issue slip]{.underline} means*** a copy of a credit instrument that
is retained for numerical sequence control purposes.

***[Jackpot payout]{.underline} means*** the portion of a jackpot paid
by gaming machine personnel. The amount is usually determined as the
difference between the total posted jackpot amount and the coins paid
out by the machine. May also be the total amount of the jackpot.

***[Lammer button]{.underline} means*** a type of chip that is placed on
a gaming table to indicate that the amount of chips designated thereon
has been given to the customer for wagering on credit before completion
of the credit instrument. Lammer button may also mean a type of chip
used to evidence transfers between table banks and card room banks.

***[Linked electronic game]{.underline} means*** any game linked to two
(2) or more gaming operations that are physically separate and not
regulated by the same Tribal gaming regulatory authority.

***[Main card room bank]{.underline} means*** a fund of cash, coin, and
chips used primarily for poker and pan card game areas. Used to make
even cash transfers between various games as needed. May be used
similarly in other areas of the gaming operation.

***[Marker]{.underline} means*** a document, signed by the customer,
evidencing an extension of credit to him by the gaming operation.

***[Marker credit play]{.underline} means*** that players are allowed to
purchase chips using credit in the form of a marker.

***[Marker inventory form]{.underline} means*** a form maintained at
table games or in the gaming operation pit that are used to track marker
inventories at the individual table or pit.

***[Marker transfer form]{.underline} means*** a form used to document
transfers of markers from the pit to the cage.

***[Master credit record]{.underline} means*** a form to record the
date, time, shift, game, table, amount of credit given, and the
signatures or initials of the persons extending the credit.

***[Master game program number]{.underline} means*** the game program
number listed on a gaming machine EPROM.

***[Master game sheet]{.underline} means*** a form used to record, by
shift and day, each table game\'s winnings and losses. This form
reflects the opening and closing table inventories, the fills and
credits, and the drop and win.

***[Mechanical coin counter]{.underline} means*** a device used to count
coins that may be used in addition to or in lieu of a coin weigh scale.

***[Meter]{.underline} means*** an electronic (soft) or mechanical
(hard) apparatus in a gaming machine. May record the number of coins
wagered, the number of coins dropped, the number of times the handle was
pulled, or the number of coins paid out to winning players.

***[MICS]{.underline} means*** minimum internal control standards in
this part 542.

***[Motion activated dedicated camera]{.underline} means*** a video
camera that, upon its detection of activity or motion in a specific
area, begins to record the activity or area.

***[Multi-game machine]{.underline} means*** a gaming machine that
includes more than one type of game option.

***[Multi-race ticket]{.underline} means*** a keno ticket that is played
in multiple games.

***[On-line gaming machine monitoring system]{.underline} means*** a
system used by a gaming operation to monitor gaming machine meter
readings and/or other activities on an on-line basis.

***[Order for credit]{.underline} means*** a form that is used to
request the transfer of chips or markers from a table to the cage. The
order precedes the actual transfer transaction that is documented on a
credit slip.

***[Outstation]{.underline} means*** areas other than the main keno area
where bets may be placed and tickets paid.

***[Par percentage]{.underline} means*** the percentage of each dollar
wagered that the house wins (i.e., gaming operation advantage).

***[Par sheet]{.underline} means*** a specification sheet for a gaming
machine that provides machine hold percentage, model number, hit
frequency, reel combination, number of reels, number of coins that can
be accepted, and reel strip listing.

***[Pari-mutuel wagering]{.underline} means*** a system of wagering on
horse races, jai-alai, greyhound, and harness racing, where the winners
divide the total amount wagered, net of commissions and operating
expenses, proportionate to the individual amount wagered.

***[Payment slip]{.underline} means*** that part of a marker form on
which customer payments are recorded.

***[Payout]{.underline} means*** a transaction associated with a winning
event.

***[PIN]{.underline} means*** the personal identification number used to
access a player\'s account.

***[Pit podium]{.underline} means*** a stand located in the middle of
the tables used by gaming operation supervisory personnel as a workspace
and a record storage area.

***[Pit supervisor]{.underline} means*** the employee who supervises all
games in a pit.

***[Player tracking system]{.underline} means*** a system typically used
in gaming machine departments that can record the gaming machine play of
individual customers.

***[Post time]{.underline} means*** the time when a pari-mutuel track
stops accepting bets in accordance with rules and regulations of the
applicable jurisdiction.

***[Primary and secondary jackpots]{.underline} means*** promotional
pools offered at certain card games that can be won in addition to the
primary pot.

***[Progressive gaming machine]{.underline} means*** a gaming machine,
with a payoff indicator, in which the payoff increases as it is played
(i.e., deferred payout). The payoff amount is accumulated, displayed on
a machine, and will remain until a player lines up the jackpot symbols
that result in the progressive amount being paid.

***[Progressive jackpot]{.underline} means*** deferred payout from a
progressive gaming machine.

***[Progressive table game]{.underline} means*** table games that offer
progressive jackpots.

***[Promotional payout]{.underline} means*** merchandise or awards given
to players by the gaming operation based on a wagering activity.

***[Promotional progressive pots and/or pools]{.underline} means***
funds contributed to a table game or card game by and for the benefit of
players. Funds are distributed to players based on a predetermined
event. (Revised May 4, 2005)

***[Rabbit ears]{.underline} means*** a device, generally V-shaped, that
holds the numbered balls selected during a keno or bingo game so that
the numbers are visible to players and employees.

***[Rake]{.underline} means*** a commission charged by the house for
maintaining or dealing a game such as poker.

***[Rake circle]{.underline} means*** the area of a table where rake is
placed.

***[Random number generator]{.underline} means*** a device that
generates numbers in the absence of a pattern. May be used to determine
numbers selected in various games such as keno and bingo. Also commonly
used in gaming machines to generate game outcome.

***[Reel symbols]{.underline} means*** symbols listed on reel strips of
gaming machines.

***[Rim credit]{.underline} means*** extensions of credit that are not
evidenced by the immediate preparation of a marker and does not include
call bets.

***[Runner]{.underline} means*** a gaming employee who transports
chips/cash to or from a gaming table and a cashier.

***[SAM]{.underline} means*** a screen-automated machine used to accept
pari-mutuel wagers. SAM\'s also pay winning tickets in the form of a
voucher, which is redeemable for cash.

***[Series number]{.underline} means*** the unique identifying number
printed on each sheet of bingo paper that identifies the bingo paper as
a series or packet. The series number is not the free space or center
space number located on the bingo paper. (Adopted May 4, 2005)

***[Shift]{.underline} means*** an eight-hour period, unless otherwise
approved by the Tribal gaming regulatory authority, not to exceed
twenty-four (24) hours.

***[Shill]{.underline} means*** an employee financed by the house and
acting as a player for the purpose of starting or maintaining a
sufficient number of players in a game.

***[Short pay]{.underline} means*** a payoff from a gaming machine that
is less than the listed amount.

***[Soft count]{.underline} means*** the count of the contents in a drop
box or a bill acceptor canister.

***[Statistical drop]{.underline} means*** total amount of money, chips
and tokens contained in the drop boxes, plus pit credit issued, minus
pit credit payments in cash in the pit. (Adopted May 11, 2006)

***[Statistical win]{.underline} means*** closing bankroll, plus credit
slips for cash, chips or tokens returned to the cage, plus drop, minus
opening bankroll, minus fills to the table, plus marker credits.
(Adopted May 11, 2006)

***[Sufficient clarity]{.underline} means*** use of monitoring and
recording at a minimum of twenty (20) frames per second. Multiplexer
tape recordings are insufficient to satisfy the requirement of
sufficient clarity.

***[Surveillance room]{.underline} means*** a secure location(s) in a
gaming operation used primarily for casino surveillance.

***[Surveillance system]{.underline} means*** a system of video cameras,
monitors, recorders, video printers, switches, selectors, and other
ancillary equipment used for casino surveillance.

***[Table games]{.underline} means*** games that are banked by the house
or a pool whereby the house or the pool pays all winning bets and
collects from all losing bets.

***[Table inventory]{.underline} means*** the total coins, chips, and
markers at a table.

***[Table inventory form]{.underline} means*** the form used by gaming
operation supervisory personnel to document the inventory of chips,
coins, and tokens on a table at the beginning and ending of a shift.

***[Table tray]{.underline} means*** the container located on gaming
tables where chips, coins, or cash are stored that are used in the game.

***[Take]{.underline} means*** the same as earned and unearned take.

***[Theoretical hold]{.underline} means*** the intended hold percentage
or win of an individual gaming machine as computed by reference to its
payout schedule and reel strip settings or EPROM.

***[Theoretical hold worksheet]{.underline} means*** a worksheet
provided by the manufacturer for all gaming machines that indicate the
theoretical percentages that the gaming machine should hold based on
adequate levels of coin-in. The worksheet also indicates the reel strip
settings, number of credits that may be played, the payout schedule, the
number of reels and other information descriptive of the particular type
of gaming machine.

***[Tier A]{.underline} means*** gaming operations with annual gross
gaming revenues of **more than \$1 million** but **not more than \$5
million**.

***[Tier B]{.underline} means*** gaming operations with annual gross
gaming revenues of **more than \$5 million** but **not more than \$15
million**.

***[Tier C]{.underline} means*** gaming operations with annual gross
gaming revenues of **more than \$15 million.**

***[Tokens]{.underline} means*** a coin-like cash substitute, in various
denominations, used for gambling transactions.

***[Tribal gaming regulatory authority]{.underline} means*** the
tribally designated entity responsible for gaming regulation.

***[Vault]{.underline} means*** a secure area within the gaming
operation where tokens, checks, cash, coins, and chips are stored.

***[Weigh/count]{.underline} means*** the value of coins and tokens
counted by a weigh machine.

***[Weigh scale calibration module]{.underline} means*** the device used
to adjust a coin weigh scale.

***[Weigh scale interface]{.underline} means*** a communication device
between the weigh scale used to calculate the amount of funds included
in drop buckets and the computer system used to record the weigh data.

***[Weigh tape]{.underline} means*** the tape where weighed coin is
recorded.

***[Wide area progressive gaming machine]{.underline} means*** a
progressive gaming machine that is linked to machines in other
operations and play on the machines affect the progressive amount. As
wagers are placed, the progressive meters on all of the linked machines
increase.

***[Win]{.underline} means*** the net win resulting from all gaming
activities. Net win results from deducting all gaming losses from all
wins prior to considering associated operating expenses.

***[Win-to-write hold percentage]{.underline} means*** win divided by
write to determine hold percentage.

***[Wrap]{.underline} means*** the method of storing coins after the
count process has been completed, including, but not limited to,
wrapping, racking, or bagging. May also refer to the total amount or
value of the counted and stored coins.

***[Write]{.underline} means*** the total amount wagered in keno, bingo,
pull tabs, and pari-mutuel operations.

***[Writer]{.underline} means*** an employee who writes keno, bingo,
pull tabs, or pari-mutuel tickets. A keno writer usually also makes
payouts.

**[§[542.3 How do I comply with this part?]{.underline}]{.mark}**

**(a) *[Compliance based upon tier]{.underline}*.**

**(1)** **Tier A** gaming operations must comply with §§542.1 through
542.18, and §§542.20 through 542.23.

**(2) Tier B** gaming operations must comply with §§542.1 through
542.18, and §§542.30 through 542.33.

**(3) Tier C** gaming operations must comply with §§542.1 through
542.18, and §§542.40 through 542.43.

**(b) *[Determination of tier]{.underline}*.**

**(1)** **The determination of tier level shall** be made based upon the
annual gross gaming revenues indicated within the gaming operation\'s
audited financial statements. Gaming operations moving from one tier to
another shall have nine (9) months from the date of the independent
certified public accountant\'s audit report to achieve compliance with
the requirements of the new tier.

**(2) The Tribal gaming regulatory authority may** extend the deadline
by an additional six (6) months if written notice is provided to the
Commission no later than two weeks before the expiration of the nine (9)
month period.

**(c) *[Tribal internal control standards]{.underline}*.** Within six
(6) months of June 27, 2002, each Tribal gaming regulatory authority
shall, in accordance with the Tribal gaming ordinance, establish and
implement tribal internal control standards that shall:

**(1)** **Provide** a level of control that equals or exceeds those set
forth in this part;

**(2)** **Contain** standards for currency transaction reporting that
comply with 31 CFR part 103;

**(3)** **Establish** standards for games that are not addressed in this
part; and

**(4)** **Establish** a deadline, which shall not exceed nine (9) months
from June 27, 2002, by which a gaming operation must come into
compliance with the tribal internal control standards. However, the
Tribal gaming regulatory authority may extend the deadline by an
additional six (6) months if written notice is provided to the
Commission no later than two weeks before the expiration of the nine (9)
month period.

**(d) *[Gaming operations]{.underline}***. Each gaming operation shall
develop and implement an internal control system that, at a minimum,
complies with the tribal internal control standards.

**(1)** ***Existing gaming operations***. All gaming operations that are
operating on or before June 27, 2002, shall comply with this part within
the time requirements established in paragraph (c) of this section. In
the interim, such operations shall continue to comply with existing
tribal internal control standards.

**(2)** ***New gaming operations***. All gaming operations that commence
operations after August 26, 2002, shall comply with this part before
commencement of operations.

**(e) *[Submission to Commission]{.underline}***. Tribal regulations
promulgated pursuant to this part shall not be required to be submitted
to the Commission pursuant to 25 CFR 522.3(b).

**(f) *[CPA testing]{.underline}*. (Revised August 12, 2005)**

**(1) An independent certified public accountant (CPA) shall be engaged
to perform** ''Agreed-Upon Procedures'' to verify that the gaming
operation is in compliance with the minimum internal control standards
(MICS) set forth in this part or a Tribally approved variance thereto
that has received Commission concurrence. The CPA shall report each
event and procedure discovered by or brought to the CPA's attention that
the CPA believes does not satisfy the minimum standards or Tribally
approved variance that has received Commission concurrence. The
''Agreed-Upon Procedures'' may be performed in conjunction with the
annual audit. The CPA shall report its findings to the Tribe, Tribal
gaming regulatory authority, and management. The Tribe shall submit two
copies of the report to the Commission within 120 days of the gaming
operation's fiscal year end. This regulation is intended to communicate
the Commission's position on the minimum agreed-upon procedures to be
performed by the CPA. Throughout these regulations, the CPA's engagement
and reporting are based on Statements on Standards for Attestation
Engagements (SSAEs) in effect as of December 31, 2003, specifically SSAE
10 (''Revision and Recodification Agreed-Upon Procedures
Engagements.''). If future revisions are made to the SSAEs or new SSAEs
are adopted that are applicable to this type of engagement, the CPA is
to comply with any new or revised professional standards in conducting
engagements pursuant to these regulations and the issuance of the
agreed-upon procedures report. The CPA shall perform the ''Agreed-Upon
Procedures'' in accordance with the following: (Revised August 12, 2005)

**(i)** As a prerequisite to the evaluation of the gaming operation's
internal control systems, it is recommended that the CPA obtain and
review an organization chart depicting segregation of functions and
responsibilities, a description of the duties and responsibilities of
each position shown on the organization chart, and an accurate, detailed
narrative description of the gaming operation's procedures in effect
that demonstrate compliance.

**(ii)** Complete the CPA NIGC MICS Compliance checklists or other
comparable testing procedures. The checklists should measure compliance
on a sampling basis by performing walkthroughs, observations and
substantive testing. The CPA shall complete separate checklists for each
gaming revenue center, cage and credit, internal audit, surveillance,
information technology and complimentary services or items. All
questions on each applicable checklist should be completed. Work-paper
references are suggested for all ''no'' responses for the results
obtained during testing (unless a note in the ''W/P Ref''' can explain
the exception).

**(iii)** The CPA shall perform, at a minimum, the following procedures
in conjunction with the completion of the checklists:

**(A)** At least one unannounced observation of each of the following:
Gaming machine coin drop, gaming machine currency acceptor drop, table
games drop, gaming machine coin count, gaming machine currency acceptor
count, and table games count. The AICPA's ''Audits of Casinos'' Audit
and Accounting Guide states that ''observations of operations in the
casino cage and count room should not be announced in advance \* \* \*''
For purposes of these procedures, ''unannounced'' means that no
officers, directors, or employees are given advance information
regarding the dates or times of such observations. The independent
accountant should make arrangements with the gaming operation and Tribal
gaming regulatory authority to ensure proper identification of the CPA's
personnel and to provide for their prompt access to the count rooms.

**([1]{.underline})** The gaming machine coin count observation would
include a weigh scale test of all denominations using pre-counted coin.
The count would be in process when these tests are performed, and would
be conducted prior to the commencement of any other walk-through
procedures. For computerized weigh scales, the test can be conducted at
the conclusion of the count, but before the final totals are generated.

**([2]{.underline})** The checklists should provide for drop/count
observations, inclusive of hard drop/count, soft drop/count and currency
acceptor drop/count. The count room would not be entered until the count
is in process and the CPA would not leave the room until the monies have
been counted and verified to the count sheet by the CPA and accepted
into accountability. If the drop teams are unaware of the drop
observations and the count observations would be unexpected, the hard
count and soft count rooms may be entered simultaneously. Additionally,
if the gaming machine currency acceptor count begins immediately after
the table games count in the same location, by the same count team, and
using the same equipment, the currency acceptor count observation can be
conducted on the same day as the table games count observation, provided
the CPA remains until monies are transferred to the vault/ cashier.

**(B)** Observations of the gaming operation's employees as they perform
their duties.

**(C)** Interviews with the gaming operation's employees who perform the
relevant procedures.

**(D)** Compliance testing of various documents relevant to the
procedures. The scope of such testing should be indicated on the
checklist where applicable.

**(E)** For new gaming operations that have been in operation for three
months or less at the end of their business year, performance of this
regulation, section 542.3(f), is not required for the partial period.

**(2) Alternatively, at the discretion of the Tribe**, the Tribe may
engage an independent certified public accountant (CPA) to perform the
testing, observations and procedures reflected in paragraphs (f)(1)(i),
(ii), and (iii) of this section utilizing the Tribal internal control
standards adopted by the Tribal gaming regulatory authority or Tribally
approved variance that has received Commission concurrence. Accordingly,
the CPA will verify compliance by the gaming operation with the Tribal
internal control standards. Should the Tribe elect this alternative, as
a prerequisite, the CPA will perform the following: (Revised August 12,
2005)

**(i)** The CPA shall compare the Tribal internal control standards to
the MICS to ascertain whether the criteria set forth in the MICS or
Commission approved variances are adequately addressed.

**(ii)** The CPA may utilize personnel of the Tribal gaming regulatory
authority to cross-reference the Tribal internal control standards to
the MICS, provided the CPA performs a review of the Tribal gaming
regulatory authority personnel's work and assumes complete
responsibility for the proper completion of the work product.

**(iii)** The CPA shall report each procedure discovered by or brought
to the CPA's attention that the CPA believes does not satisfy paragraph
(f)(2)(i) of this section.

**(3) Reliance on Internal Auditors**.

**(i)** The CPA may rely on the work of an internal auditor, to the
extent allowed by the professional standards, for the performance of the
recommended procedures specified in paragraphs (f)(1)(iii)(B), (C), and
(D) of this section, and for the completion of the checklists as they
relate to the procedures covered therein provided that the internal
audit department can demonstrate to the satisfaction of the CPA that the
requirements contained within § 542.22, 542.32, or 542.42, as
applicable, have been satisfied.

**(ii)** Agreed-upon procedures are to be performed by the CPA to
determine that the internal audit procedures performed for a past
12-month period (includes two 6-month periods) encompassing a portion or
all of the most recent business year has been properly completed. The
CPA will apply the following Agreed-Upon Procedures to the gaming
operation's written assertion:

**(A)** Obtain internal audit department work-papers completed for a
12-month period (includes two 6-month periods) encompassing a portion or
all of the most recent business year and determine whether the CPA NIGC
MICS

Compliance Checklists or other comparable testing procedures were
included in the internal audit workpapers and all steps described in the
checklists were initialed or signed by an internal audit representative.

**(B)** For the internal audit work-papers obtained in paragraph
(f)(3)(ii)(A) of this section, on a sample basis, reperform the
procedures included in CPA NIGC MICS Compliance Checklists or other
comparable testing procedures prepared by internal audit and determine
if all instances of noncompliance noted in the sample were documented as
such by internal audit. The CPA NIGC MICS Compliance Checklists or other
comparable testing procedures for the applicable Drop and Count
procedures are not included in the sample reperformance of procedures
because the CPA is required to perform the drop and count observations
as required under paragraph (f)(1)(iii)(A) of this section of the
Agreed-Upon Procedures. The CPA's sample should comprise a minimum of 3
percent of the procedures required in each CPA NIGC MICS Compliance
Checklist or other comparable testing procedures for the gaming machine
and table game departments and 5 percent for the other departments
completed by internal audit in compliance with the internal audit MICS.
The reperformance of procedures is performed as follows:

**([1]{.underline})** For inquiries, the CPA should either speak with
the same individual or an individual of the same job position as the
internal auditor did for the procedure indicated in their checklist.

**([2]{.underline})** For observations, the CPA should observe the same
process as the internal auditor did for the procedure as indicated in
their checklist.

**([3]{.underline})** For document testing, the CPA should look at the
same original document as tested by the internal auditor for the
procedure as indicated in their checklist. The CPA need only retest the
minimum sample size required in the checklist.

**(C)** The CPA is to investigate and resolve any differences between
their reperformance results and the internal audit results.

**(D)** Documentation is maintained for 5 years by the CPA indicating
the procedures reperformed along with the results.

**(E)** When performing the procedures for paragraph (f)(3)(ii)(B) of
this section in subsequent years, the CPA must select a different sample
so that the CPA will reperform substantially all of the procedures after
several years.

**(F)** Any additional procedures performed at the request of the
Commission, the Tribal gaming regulatory authority or management should
be included in the Agreed-Upon Procedures report transmitted to the
Commission.

**(4) Report Format.**

**(i)** The NIGC has concluded that the performance of these procedures
is an attestation engagement in which the CPA applies such Agreed-Upon
Procedures to the gaming operation's assertion that it is in compliance
with the MICS and, if applicable under paragraph (f)(2) of this section,
the Tribal internal control standards and approved variances, provide a
level of control that equals or exceeds that of the MICS. Accordingly,
the Statements on Standards for Attestation Engagements (SSAE's),
specifically SSAE 10, issued by the Auditing Standards Board is
currently applicable. SSAE 10 provides current, pertinent guidance
regarding agreed-upon procedure engagements, and the sample report
formats included within those standards should be used, as appropriate,
in the preparation of the

CPA's agreed-upon procedures report. If future revisions are made to
this standard or new SSAEs are adopted that are applicable to this type
of engagement, the CPA is to comply with any revised professional
standards in issuing their agreed upon procedures report. The Commission
will provide an Example Report and Letter Formats upon request that may
be used and contain all of the information discussed below:

**(A)** The report must describe all instances of procedural
noncompliance regardless of materiality) with the MICS or approved
variations, and all instances where the Tribal gaming regulatory
authority's regulations do not comply with the MICS. When describing the
agreed-upon procedures performed, the CPA should also indicate whether
procedures performed by other individuals were utilized to substitute
for the procedures required to be performed by the CPA. For each
instance of noncompliance noted in the CPA's agreed-upon procedures
report, the following information must be included:

**([1]{.underline})** The citation of the applicable MICS for which the
instance of noncompliance was noted.

**([2]{.underline})** A narrative description of the noncompliance,
including the number of exceptions and sample size tested.

**(5) Report Submission Requirements**.

**(i)** The CPA shall prepare a report of the findings for the Tribe and
management. The Tribe shall submit 2 copies of the report to the
Commission no later than 120 days after the gaming operation's business
year. This report should be provided in addition to any other reports
required to be submitted to the Commission.

**(ii)** The CPA should maintain the work-papers supporting the report
for a minimum of five years. Digital storage is acceptable. The
Commission may request access to these work-papers, through the Tribe.

**(6) CPA NIGC MICS Compliance Checklists**. In connection with the CPA
testing pursuant to this section and as referenced therein, the
Commission will provide CPA MICS Compliance Checklists upon request.

**(g) [*Enforcement of Commission Minimum Internal Control
Standards*.]{.underline}**

\(1\) **Each Tribal gaming regulatory authority** is required to
establish and implement internal control standards pursuant to paragraph
(c) of this section. Each gaming operation is then required, pursuant to
paragraph (d) of this section, to develop and implement an internal
control system that complies with the Tribal internal control standards.
Failure to do so may subject the Tribal operator of the gaming
operation, and/or the management contractor, to penalties under 25
U.S.C. 2713.

**(2)** **Recognizing** that Tribes are the primary regulator of their
gaming operation(s), enforcement action by the Commission will not be
initiated under this part without first informing the Tribe and Tribal
gaming regulatory authority of deficiencies in the internal controls of
its gaming operation and allowing a reasonable period of time to address
such deficiencies. Such prior notice and opportunity for corrective
action is not required where the threat to the integrity of the gaming
operation is immediate and severe.

[]{.mark}

**[§[542.4 How do these regulations affect minimum internal control
standards established in a Tribal-State compact?]{.underline}]{.mark}**

**(a)** If there is a direct conflict between an internal control
standard established in a Tribal-State compact and a standard or
requirement set forth in this part, then the internal control standard
established in a Tribal-State compact shall prevail.

**(b)** If an internal control standard in a Tribal-State compact
provides a level of control that equals or exceeds the level of control
under an internal control standard or requirement set forth in this
part, then the Tribal-State compact standard shall prevail.

**(c)** If an internal control standard or a requirement set forth in
this part provides a level of control that exceeds the level of control
under an internal control standard established in a Tribal-State
compact, then the internal control standard or requirement set forth in
this part shall prevail.

**[[§542.5 How do these regulations affect state
jurisdiction?]{.underline}]{.mark}**

Nothing in this part shall be construed to grant to a state jurisdiction
in class II gaming or extend a state\'s jurisdiction in class III
gaming.

**[§[542.6 Does this part apply to small and charitable gaming
operations?]{.underline}]{.mark}**

**(a) *[Small gaming operations]{.underline}***. This part shall not
apply to small gaming operations provided that:

**(1)** **The Tribal gaming regulatory authority** permits the operation
to be exempt from this part;

**(2)** **The annual gross gaming revenue** of the operation does not
exceed \$1 million; and

**(3)** **The Tribal gaming regulatory authority** develops and the
operation complies with alternate procedures that:

**(i)** Protect the integrity of games offered; and

**(ii)** Safeguard the assets used in connection with the operation.

**(b) *[Charitable gaming operations]{.underline}***. This part shall
not apply to charitable gaming operations provided that:

**(1)** **All proceeds** are for the benefit of a charitable
organization;

**(2)** **The Tribal gaming regulatory authority** permits the
charitable organization to be exempt from this part;

**(3)** **The charitable gaming operation** is operated wholly by the
charitable organization\'s employees or volunteers;

**(4)** **The annual gross gaming revenue** of the charitable gaming
operation does not exceed \$100,000;

**(i)** Where the annual gross gaming revenues of the charitable gaming
operation exceed \$100,000, but are less than \$1 million, paragraph (a)
of this section shall also apply; and

**(ii)** \[Reserved\]

**(5)** **The Tribal gaming regulatory authority** develops and the
charitable gaming operation complies with alternate procedures that:

**(i)** Protect the integrity of the games offered; and

**(ii)** Safeguard the assets used in connection with the gaming
operation.

**(c) *[Independent operators]{.underline}***. Nothing in this section
shall exempt gaming operations conducted by independent operators for
the benefit of a charitable organization.

**[§[542.7 What are the minimum internal control standards for
bingo?]{.underline}]{.mark}**

**[Section 542.7 is removed and reserved effective October 13,
2009.]{.underline}**

**(a) *[Computer applications]{.underline}***. For any computer
applications 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, will be
acceptable.

**(b) *[Game play standards]{.underline}*.**

**(1)** **The functions of seller and payout verifier shall** be
segregated. Employees who sell cards on the floor shall not verify
payouts with cards in their possession. Floor clerks who sell cards on
the floor are permitted to announce the serial numbers of winning cards.

**(2)** **All sales of bingo cards shall** be documented by recording at
least the following:

**(i)** Date;

**(ii)** Shift (if applicable);

**(iii)** Session (if applicable);

**(iv)** Dollar amount;

**(v)** Signature, initials, or identification number of at least one
seller (if manually documented); and

**(vi)** Signature, initials, or identification number of a person
independent of the seller who has randomly verified the card sales (this
requirement is not applicable to locations with \$1 million or less in
annual write).

**(3)** **The total win and write shall** be computed and recorded by
shift (or session, if applicable).

**(4)** **The Tribal gaming regulatory authority**, or the gaming
operation as approved by the Tribal gaming regulatory authority, shall
establish and the gaming operation shall comply with procedures that
ensure the correct calling of numbers selected in the bingo game.

**(5)** **Each ball shall** be shown to a camera immediately before it
is called so that it is individually displayed to all customers. For
speed bingo games not verified by camera equipment, each ball drawn
shall be verified by a person independent of the bingo caller
responsible for calling the speed bingo game.

**(6)** **For all** coverall games and other games offering a payout of
\$1,200 or more, as the balls are called the numbers shall be
immediately recorded by the caller and maintained for a minimum of
twenty-four (24) hours.

**(7)** **Controls shall** be present to assure that the numbered balls
are placed back into the selection device prior to calling the next
game.

**(8)** **The authenticity of each payout shall** be verified by at
least two persons. A computerized card verifying system may function as
the second person verifying the payout if the card with the winning
numbers is displayed on a reader board.

**(9)** **Payouts in excess of \$1,200 shall** require written approval,
by personnel independent of the transaction, that the bingo card has
been examined and verified with the bingo card record to ensure that the
ticket has not been altered.

**(10)** **Total payout** shall be computed and recorded by shift or
session, if applicable.

**(c) *[Promotional payouts or awards]{.underline}***.

**(1)** **If the gaming operation** offers promotional payouts or
awards, the payout form/documentation shall include the following
information:

**(i)** Date and time;

**(ii)** Dollar amount of payout or description of personal property
(e.g., jacket, toaster, car, etc.), including fair market value;

**(iii)** Type of promotion; and

**(iv)** Signature of at least one employee authorizing and completing
the transaction.

**(2)** \[Reserved\]

**(d) *[Accountability form]{.underline}*.**

**(1)** **All funds** used to operate the bingo department shall be
recorded on an accountability form.

**(2) All funds** used to operate the bingo department 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)

**(e) *[Bingo equipment]{.underline}*.**

**(1)** **Access to controlled bingo equipment** (e.g., blower, balls in
play, and back-up balls) shall be restricted to authorized persons.

**(2)** **The procedures established by** the Tribal gaming regulatory
authority, or the gaming operation as approved by the Tribal gaming
regulatory authority, shall include standards relating to the inspection
of new bingo balls put into play as well as for those in use.

**(3)** **Bingo equipment shall be** maintained and checked for accuracy
on a periodic basis.

**(4)** **The bingo card inventory shall** be controlled so as to assure
the integrity of the cards being used as follows:

**(i)** Purchased paper shall be inventoried and secured by a person or
persons independent of the bingo sales;

**(ii)** The issue of paper to the cashiers shall be documented and
signed for by the person responsible for inventory control and a
cashier. The document log shall include the series number of the bingo
paper;

**(iii)** A copy of the bingo paper control log shall be given to the
bingo ball caller for purposes of determining if the winner purchased
the paper that was issued for sale that day (electronic verification
satisfies this standard);

**(iv)** At the end of each month, a person or persons independent of
bingo sales and inventory control shall verify the accuracy of the
ending balance in the bingo paper control by reconciling the paper
on-hand;

**(v)** A monthly comparison for reasonableness shall be made of the
amount of paper sold from the bingo paper control log to the amount of
revenue recognized.

**(f) *[Standards for statistical reports]{.underline}*.**

**(1)** Records shall be maintained, which include win, write (card
sales), and a win-to-write hold percentage, for:

**(i)** Each shift or each session;

**(ii)** Each day;

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

**(iv)** Year-to-date or fiscal year-to-date.

**(2)** **A manager independent** of the bingo department shall review
bingo statistical information on at least a monthly basis and
investigate any large or unusual statistical fluctuations.

**(3)** **Investigations shall be documented**, maintained for
inspection, and provided to the Tribal gaming regulatory authority upon
request.

**(g) *[Electronic equipment]{.underline}*.**

**(1)** **If the gaming operation** utilizes electronic equipment in
connection with the play of bingo, 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 by a person or persons
independent of the bingo department to determine that it is correctly
reading the bar code or the microchip.

**(iii)** If the electronic equipment returns a voucher or a payment
slip to the player, then §542.13(n) (as applicable) shall apply.

**(iv)** If the electronic equipment utilizes patron account access
cards for activation of play, then Sec. 542.13(o) (as applicable) shall
apply. (Adopted May 11, 2006)

**(2)** \[Reserved\]

**(h) *[Standards for linked electronic games]{.underline}***.
Management shall ensure that all agreements/contracts entered into after
June 27, 2002, to provide linked electronic games shall contain language
requiring the vendor to comply with the standards in this section
applicable to the goods or services the vendor is providing.

**(i) *[Host requirements/game information (for linked electronic
games)]{.underline}.***

**(1)** **Providers of any linked electronic game(s)** shall maintain
complete records of game data for a period of one (1) year from the date
the games are played (or a time frame established by the Tribal gaming
regulatory authority). This data may be kept in an archived manner,
provided the information can be produced within twenty-four (24) hours
upon request. In any event, game data for the preceding seventy-two (72)
hours shall be immediately accessible.

**(2) Data required** to be maintained for each game played includes:

**(i)** Date and time game start and game end;

**(ii)** Sales information by location;

**(iii)** Cash distribution by location;

**(iv)** Refund totals by location;

**(v)** Cards-in-play count by location;

**(vi)** Identification number of winning card(s);

**(vii)** Ordered list of bingo balls drawn; and

\(viii\) Prize amounts at start and end of game.

**(j) *[Host requirements/sales information (for linked electronic
games)]{.underline}.***

**(1) Providers of any linked electronic game(s)** shall maintain
complete records of sales data for a period of one (1) year from the
date the games are played (or a time frame established by the Tribal
gaming regulatory authority). This data may be kept in an archived
manner, provided the information can be produced within twenty-four (24)
hours upon request. In any event, sales data for the preceding ten (10)
days shall be immediately accessible. Summary information must be
accessible for at least 120 days.

**(2) Sales information required shall include**:

**(i)** Daily sales totals by location;

**(ii)** Commissions distribution summary by location;

**(iii)** Game-by-game sales, prizes, refunds, by location; and

**(iv)** Daily network summary, by game by location.

**(k) *[Remote host requirements (for linked electronic
games)]{.underline}. ***

**(1) Linked electronic game providers shall** maintain on-line records
at the remote host site for any game played. These records shall remain
on-line until the conclusion of the session of which the game is a part.
Following the conclusion of the session, records may be archived, but in
any event, must be retrievable in a timely manner for at least
seventy-two (72) hours following the close of the session. Records shall
be accessible through some archived media for at least ninety (90) days
from the date of the game.

**(2) Game information required includes** date and time of game start
and game end, sales totals, cash distribution (prizes) totals, and
refund totals.

**(3) Sales information required** includes cash register
reconciliations, detail and summary records for purchases, prizes,
refunds, credits, and game/sales balance for each session.

**(l) *[Standards for player accounts (for proxy play and linked
electronic games)]{.underline}.***

**(1) Prior to participating** in any game, players shall be issued a
unique player account number. **The player account number can be issued
through the following means:**

**(i)** Through the use of a point-of-sale (cash register device);

**(ii)** By assignment through an individual play station; or

**(iii)** Through the incorporation of a "player tracking" media.

**(2) Printed receipts** issued in conjunction with any player account
should include a time/date stamp.

**(3) All player transactions shall** be maintained, chronologically by
account number, through electronic means on a data storage device. These
transaction records shall be maintained on-line throughout the active
game and for at least twenty-four (24) hours before they can be stored
on an "off-line" data storage media.

**(4) The game software shall** provide the ability to, upon request,
produce a printed account history, including all transactions, and a
printed game summary (total purchases, deposits, wins, debits, for any
account that has been active in the game during the preceding
twenty-four (24) hours).

**(5) The game software shall** provide a "player account summary" at
the end of every game. This summary shall list all accounts for which
there were any transactions during that game day and include total
purchases, total deposits, total credits (wins), total debits
(cash-outs) and an ending balance.

**[§[542.8 What are the minimum internal control standards for pull
tabs?]{.underline}]{.mark}**

**(a) *[Computer applications]{.underline}*.** 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, will be
acceptable.

**(b) *[Pull tab inventory]{.underline}*.**

**(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]{.underline}****.* Access to pull tabs shall be
restricted to authorized persons.

**(d) *[Transfers]{.underline}.*** Transfers of pull tabs from storage
to the sale location shall be secured and independently controlled.

**(e) *[Winning pull tabs]{.underline}***.

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

**(i)** Payouts in excess of a dollar amount determined by the gaming
operation, as approved by the Tribal gaming regulatory authority, shall
be verified by at least two employees.

**(ii)** Total payout shall be computed and recorded by shift.

**(iii)** 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]{.underline}***.

(**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]{.underline}*.**

**(1) Records shall** be maintained, which include win, write (sales),
and a win-to-write hold percentage as compared to the theoretical hold
percentage derived from the flare, for each deal or type of game, for:

**(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.

\(3\) **Each month,** the actual hold percentage shall be compared to
the theoretical hold percentage. Any significant variations (3%) shall
be investigated.

**(h) *[Electronic equipment]{.underline}*.**

**(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 or a payment
slip to the player, then §542.13(n)(as applicable) shall apply.

**(iv)** If the electronic equipment utilizes patron account access
cards for activation of play, then Sec. 542.13(o) (as applicable) shall
apply. (Adopted May 11, 2006)

**(2)** \[Reserved\]

**[§[542.9 What are the minimum internal control standards for card
games?]{.underline}]{.mark}**

**(a) *[Computer applications]{.underline}***. For any computer
applications 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, will be
acceptable.

**(b) *[Standards for drop and count]{.underline}*.** The procedures for
the collection of the card game drop and the count thereof shall comply
with §542.21, §542.31, or §542.41 (as applicable).

**(c) *[Standards for supervision]{.underline}*.**

(**1) Supervision shall** be provided at all times the card room is in
operation by personnel with authority equal to or greater than those
being supervised.

**(2) Exchanges between table banks** and the main card room bank (or
cage, if a main card room bank is not used) in excess of \$100.00 shall
be authorized by a supervisor. All exchanges shall be evidenced by the
use of a lammer unless the exchange of chips, tokens, and/or cash takes
place at the table.

(**3) Exchanges from the main card room** bank (or cage, if a main card
room bank is not used) to the table banks shall be verified by the card
room dealer and the runner.

**(4) If applicable, transfers between** the main card room bank and the
cage shall be properly authorized and documented.

**(5) A rake collected** or ante placed shall be done in accordance with
the posted rules.

**(d) *[Standards for playing cards]{.underline}*.**

**(1) Playing cards shall** be maintained in a secure location to
prevent unauthorized access and to reduce the possibility of tampering.

**(2) Used cards shall** be maintained in a secure location until
marked, scored, or destroyed, in a manner approved by the Tribal gaming
regulatory authority, to prevent unauthorized access and reduce the
possibility of tampering.

**(3) The Tribal gaming regulatory authority**, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with a reasonable time period,
which shall not exceed seven (7) days, within which to mark, cancel, or
destroy cards from play.

**(i)** This standard shall not apply where playing cards are retained
for an investigation.

**(ii)** \[Reserved\]

**(4) A card control log shall** be maintained that documents when cards
and dice are received on site, distributed to and returned from tables
and removed from play by the gaming operation.

**(e) *[Plastic cards]{.underline}*.** Notwithstanding paragraph (d) of
this section, if a gaming operation uses plastic cards (not
plastic-coated cards), the cards may be used for up to three (3) months
if the plastic cards are routinely inspected, and washed or cleaned in a
manner and time frame approved by the Tribal gaming regulatory
authority.

**(f) *[Standards for shills]{.underline}*.**

**(1) Issuance** of shill funds shall have the written approval of the
supervisor.

**(2) Shill returns shall** be recorded and verified on the shill
sign-out form.

**(3) The replenishment of shill funds shall** be documented.

**(g) *[Standards for reconciliation of card room
bank]{.underline}****.*

**(1) The amount of the main card room** bank shall be counted,
recorded, and reconciled on at least a per shift basis.

**(2) At least once per shift,** the table banks that were opened during
that shift shall be counted, recorded, and reconciled by a dealer or
other person, and a supervisor, and shall be attested to by their
signatures on the check-out form.

**(h) *[Standards for promotional progressive pots and
pools]{.underline}****.*

**(1) All funds contributed** by players into the pools shall be
returned when won in accordance with the posted rules with no commission
or administrative fee withheld.

**(2) Rules governing** promotional pools shall be conspicuously posted
and designate:

**(i)** The amount of funds to be contributed from each pot;

**(ii)** What type of hand it takes to win the pool (e.g., what
constitutes a "bad beat");

**(iii)** How the promotional funds will be paid out;

**(iv)** How/when the contributed funds are added to the jackpots; and

**(v)** Amount/percentage of funds allocated to primary and secondary
jackpots, if applicable.

**(3) Promotional pool contributions shall** not be placed in or near
the rake circle, in the drop box, or commingled with gaming revenue from
card games or any other gambling game.

\(4\) **The amount of the jackpot shall** be conspicuously displayed in
the card room.

**(5) At least once a day, the posted pool amount shall** be updated to
reflect the current pool amount.

**(6) At least once a day, increases to the posted pool amount shall**
be reconciled to the cash previously counted or received by the cage by
personnel independent of the card room.

**(7) All decreases** **to the pool must** be properly documented,
including a reason for the decrease.

**(i) *[Promotional progressive pots and pools where funds are displayed
in the card room]{.underline}*.**

**(1) Promotional funds** displayed in the card room shall be placed in
a locked container in plain view of the public.

**(2) Persons authorized** to transport the locked container shall be
precluded from having access to the contents keys.

**(3) The contents key shall** be maintained by personnel independent of
the card room.

**(4) At least once a day**, the locked container shall be removed by
two persons, one of whom is independent of the card games department,
and transported directly to the cage or other secure room to be counted,
recorded, and verified.

**(5) The locked container shall** then be returned to the card room
where the posted pool amount shall be updated to reflect the current
pool amount.

**(j) *[Promotional progressive pots and pools where funds are
maintained in the cage]{.underline}*.**

**(1) Promotional funds** removed from the card game shall be placed in
a locked container.

**(2) Persons authorized** to transport the locked container shall be
precluded from having access to the contents keys.

**(3) The contents key shall** be maintained by personnel independent of
the card room.

**(4) At least once a day**, the locked container shall be removed by
two persons, one of whom is independent of the card games department,
and transported directly to the cage or other secure room to be counted,
recorded, and verified, prior to accepting the funds into cage
accountability.

**(5) The posted pool amount shall** then be updated to reflect the
current pool amount.

**[§[542.10 What are the minimum internal control standards for
keno?]{.underline}]{.mark}**

**(a) *[Computer applications]{.underline}*.** For any computer
applications 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, will be
acceptable.

**(b) *[Game play standards]{.underline}*.**

**(1) The computerized customer ticket shall** include the date, game
number, ticket sequence number, station number, and conditioning
(including multi-race if applicable).

**(2) The information on the ticket shall** be recorded on a restricted
transaction log or computer storage media concurrently with the
generation of the ticket.

**(3) Keno personnel shall** be precluded from having access to the
restricted transaction log or computer storage media.

**(4) When it is necessary to void a ticket, the void information
shall** be inputted in the computer and the computer shall document the
appropriate information pertaining to the voided wager (e.g., void slip
is issued or equivalent documentation is generated).

**(5) Controls shall** exist to prevent the writing and voiding of
tickets after a game has been closed and after the number selection
process for that game has begun.

**(6) The controls in effect for tickets prepared in outstations (if
applicable) shall** be identical to those in effect for the primary keno
game.

**(c) *[Rabbit ear or wheel system]{.underline}*.**

**(1) The following standards shall** apply if a rabbit ear or wheel
system is utilized:

**(i)** A dedicated camera shall be utilized to monitor the following
both prior to, and subsequent to, the calling of a game:

**(A)** Empty rabbit ears or wheel;

**(B)** Date and time;

**(C)** Game number; and

**(D)** Full rabbit ears or wheel.

**(ii)** The film of the rabbit ears or wheel shall provide a legible
identification of the numbers on the balls drawn.

**(iii)** Keno personnel shall immediately input the selected numbers in
the computer and the computer shall document the date, the game number,
the time the game was closed, and the numbers drawn.

**(iv)** The Tribal gaming regulatory authority, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with procedures that prevent
unauthorized access to keno balls in play.

**(v)** Back-up keno ball inventories shall be secured in a manner to
prevent unauthorized access.

**(vi)** The Tribal gaming regulatory authority, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with procedures for inspecting new
keno balls put into play as well as for those in use.

**(2)** \[Reserved\]

**(d) *[Random number generator]{.underline}*.**

**(1) The following standards shall apply** if a random number generator
is utilized:

**(i)** The random number generator shall be linked to the computer
system and shall directly relay the numbers selected into the computer
without manual input.

**(ii)** Keno personnel shall be precluded from access to the random
number generator.

**(2)** \[Reserved\]

**(e) *[Winning tickets]{.underline}*.** Winning tickets shall be
verified and paid as follows:

**(1) The sequence number of tickets presented for payment shall** be
inputted into the computer, and the payment amount generated by the
computer shall be given to the customer.

**(2) The Tribal gaming regulatory authority**, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with procedures that preclude
payment on tickets previously presented for payment, unclaimed winning
tickets (sleepers) after a specified period of time, voided tickets, and
tickets that have not been issued yet.

**(3) All payouts shall** be supported by the customer
(computer-generated) copy of the winning ticket (payout amount is
indicated on the customer ticket or a payment slip is issued).

**(4) A manual report or other documentation shall** be produced and
maintained documenting any payments made on tickets that are not
authorized by the computer.

**(5) Winning tickets over** a specified dollar amount (not to exceed
\$10,000 for locations with more than \$5 million annual keno write and
\$3,000 for all other locations) shall also require the following:

**(i)** Approval of management personnel independent of the keno
department, evidenced by their signature;

**(ii)** Review of the video recording and/or digital record of the
rabbit ears or wheel to verify the legitimacy of the draw and the
accuracy of the draw ticket (for rabbit ear or wheel systems only);

**(iii)** Comparison of the winning customer copy to the computer
reports;

**(iv)** Regrading of the customer copy using the payout schedule and
draw information; and

**(v)** Documentation and maintenance of the procedures in this
paragraph.

**(6) When the keno game** is operated by one person, all winning
tickets in excess of an amount to be determined by management (not to
exceed \$1,500) shall be reviewed and authorized by a person independent
of the keno department.

**(f) *[Check out standards at the end of each keno
shift]{.underline}*.**

**(1) For each writer station**, a cash summary report (count sheet)
shall be prepared that includes:

**(i)** Computation of net cash proceeds for the shift and the cash
turned in; and

**(ii)** Signatures of two employees who have verified the net cash
proceeds for the shift and the cash turned in. Unverified transfers of
cash and/or cash equivalents are prohibited. (Revised August 12, 2005)

**(2)** \[Reserved\]

**(g) *[Promotional payouts or awards]{.underline}*.**

**(1) If a gaming operation offers promotional payouts** or awards, the
payout form/documentation shall include the following information:

**(i)** Date and time;

**(ii)** Dollar amount of payout or description of personal property
(e.g., jacket, toaster, car, etc.), including fair market value;

**(iii)** Type of promotion; and

**(iv)** Signature of at least one employee authorizing and completing
the transaction.

**(2)** \[Reserved\]

**(h) *[Standards for statistical reports]{.underline}*.**

**(1) Records shall** be maintained that include win and write by
individual writer for each day.

**(2) Records shall** be maintained that include win, write, and
win-to-write hold percentage for:

**(i)** Each shift;

**(ii)** Each day;

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

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

**(3) A manager independent** of the keno department shall review keno
statistical data at least on a monthly basis and investigate any large
or unusual statistical variances.

**(4) At a minimum, investigations shall** be performed for statistical
percentage fluctuations from the base level for a month in excess of
+/-3%. The base level shall be defined as the gaming operation\'s win
percentage for the previous business year or the previous twelve (12)
months.

**(5) Such investigations shall** be documented, maintained for
inspection, and provided to the Tribal gaming regulatory authority upon
request.

**(i) *[System security standards]{.underline}***.

**(1) All keys** (including duplicates) to sensitive computer hardware
in the keno area shall be maintained by a department independent of the
keno function.

**(2) Personnel independent** of the keno department shall be required
to accompany such keys to the keno area and shall observe changes or
repairs each time the sensitive areas are accessed.

**(j) *[Documentation standards]{.underline}*.**

**(1) Adequate documentation** of all pertinent keno information shall
be generated by the computer system.

**(2) This documentation shall** be restricted to authorized personnel.

**(3) The documentation shall** include, at a minimum:

**(i)** Ticket information (as described in paragraph (b)(1) of this
section);

**(ii)** Payout information (date, time, ticket number, amount, etc.);

**(iii)** Game information (number, ball draw, time, etc.);

**(iv)** Daily recap information, including:

(**A**) Write;

**(B)** Payouts; and

**(C)** Gross revenue (win);

**(v)** System exception information, including:

**(A)** Voids;

**(B)** Late pays; and

**(C)** Appropriate system parameter information (e.g., changes in pay
tables, ball draws, payouts over a predetermined amount, etc.); and

**(vi)** Personnel access listing, including:

**(A)** Employee name or employee identification number; and

**(B)** Listing of functions employee can perform or equivalent means of
identifying same.

**(k) *[Keno audit standards]{.underline}***.

**(1) The keno audit function shall** be independent of the keno
department.

**(2) At least annually, keno audit shall** foot the write on the
restricted copy of the keno transaction report for a minimum of one
shift and compare the total to the total as documented by the computer.

**(3) For at least one shift every other month, keno audit shall**
perform the following:

**(i)** Foot the customer copy of the payouts and trace the total to the
payout report; and

**(ii)** Regrade at least 1% of the winning tickets using the payout
schedule and draw ticket.

**(4) Keno audit shall** perform the following:

**(i)** For a minimum of five games per week, compare the video
recording and/or digital record of the rabbit ears or wheel to the
computer transaction summary;

**(ii)** Compare net cash proceeds to the audited win/loss by shift and
investigate any large cash overages or shortages (i.e., in excess of
\$25.00);

**(iii)** Review and regrade all winning tickets greater than or equal
to \$1,500, including all forms that document that proper authorizations
and verifications were obtained and performed;

**(iv)** Review the documentation for payout adjustments made outside
the computer and investigate large and frequent payments;

**(v)** Review personnel access listing for inappropriate functions an
employee can perform;

**(vi)** Review system exception information on a daily basis for
propriety of transactions and unusual occurrences including changes to
the personnel access listing;

**(vii)** If a random number generator is used, then at least weekly
review the numerical frequency distribution for potential patterns; and

**(viii)** Investigate and document results of all noted improper
transactions or unusual occurrences.

**(5) When the keno game is operated by one person:**

**(i)** The customer copies of all winning tickets in excess of \$100
and at least 5% of all other winning tickets shall be regraded and
traced to the computer payout report;

**(ii)** The video recording and/or digital record of rabbit ears or
wheel shall be randomly compared to the computer game information report
for at least 10% of the games during the shift; and

**(iii)** Keno audit personnel shall review winning tickets for proper
authorization pursuant to paragraph (e)(6) of this section.

**(6) In the event** any person performs the writer and deskman
functions on the same shift, the procedures described in paragraphs
(k)(5)(i) and (ii) of this section (using the sample sizes indicated)
shall be performed on tickets written by that person.

**(7) Documentation** (e.g., a log, checklist, etc.) that evidences the
performance of all keno audit procedures shall be maintained.

**(8) A manager independent** of the keno department shall review keno
audit exceptions, and perform and document investigations into
unresolved exceptions. These investigations shall be documented,
maintained for inspection, and provided to the Tribal gaming regulatory
authority upon request.

**(9) When a multi-game ticket** is part of the sample in paragraphs
(k)(3)(ii), (k)(5)(i) and (k)(6) of this section, the procedures may be
performed for ten (10) games or ten percent (10%) of the games won,
whichever is greater.

**(l) *[Access]{.underline}*.** Access to the computer system shall be
adequately restricted (i.e., passwords are changed at least quarterly,
access to computer hardware is physically restricted, etc.).

**(m) *[Equipment standards]{.underline}*.**

**(1) There shall** be effective maintenance planned to service keno
equipment, including computer program updates, hardware servicing, and
keno ball selection equipment (e.g., service contract with lessor).

**(2) Keno equipment** maintenance (excluding keno balls) shall be
independent of the operation of the keno game.

**(3) Keno maintenance personnel shall** report irregularities to
management personnel independent of the keno department.

**(4) If the gaming operation** utilizes a barcode or microchip reader
in connection with the play of keno, the reader shall be tested at least
annually by personnel independent of the keno department to determine
that it is correctly reading the barcode or microchip.

**(n) *[Document retention]{.underline}*.**

**(1) All documents** (including computer storage media) discussed in
this section shall be retained for five (5) years, except for the
following, which shall be retained for at least seven (7) days:

**(i)** Video recordings and/or digital records of rabbit ears or wheel;

**(ii)** All copies of winning keno tickets of less than \$1,500.00.

**(2)** \[Reserved\]

**(o) *[Multi-race tickets]{.underline}***.

**(1) Procedures shall** be established to notify keno personnel
immediately of large multi-race winners to ensure compliance with
standards in paragraph (e)(5) of this section.

**(2) Procedures shall** be established to ensure that keno personnel
are aware of multi-race tickets still in process at the end of a shift.

**(p) *[Manual keno]{.underline}*.** For gaming operations that conduct
manual keno games, alternate procedures that provide at least the level
of control described by the standards in this section shall be developed
and implemented.

**[§[542.11 What are the minimum internal control standards for
pari-mutuel wagering?]{.underline}]{.mark}**

**(a) *[Exemptions]{.underline}***.

**(1) The requirements of this section shall** not apply to gaming
operations who house pari-mutuel wagering operations conducted entirely
by a state licensed simulcast service provider pursuant to an approved
tribal-state compact if:

**(i)** The simulcast service provider utilizes its own employees for
all aspects of the pari-mutuel wagering operation;

**(ii)** The gaming operation posts, in a location visible to the
public, that the simulcast service provider and its employees are wholly
responsible for the conduct of pari-mutuel wagering offered at that
location;

**(iii)** The gaming operation receives a predetermined fee from the
simulcast service provider; and

**(iv)** In addition, the Tribal gaming regulatory authority, or the
gaming operation as approved by the Tribal gaming regulatory authority,
shall establish and the gaming operation shall comply with standards
that ensure that the gaming operation receives, from the racetrack, its
contractually guaranteed percentage of the handle.

**(2) Gaming operations** that contract directly with a state regulated
racetrack as a simulcast service provider, but whose on-site pari-mutuel
operations are conducted wholly or in part by tribal gaming operation
employees, shall not be required to comply with paragraphs (h)(5) thru
(h)(9) of this section.

**(i)** If any standard contained within this section conflicts with
state law, a tribal-state compact, or a contract, then the gaming
operation shall document the basis for noncompliance and shall maintain
such documentation for inspection by the Tribal gaming regulatory
authority and the Commission.

**(ii)** In addition, the Tribal gaming regulatory authority, or the
gaming operation as approved by the Tribal gaming regulatory authority,
shall establish and the gaming operation shall comply with standards
that ensure that the gaming operation receives, from the racetrack, its
contractually guaranteed percentage of the handle.

**(b) *[Computer applications]{.underline}***. For any computer
applications 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, will be
acceptable.

**(c) *[Betting ticket and equipment standards]{.underline}***.

**(1) All pari-mutuel wagers shall** be transacted through the
pari-mutuel satellite system. In case of computer failure between the
pari-mutuel book and the hub, no tickets shall be manually written.

**(2) Whenever a betting** station is opened for wagering or turned over
to a new writer/cashier, the writer/cashier shall sign on and the
computer shall document gaming operation name (or identification
number), station number, the writer/cashier identifier, and the date and
time.

**(3) A betting ticket shall** consist of at least two parts:

**(i)** An original, which shall be transacted and issued through a
printer and given to the customer; and

**(ii)** A copy that shall be recorded concurrently with the generation
of the original ticket either on paper or other storage media (e.g.,
tape or diskette).

**(4) Upon accepting a wager, the betting ticket that is created shall**
contain the following:

**(i)** A unique transaction identifier;

**(ii)** Gaming operation name (or identification number) and station
number;

**(iii)** Race track, race number, horse identification or event
identification, as applicable;

**(iv)** Type of bet(s), each bet amount, total number of bets, and
total take; and

**(v)** Date and time.

**(5) All tickets shall** be considered final at post time.

**(6) If a gaming operation** voids a betting ticket written prior to
post time, it shall be immediately entered into the system.

**(7) Future wagers shall** be accepted and processed in the same manner
as regular wagers.

**(d) *[Payout standards]{.underline}*.**

**(1) Prior to making payment** on a ticket, the writer/cashier shall
input the ticket for verification and payment authorization.

**(2) The computer shall** be incapable of authorizing payment on a
ticket that has been previously paid, a voided ticket, a losing ticket,
or an unissued ticket.

**(e) *[Checkout standards]{.underline}*.**

**(1) Whenever the betting station is closed** or the writer/cashier is
replaced, the writer/cashier shall sign off and the computer shall
document the gaming operation name (or identification number), station
number, the writer/cashier identifier, the date and time, and cash
balance.

**(2) For each writer/cashier station** a summary report shall be
completed at the conclusion of each shift including:

**(i)** Computation of cash turned in for the shift; and

**(ii)** Signature of two employees who have verified the cash turned in
for the shift. Unverified transfers of cash and/ or cash equivalents are
prohibited. (Revised August 12, 2005)

**(f) *[Employee wagering]{.underline}*.** Pari-mutuel employees shall
be prohibited from wagering on race events while on duty, including
during break periods.

**(g) *[Computer reports standards]{.underline}*.**

**(1) Adequate documentation of all pertinent pari-mutuel information
shall** be generated by the computer system.

**(2) This documentation shall** be restricted to authorized personnel.

**(3) The documentation shall** be created for each day\'s operation and
shall include, but is not limited to:

**(i)** Unique transaction identifier;

**(ii)** Date/time of transaction;

**(iii)** Type of wager;

(**iv**) Animal identification or event identification;

**(v)** Amount of wagers (by ticket, writer/SAM, track/event, and
total);

**(vi)** Amount of payouts (by ticket, writer/SAM, track/event, and
total);

**(vii)** Tickets refunded (by ticket, writer, track/event, and total);

**(viii)** Unpaid winners/vouchers ("outs") (by ticket/voucher,
track/event, and total);

**(ix)** Voucher sales/payments (by ticket, writer/SAM, and
track/event);

**(x)** Voids (by ticket, writer, and total);

**(xi)** Future wagers (by ticket, date of event, total by day, and
total at the time of revenue recognition);

**(xii)** Results (winners and payout data);

**(xiii)** Breakage data (by race and track/event);

**(xiv)** Commission data (by race and track/event); and

**(xv)** Purged data (by ticket and total).

**(4) The system shall** generate the following reports:

**(i)** A reconciliation report that summarizes totals by track/event,
including write, the day\'s winning ticket total, total commission and
breakage due the gaming operation, and net funds transferred to or from
the gaming operation\'s bank account;

**(ii)** An exception report that contains a listing of all system
functions and overrides not involved in the actual writing or cashing of
tickets, including sign-on/off, voids, and manually input paid tickets;
and

**(iii)** A purged ticket report that contains a listing of the unique
transaction identifier(s), description, ticket cost and value, and date
purged.

**(h) *[Accounting and auditing functions]{.underline}*.** A gaming
operation shall perform the following accounting and auditing functions:

**(1) The pari-mutuel audit shall** be conducted by personnel
independent of the pari-mutuel operation.

**(2) Documentation shall** be maintained evidencing the performance of
all pari-mutuel accounting and auditing procedures.

**(3) An accounting employee shall** review handle, commission, and
breakage for each day\'s play and recalculate the net amount due to or
from the systems operator on a weekly basis.

**(4) The accounting employee shall** verify actual cash/cash
equivalents turned in to the system\'s summary report for each
cashier\'s drawer (Beginning balance, (+) fills (draws), (+) net write
(sold less voids), (-) payouts (net of IRS withholding), (-) cashbacks
(paids), (=) cash turn-in).

**(5) An accounting employee shall** produce a gross revenue recap
report to calculate gross revenue for each day\'s play and for a
month-to-date basis, including the following totals:

**(i)** Commission;

**(ii)** Positive breakage;

**(iii)** Negative breakage;

**(iv)** Track/event fees;

**(v)** Track/event fee rebates; and

**(vi)** Purged tickets.

**(6) All winning tickets and vouchers shall** be physically removed
from the SAM\'s for each day\'s play.

**(7) In the event** a SAM does not balance for a day\'s play, the
auditor shall perform the following procedures:

**(i)** Foot the winning tickets and vouchers deposited and trace to the
totals of SAM activity produced by the system;

**(ii)** Foot the listing of cashed vouchers and trace to the totals
produced by the system;

**(iii)** Review all exceptions for propriety of transactions and
unusual occurrences;

**(iv)** Review all voids for propriety;

**(v)** Verify the results as produced by the system to the results
provided by an independent source;

**(vi)** Regrade 1% of paid (cashed) tickets to ensure accuracy and
propriety; and

**(vii)** When applicable, reconcile the totals of future tickets
written to the totals produced by the system for both earned and
unearned take, and review the reports to ascertain that future wagers
are properly included on the day of the event.

**(8) At least annually**, **the auditor shall** foot the wagers for one
day and trace to the total produced by the system.

**(9) At least one day per quarter, the auditor shall** recalculate and
verify the change in the unpaid winners to the total purged tickets.

[]{.mark}

**[§[542.12 What are the minimum internal control standards for table
games?]{.underline}]{.mark}**

**(a) *[Computer applications]{.underline}*.** For any computer
applications 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, will be
acceptable.

**(b) *[Standards for drop and count]{.underline}***. The procedures for
the collection of the table game drop and the count thereof shall comply
with §542.21, §542.31, or §542.41 (as applicable).

**(c) *[Fill and credit standards]{.underline}*.**

**(1) Fill slips and credit slips shall** be in at least triplicate
form, and in a continuous, prenumbered series. Such slips shall be
concurrently numbered in a form utilizing the alphabet and only in one
series at a time. The alphabet need not be used if the numerical series
is not repeated during the business year.

**(2) Unissued and issued fill/credit slips shall** be safeguarded and
adequate procedures shall be employed in their distribution, use, and
control. Personnel from the cashier or pit departments shall have no
access to the secured (control) copies of the fill/credit slips.

**(3) When a fill/credit slip is voided, the cashier shall** clearly
mark "void" across the face of the original and first copy, the cashier
and one other person independent of the transactions shall sign both the
original and first copy, and shall submit them to the accounting
department for retention and accountability.

**(4) Fill transactions shall** be authorized by pit supervisory
personnel before the issuance of fill slips and transfer of chips,
tokens, or cash equivalents. The fill request shall be communicated to
the cage where the fill slip is prepared.

**(5) At least three parts of each fill slip shall** be utilized as
follows:

**(i)** One part shall be transported to the pit with the fill and,
after the appropriate signatures are obtained, deposited in the table
game drop box;

**(ii)** One part shall be retained in the cage for reconciliation of
the cashier bank; and

**(iii)** For computer systems, one part shall be retained in a secure
manner to insure that only authorized persons may gain access to it. For
manual systems, one part shall be retained in a secure manner in a
continuous unbroken form.

**(6) For Tier C gaming operations**, the part of the fill slip that is
placed in the table game drop box shall be of a different color for
fills than for credits, unless the type of transaction is clearly
distinguishable in another manner (the checking of a box on the form
shall not be a clearly distinguishable indicator).

**(7) The table number**, shift, and amount of fill by denomination and
in total shall be noted on all copies of the fill slip. The correct date
and time shall be indicated on at least two copies.

**(8) All fills shall** be carried from the cashier\'s cage by a person
who is independent of the cage or pit.

**(9) The fill slip shall** be signed by at least the following persons
(as an indication that each has counted the amount of the fill and the
amount agrees with the fill slip):

**(i)** Cashier who prepared the fill slip and issued the chips, tokens,
or cash equivalent;

**(ii)** Runner who carried the chips, tokens, or cash equivalents from
the cage to the pit;

**(iii)** Dealer or boxperson who received the chips, tokens, or cash
equivalents at the gaming table; and

**(iv)** Pit supervisory personnel who supervised the fill transaction.

**(10) Fills shall** be broken down and verified by the dealer or
boxperson in public view before the dealer or boxperson places the fill
in the table tray.

**(11) A copy of the fill slip shall** then be deposited into the drop
box on the table by the dealer, where it shall appear in the soft count
room with the cash receipts for the shift.

(**12) Table credit transactions shall** be authorized by a pit
supervisor before the issuance of credit slips and transfer of chips,
tokens, or other cash equivalent. The credit request shall be
communicated to the cage where the credit slip is prepared.

**(13) At least three parts of each credit slip shall** be utilized as
follows:

**(i)** Two parts of the credit slip shall be transported by the runner
to the pit. After signatures of the runner, dealer, and pit supervisor
are obtained, one copy shall be deposited in the table game drop box and
the original shall accompany transport of the chips, tokens, markers, or
cash equivalents from the pit to the cage for verification and signature
of the cashier.

**(ii)** For computer systems, one part shall be retained in a secure
manner to insure that only authorized persons may gain access to it. For
manual systems, one part shall be retained in a secure manner in a
continuous unbroken form.

**(14) The table number, shift, and the amount of credit by denomination
and in total shall** be noted on all copies of the credit slip. The
correct date and time shall be indicated on at least two copies.

**(15) Chips, tokens, and/or cash equivalents shall** be removed from
the table tray by the dealer or boxperson and shall be broken down and
verified by the dealer or boxperson in public view prior to placing them
in racks for transfer to the cage.

**(16) All chips, tokens, and cash equivalents removed from the tables
and markers removed from the pit shall** be carried to the cashier\'s
cage by a person who is independent of the cage or pit.

**(17) The credit slip shall** be signed by at least the following
persons (as an indication that each has counted or, in the case of
markers, reviewed the items transferred):

**(i)** Cashier who received the items transferred from the pit and
prepared the credit slip;

**(ii)** Runner who carried the items transferred from the pit to the
cage;

**(iii)** Dealer who had custody of the items prior to transfer to the
cage; and

**(iv)** Pit supervisory personnel who supervised the credit
transaction.

**(18) The credit slip shall** be inserted in the drop box by the
dealer.

**(19) Chips, tokens, or other cash equivalents shall** be deposited on
or removed from gaming tables only when accompanied by the appropriate
fill/credit or marker transfer forms.

**(20) Cross fills** (the transfer of chips between table games) and
even cash exchanges are prohibited in the pit.

**(d) *[Table inventory forms]{.underline}*.**

**(1) At the close** of each shift, for those table banks that were
opened during that shift:

**(i)** The table\'s chip, token, coin, and marker inventory shall be
counted and recorded on a table inventory form; or

**(ii)** If the table banks are maintained on an imprest basis, a final
fill or credit shall be made to bring the bank back to par.

**(2) If final fills** are not made, beginning and ending inventories
shall be recorded on the master game sheet for shift win calculation
purposes.

**(3) The accuracy of inventory forms prepared at shift end shall** be
verified by the outgoing pit supervisor and the dealer. Alternatively,
if the dealer is not available, such verification may be provided by
another pit supervisor or another supervisor from another gaming
department. Verifications shall be evidenced by signature on the
inventory form.

**(4) If inventory forms** are placed in the drop box, such action shall
be performed by a person other than a pit supervisor.

**(e) *[Table games computer generated documentation
standards]{.underline}*.**

**(1) The computer system shall** be capable of generating adequate
documentation of all information recorded on the source documents and
transaction detail (e.g., fill/credit slips, markers, etc.).

**(2) This documentation shall** be restricted to authorized personnel.

**(3) The documentation shall** include, at a minimum:

**(i)** System exception information (e.g., appropriate system parameter
information, corrections, voids, etc.); and

**(ii)** Personnel access listing, which includes, at a minimum:

**(A)** Employee name or employee identification number (if applicable);
and

**(B)** Listing of functions employees can perform or equivalent means
of identifying the same.

**(f) *[Standards for playing cards and dice]{.underline}*.**

**(1) Playing cards and dice shall** be maintained in a secure location
to prevent unauthorized access and to reduce the possibility of
tampering.

**(2) Used cards and dice shall** be maintained in a secure location
until marked, scored, or destroyed, in a manner as approved by the
Tribal gaming regulatory authority, to prevent unauthorized access and
reduce the possibility of tampering.

(**3) The Tribal gaming regulatory authority**, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with a reasonable time period,
which shall not exceed seven (7) days, within which to mark, cancel, or
destroy cards and dice from play.

**(i)** This standard shall not apply where playing cards or dice are
retained for an investigation.

**(ii)** \[Reserved\]

**(4) A card control log shall** be maintained that documents when cards
and dice are received on site, distributed to and returned from tables
and removed from play by the gaming operation.

**(g) *[Plastic cards]{.underline}*.** Notwithstanding paragraph (f) of
this section, if a gaming operation uses plastic cards (not
plastic-coated cards), the cards may be used for up to three (3) months
if the plastic cards are routinely inspected, and washed or cleaned in a
manner and time frame approved by the Tribal gaming regulatory
authority.

**(h) *[Standards for supervision]{.underline}***. Pit supervisory
personnel (with authority equal to or greater than those being
supervised) shall provide supervision of all table games.

**(i) *[Analysis of table game performance standards]{.underline}*.**

**(1) Records shall** be maintained by day and shift indicating any
single-deck blackjack games that were dealt for an entire shift.

**(2) Records reflecting** hold percentage by table and type of game
shall be maintained by shift, by day, cumulative month-to-date, and
cumulative year-to-date.

**(3) This information shall** be presented to and reviewed by
management independent of the pit department on at least a monthly
basis.

**(4) The management** in paragraph (i)(3) of this section shall
investigate any unusual fluctuations in hold percentage with pit
supervisory personnel. (Revised May 4, 2005)

**(5) The results of such investigations shall** be documented,
maintained for inspection, and provided to the Tribal gaming regulatory
authority upon request.

**(j) *[Accounting/auditing standards]{.underline}*.**

**(1) The accounting and auditing procedures shall** be performed by
personnel who are independent of the transactions being
audited/accounted for.

**(2) If a table game** has the capability to determine drop (e.g.,
bill-in/coin-drop meters, bill acceptor, computerized record, etc.) the
dollar amount of the drop shall be reconciled to the actual drop by
shift.

**(3) Accounting/auditing employees shall** review exception reports for
all computerized table games systems at least monthly for propriety of
transactions and unusual occurrences.

**(4) All noted improper transactions** or unusual occurrences shall be
investigated with the results documented.

**(5) Evidence of table games auditing** procedures and any follow-up
performed shall be documented, maintained for inspection, and provided
to the Tribal gaming regulatory authority upon request.

**(6) A daily recap shall** be prepared for the day and month-to-date,
which shall include the following information:

**(i)** Drop;

**(ii)** Win; and

**(iii)** Gross revenue.

**(k) *[Marker credit play]{.underline}*.**

**(1) If a gaming operation** allows marker credit play (exclusive of
rim credit and call bets), the following standards shall apply:

**(i)** A marker system shall allow for credit to be both issued and
repaid in the pit.

**(ii)** Prior to the issuance of gaming credit to a player, the
employee extending the credit shall contact the cashier or other
independent source to determine if the player\'s credit limit has been
properly established and there is sufficient remaining credit available
for the advance.

**(iii)** Proper authorization of credit extension in excess of the
previously established limit shall be documented.

**(iv)** The amount of credit extended shall be communicated to the cage
or another independent source and the amount documented within a
reasonable time subsequent to each issuance.

**(v)** The marker form shall be prepared in at least triplicate form
(triplicate form being defined as three parts performing the functions
delineated in the standard in paragraph (k)(1)(vi) of this section),
with a preprinted or concurrently-printed marker number, and utilized in
numerical sequence. (This requirement shall not preclude the
distribution of batches of markers to various pits.) (Revised May 4,
2005)

**(vi)** At least three parts of each separately numbered marker form
shall be utilized as follows:

**(A)** Original shall be maintained in the pit until settled or
transferred to the cage;

**(B)** Payment slip shall be maintained in the pit until the marker is
settled or transferred to the cage. If paid in the pit, the slip shall
be inserted in the table game drop box. If not paid in the pit, the slip
shall be transferred to the cage with the original;

**(C)** Issue slip shall be inserted into the appropriate table game
drop box when credit is extended or when the player has signed the
original.

**(vii)** When marker documentation (e.g., issue slip and payment slip)
is inserted in the drop box, such action shall be performed by the
dealer or boxperson at the table.

**(viii)** A record shall be maintained that details the following
(e.g., master credit record retained at the pit podium):

**(A)** The signature or initials of the person(s) approving the
extension of credit (unless such information is contained elsewhere for
each issuance);

**(B)** The legible name of the person receiving the credit;

**(C)** The date and shift of granting the credit;

**(D)** The table on which the credit was extended;

**(E)** The amount of credit issued;

**(F)** The marker number;

**(G)** The amount of credit remaining after each issuance or the total
credit available for all issuances;

**(H)** The amount of payment received and nature of settlement (e.g.,
credit slip number, cash, chips, etc.); and

**(I)** The signature or initials of the person receiving
payment/settlement.

**(ix)** The forms required in paragraphs (k)(1)(v), (vi), and (viii) of
this section shall be safeguarded, and adequate procedures shall be
employed to control the distribution, use, and access to these forms.
(Revised May 4, 2005)

**(x)** All credit extensions shall be initially evidenced by lammer
buttons, which shall be displayed on the table in public view and placed
there by supervisory personnel.

**(xi)** Marker preparation shall be initiated and other records updated
within approximately one hand of play following the initial issuance of
credit to the player.

**(xii)** Lammer buttons shall be removed only by the dealer or
boxperson employed at the table upon completion of a marker transaction.

**(xiii)** The original marker shall contain at least the following
information:

**(A)** Marker number;

**(B)** Player\'s name and signature;

**(C)** Date; and

**(D)** Amount of credit issued.

**(xiv)** The issue slip or stub shall include the same marker number as
the original, the table number, date and time of issuance, and amount of
credit issued. The issue slip or stub shall also include the signature
of the person extending the credit, and the signature or initials of the
dealer or boxperson at the applicable table, unless this information is
included on another document verifying the issued marker.

**(xv)** The payment slip shall include the same marker number as the
original. When the marker is paid in full in the pit, it shall also
include the table number where paid, date and time of payment, nature of
settlement (cash, chips, etc.), and amount of payment. The payment slip
shall also include the signature of pit supervisory personnel
acknowledging payment, and the signature or initials of the dealer or
boxperson receiving payment, unless this information is included on
another document verifying the payment of the marker.

**(xvi)** When partial payments are made in the pit, a new marker shall
be completed reflecting the remaining balance and the marker number of
the marker originally issued.

**(xvii)** When partial payments are made in the pit, the payment slip
of the marker that was originally issued shall be properly
cross-referenced to the new marker number, completed with all
information required by paragraph (k)(1)(xv) of this section, and
inserted into the drop box. (Revised May 4, 2005)

**(xviii)** The cashier\'s cage or another independent source shall be
notified when payments (full or partial) are made in the pit so that
cage records can be updated for such transactions. Notification shall be
made no later than when the customer\'s play is completed or at shift
end, whichever is earlier.

**(xix)** All portions of markers, both issued and unissued, shall be
safeguarded and procedures shall be employed to control the
distribution, use and access to the forms.

**(xx)** An investigation shall be performed to determine the cause and
responsibility for loss whenever marker forms, or any part thereof, are
missing. These investigations shall be documented, maintained for
inspection, and provided to the Tribal gaming regulatory authority upon
request.

**(xxi)** When markers are transferred to the cage, marker transfer
forms or marker credit slips (or similar documentation) shall be
utilized and such documents shall include, at a minimum, the date, time,
shift, marker number(s), table number(s), amount of each marker, the
total amount transferred, signature of pit supervisory personnel
releasing instruments from the pit, and the signature of cashier
verifying receipt of instruments at the cage.

**(xxii)** All markers shall be transferred to the cage within
twenty-four (24) hours of issuance.

**(xxiii)** Markers shall be transported to the cashier\'s cage by a
person who is independent of the marker issuance and payment functions
(pit clerks may perform this function).

**(2)** \[Reserved\]

**(l) *[Name credit instruments accepted in the pit]{.underline}. ***

**(1) For the purposes of this paragraph**, name credit instruments
means personal checks, payroll checks, counter checks, hold checks,
traveler\'s checks, or other similar instruments that are accepted in
the pit as a form of credit issuance to a player with an approved credit
limit.

**(2) The following standards shall** apply if name credit instruments
are accepted in the pit:

**(i)** A name credit system shall allow for the issuance of credit
without using markers;

**(ii)** Prior to accepting a name credit instrument, the employee
extending the credit shall contact the cashier or another independent
source to determine if the player\'s credit limit has been properly
established and the remaining credit available is sufficient for the
advance;

**(iii)** All name credit instruments shall be transferred to the
cashier\'s cage (utilizing a two-part order for credit) immediately
following the acceptance of the instrument and issuance of chips (if
name credit instruments are transported accompanied by a credit slip, an
order for credit is not required);

**(iv)** The order for credit (if applicable) and the credit slip shall
include the customer\'s name, amount of the credit instrument, the date,
time, shift, table number, signature of pit supervisory personnel
releasing instrument from pit, and the signature of the cashier
verifying receipt of instrument at the cage;

**(v)** The procedures for transacting table credits at standards in
paragraphs (c)(12) through (19) of this section shall be strictly
adhered to; and

**(vi)** The acceptance of payments in the pit for name credit
instruments shall be prohibited.

**(m) *[Call bets]{.underline}*.**

**(1) The following standards shall** apply if call bets are accepted in
the pit:

**(i)** A call bet shall be evidenced by the placement of a lammer
button, chips, or other identifiable designation in an amount equal to
that of the wager in a specific location on the table;

**(ii)** The placement of the lammer button, chips, or other
identifiable designation shall be performed by supervisory/boxperson
personnel. The placement may be performed by a dealer only if the
supervisor physically observes and gives specific authorization;

**(iii)** The call bet shall be settled at the end of each hand of play
by the preparation of a marker, repayment of the credit extended, or the
payoff of the winning wager. Call bets extending beyond one hand of play
shall be prohibited; and

**(iv)** The removal of the lammer button, chips, or other identifiable
designation shall be performed by the dealer/ boxperson upon completion
of the call bet transaction.

**(2)** \[Reserved\]

**(n) *[Rim credit]{.underline}*.**

(**1) The following standards shall** apply if rim credit is extended in
the pit:

**(i)** Rim credit shall be evidenced by the issuance of chips to be
placed in a neutral zone on the table and then extended to the customer
for the customer to wager, or to the dealer to wager for the customer,
and by the placement of a lammer button or other identifiable
designation in an amount equal to that of the chips extended; and

**(ii)** Rim credit shall be recorded on player cards, or similarly used
documents, which shall be:

**(A)** Prenumbered or concurrently numbered and accounted for by a
department independent of the pit;

**(B)** For all extensions and subsequent repayments, evidenced by the
initials or signatures of a supervisor and the dealer attesting to the
validity of each credit extension and repayment;

**(C)** An indication of the settlement method (e.g., serial number of
marker issued, chips, cash);

**(D)** Settled no later than when the customer leaves the table at
which the card is prepared;

**(E)** Transferred to the accounting department on a daily basis; and

**(F)** Reconciled with other forms utilized to control the issuance of
pit credit (e.g., master credit records, table cards).

**(2)** \[Reserved\]

**(o) *[Foreign currency]{.underline}*.**

**(l)** **The following standards shall** apply if foreign currency is
accepted in the pit:

**(i)** Foreign currency transactions shall be authorized by a pit
supervisor/ boxperson who completes a foreign currency exchange form
before the exchange for chips or tokens;

**(ii)** Foreign currency exchange forms include the country of origin,
total face value, amount of chips/token extended (i.e., conversion
amount), signature of supervisor/ boxperson, and the dealer completing
the transaction;

**(iii)** Foreign currency exchange forms and the foreign currency shall
be inserted in the drop box by the dealer; and

**(iv)** Alternate procedures specific to the use of foreign valued
gaming chips shall be developed by the Tribal gaming regulatory
authority, or the gaming operation as approved by the Tribal gaming
regulatory authority.

**(2)** \[Reserved\]

**[§[542.13 What are the minimum internal control standards for gaming
machines?]{.underline}]{.mark}**

**(a) *[Standards for gaming machines]{.underline}*.**

**(1) For this section** only, credit or customer credit means a unit of
value equivalent to cash or cash equivalents deposited, wagered, won,
lost, or redeemed by a customer.

**(2) Coins shall** include tokens.

**(3) For all computerized gaming machine systems, a personnel access
listing shall** be maintained, which includes at a minimum:

**(i)** Employee name or employee identification number (or equivalent);
and

**(ii)** Listing of functions employee can perform or equivalent means
of identifying same.

**(b) *[Computer applications]{.underline}*.** For any computer
applications 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, will be
acceptable.

**(c) *[Standards for drop and count]{.underline}***. The procedures for
the collection of the gaming machine drop and the count thereof shall
comply with §542.21, §542.31, or §542.41 (as applicable).

**(d) *[Jackpot payouts, gaming machines fills, short pays and
accumulated credit payouts standards]{.underline}*.**

**(1) For jackpot payouts and gaming machine fills, documentation
shall** include the following information:

**(i)** Date and time;

**(ii)** Machine number;

**(iii)** Dollar amount of cash payout or gaming machine fill (both
alpha and numeric) or description of personal property awarded,
including fair market value. Alpha is optional if another unalterable
method is used for evidencing the amount of the payout;

**(iv)** Game outcome (including reel symbols, card values, suits, etc.)
for jackpot payouts. Game outcome is not required if a computerized
jackpot/fill system is used;

**(v)** Preprinted or concurrently printed sequential number; and

**(vi)** Signatures of at least two employees verifying and witnessing
the payout or gaming machine fill (except as otherwise provided in
paragraphs (d)(1)(vi)(A), (B), and (C) of this section).

**(A)** Jackpot payouts over a predetermined amount shall require the
signature and verification of a supervisory or management employee
independent of the gaming machine department (in addition to the two
signatures required in paragraph (d)(1)(vi) of this section).
Alternatively, if an on-line accounting system is utilized, only two
signatures are required: one employee and one supervisory or management
employee independent of the gaming machine department. This
predetermined amount shall be authorized by management (as approved by
the Tribal gaming regulatory authority), documented, and maintained.

**(B)** With regard to jackpot payouts and hopper fills, the signature
of one employee is sufficient if an on-line accounting system is
utilized and the jackpot or fill is less than \$1,200.

**(C)** On graveyard shifts (eight-hour maximum) payouts/fills less than
\$100 can be made without the payout/fill being witnessed by a second
person.

**(2) For short pays of \$10.00 or more, and payouts required for
accumulated credits, the payout form shall** include the following
information:

**(i)** Date and time;

**(ii)** Machine number;

**(iii)** Dollar amount of payout (both alpha and numeric); and

**(iv)** The signature of at least one (1) employee verifying and
witnessing the payout.

**(A)** Where the payout amount is \$50 or more, signatures of at least
two (2) employees verifying and witnessing the payout. Alternatively,
the signature of one (1) employee is sufficient if an on-line accounting
system is utilized and the payout amount is less than \$3,000.

**(B)** \[Reserved\]

**(3) Computerized jackpot/fill systems shall** be restricted so as to
prevent unauthorized access and fraudulent payouts by one person as
required by §542.16(a).

**(4) Payout forms shall** be controlled and routed in a manner that
precludes any one person from producing a fraudulent payout by forging
signatures or by altering the amount paid out subsequent to the payout
and misappropriating the funds.

**(e) *[Promotional payouts or awards]{.underline}*.**

**(1) If a gaming operation** offers promotional payouts or awards that
are not reflected on the gaming machine pay table, then the payout
form/documentation shall include:

**(i)** Date and time;

**(ii)** Machine number and denomination;

**(iii)** Dollar amount of payout or description of personal property
(e.g., jacket, toaster, car, etc.), including fair market value;

**(iv)** Type of promotion (e.g., double jackpots, four-of-a-kind bonus,
etc.); and

**(v)** Signature of at least one employee authorizing and completing
the transaction.

**(2)** \[Reserved\]

**(f) *[Gaming machine department funds standards]{.underline}*.**

**(1) The gaming machine booths and change banks** that are active
during the shift shall be counted down and reconciled each shift by two
employees utilizing appropriate accountability documentation. Unverified
transfers of cash and/or cash equivalents are prohibited. (Revised
August 12, 2005)

**(2) The wrapping of loose gaming** machine booth and cage cashier coin
shall be performed at a time or location that does not interfere with
the hard count/wrap process or the accountability of that process.

**(3) A record shall** be maintained evidencing the transfers of wrapped
and unwrapped coins and retained for seven (7) days.

**(g) *[EPROM control standards]{.underline}*.**

**(1) At least annually, procedures shall** be performed to insure the
integrity of a sample of gaming machine game program EPROMs, or other
equivalent game software media, by personnel independent of the gaming
machine department or the machines being tested.

**(2) The Tribal gaming regulatory authority**, or the gaming operation
subject to the approval of the Tribal gaming regulatory authority, shall
develop and implement procedures for the following:

**(i)** Removal of EPROMs, or other equivalent game software media, from
devices, the verification of the existence of errors as applicable, and
the correction via duplication from the master game program EPROM, or
other equivalent game software media;

**(ii)** Copying one gaming device program to another approved program;

**(iii)** Verification of duplicated EPROMs before being offered for
play;

**(iv)** Receipt and destruction of EPROMs, or other equivalent game
software media; and

**(v)** Securing the EPROM, or other equivalent game software media,
duplicator, and master game EPROMs, or other equivalent game software
media, from unrestricted access.

**(3) The master game program number, par percentage, and the pay table
shall** be verified to the par sheet when initially received from the
manufacturer.

**(4) Gaming machines with potential jackpots in excess of \$100,000
shall** have the game software circuit boards locked or physically
sealed. The lock or seal shall necessitate the presence of a person
independent of the gaming machine department to access the device game
program EPROM, or other equivalent game software media. If a seal is
used to secure the board to the frame of the gaming device, it shall be
pre-numbered.

**(5) Records that document the procedures in paragraph (g)(2)(i) of
this section shall** include the following information:

**(i)** Date;

**(ii)** Machine number (source and destination);

**(iii)** Manufacturer;

**(iv)** Program number;

**(v)** Personnel involved;

**(vi)** Reason for duplication;

**(vii)** Disposition of any permanently removed EPROM, or other
equivalent game software media;

**(viii)** Seal numbers, if applicable; and

**(ix)** Approved testing lab approval numbers, if available.

**(6) EPROMS,** or other equivalent game software media, returned to
gaming devices shall be labeled with the program number. Supporting
documentation shall include the date, program number, information
identical to that shown on the manufacturer\'s label, and initials of
the person replacing the EPROM, or other equivalent game software media.

**(h) *[Standards for evaluating theoretical and actual hold
percentages]{.underline}*. *(Revised May 4, 2005)***

**(1) Accurate and current theoretical hold worksheets shall** be
maintained for each gaming machine.

**(2) For multi-game/multi-denominational machines**, an employee or
department independent of the gaming machine department shall:

**(i)** Weekly, record the total coin-in meter;

**(ii)** Quarterly, record the coin-in meters for each paytable
contained in the machine; and

**(iii)** On an annual basis, adjust the theoretical hold percentage in
the gaming machine statistical report to a weighted average based upon
the ratio of coin-in for each game paytable.

**(3) For those gaming operations** that are unable to perform the
weighted average calculation as required by paragraph (h)(2) of this
section, the following procedures shall apply:

**(i)** On at least an annual basis, calculate the actual hold
percentage for each gaming machine;

**(ii)** On at least an annual basis, adjust the theoretical hold
percentage in the gaming machine statistical report for each gaming
machine to the previously calculated actual hold percentage; and

**(iii)** The adjusted theoretical hold percentage shall be within the
spread between the minimum and maximum theoretical payback percentages.

**(4) The adjusted theoretical hold percentage** for
multi-game/multi-denominational machines may be combined for machines
with exactly the same game mix throughout the year.

**(5) The theoretical hold percentages** used in the gaming machine
analysis reports should be within the performance standards set by the
manufacturer.

**(6) Records shall be maintained** for each machine indicating the
dates and type of changes made and the recalculation of theoretical hold
as a result of the changes.

**(7) Records shall be maintained** for each machine that indicate the
date the machine was placed into service, the date the machine was
removed from operation, the date the machine was placed back into
operation, and any changes in machine numbers and designations.

**(8) All of the gaming machines** shall contain functioning meters that
shall record coin-in or credit-in, or on-line gaming machine monitoring
system that captures similar data.

**(9) All gaming machines with bill acceptors** shall contain
functioning billing meters that record the dollar amounts or number of
bills accepted by denomination.

**(10) Gaming machine in-meter readings** shall be recorded at least
weekly (monthly for Tier A and Tier B gaming operations) immediately
prior to or subsequent to a gaming machine drop. On-line gaming machine
monitoring systems can satisfy this requirement. However, the time
between readings may extend beyond one week in order for a reading to
coincide with the end of an accounting period only if such extension is
for no longer than six (6) days.

**(11) The employee** who records the in-meter reading shall either be
independent of the hard count team or shall be assigned on a rotating
basis, unless the in-meter readings are randomly verified quarterly for
all gaming machines and bill acceptors by a person other than the
regular in-meter reader.

**(12) Upon receipt** of the meter reading summary, the accounting
department shall review all meter readings for reasonableness using
pre-established parameters.

**(13) Prior to final preparation** of statistical reports, meter
readings that do not appear reasonable shall be reviewed with gaming
machine department employees or other appropriate designees, and
exceptions documented, so that meters can be repaired or clerical errors
in the recording of meter readings can be corrected.

**(14) A report shall be produced** at least monthly showing
month-to-date, year-to-date (previous twelve (12) months data
preferred), and if practicable, life-to-date actual hold percentage
computations for individual machines and a comparison to each machine\'s
theoretical hold percentage previously discussed.

**(15) Each change** to a gaming machine\'s theoretical hold percentage,
including progressive percentage contributions, shall result in that
machine being treated as a new machine in the statistical reports (i.e.,
not commingling various hold percentages), except for adjustments made
in accordance with paragraph (h)(2) of this section.

**(16) If promotional payouts or awards** are included on the gaming
machine statistical reports, it shall be in a manner that prevents
distorting the actual hold percentages of the affected machines.

**(17) The statistical reports** shall be reviewed by both gaming
machine department management and management employees independent of
the gaming machine department on at least a monthly basis.

**(18) For those machines** that have experienced at least 100,000
wagering transactions, large variances (three percent (3%) recommended)
between theoretical hold and actual hold shall be investigated and
resolved by a department independent of the gaming machine department
with the findings documented and provided to the Tribal gaming
regulatory authority upon request in a timely manner.

(**19) Maintenance of the on-line** gaming machine monitoring system
data files shall be performed by a department independent of the gaming
machine department. Alternatively, maintenance may be performed by
gaming machine supervisory employees if sufficient documentation is
generated and it is randomly verified on a monthly basis by employees
independent of the gaming machine department.

**(20) Updates to the on-line gaming machine** monitoring system to
reflect additions, deletions, or movements of gaming machines shall be
made at least weekly prior to in-meter readings and the weigh process.

**(i) *[Gaming machine hopper contents standards]{.underline}.***

**(1) When machines are temporarily removed** from the floor, gaming
machine drop and hopper contents shall be protected to preclude the
misappropriation of stored funds.

**(2) When machines are permanently removed** from the floor, the gaming
machine drop and hopper contents shall be counted and recorded by at
least two employees with appropriate documentation being routed to the
accounting department for proper recording and accounting for initial
hopper loads.

**(j) *[Player tracking system]{.underline}*.**

**(1) The following standards apply** if a player tracking system is
utilized:

**(i)** The player tracking system shall be secured so as to prevent
unauthorized access (e.g., changing passwords at least quarterly and
physical access to computer hardware, etc.).

**(ii)** The addition of points to members\' accounts other than through
actual gaming machine play shall be sufficiently documented (including
substantiation of reasons for increases) and shall be authorized by a
department independent of the player tracking and gaming machines.
Alternatively, addition of points to members\' accounts may be
authorized by gaming machine supervisory employees if sufficient
documentation is generated and it is randomly verified by employees
independent of the gaming machine department on a quarterly basis.

**(iii)** Booth employees who redeem points for members shall be allowed
to receive lost players club cards, provided that they are immediately
deposited into a secured container for retrieval by independent
personnel.

**(iv)** Changes to the player tracking system parameters, such as point
structures and employee access, shall be performed by supervisory
employees independent of the gaming machine department. Alternatively,
changes to player tracking system parameters may be performed by gaming
machine supervisory employees if sufficient documentation is generated
and it is randomly verified by supervisory employees independent of the
gaming machine department on a monthly basis.

**(v)** All other changes to the player tracking system shall be
appropriately documented.

**(2)** \[Reserved\]

**(k) *[In-house progressive gaming machine standards]{.underline}*.**

**(1) A meter that shows** the amount of the progressive jackpot shall
be conspicuously displayed at or near the machines to which the jackpot
applies.

**(2) At least once each day**, each gaming operation shall record the
amount shown on each progressive jackpot meter at the gaming operation
except for those jackpots that can be paid directly from the machine\'s
hopper;

**(3) Explanations for meter reading decreases shall** be maintained
with the progressive meter reading sheets, and where the payment of a
jackpot is the explanation for a decrease, the gaming operation shall
record the jackpot payout number on the sheet or have the number
reasonably available; and

**(4) Each gaming operation shall** record the base amount of each
progressive jackpot the gaming operation offers.

**(5) The Tribal gaming regulatory authority shall** approve procedures
specific to the transfer of progressive amounts in excess of the base
amount to other gaming machines. Such procedures may also include other
methods of distribution that accrue to the benefit of the gaming public
via an award or prize.

**(l) *[Wide area progressive gaming machine standards]{.underline}*.**

**(1) A meter that shows the amount of the progressive jackpot shall**
be conspicuously displayed at or near the machines to which the jackpot
applies.

**(2) As applicable to participating** gaming operations, the wide area
progressive gaming machine system shall be adequately restricted to
prevent unauthorized access (e.g., changing passwords at least
quarterly, restrict access to EPROMs or other equivalent game software
media, and restrict physical access to computer hardware, etc.).

**(3) The Tribal gaming regulatory authority shall** approve procedures
for the wide area progressive system that:

**(i)** Reconcile meters and jackpot payouts;

**(ii)** Collect/drop gaming machine funds;

**(iii)** Verify jackpot, payment, and billing to gaming operations on
pro-rata basis;

**(iv)** System maintenance;

**(v)** System accuracy; and

**(vi)** System security.

**(4) Reports, where applicable**, adequately documenting the procedures
required in paragraph (l)(3) of this section shall be generated and
retained. (Revised May 4, 2005)

**(m) *[Accounting/auditing standards]{.underline}*.**

**(1) Gaming machine accounting/auditing** procedures shall be performed
by employees who are independent of the transactions being reviewed.

**(2) For on-line gaming machine** monitoring systems, procedures shall
be performed at least monthly to verify that the system is transmitting
and receiving data from the gaming machines properly and to verify the
continuing accuracy of the coin-in meter readings as recorded in the
gaming machine statistical report.

**(3) For weigh scale and currency interface** systems, for at least one
drop period per month accounting/auditing employees shall make such
comparisons as necessary to the system generated count as recorded in
the gaming machine statistical report. Discrepancies shall be resolved
prior to generation/distribution of gaming machine reports.

**(4) For each drop period**, accounting/auditing personnel shall
compare the coin-to-drop meter reading to the actual drop amount.
Discrepancies should be resolved prior to generation/distribution of
on-line gaming machine monitoring system statistical reports.

**(5) Follow-up shall** be performed for any one machine having an
unresolved variance between actual coin drop and coin-to-drop meter
reading in excess of three percent (3%) and over \$25.00. The follow-up
performed and results of the investigation shall be documented,
maintained for inspection, and provided to the Tribal gaming regulatory
authority upon request.

**(6) For each drop period**, accounting/auditing employees shall
compare the bill-in meter reading to the total bill acceptor drop amount
for the period. Discrepancies shall be resolved before the
generation/distribution of gaming machine statistical reports. (Revised
May 4, 2005)

**(7) Follow-up** shall be performed for any one machine having an
unresolved variance between actual currency drop and bill-in meter
reading in excess of an amount that is both more than \$25 and at least
three percent (3%) of the actual currency drop. The follow-up performed
and results of the investigation shall be documented, maintained for
inspection, and provided to the Tribal gaming regulatory authority upon
request. (Revised May 4, 2005)

**(8) At least annually**, accounting/auditing personnel shall randomly
verify that EPROM or other equivalent game software media changes are
properly reflected in the gaming machine analysis reports.

**(9) Accounting/auditing employees shall** review exception reports for
all computerized gaming machine systems on a daily basis for propriety
of transactions and unusual occurrences.

**(10) All gaming machine auditing procedures** and any follow-up
performed shall be documented, maintained for inspection, and provided
to the Tribal gaming regulatory authority upon request.

**(n) *[Cash-out tickets]{.underline}*.** For gaming machines that
utilize cash-out tickets, the following standards apply. This standard
is not applicable to Tiers A and B. Tier A and B gaming operations shall
develop adequate standards governing the security over the issuance of
the cash-out paper to the gaming machines and the redemption of cash-out
slips.

**(1) In addition to the applicable auditing** and accounting standards
in paragraph (m) of this section, on a quarterly basis, the gaming
operation shall foot all jackpot cash-out tickets equal to or greater
than \$1,200 and trace totals to those produced by the host validation
computer system.

**(2) The customer may request a cash-out ticket** from the gaming
machine that reflects all remaining credits. The cash-out ticket shall
be printed at the gaming machine by an internal document printer. The
cash-out ticket shall be valid for a time period specified by the Tribal
gaming regulatory authority, or the gaming operation as approved by the
Tribal gaming regulatory authority. Cash-out tickets may be redeemed for
payment or inserted in another gaming machine and wagered, if
applicable, during the specified time period.

**(3) The customer shall** redeem the cash-out ticket at a change booth
or cashiers\' cage. Alternatively, if a gaming operation utilizes a
remote computer validation system, the Tribal gaming regulatory
authority, or the gaming operation as approved by the Tribal gaming
regulatory authority, shall develop alternate standards for the maximum
amount that can be redeemed, which shall not exceed \$2,999.99 per
cash-out transaction.

**(4) Upon presentation of the cash-out ticket(s) for redemption, the
following shall** occur:

**(i)** Scan the bar code via an optical reader or its equivalent; or

**(ii)** Input the cash-out ticket validation number into the computer.

**(5) The information contained in paragraph (n)(4) of this section
shall** be communicated to the host computer. The host computer shall
verify the authenticity of the cash-out ticket and communicate directly
to the redeemer of the cash-out ticket.

**(6) If valid,** the cashier (redeemer of the cash-out ticket) pays the
customer the appropriate amount and the cash-out ticket is
electronically noted "paid" in the system. The "paid" cash-out ticket
shall remain in the cashiers' bank for reconciliation purposes. The host
validation computer system shall electronically reconcile the cashier\'s
banks for the paid cashed-out tickets.

**(7) If invalid**, the host computer shall notify the cashier (redeemer
of the cash-out ticket). The cashier (redeemer of the cash-out ticket)
shall refuse payment to the customer and notify a supervisor of the
invalid condition. The supervisor shall resolve the dispute.

**(8) If the host validation** computer system temporarily goes down,
cashiers may redeem cash-out tickets at a change booth or cashier's cage
after recording the following:

**(i)** Serial number of the cash-out ticket;

**(ii)** Date and time;

**(iii)** Dollar amount;

**(iv)** Issuing gaming machine number;

**(v)** Marking ticket "paid"; and

**(vi)** Ticket shall remain in cashier's bank for reconciliation
purposes.

**(9) Cash-out tickets shall** be validated as expeditiously as possible
when the host validation computer system is restored.

**(10) The Tribal gaming regulatory authority**, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with procedures to control
cash-out ticket paper, which shall include procedures that:

**(i)** Mitigate the risk of counterfeiting of cash-out ticket paper;

**(ii)** Adequately control the inventory of the cash-out ticket paper;
and

**(iii)** Provide for the destruction of all unused cash-out ticket
paper.

**(iv)** Alternatively, if the gaming operation utilizes a computer
validation system, this standard shall not apply.

**(11) If the host validation computer** system is down for more than
four (4) hours, the gaming operation shall promptly notify the Tribal
gaming regulatory authority or its designated representative.

**(12) These gaming machine systems shall** comply with all other
standards (as applicable) in this part including:

**(i)** Standards for bill acceptor drop and count;

**(ii)** Standards for coin drop and count; and

**(iii)** Standards concerning EPROMS or other equivalent game software
media.

**(o) *[Account access cards]{.underline}***. For gaming machines that
utilize account access cards to activate play of the machine, the
following standards shall apply:

**(1) [Equipment]{.underline}.**

**(i)** A central computer, with supporting hardware and software, to
coordinate network activities, provide system interface, and store and
manage a player/account database;

**(ii)** A network of contiguous player terminals with touch-screen or
button-controlled video monitors connected to an electronic selection
device and the central computer via a communications network;

**(iii)** One or more electronic selection devices, utilizing random
number generators, each of which selects any combination or combinations
of numbers, colors, and/or symbols for a network of player terminals.

**(2) *[Player terminals standards]{.underline}. ***

**(i)** The player terminals are connected to a game server;

**(ii)** The game server shall generate and transmit to the bank of
player terminals a set of random numbers, colors, and/or symbols at
regular intervals. The subsequent game results are determined at the
player terminal and the resulting information is transmitted to the
account server;

**(iii)** The game server shall be housed in a game server room or a
secure locked cabinet.

**(3) *[Customer account maintenance standards]{.underline}.***

**(i)** A central computer acting as an account server shall provide
customer account maintenance and the deposit/withdrawal function of
those account balances;

**(ii)** Customers may access their accounts on the computer system by
means of an account access card at the player terminal. Each player
terminal may be equipped with a card reader and personal identification
number (PIN) pad or touch screen array for this purpose;

**(iii)** All communications between the player terminal, or bank of
player terminals, and the account server shall be encrypted for security
reasons.

**(4) *[Customer account generation standards]{.underline}***.

**(i)** A computer file for each customer shall be prepared by a clerk,
with no incompatible functions, prior to the customer being issued an
account access card to be utilized for machine play. The customer may
select his/her PIN to be used in conjunction with the account access
card.

**(ii)** For each customer file, an employee shall: (Adopted May 11,
2006)

**(A)** Record the customer\'s name and current address;

**(B)** The date the account was opened; and

**(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 identity
credential.

**(iii)** The clerk shall sign-on with a unique password to a terminal
equipped with peripherals required to establish a customer account.
Passwords are issued and can only be changed by information technology
personnel at the discretion of the department director. (Revised May 11,
2006)

**(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. (Revised May 11, 2006)

(**5) *[Deposit of credits standards]{.underline}***.

**(i)** The cashier shall sign-on with a unique password to a cashier
terminal equipped with peripherals required to complete the credit
transactions. Passwords are issued and can only be changed by
information technology personnel at the discretion of the department
director.

**(ii)** The customer shall present cash, chips, coin or coupons along
with their account access card to a cashier to deposit credits.

**(iii)** The cashier shall complete the transaction by utilizing a card
scanner that the cashier shall slide the customer\'s account access card
through.

**(iv)** The cashier shall accept the funds from the customer and enter
the appropriate amount on the cashier terminal.

**(v)** A multi-part deposit slip shall be generated by the point of
sale receipt printer. The cashier shall direct the customer to sign the
deposit slip receipt. One copy of the deposit slip shall be given to the
customer. The other copy of the deposit slip shall be secured in the
cashier\'s cash drawer.

**(vi)** The cashier shall verify the customer\'s balance before
completing the transaction. The cashier shall secure the funds in their
cash drawer and return the account access card to the customer.

**(vii)** Alternatively, if a kiosk is utilized to accept a deposit of
credits, the Tribal gaming regulatory authority, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with procedures that safeguard the
integrity of the kiosk system.

**(6) *[Prize standards]{.underline}*.**

**(i)** Winners at the gaming machines may receive cash, prizes
redeemable for cash or merchandise.

**(ii)** If merchandise prizes are to be awarded, the specific type of
prize or prizes that may be won shall be disclosed to the player before
the game begins.

**(iii)** The redemption period of account access cards, as approved by
the Tribal gaming regulatory authority, shall be conspicuously posted in
the gaming operation.

**(7) [Credit withdrawal]{.underline}**. The customer shall present
their account access card to a cashier to withdraw their credits. The
cashier shall perform the following:

**(i)** Scan the account access card;

**(ii)** Request the customer to enter their PIN, if the PIN was
selected by the customer;

**(iii)** The cashier shall ascertain the amount the customer wishes to
withdraw and enter the amount into the computer;

**(iv)** A multi-part withdrawal slip shall be generated by the point of
sale receipt printer. The cashier shall direct the customer to sign the
withdrawal slip;

**(v)** The cashier shall verify that the account access card and the
customer match by:

**(A)** Comparing the customer to image on the computer screen;

**(B)** Comparing the customer to image on customer\'s picture ID; or

**(C)** Comparing the customer signature on the withdrawal slip to
signature on the computer screen.

**(vi)** The cashier shall verify the customer\'s balance before
completing the transaction. The cashier shall pay the customer the
appropriate amount, issue the customer the original withdrawal slip and
return the account access card to the customer;

**(vii)** The copy of the withdrawal slip shall be placed in the cash
drawer. All account transactions shall be accurately tracked by the
account server computer system. The copy of the withdrawal slip shall be
forwarded to the accounting department at the end of the gaming day; and

**(viii)** In the event the imaging function is temporarily disabled,
customers shall be required to provide positive ID for cash withdrawal
transactions at the cashier stations.

**(p) *[Smart cards]{.underline}***. All smart cards (i.e., cards that
possess the means to electronically store and retrieve data) that
maintain the only source of account data are prohibited.

**[§[542.14 What are the minimum internal control standards for the
cage?]{.underline}]{.mark}**

**(a) *[Computer applications]{.underline}*.** For any computer
applications 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, will be
acceptable.

**(b) *[Personal checks, cashier\'s checks, payroll checks, and counter
checks]{.underline}*.**

**(1) If personal checks**, cashier\'s checks, payroll checks, or
counter checks are cashed at the cage, the Tribal gaming regulatory
authority, or the gaming operation as approved by the Tribal gaming
regulatory authority, shall establish and the gaming operation shall
comply with appropriate controls for purposes of security and integrity.

**(2) The Tribal gaming regulatory authority**, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with procedures for the acceptance
of personal checks, collecting and recording checks returned to the
gaming operation after deposit, re-deposit, and write-off authorization.

**(3) When counter checks are issued, the following shall** be included
on the check:

**(i)** The customer\'s name and signature;

**(ii)** The dollar amount of the counter check (both alpha and
numeric);

**(iii)** Customer\'s bank name and bank account number;

**(iv)** Date of issuance; and

**(v)** Signature or initials of the person approving the counter check
transaction.

**(4) When traveler\'s** checks or other guaranteed drafts such as
cashier\'s checks are presented, the cashier shall comply with the
examination and documentation procedures as required by the issuer.

**(c) *[Customer deposited funds]{.underline}***. If a gaming operation
permits a customer to deposit funds with the gaming operation at the
cage, the following standards shall apply.

**(1) The receipt or withdrawal** of a customer deposit shall be
evidenced by at least a two-part document with one copy going to the
customer and one copy remaining in the cage file.

**(2) The multi-part receipt shall** contain the following information:

**(i)** Same receipt number on all copies;

**(ii)** Customer\'s name and signature;

**(iii)** Date of receipt and withdrawal;

**(iv)** Dollar amount of deposit/withdrawal; and

**(v)** Nature of deposit (cash, check, chips); however,

**(vi)** Provided all of the information in paragraph (c)(2)(i) through
(v) is available, the only required information for all copies of the
receipt is the receipt number.

**(3) The Tribal gaming regulatory authority**, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with procedures that:

**(i)** Maintain a detailed record by customer name and date of all
funds on deposit;

**(ii)** Maintain a current balance of all customer cash deposits that
are in the cage/vault inventory or accountability; and

**(iii)** Reconcile this current balance with the deposits and
withdrawals at least daily.

**(4) The gaming operation**, as approved by the Tribal gaming
regulatory authority, shall describe the sequence of the required
signatures attesting to the accuracy of the information contained on the
customer deposit or withdrawal form ensuring that the form is signed by
the cashier.

**(5) All customer deposits** and withdrawal transactions at the cage
shall be recorded on a cage accountability form on a per-shift basis.

**(6) Only cash, cash equivalents, chips, and** tokens shall be accepted
from customers for the purpose of a customer deposit.

**(7) The Tribal gaming regulatory authority**, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with procedures that verify the
customer\'s identity, including photo identification.

**(8) A file for customers shall** be prepared prior to acceptance of a
deposit.

**(d) *[Cage and vault accountability standards]{.underline}*.**

**(1) All transactions that flow through the cage shall** be summarized
on a cage accountability form on a per shift basis and shall be
supported by documentation.

**(2) The cage and vault** (including coin room) inventories shall be
counted by the oncoming and outgoing cashiers. These employees shall
make individual counts for comparison for accuracy and maintenance of
individual accountability. Such counts shall be recorded at the end of
each shift during which activity took place. All discrepancies shall be
noted and investigated. Unverified transfers of cash and/or cash
equivalents are prohibited. (Revised August 12, 2005)

**(3) The Tribal gaming regulatory authority**, or the gaming operation
as approved by the Tribal gaming regulatory authority, shall establish
and the gaming operation shall comply with a minimum bankroll formula to
ensure the gaming operation maintains cash or cash equivalents (on hand
and in the bank, if readily accessible) in an amount sufficient to
satisfy obligations to the gaming operation's customers as they are
incurred. A suggested bankroll formula will be provided by the
Commission upon request. (Revised August 12, 2005)

**(e) *[Chip and token standards]{.underline}*.** The Tribal gaming
regulatory authority, or the gaming operation as approved by the Tribal
gaming regulatory authority, shall establish and the gaming operation
shall comply with procedures for the receipt, inventory, storage, and
destruction of gaming chips and tokens.

**(f) *[Coupon standards]{.underline}***. Any program for the exchange
of coupons for chips, tokens, and/or another coupon program shall be
approved by the Tribal gaming regulatory authority prior to
implementation. If approved, the gaming operation shall establish and
comply with procedures that account for and control such programs.

**(g) *[Accounting/auditing standards]{.underline}***.

**(1) The cage accountability shall** be reconciled to the general
ledger at least monthly.

**(2) A trial balance of gaming operation** accounts receivable,
including the name of the customer and current balance, shall be
prepared at least monthly for active, inactive, settled or written-off
accounts.

**(3) The trial balance of gaming operation** accounts receivable shall
be reconciled to the general ledger each month. The reconciliation and
any follow-up performed shall be documented, maintained for inspection,
and provided to the Tribal gaming regulatory authority upon request.

**(4) On a monthly basis** an evaluation of the collection percentage of
credit issued to identify unusual trends shall be performed.

**(5) All cage and credit accounting** procedures and any follow-up
performed shall be documented, maintained for inspection, and provided
to the Tribal gaming regulatory authority upon request.

**(h) *[Extraneous items]{.underline}***. The Tribal gaming regulatory
authority, or the gaming operation as approved by the Tribal gaming
regulatory authority, shall establish and the gaming operation shall
comply with procedures to address the transporting of extraneous items,
such as coats, purses, and/or boxes, into and out of the cage, coin
room, count room, and/or vault.

**[§[542.15 What are the minimum internal control standards for
credit?]{.underline}]{.mark}**

**(a) *[Computer applications]{.underline}*.** For any computer
applications 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, will be
acceptable.

**(b) *[Credit standards]{.underline}*.** The following standards shall
apply if the gaming operation authorizes and extends credit to
customers:

**(1) At least the following information shall** be recorded for
customers that have credit limits or are issued credit (excluding
personal checks, payroll checks, cashier\'s checks, and traveler\'s
checks):

**(i)** Customer\'s name, current address, and signature;

**(ii)** Identification verifications;

**(iii)** Authorized credit limit;

**(iv)** Documentation of authorization by a person designated by
management to approve credit limits; and

**(v)** Credit issuances and payments.

**(2) Prior to extending credit**, the customer\'s gaming operation
credit record and/or other documentation shall be examined to determine
the following:

**(i)** Properly authorized credit limit;

**(ii)** Whether remaining credit is sufficient to cover the credit
issuance; and

**(iii)** Identity of the customer (except for known customers).

**(3) Credit extensions over a specified dollar amount shall** be
approved by personnel designated by management.

**(4) Proper approval of credit extensions over ten percent (10%) of the
previously established limit shall** be documented.

**(5) The job functions of credit approval** (i.e., establishing the
customer\'s credit worthiness) and credit extension (i.e., advancing
customer\'s credit) shall be segregated for credit extensions to a
single customer of \$10,000 or more per day (applies whether the credit
is extended in the pit or the cage).

**(6) If cage credit is extended** to a single customer in an amount
exceeding \$2,500, appropriate gaming personnel shall be notified on a
timely basis of the customers playing on cage credit, the applicable
amount of credit issued, and the available balance.

**(7) Cage marker forms shall** be at least two parts (the original
marker and a payment slip), prenumbered by the printer or concurrently
numbered by the computerized system, and utilized in numerical sequence.

**(8) The completed original cage marker shall** contain at least the
following information:

**(i)** Marker number;

**(ii)** Player\'s name and signature; and

**(iii)** Amount of credit issued (both alpha and numeric).

**(9) The completed payment slip shall** include the same marker number
as the original, date and time of payment, amount of payment, nature of
settlement (cash, chips, etc.), and signature of cashier receiving the
payment.

**(c) *[Payment standards]{.underline}*.**

**(1) All payments received on outstanding credit instruments shall** be
recorded in ink or other permanent form of recordation in the gaming
operation\'s records.

**(2) When partial payments are made on credit instruments, they shall**
be evidenced by a multi-part receipt (or another equivalent document)
that contains:

**(i)** The same preprinted number on all copies;

**(ii)** Customer\'s name;

**(iii)** Date of payment;

**(iv)** Dollar amount of payment (or remaining balance if a new marker
is issued), and nature of settlement (cash, chips, etc.);

**(v)** Signature of employee receiving payment; and

**(vi)** Number of credit instrument on which partial payment is being
made.

**(3) Unless account balances** are routinely confirmed on a random
basis by the accounting or internal audit departments, or statements are
mailed by a person independent of the credit transactions and
collections thereon, and the department receiving payments cannot access
cash, then the following standards shall apply:

**(i)** The routing procedures for payments by mail require that they be
received by a department independent of credit instrument custody and
collection;

**(ii)** Such receipts by mail shall be documented on a listing
indicating the customer\'s name, amount of payment, nature of payment
(if other than a check), and date payment received; and

**(iii)** The total amount of the listing of mail receipts shall be
reconciled with the total mail receipts recorded on the appropriate
accountability form by the accounting department on a random basis (for
at least three (3) days per month).

**(d) *[Access to credit documentation]{.underline}*.**

**(1) Access to credit documentation shall** be restricted as follows:

**(i)** The credit information shall be restricted to those positions
that require access and are so authorized by management;

**(ii)** Outstanding credit instruments shall be restricted to persons
authorized by management; and

**(iii)** Written-off credit instruments shall be further restricted to
persons specified by management.

**(2)** \[Reserved\]

**(e) *[Maintenance of credit documentation]{.underline}*.**

**(1) All extensions** of cage credit, pit credit transferred to the
cage, and subsequent payments shall be documented on a credit instrument
control form.

**(2) Records of all correspondence**, transfers to and from outside
agencies, and other documents related to issued credit instruments shall
be maintained.

**(f) *[Write-off and settlement standards]{.underline}*.**

**(1) Written-off or settled credit instruments shall** be authorized in
writing.

**(2) Such authorizations shall** be made by at least two management
officials who are from departments independent of the credit
transaction.

**(g) *[Collection agency standards]{.underline}*.**

**(1) If credit instruments** are transferred to collection agencies or
other collection representatives, a copy of the credit instrument and a
receipt from the collection representative shall be obtained and
maintained until the original credit instrument is returned or payment
is received.

(**2) A person independent** of credit transactions and collections
shall periodically review the documents in paragraph (g)(1) of this
section.

**(h) *[Accounting/auditing standards]{.underline}*.**

**(1) A person independent** of the cage, credit, and collection
functions shall perform all of the following at least three (3) times
per year:

**(i)** Ascertain compliance with credit limits and other established
credit issuance procedures;

**(ii)** Randomly reconcile outstanding balances of both active and
inactive accounts on the accounts receivable listing to individual
credit records and physical instruments;

**(iii)** Examine credit records to determine that appropriate
collection efforts are being made and payments are being properly
recorded; and

**(iv)** For a minimum of five (5) days per month, partial payment
receipts shall be subsequently reconciled to the total payments recorded
by the cage for the day and shall be numerically accounted for.

**(2)** \[Reserved\]

**[§[542.16 What are the minimum internal control standards for
information technology?]{.underline}]{.mark}**

**[Section 542.16 is removed and reserved effective October 13,
2009.]{.underline}**

**(a) *[General controls for gaming hardware and
software]{.underline}*.**

**(1) Management shall** take an active role in making sure that
physical and logical security measures are implemented, maintained, and
adhered to by personnel to prevent unauthorized access that could cause
errors or compromise data or processing integrity.

**(i)** Management shall ensure that all new gaming vendor hardware and
software agreements/contracts contain language requiring the vendor to
adhere to tribal internal control standards applicable to the goods and
services the vendor is providing.

**(ii)** Physical security measures shall exist over computer, computer
terminals, and storage media to prevent unauthorized access and loss of
integrity of data and processing.

**(iii)** Access to systems software and application programs shall be
limited to authorized personnel.

**(iv)** Access to computer data shall be limited to authorized
personnel.

**(v)** Access to computer communications facilities, or the computer
system, and information transmissions shall be limited to authorized
personnel.

**(vi)** Standards in paragraph (a)(1) of this section shall apply to
each applicable department within the gaming operation.

**(2) The main computers** (i.e., hardware, software, and data files)
for each gaming application (e.g., keno, race and sports, gaming
machines, etc.) shall be in a secured area with access restricted to
authorized persons, including vendors.

**(3) Access to computer operations shall** be restricted to authorized
personnel to reduce the risk of loss of integrity of data or processing.

**(4) Incompatible duties shall** be adequately segregated and monitored
to prevent error in general information technology procedures to go
undetected or fraud to be concealed.

**(5) Non-information technology personnel shall** be precluded from
having unrestricted access to the secured computer areas.

**(6) The computer systems**, including application software, shall be
secured through the use of passwords or other approved means where
applicable. Management personnel or persons independent of the
department being controlled shall assign and control access to system
functions.

**(7) Passwords shall** be controlled as follows unless otherwise
addressed in the standards in this section.

**(i)** Each user shall have their own individual password;

**(ii)** Passwords shall be changed at least quarterly with changes
documented; and

**(iii)** For computer systems that automatically force a password
change on a quarterly basis, documentation shall be maintained listing
the systems and the date the user was given access.

**(8) Adequate backup and recovery procedures shall** be in place that
include:

**(i)** Frequent backup of data files;

**(ii)** Backup of all programs;

**(iii)** Secured off-site storage of all backup data files and
programs, or other adequate protection; and

**(iv)** Recovery procedures, which are tested on a sample basis at
least annually with documentation of results.

**(9) Adequate information technology** system documentation shall be
maintained, including descriptions of hardware and software, operator
manuals, etc.

**(b) *[Independence of information technology
personnel]{.underline}*.**

**(1) The information technology personnel shall** be independent of the
gaming areas (e.g., cage, pit, count rooms, etc.). Information
technology personnel procedures and controls should be documented and
responsibilities communicated.

**(2) Information technology personnel shall** be precluded from
unauthorized access to:

**(i)** Computers and terminals located in gaming areas;

**(ii)** Source documents; and

**(iii)** Live data files (not test data).

**(3) Information technology personnel shall** be restricted from:

**(i)** Having unauthorized access to cash or other liquid assets; and

**(ii)** Initiating general or subsidiary ledger entries.

**(c) *[Gaming program changes]{.underline}*.**

**(1) Program changes for in-house developed systems should be**
documented as follows:

**(i)** Requests for new programs or program changes shall be reviewed
by the information technology supervisor. Approvals to begin work on the
program shall be documented;

**(ii)** A written plan of implementation for new and modified programs
shall be maintained, and shall include, at a minimum, the date the
program is to be placed into service, the nature of the change, a
description of procedures required in order to bring the new or modified
program into service (conversion or input of data, installation
procedures, etc.), and an indication of who is to perform all such
procedures;

**(iii)** Testing of new and modified programs shall be performed and
documented prior to implementation; and

**(iv)** A record of the final program or program changes, including
evidence of user acceptance, date in service, programmer, and reason for
changes, shall be documented and maintained.

**(2)** \[Reserved\]

**(d) *[Security logs]{.underline}*.**

**(1) If computer security logs are generated by the system, they
shall** be reviewed by information technology supervisory personnel for
evidence of:

**(i)** Multiple attempts to log-on, or alternatively, the system shall
deny user access after three attempts to log-on;

**(ii)** Unauthorized changes to live data files; and

**(iii)** Any other unusual transactions.

**(2) This paragraph shall** not apply to personal computers.

**(e) *[Remote dial-up]{.underline}*.**

**(1) If remote dial-up** to any associated equipment is allowed for
software support, the gaming operation shall maintain an access log that
includes:

**(i)** Name of employee authorizing modem access;

**(ii)** Name of authorized programmer or manufacturer representative;

**(iii)** Reason for modem access;

**(iv)** Description of work performed; and

**(v)** Date, time, and duration of access.

**(2)** \[Reserved\]

**(f) *[Document storage]{.underline}*.**

**(1) Documents may be scanned** or directly stored to an unalterable
storage medium under the following conditions.

**(i)** The storage medium shall contain the exact duplicate of the
original document.

**(ii)** All documents stored on the storage medium shall be maintained
with a detailed index containing the gaming operation department and
date. This index shall be available upon request by the Commission.

**(iii)** Upon request and adequate notice by the Commission, hardware
(terminal, printer, etc.) shall be made available in order to perform
auditing procedures.

**(iv)** Controls shall exist to ensure the accurate reproduction of
records up to and including the printing of stored documents used for
auditing purposes.

**(v)** The storage medium shall be retained for a minimum of five
years.

**(2)** \[Reserved\]

**[[§542.17 What are the minimum internal control standards for
complimentary services or items?]{.underline}]{.mark}**

**(a) Each Tribal gaming regulatory authority or gaming operation
shall** establish and the gaming operation shall comply with procedures
for the authorization, issuance, and tracking of complimentary services
and items, including cash and non-cash gifts. Such procedures must be
approved by the Tribal gaming regulatory authority and shall include,
but shall not be limited to, the procedures by which the gaming
operation delegates to its employees the authority to approve the
issuance of complimentary services and items, and the procedures by
which conditions or limits, if any, which may apply to such authority
are established and modified (including limits based on relationships
between the authorizer and recipient), and shall further include
effective provisions for audit purposes.

**(b)** At least monthly, accounting, information technology, or audit
personnel that cannot grant or receive complimentary privileges shall
prepare reports that include the following information for all
complimentary items and services equal to or exceeding \$100 or an
amount established by the Tribal gaming regulatory authority, which
shall not be greater than \$100: (Revised August 12, 2005)

**(1)** Name of customer who received the complimentary service or item;

**(2)** Name(s) of authorized issuer of the complimentary service or
item;

**(3)** The actual cash value of the complimentary service or item;

**(4)** The type of complimentary service or item (i.e., food, beverage,
etc.); and

**(5)** Date the complimentary service or item was issued.

**(c) The internal audit or accounting departments shall** review the
reports required in paragraph (b) of this section at least monthly.
These reports shall be made available to the Tribe, Tribal gaming
regulatory authority, audit committee, other entity designated by the
Tribe, and the Commission upon request. (Revised August 12, 2005)

**[[§542.18 How does a gaming operation apply for a variance from the
standards of this part?]{.underline}]{.mark}**

**(a) *[Tribal gaming regulatory authority approval]{.underline}*.
*(Revised May 4, 2005)***

**(1) A Tribal gaming regulatory authority** may approve a variance for
a gaming operation if it has determined that the variance will achieve a
level of control sufficient to accomplish the purpose of the standard it
is to replace.

**(2) For each enumerated standard** for which the Tribal gaming
regulatory authority approves a variance, it shall submit to the
Chairman of the NIGC, within thirty (30) days, a detailed report, which
shall include the following:

**(i)** A detailed description of the variance;

**(ii)** An explanation of how the variance achieves a level of control
sufficient to accomplish the purpose of the standard it is to replace;
and

**(iii)** Evidence that the Tribal gaming regulatory authority has
approved the variance.

**(3) In the event** that the Tribal gaming regulatory authority or the
Tribe chooses to submit a variance request directly to the Chairman, it
may do so without the approval requirement set forth in paragraph
(a)(2)(iii) of this section and such request shall be deemed as having
been approved by the Tribal gaming regulatory authority.

***(b) [Review by the Chairman.]{.underline} (Revised May 4, 2005)***

**(1) Following receipt** of the variance approval, the Chairman or his
or her designee shall have sixty (60) days to concur with or object to
the approval of the variance.

**(2) Any objection raised** by the Chairman shall be in the form of a
written explanation based upon the following criteria:

**(i)** There is no valid explanation of why the gaming operation should
have received a variance approval from the Tribal gaming regulatory
authority on the enumerated standard; or

**(ii)** The variance as approved by the Tribal gaming regulatory
authority does not provide a level of control sufficient to accomplish
the purpose of the standard it is to replace.

**(3) If the Chairman fails to object** in writing within sixty (60)
days after the date of receipt of a complete submission, the variance
shall be considered concurred with by the Chairman.

**(4) The 60-day deadline** may be extended, provided such extension is
mutually agreed upon by the Tribal gaming regulatory authority and the
Chairman.

***(c) [Curing Chairman\'s objections.]{.underline} (Revised May 4,
2005)***

**(1) Following an objection** by the Chairman to the issuance of a
variance, the Tribal gaming regulatory authority shall have the
opportunity to cure any objections noted by the Chairman.

**(2) A Tribal gaming regulatory authority** may cure the objections
raised by the Chairman by:

**(i)** Rescinding its initial approval of the variance; or

**(ii)** Rescinding its initial approval, revising the variance,
approving it, and re-submitting it to the Chairman.

**(3) Upon any re-submission** of a variance approval, the Chairman
shall have thirty (30) days to concur with or object to the re-submitted
variance.

**(4) If the Chairman fails to object** in writing within thirty (30)
days after the date of receipt of the re-submitted variance, the
re-submitted variance shall be considered concurred with by the
Chairman.

**(5) The thirty (30) day deadline** may be extended, provided such
extension is mutually agreed upon by the Tribal gaming regulatory
authority and the Chairman.

***(d) [Appeals.]{.underline} (Revised May 4, 2005)***

**(1) Upon receipt of objections** to a re-submission of a variance, the
Tribal gaming regulatory authority shall be entitled to an appeal to the
full Commission in accordance with the following process:

**(i)** Within thirty (30) days of receiving an objection to a
re-submission, the Tribal gaming regulatory authority shall file its
notice of appeal.

**(ii)** Failure to file an appeal within the time provided by this
section shall result in a waiver of the opportunity for an appeal.

**(iii)** An appeal under this section shall specify the reasons why the
Tribal gaming regulatory authority believes the Chairman\'s objections
should be reviewed, and shall include supporting documentation, if any.

**(iv)** The Tribal gaming regulatory authority shall be provided with
any comments offered by the Chairman to the Commission on the substance
of the appeal by the Tribal gaming regulatory authority and shall be
offered the opportunity to respond to any such comments.

**(v)** Within thirty (30) days after receipt of the appeal, the
Commission shall render a decision based upon the criteria contained
within paragraph (b)(2) of this section unless the Tribal gaming
regulatory authority elects to wave the thirty (30) day requirement and
to provide the Commission additional time, not to exceed an additional
thirty (30) days, to render a decision.

**(vi)** In the absence of a decision within the time provided, the
Tribal gaming regulatory authority\'s resubmission shall be considered
concurred with by the Commission and become effective.

**(2) The Tribal gaming regulatory authority** may appeal the
Chairman\'s objection to the approval of a variance to the full
Commission without resubmitting the variance by filling a notice of
appeal with the full Commission within thirty (30) days of the
Chairman\'s objection and complying with the procedures described in
paragraph (d)(1) of this section.

***(e) [Effective date of variance.]{.underline}*** The gaming operation
shall comply with standards that achieve a level of control sufficient
to accomplish the purpose of the standard it is to replace until such
time as the Commission objects to the Tribal gaming regulatory
authority\'s approval of a variance as provided in paragraph (b) of this
section. Concurrence in a variance by the Chairman or Commission is
discretionary and variances will not be granted routinely. The gaming
operation shall comply with standards at least as stringent as those set
forth in this part until such time as the Chairman or Commission concurs
with the Tribal gaming regulatory authority\'s approval of a variance.
(Revised May 4, 2005)

**[[§542.19 What are the minimum internal control standards for
accounting?]{.mark}]{.underline} (Adopted May 11, 2006)**

*[**(a) Each gaming** **operation shall prepare accurate, complete,
legible, and permanent records of all transactions pertaining to revenue
and gaming** **activities.**]{.underline}*

***([b) Each gaming operation shall prepare]{.underline}** **[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:]{.underline}***

**(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 each type of table game, by shift, by day, cumulative
month-to-date and 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 this part 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**]{.underline}
**[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:]{.underline}***

**(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 business practices.

***([d) Gross gaming revenue computations]{.underline}**[.]{.underline}*

**(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]{.underline}** [**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 in another approved
repository.**]{.underline}*

***[(f) If the gaming operation provides periodic
payments]{.underline}** [**to satisfy a payout resulting from a wager,
the initial installment payment, when paid, and the actual cost of a
payment plan, which 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 TGRA. For any funding method which merely
guarantees the gaming** **operation\'s**]{.underline}* ***[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.]{.underline}*** (Adopted May 11, 2006)

***[(g) For payouts by wide-area progressive]{.underline}** [**gaming**
**machine systems, a gaming** **operation may deduct from winnings only
its pro rata share of a wide-area gaming machine system
payout.**]{.underline}* (Adopted May 11, 2006)

***[(h) Cash-out tickets issued]{.underline}** [**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.**]{.underline}*

*[**(i)** **A gaming** **operation may not deduct**]{.underline} [**from
gross revenues the unpaid balance of a credit instrument extended for
purposes other than gaming**.]{.underline}*

*[**(j) A gaming** **operation may deduct**]{.underline} [**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 TGRA or the Commission upon
request:**]{.underline}*

**(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, which would normally be
acceptable as a type of identification when cashing checks, and has
recorded the patron\'s 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 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, proof of
presentation of the credit instrument to the patron\'s bank for
collection, settlement agreements, or other documents which demonstrate
that the gaming operation 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 TGRA or the commission upon request.

***[(k) Maintenance and preservation of books, records and
documents.]{.underline}***

**(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 this part, 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 by which the book, record or document is generated or maintained
(paper, computer-generated, magnetic media, etc.).

**[[§542.20 What is a Tier A gaming operation?]{.underline}]{.mark}**

**A Tier A gaming operation** is one with annual gross gaming revenues
of more than \$1 million but not more than \$5 million.

**[[§542.21 What are the minimum internal control standards for drop and
count for Tier A gaming operations?]{.underline}]{.mark}**

**(a) *[Computer applications]{.underline}***. For any computer
applications 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, will be
acceptable.

**(b) *[Table game drop standards]{.underline}*.**

**(1) The setting out of empty table game drop boxes and the drop
shall** be a continuous process.

(**2) At the end of each** **shift**:

**(i)** All locked table game drop boxes shall be removed from the
tables by a person independent of the pit shift being dropped;

**(ii)** A separate drop box shall be placed on each table opened at any
time during each shift or a gaming operation may utilize a single drop
box with separate openings and compartments for each shift; and

**(iii)** Upon removal from the tables, table game drop boxes shall be
transported directly to the count room or other equivalently secure area
with comparable controls and locked in a secure manner until the count
takes place.

**(3) If drop boxes are not placed on all tables,** then the pit
department shall document which tables were open during the shift.

**(4) The transporting of table game drop** boxes shall be performed by
a minimum of two persons, at least one of whom is independent of the pit
shift being dropped.

**(5) All table game drop boxes shall** be posted with a number
corresponding to a permanent number on the gaming table and marked to
indicate game, table number, and shift.

**(c) *[Soft count room personnel]{.underline}*.**

**(1) The table game soft count and the gaming machine bill acceptor
count shall** be performed by a minimum of two employees.

**(2) Count room personnel shall** **not** be allowed to exit or enter
the count room during the count except for emergencies or scheduled
breaks. At no time during the count, shall there be fewer than two
employees in the count room until the drop proceeds have been accepted
into cage/vault accountability.

**(3) Count team members shall** be rotated on a routine basis such that
the count team is not consistently the same two persons more than four
(4) days per week. This standard shall not apply to gaming operations
that utilize a count team of more than two persons.

(**4) The count team shall** be independent of transactions being
reviewed and counted. The count team shall be independent of the
cage/vault departments, however, a dealer or a cage cashier may be used
if this person is not allowed to perform the recording function. An
accounting representative may be used if there is an independent audit
of all soft count documentation.

**(d) *[Table game soft count standards]{.underline}*.**

**(1) The table game soft count shall** be performed in a soft count
room or other equivalently secure area with comparable controls.

**(2) Access to the count room during the count shall** be restricted to
members of the drop and count teams, with the exception of authorized
observers, supervisors for resolution of problems, and authorized
maintenance personnel.

**(3) If counts from various revenue** centers occur simultaneously in
the count room, procedures shall be in effect that prevent the
commingling of funds from different revenue centers.

**(4) The table game drop boxes shall** be individually emptied and
counted in such a manner to prevent the commingling of funds between
boxes until the count of the box has been recorded.

**(i)** The count of each box shall be recorded in ink or other
permanent form of recordation.

**(ii)** A second count shall be performed by an employee on the count
team who did not perform the initial count.

**(iii)** Corrections to information originally recorded by the count
team on soft count documentation shall be made by drawing a single line
through the error, writing the correct figure above the original figure,
and then obtaining the initials of at least two count team members who
verified the change, unless the count team only has two (2) members in
which case the initials of only one (1) verifying member is required.

(**5) If cash counters are utilized** and the count room table is used
only to empty boxes and sort/stack contents, a count team member shall
be able to observe the loading and unloading of all cash at the cash
counter, including rejected cash.

**(6) Table game drop boxes, when empty, shall** be shown to another
member of the count team, or to another person who is observing the
count, or to surveillance.

**(7) Orders for fill/credit (if applicable) shall** be matched to the
fill/credit slips. Fills and credits shall be traced to or recorded on
the count sheet.

\(8\) **Pit marker issue and payment slips (if applicable) removed from
the table game drop boxes shall** either be:

**(i)** Traced to or recorded on the count sheet by the count team; or

**(ii)** Totaled by shift and traced to the totals documented by the
computerized system. Accounting personnel shall verify the issue/payment
slip for each table is accurate.

**(9) Foreign currency exchange forms** (if applicable) removed from the
table game drop boxes shall be reviewed for the proper daily exchange
rate and the conversion amount shall be recomputed by the count team.
Alternatively, this may be performed by accounting/auditing employees.

**(10) The opening/closing table and marker inventory forms (if
applicable) shall** either be:

**(i)** Examined and traced to or recorded on the count sheet; or

**(ii)** If a computerized system is used, accounting personnel can
trace the opening/closing table and marker inventory forms to the count
sheet. Discrepancies shall be investigated with the findings documented
and maintained for inspection.

**(11) The count sheet shall** be reconciled to the total drop by a
count team member who shall not function as the sole recorder.

**(12) All members of the count team shall** sign the count document or
a summary report to attest to their participation in the count.

**(13) All drop proceeds and cash equivalents that were counted shall**
be turned over to the cage or vault cashier (who shall be independent of
the count team) or to an authorized person/employee independent of the
revenue generation and the count process for verification. Such person
shall certify by signature as to the accuracy of the drop proceeds
delivered and received.

**(14) The count sheet, with all supporting documents, shall** be
delivered to the accounting department by a count team member or a
person independent of the cashiers department. Alternatively, it may be
adequately secured (e.g., locked container to which only accounting
personnel can gain access) until retrieved by the accounting department.

**(15) Access to stored, full table game drop boxes shall** be
restricted to authorized members of the drop and count teams.

**(e) *[Gaming machine bill acceptor drop standards]{.underline}*.**

**(1) A minimum of two employees shall** be involved in the removal of
the gaming machine drop, at least one of whom is independent of the
gaming machine department.

**(2) All bill acceptor canisters shall** be removed only at the time
previously designated by the gaming operation and reported to the Tribal
gaming regulatory authority, except for emergency drops.

**(3) The bill acceptor canisters shall** be removed by a person
independent of the gaming machine department then transported directly
to the count room or other equivalently secure area with comparable
controls and locked in a secure manner until the count takes place.

**(i)** Security shall be provided over the bill acceptor canisters
removed from the gaming machines and awaiting transport to the count
room.

**(ii)** The transporting of bill acceptor canisters shall be performed
by a minimum of two persons, at least one of whom is independent of the
gaming machine department.

**(4) All bill acceptor canisters shall** be posted with a number
corresponding to a permanent number on the gaming machine.

**(f) *[Gaming machine bill acceptor count standards]{.underline}*.**

**(1) The gaming machine bill acceptor count shall** be performed in a
soft count room or other equivalently secure area with comparable
controls.

**(2) Access to the count room during the count shall** be restricted to
members of the drop and count teams, with the exception of authorized
observers, supervisors for resolution of problems, and authorized
maintenance personnel.

**(3) If counts from various revenue centers occur simultaneously in the
count room, procedures shall** be in effect that prevent the commingling
of funds from different revenue centers.

**(4) The bill acceptor canisters shall** be individually emptied and
counted in such a manner to prevent the commingling of funds between
canisters until the count of the canister has been recorded.

**(i)** The count of each canister shall be recorded in ink or other
permanent form of recordation.

**(ii)** Corrections to information originally recorded by the count
team on soft count documentation shall be made by drawing a single line
through the error, writing the correct figure above the original figure,
and then obtaining the initials of at least two count team members who
verified the change. (Revised August 12, 2005)

**(5) If cash counters are utilized and the count room table is used
only to empty canisters and sort/stack contents, a count team member
shall** be able to observe the loading and unloading of all cash at the
cash counter, including rejected cash.

**(6) Canisters, when empty, shall** be shown to another member of the
count team, or to another person who is observing the count, or to
surveillance.

**(7) The count sheet shall** be reconciled to the total drop by a count
team member who shall not function as the sole recorder.

**(8) All members of the count team shall** sign the count document or a
summary report to attest to their participation in the count.

**(9) All drop proceeds and cash equivalents that were counted shall**
be turned over to the cage or vault cashier (who shall be independent of
the count team) or to an authorized person/employee independent of the
revenue generation and the count process for verification. Such person
shall certify by signature as to the accuracy of the drop proceeds
delivered and received.

**(10) The count sheet, with all supporting documents, shall** be
delivered to the accounting department by a count team member or a
person independent of the cashiers department. Alternatively, it may be
adequately secured (e.g., locked container to which only accounting
personnel can gain access) until retrieved by the accounting department.

**(11) Access to stored bill acceptor canisters, full or empty, shall**
be restricted to:

**(i)** Authorized members of the drop and count teams; and

**(ii)** Authorized personnel in an emergency for resolution of a
problem.

**(g) *[Gaming machine coin drop standards]{.underline}*.**

**(1) A minimum of two employees shall** be involved in the removal of
the gaming machine drop, at least one of whom is independent of the
gaming machine department.

(**2) All drop buckets shall** be removed only at the time previously
designated by the gaming operation and reported to the Tribal gaming
regulatory authority, except for emergency drops.

**(3) Security shall** be provided over the buckets removed from the
gaming machine drop cabinets and awaiting transport to the count room.

**(4) As each machine is opened, the contents shall** be tagged with its
respective machine number if the bucket is not permanently marked with
the machine number. The contents shall be transported directly to the
area designated for the counting of such drop proceeds. If more than one
trip is required to remove the contents of the machines, the filled
carts of coins shall be securely locked in the room designed for
counting or in another equivalently secure area with comparable
controls. There shall be a locked covering on any carts in which the
drop route includes passage out of doors.

**(i)** Alternatively, a smart bucket system that electronically
identifies and tracks the gaming machine number, and facilitates the
proper recognition of gaming revenue, shall satisfy the requirements of
this paragraph.

**(ii)** \[Reserved\]

**(5) Each drop bucket in use shall** be:

**(i)** Housed in a locked compartment separate from any other
compartment of the gaming machine and keyed differently than other
gaming machine compartments; and

**(ii)** Identifiable to the gaming machine from which it is removed. If
the gaming machine is identified with a removable tag that is placed in
the bucket, the tag shall be placed on top of the bucket when it is
collected.

**(6) Each gaming machine shall** have drop buckets into which coins or
tokens that are retained by the gaming machine are collected. Drop
bucket contents shall not be used to make change or pay hand-paid
payouts.

**(7) The collection procedures may** include procedures for dropping
gaming machines that have trays instead of drop buckets.

**(h) *[Hard count room personnel]{.underline}*.**

**(1) The weigh/count shall** be performed by a minimum of two
employees.

**(2) At no time during the weigh/count shall** there be fewer than two
employees in the count room until the drop proceeds have been accepted
into cage/vault accountability.

**(i)** If the gaming machine count is conducted with a continuous
mechanical count meter that is not reset during the count and is
verified in writing by at least two employees at the start and end of
each denomination count, then one employee may perform the wrap.

**(ii)** \[Reserved\]

**(3) Count team members shall** be rotated on a routine basis such that
the count team is not consistently the same two persons more than four
(4) days per week. This standard shall not apply to gaming operations
that utilize a count team of more than two persons.

**(4) The count team shall** be independent of transactions being
reviewed and counted. The count team shall be independent of the
cage/vault departments, unless they are non-supervisory gaming machine
employees and perform the laborer function only (A non-supervisory
gaming machine employee is defined as a person below the level of gaming
machine shift supervisor). A cage cashier may be used if this person is
not allowed to perform the recording function. An accounting
representative may be used if there is an independent audit of all count
documentation.

**(i) *[Gaming machine coin count and wrap standards]{.underline}*.**

**(1) Coins shall** include tokens.

**(2) The gaming machine coin count and wrap shall** be performed in a
count room or other equivalently secure area with comparable controls.

**(i)** Alternatively, an on-the-floor drop system utilizing a mobile
scale shall satisfy the requirements of this paragraph, subject to the
following conditions:

**(A)** The gaming operation shall utilize and maintain an effective
on-line gaming machine monitoring system, as described in §542.13(m)(3);

**(B)** Components of the on-the-floor drop system shall include, but
not be limited to, a weigh scale, a laptop computer through which
weigh/count applications are operated, a security camera available for
the mobile scale system, and a VCR to be housed within the video
compartment of the mobile scale. The system may include a mule cart used
for mobile weigh scale system locomotion.

**(C)** The gaming operation must obtain the security camera available
with the system, and this camera must be added in such a way as to
eliminate tampering.

**(D)** Prior to the drop, the drop/count team shall ensure the scale
batteries are charged;

**(E)** Prior to the drop, a videotape shall be inserted into the VCR
used to record the drop in conjunction with the security camera system
and the VCR shall be activated;

**(F)** The weigh scale test shall be performed prior to removing the
unit from the hard count room for the start of the weigh/drop/count;

**(G)** **Surveillance shall** be notified when the weigh/drop/count
begins and shall be capable of monitoring the entire process;

**(H)** An observer independent of the weigh/drop/count teams
(independent observer) shall remain by the weigh scale at all times and
shall observe the entire weigh/drop/count process;

**(I)** Physical custody of the key(s) needed to access the laptop and
video compartment shall require the involvement of two persons, one of
whom is independent of the drop and count team;

**(J)** The mule key (if applicable), the laptop and video compartment
keys, and the remote control for the VCR shall be maintained by a
department independent of the gaming machine department. The appropriate
personnel shall sign out these keys;

**(K)** A person independent of the weigh/drop/count teams shall be
required to accompany these keys while they are checked out, and observe
each time the laptop compartment is opened;

**(L)** The laptop access panel shall not be opened outside the hard
count room, except in instances when the laptop must be rebooted as a
result of a crash, lock up, or other situation requiring immediate
corrective action;

**(M)** User access to the system shall be limited to those employees
required to have full or limited access to complete the
weigh/drop/count; and

**(N)** When the weigh/drop/count is completed, the independent observer
shall access the laptop compartment, end the recording session, eject
the videotape, and deliver the videotape to surveillance.

**(ii)** \[Reserved\]

**(3) Access to the count room during the count shall** be restricted to
members of the drop and count teams, with the exception of authorized
observers, supervisors for resolution of problems, and authorized
maintenance personnel.

**(4) If counts from various revenue centers** occur simultaneously in
the count room, procedures shall be in effect that prevent the
commingling of funds from different revenue centers.

**(5) The following functions shall** be performed in the counting of
the gaming machine drop:

**(i)** Recorder function, which involves the recording of the gaming
machine count; and

**(ii)** Count team supervisor function, which involves the control of
the gaming machine weigh and wrap process. The supervisor shall not
perform the initial recording of the weigh/count unless a weigh scale
with a printer is used.

**(6) The gaming machine drop shall** be counted, wrapped, and
reconciled in such a manner to prevent the commingling of gaming machine
drop coin with coin (for each denomination) from the next gaming machine
drop until the count of the gaming machine drop has been recorded. If
the coins are not wrapped immediately after being weighed or counted,
they shall be secured and not commingled with other coin.

**(i)** The amount of the gaming machine drop from each machine shall be
recorded in ink or other permanent form of recordation on a gaming
machine count document by the recorder or mechanically printed by the
weigh scale.

**(ii)** Corrections to information originally recorded by the count
team on gaming machine count documentation shall be made by drawing a
single line through the error, writing the correct figure above the
original figure, and then obtaining the initials of at least two count
team members who verified the change.

**(A)** If a weigh scale interface is used, corrections to gaming
machine count data shall be made using either of the following:

**([1]{.underline}) Drawing a single line through the error** on the
gaming machine document, writing the correct figure above the original
figure, and then obtaining the initials of at least two count team
employees. If this procedure is used, an employee independent of the
gaming machine department and count team shall enter the correct figure
into the computer system prior to the generation of related gaming
machine reports; or

**([2]{.underline}) During the count process**, correct the error in the
computer system and enter the passwords of at least two count team
employees. If this procedure is used, an exception report shall be
generated by the computer system identifying the gaming machine number,
the error, the correction, and the count team employees attesting to the
correction.

**(B)** \[Reserved\]

**(7) If applicable, the weight shall** be converted to dollar amounts
prior to the reconciliation of the weigh to the wrap.

**(8) If a coin meter is used, a count team member shall** convert the
coin count for each denomination into dollars and shall enter the
results on a summary sheet.

**(9) The recorder and at least one other count team member shall** sign
the weigh tape and the gaming machine count document attesting to the
accuracy of the weigh/count.

**(10) All members of the count team shall** sign the count document or
a summary report to attest to their participation in the count.

**(11) All drop proceeds and cash equivalents that were counted shall**
be turned over to the cage or vault cashier (who shall be independent of
the count team) or to an authorized person/employee independent of the
revenue generation and the count process for verification. Such person
shall certify by signature as to the accuracy of the drop proceeds
delivered and received.

(**12) All gaming machine count and wrap documentation, including any
applicable computer storage media, shall** be delivered to the
accounting department by a count team member or a person independent of
the cashier\'s department. Alternatively, it may be adequately secured
(e.g., locked container to which only accounting personnel can gain
access) until retrieved by the accounting department.

**(13) If the coins are transported off the property, a second
(alternative) count procedure shall** be performed before the coins
leave the property. Any variances shall be documented.

**[(14) *Variances*]{.underline}**. Large (by denomination, either
\$1,000 or 2% of the drop, whichever is less) or unusual (e.g., zero for
weigh/count or patterned for all counts) variances between the
weigh/count and wrap shall be investigated by management personnel
independent of the gaming machine department, count team, and the
cage/vault functions on a timely basis. The results of such
investigation shall be documented, maintained for inspection, and
provided to the Tribal gaming regulatory authority upon request.

**(j) *[Security of the coin room inventory during the gaming machine
coin count and wrap]{.underline}.***

**(1) If the count room serves** as a coin room and coin room inventory
is not secured so as to preclude access by the count team, then the
following standards shall apply:

**(i)** At the commencement of the gaming machine count the following
requirements shall be met:

**(A)** The coin room inventory shall be counted by at least two
employees, one of whom is a member of the count team and the other is
independent of the weigh/count and wrap procedures;

**(B)** The count in paragraph (j)(1)(i)(A) of this section shall be
recorded on an appropriate inventory form;

**(ii)** Upon completion of the wrap of the gaming machine drop:

**(A)** At least two members of the count team (wrap team),
independently from each other, shall count the ending coin room
inventory;

**(B)** The counts in paragraph (j)(1)(ii)(A) of this section shall be
recorded on a summary report(s) that evidences the calculation of the
final wrap by subtracting the beginning inventory from the sum of the
ending inventory and transfers in and out of the coin room;

**(C)** The same count team members shall compare the calculated wrap to
the weigh/count, recording the comparison and noting any variances on
the summary report;

**(D)** A member of the cage/vault department shall count the ending
coin room inventory by denomination and shall reconcile it to the
beginning inventory, wrap, transfers, and weigh/count; and

**(E)** At the conclusion of the reconciliation, at least two count/wrap
team members and the verifying employee shall sign the summary report(s)
attesting to its accuracy.

**(iii)** The functions described in paragraph (j)(1)(ii)(A) and (C) of
this section may be performed by only one count team member. That count
team member must then sign the summary report, along with the verifying
employee, as required under paragraph (j)(1)(ii)(E).

**(2) If the count room is segregated** from the coin room, or if the
coin room is used as a count room and the coin room inventory is secured
to preclude access by the count team, all of the following requirements
shall be completed, at the conclusion of the count:

**(i)** At least two members of the count/wrap team shall count the
final wrapped gaming machine drop independently from each other;

**(ii)** The counts shall be recorded on a summary report;

**(iii)** The same count team members (or the accounting department)
shall compare the final wrap to the weigh/count, recording the
comparison, and noting any variances on the summary report;

**(iv)** A member of the cage/vault department shall count the wrapped
gaming machine drop by denomination and reconcile it to the weigh/count;

**(v)** At the conclusion of the reconciliation, at least two count team
members and the cage/vault employee shall sign the summary report
attesting to its accuracy; and

**(vi)** The wrapped coins (exclusive of proper transfers) shall be
transported to the cage, vault or coin vault after the reconciliation of
the weigh/count to the wrap.

**(k) *[Transfers during the gaming machine coin count and
wrap]{.underline}*.**

**(1) Transfers may** be permitted during the count and wrap only if
permitted under the internal control standards approved by the Tribal
gaming regulatory authority.

**(2) Each transfer shall** be recorded on a separate multi-part form
with a preprinted or concurrently-printed form number (used solely for
gaming machine count transfers) that shall be subsequently reconciled by
the accounting department to ensure the accuracy of the reconciled
gaming machine drop.

**(3) Each transfer must** be counted and signed for by at least two
members of the count team and by a person independent of the count team
who is responsible for authorizing the transfer.

**(l) *[Gaming machine drop key control standards]{.underline}*.**

**(1) Gaming machine coin drop cabinet keys, including duplicates,
shall** be maintained by a department independent of the gaming machine
department.

**(2) The physical custody of the keys needed to access gaming machine
coin drop cabinets, including duplicates, shall** require the
involvement of two persons, one of whom is independent of the gaming
machine department.

**(3) Two employees (separate from key custodian) shall** be required to
accompany such keys while checked out and observe each time gaming
machine drop cabinets are accessed.

**(m) *[Table game drop box key control standards]{.underline}*.**

**(1) Tier A gaming operations shall** be exempt from compliance with
this paragraph if the Tribal gaming regulatory authority, or the gaming
operation as approved by the Tribal gaming regulatory authority,
establishes and the gaming operation complies with procedures that
maintain adequate key control and restricts access to the keys.

**(2) Procedures shall** be developed and implemented to insure that
unauthorized access to empty table game drop boxes shall not occur from
the time the boxes leave the storage racks until they are placed on the
tables.

**(3) The involvement of at least two persons independent of the cage
department shall** be required to access stored empty table game drop
boxes.

**(4) The release keys shall** be separately keyed from the contents
keys.

**(5) At least two count team members are required** to be present at
the time count room and other count keys are issued for the count.

**(6) All duplicate keys shall** be maintained in a manner that provides
the same degree of control as is required for the original keys. Records
shall be maintained for each key duplicated that indicate the number of
keys made and destroyed.

**(7) Logs shall** be maintained by the custodian of sensitive keys to
document authorization of personnel accessing keys.

**(n) *[Table game drop box release keys]{.underline}*.**

**(1) Tier A gaming operations shall** be exempt from compliance with
this paragraph if the Tribal gaming regulatory authority, or the gaming
operation as approved by the Tribal gaming regulatory authority,
establishes and the gaming operation complies with procedures that
maintain adequate key control and restricts access to the keys.

**(2) The table game drop box release keys shall** be maintained by a
department independent of the pit department.

**(3) Only the person(s) authorized to remove table game drop boxes from
the tables shall** be allowed access to the table game drop box release
keys; however, the count team members may have access to the release
keys during the soft count in order to reset the table game drop boxes.

**(4) Persons authorized to remove the table game drop boxes shall** be
precluded from having simultaneous access to the table game drop box
contents keys and release keys.

**(5) For situations requiring access** to a table game drop box at a
time other than the scheduled drop, the date, time, and signature of
employee signing out/in the release key must be documented.

**(o) *[Bill acceptor canister release keys]{.underline}*.**

**(1) Tier A gaming operations shall** be exempt from compliance with
this paragraph if the Tribal gaming regulatory authority, or the gaming
operation as approved by the Tribal gaming regulatory authority,
establishes and the gaming operation complies with procedures that
maintain adequate key control and restricts access to the keys.

**(2) The bill acceptor canister release keys shall** be maintained by a
department independent of the gaming machine department.

**(3) Only the person(s) authorized to remove bill acceptor canisters
from the gaming machines shall** be allowed access to the release keys.

**(4) Persons authorized to remove the bill acceptor canisters shall**
be precluded from having simultaneous access to the bill acceptor
canister contents keys and release keys.

**(5) For situations requiring access** to a bill acceptor canister at a
time other than the scheduled drop, the date, time, and signature of
employee signing out/in the release key must be documented.

**(p) *[Table game drop box storage rack keys]{.underline}*.**

**(1) Tier A gaming operations shall** be exempt from compliance with
this paragraph if the Tribal gaming regulatory authority, or the gaming
operation as approved by the Tribal gaming regulatory authority,
establishes and the gaming operation complies with procedures that
maintain adequate key control and restricts access to the keys.

**(2) Persons authorized to obtain table game drop box storage rack keys
shall** be precluded from having simultaneous access to table game drop
box contents keys, with the exception of the count team.

**(q) *[Bill acceptor canister storage rack keys]{.underline}***.

**(1) Tier A gaming operations shall** be exempt from compliance with
this paragraph if the Tribal gaming regulatory authority, or the gaming
operation as approved by the Tribal gaming regulatory authority,
establishes and the gaming operation complies with procedures that
maintain adequate key control and restricts access to the keys.

**(2) Persons authorized to obtain bill acceptor canister storage rack
keys shall** be precluded from having simultaneous access to bill
acceptor canister contents keys, with the exception of the count team.

**(r) *[Table game drop box contents keys]{.underline}*.**

**(1) Tier A gaming operations shall** be exempt from compliance with
this paragraph if the Tribal gaming regulatory authority, or the gaming
operation as approved by the Tribal gaming regulatory authority,
establishes and the gaming operation complies with procedures that
maintain adequate key control and restricts access to the keys.

**(2) The physical custody of the keys needed for accessing stored, full
table game drop box contents shall** require the involvement of persons
from at least two separate departments, with the exception of the count
team.

(**3) Access to the table game drop box contents key at other than
scheduled count times shall** require the involvement of at least two
persons from separate departments, including management. The reason for
access shall be documented with the signatures of all participants and
observers.

**(4) Only count team members shall** be allowed access to table game
drop box contents keys during the count process.

**(s) *[Bill acceptor canister contents keys]{.underline}*.**

**(1) Tier A gaming operations shall** be exempt from compliance with
this paragraph if the Tribal gaming regulatory authority, or the gaming
operation as approved by the Tribal gaming regulatory authority,
establishes and the gaming operation complies with procedures that
maintain adequate key control and restricts access to the keys.

**(2) The physical custody of the keys needed for accessing stored, full
bill acceptor canister contents shall** require involvement of persons
from two separate departments, with the exception of the count team.

**(3) Access to the bill acceptor canister contents key at other than
scheduled count times shall** require the involvement of at least two
persons from separate departments, one of whom must be a supervisor. The
reason for access shall be documented with the signatures of all
participants and observers.

**(4) Only the count team members shall** be allowed access to bill
acceptor canister contents keys during the count process.

***(t) [Gaming machine computerized key security systems.]{.underline}
(Adopted May 4, 2005)***

**(1) Computerized key security systems** which restrict access to the
gaming machine drop and count keys through the use of passwords, keys or
other means, other than a key custodian, must provide the same degree of
control as indicated in the aforementioned key control standards; refer
to paragraphs (l), (o), (q) and (s) of this section. Note: This standard
does not apply to the system administrator. The system administrator is
defined in paragraph (t)(2)(i) of this section.

**(2) For computerized key security systems**, the following additional
gaming machine key control procedures apply:

**(i)** Management personnel independent of the gaming machine
department assign and control user access to keys in the computerized
key security system (i.e., system administrator) to ensure that gaming
machine drop and count keys are restricted to authorized employees.

**(ii)** In the event of an emergency or the key box is inoperable,
access to the emergency manual key(s) (a.k.a. override key), used to
access the box containing the gaming machine drop and count keys,
requires the physical involvement of at least three persons from
separate departments, including management. The date, time, and reason
for access, must be documented with the signatures of all participating
employees signing out/in the emergency manual key(s).

**(iii)** The custody of the keys issued pursuant to paragraph
(t)(2)(ii) of this section requires the presence of two persons from
separate departments from the time of their issuance until the time of
their return.

**(iv)** Routine physical maintenance that requires accessing the
emergency manual key(s) (override key) and does not involve the
accessing of the gaming machine drop and count keys, only requires the
presence of two persons from separate departments. The date, time and
reason for access must be documented with the signatures of all
participating employees signing out/in the emergency manual key(s).

**(3) For computerized key security systems** controlling access to
gaming machine drop and count keys, accounting/audit personnel,
independent of the system administrator, will perform the following
procedures:

**(i)** Daily, review the report generated by the computerized key
security system indicating the transactions performed by the
individual(s) that adds, deletes, and changes user\'s access within the
system (i.e., system administrator). Determine whether the transactions
completed by the system administrator provide an adequate control over
the access to the gaming machine drop and count keys. Also, determine
whether any gaming machine drop and count key(s) removed or returned to
the key cabinet by the system administrator was properly authorized.

**(ii)** For at least one day each month, review the report generated by
the computerized key security system indicating all transactions
performed to determine whether any unusual gaming machine drop and count
key removals or key returns occurred.

**(iii)** At least quarterly, review a sample of users that are assigned
access to the gaming machine drop and count keys to determine that their
access to the assigned keys is adequate relative to their job position.

**(iv)** All noted improper transactions or unusual occurrences are
investigated with the results documented.

**(4) Quarterly**, an inventory of all count room, drop box release,
storage rack and contents keys is performed, and reconciled to records
of keys made, issued, and destroyed. Investigations are performed for
all keys unaccounted for, with the investigation being documented.

***(u) [Table games computerized key security systems.]{.underline}
(Adopted May 4, 2005)***

**(1) Computerized key security systems** which restrict access to the
table game drop and count keys through the use of passwords, keys or
other means, other than a key custodian, must provide the same degree of
control as indicated in the aforementioned key control standards; refer
to paragraphs (m), (n), (p) and (r) of this section. Note: This standard
does not apply to the system administrator. The system administrator is
defined in paragraph (u)(2)(ii) of this section.

**(2) For computerized key security systems**, the following additional
table game key control procedures apply:

**(i)** Management personnel independent of the table game department
assign and control user access to keys in the computerized key security
system (i.e., system administrator) to ensure that table game drop and
count keys are restricted to authorized employees.

**(ii)** In the event of an emergency or the key box is inoperable,
access to the emergency manual key(s) (a.k.a. override key), used to
access the box containing the table game drop and count keys, requires
the physical involvement of at least three persons from separate
departments, including management. The date, time, and reason for
access, must be documented with the signatures of all participating
employees signing out/in the emergency manual key(s).

**(iii)** The custody of the keys issued pursuant to paragraph
(u)(2)(ii) of this section requires the presence of two persons from
separate departments from the time of their issuance until the time of
their return.

**(iv)** Routine physical maintenance that requires accessing the
emergency manual key(s) (override key) and does not involve the
accessing of the table games drop and count keys, only requires the
presence of two persons from separate departments. The date, time and
reason for access must be documented with the signatures of all
participating employees signing out/in the emergency manual key(s).

**(3) For computerized key security systems** controlling access to
table games drop and count keys, accounting/audit personnel, independent
of the system administrator, will perform the following procedures:

**(i)** Daily, review the report generated by the computerized key
security system indicating the transactions performed by the
individual(s) that adds, deletes, and changes user\'s access within the
system (i.e., system administrator). Determine whether the transactions
completed by the system administrator provide an adequate control over
the access to the table games drop and count keys. Also, determine
whether any table games drop and count key(s) removed or returned to the
key cabinet by the system administrator was properly authorized.

**(ii)** For at least one day each month, review the report generated by
the computerized key security system indicating all transactions
performed to determine whether any unusual table games drop and count
key removals or key returns occurred.

**(iii)** At least quarterly, review a sample of users that are assigned
access to the table games drop and count keys to determine that their
access to the assigned keys is adequate relative to their job position.

**(iv)** All noted improper transactions or unusual occurrences are
investigated with the results documented.

**(4) Quarterly**, an inventory of all count room, table game drop box
release, storage rack and contents keys is performed, and reconciled to
records of keys made, issued, and destroyed. Investigations are
performed for all keys unaccounted for, with the investigations being
documented.

***(v) [Emergency drop procedures.]{.underline}*** Emergency drop
procedures shall be developed by the Tribal gaming regulatory authority,
or the gaming operation as approved by the Tribal gaming regulatory
authority. (Revised May 4, 2005)

***(w) [Equipment standards for gaming machine count.]{.underline}
(Revised May 4, 2005)***

**(1) A weigh scale calibration module** shall be secured so as to
prevent unauthorized access (e.g., prenumbered seal, lock and key,
etc.).

**(2) A person independent** of the cage, vault, gaming machine, and
count team functions shall be required to be present whenever the
calibration module is accessed. Such access shall be documented and
maintained.

**(3) If a weigh scale interface is used**, it shall be adequately
restricted so as to prevent unauthorized access (passwords, keys, etc.).

**(4) If the weigh scale has a zero adjustment** mechanism, it shall be
physically limited to minor adjustments (e.g., weight of a bucket) or
physically situated such that any unnecessary adjustments to it during
the weigh process would be observed by other count team members.

**(5) The weigh scale and weigh scale interface** (if applicable) shall
be tested by a person or persons independent of the cage, vault, and
gaming machine departments and count team at least quarterly. At least
annually, this test shall be performed by internal audit in accordance
with the internal audit standards. The result of these tests shall be
documented and signed by the person or persons performing the test.

**(6) Prior to the gaming machine count**, at least two employees shall
verify the accuracy of the weigh scale with varying weights or with
varying amounts of previously counted coin for each denomination to
ensure the scale is properly calibrated (varying weights/coin from drop
to drop is acceptable).

**(7) If a mechanical coin counter is used** (instead of a weigh scale),
the Tribal gaming regulatory authority, or the gaming operation as
approved by the Tribal gaming regulatory authority, shall establish and
the gaming operation shall comply, with procedures that are equivalent
to those described in paragraphs (u)(4), (u)(5), and (u)(6) of this
section.

**(8) If a coin meter count machine is used**, the count team member
shall record the machine number denomination and number of coins in ink
on a source document, unless the meter machine automatically records
such information.

**(i)** A count team member shall test the coin meter count machine
prior to the actual count to ascertain if the metering device is
functioning properly with a predetermined number of coins for each
denomination.

**(ii)** \[Reserved\]

**[[§542.22 What are the minimum internal control standards for internal
audit for Tier A gaming operations?]{.underline}]{.mark}**

**(a) *[Internal audit personnel]{.underline}*.**

**(1) For Tier A gaming operations**, a separate internal audit
department must be maintained. Alternatively, designating personnel (who
are independent with respect to the departments/procedures being
examined) to perform internal audit work satisfies the requirements of
this paragraph.

**(2) The internal audit personnel shall** report directly to the Tribe,
Tribal gaming regulatory authority, audit committee, or other entity
designated by the Tribe in accordance with the definition of internal
audit in §542.2.

**(b) *[Audits]{.underline}*.**

**(1) Internal audit personnel shall** perform audits of all major
gaming areas of the gaming operation. The following shall be reviewed at
least annually:

**(i)** Bingo, including but not limited to, bingo card control, payout
procedures, and cash reconciliation process;

**(ii)** Pull tabs, including but not limited to, statistical records,
winner verification, perpetual inventory, and accountability of sales
versus inventory;

**(iii)** Card games, including but not limited to, card games
operation, cash exchange procedures, shill transactions, and count
procedures;

**(iv)** Keno, including but not limited to, game write and payout
procedures, sensitive key location and control, and a review of keno
auditing procedures;

**(v)** Pari-mutual wagering, including write and payout procedures, and
pari-mutual auditing procedures;

**(vi)** Table games, including but not limited to, fill and credit
procedures, pit credit play procedures, rim credit procedures, soft
drop/count procedures and the subsequent transfer of funds, unannounced
testing of count room currency counters and/or currency interface,
location and control over sensitive keys, the tracing of source
documents to summarized documentation and accounting records, and
reconciliation to restricted copies;

**(vii)** Gaming machines, including but not limited to, jackpot payout
and gaming machine fill procedures, gaming machine drop/count and bill
acceptor drop/count and subsequent transfer of funds, unannounced
testing of weigh scale and weigh scale interface, unannounced testing of
count room currency counters and/or currency interface, gaming machine
drop cabinet access, tracing of source documents to summarized
documentation and accounting records, reconciliation to restricted
copies, location and control over sensitive keys, compliance with EPROM
duplication procedures, and compliance with MICS procedures for gaming
machines that accept currency or coin(s) and issue cash-out tickets or
gaming machines that do not accept currency or coin(s) and do not return
currency or coin(s);

**(viii)** Cage and credit procedures including all cage, credit, and
collection procedures, and the reconciliation of trial balances to
physical instruments on a sample basis. Cage accountability shall be
reconciled to the general ledger;

**(ix)** Information technology functions, including review for
compliance with information technology standards;

**(x)** Complimentary service or item, including but not limited to,
procedures whereby complimentary service items are issued, authorized,
and redeemed; and

**(xi)** Any other internal audits as required by the Tribe, Tribal
gaming regulatory authority, audit committee, or other entity designated
by the Tribe.

**(2) In addition to the observation** and examinations performed under
paragraph (b)(1) of this section, follow-up observations and
examinations shall be performed to verify that corrective action has
been taken regarding all instances of noncompliance cited by internal
audit, the independent accountant, and/or the Commission. The
verification shall be performed within six (6) months following the date
of notification.

**(3) Whenever possible, internal audit observations shall** be
performed on an unannounced basis (i.e., without the employees being
forewarned that their activities will be observed). Additionally, if the
independent accountant also performs the internal audit function, the
accountant shall perform separate observations of the table games/gaming
machine drops and counts to satisfy the internal audit observation
requirements and independent accountant tests of controls as required by
the American Institute of Certified Public Accountants guide.

**(c) *[Documentation]{.underline}*.**

**(1) Documentation (e.g., checklists, programs, reports, etc.) shall**
be prepared to evidence all internal audit work performed as it relates
to the requirements in this section, including all instances of
noncompliance.

**(2) The internal audit department shall** operate with audit programs,
which, at a minimum, address the MICS. Additionally, the department
shall properly document the work performed, the conclusions reached, and
the resolution of all exceptions. Institute of Internal Auditors
standards are recommended but not required.

**(d) *[Reports]{.underline}*.**

**(1) Reports documenting audits performed shall** be maintained and
made available to the Commission upon request.

**(2) Such audit reports shall** include the following information:

**(i)** Audit objectives;

**(ii)** Audit procedures and scope;

**(iii)** Findings and conclusions;

**(iv)** Recommendations, if applicable; and

**(v)** Management\'s response.

**(e) *[Material exceptions]{.underline}***. All material exceptions
resulting from internal audit work shall be investigated and resolved
with the results of such being documented and retained for five years.

**(f) *[Role of management]{.underline}***.

**(1) Internal audit findings shall** be reported to management.

**(2) Management shall** be required to respond to internal audit
findings stating corrective measures to be taken to avoid recurrence of
the audit exception.

**(3) Such management responses shall** be included in the internal
audit report that will be delivered to management, the Tribe, Tribal
gaming regulatory authority, audit committee, or other entity designated
by the Tribe.

***(g) [Internal Audit Guidelines]{.underline}***. In connection with
the internal audit testing pursuant to paragraph (b)(1) of this section,
the Commission shall develop recommended Internal Audit Guidelines,
which shall be available upon request. (Adopted August 12, 2005)

**[[§542.23 What are the minimum internal control standards for
surveillance for Tier A gaming operations?]{.underline}]{.mark}**

**(a) Tier A gaming operations must,** at a minimum, maintain and
operate an unstaffed surveillance system in a secured location whereby
the areas under surveillance are continually recorded.

**(b) The entrance to the secured location shall** be located so that it
is not readily accessible by either gaming operation employees who work
primarily on the casino floor, or the general public.

**(c) Access to the secured location shall** be limited to surveillance
personnel, designated employees, and other persons authorized in
accordance with the surveillance department policy. Such policy shall be
approved by the Tribal gaming regulatory authority.

**(d) The surveillance system shall** include date and time generators
that possess the capability to display the date and time of recorded
events on video and/or digital recordings. The displayed date and time
shall not significantly obstruct the recorded view.

**(e) The surveillance department shall** strive to ensure staff is
trained in the use of the equipment, knowledge of the games, and house
rules.

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

**(g) Each camera required by the standards in this section shall**
possess the capability of having its picture recorded. The surveillance
system shall include sufficient numbers of recorders to simultaneously
record multiple gaming and count room activities, and record the views
of all dedicated cameras and motion activated dedicated cameras.

**(h) Reasonable effort shall** be made to repair each malfunction of
surveillance system equipment required by the standards in this section
within seventy-two (72) hours after the malfunction is discovered. The
Tribal gaming regulatory authority shall be notified of any camera(s)
that has malfunctioned for more than twenty-four (24) hours.

**(1) In the event of a dedicated camera malfunction, the gaming
operation and/or the surveillance department shall**, upon
identification of the malfunction, provide alternative camera coverage
or other security measures, such as additional supervisory or security
personnel, to protect the subject activity.

**(2)** \[Reserved\]

**(i) *[Bingo]{.underline}***. The surveillance system shall record the
bingo ball drawing device, the game board, and the activities of the
employees responsible for drawing, calling, and entering the balls drawn
or numbers selected.

**(j) *[Card games]{.underline}*.** The surveillance system shall record
the general activities in each card room and be capable of identifying
the employees performing the different functions.

**(k) *[Keno]{.underline}*.** The surveillance system shall record the
keno ball-drawing device, the general activities in each keno game area,
and be capable of identifying the employees performing the different
functions.

**(l) *[Table games]{.underline}*.**

**(1) [Operations with four (4) or more table games]{.underline}**.
Except as otherwise provided in paragraphs (l)(3), (l)(4), and (l)(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:

**(i)** With sufficient clarity to identify customers and dealers; and

**(ii)** With sufficient coverage and clarity to simultaneously view the
table bank and determine the configuration of wagers, card values, and
game outcome.

**(iii)** One (1) dedicated camera per table and one (1) pan-tilt-zoom
camera per four (4) tables may be an acceptable alternative procedure to
satisfy the requirements of this paragraph.

**(2) [Operations with three (3) or fewer table games]{.underline}**.
The surveillance system of gaming operations operating three (3) or
fewer table games shall:

**(i)** Comply with the requirements of paragraph (l)(1) of this
section; or

**(ii)** Have one (1) overhead camera at each table.

**(3) [Craps]{.underline}**. All craps tables shall have two (2)
dedicated cross view cameras covering both ends of the table.

**(4) [Roulette]{.underline}**. All roulette areas shall have one (1)
overhead dedicated camera covering the roulette wheel and shall also
have one (1) dedicated camera covering the play of the table.

**(5) [Big wheel]{.underline}**. All big wheel games shall have one (1)
dedicated camera viewing the wheel.

**(m) *[Progressive table games]{.underline}***.

**(1) Progressive table games with a progressive jackpot of \$25,000 or
more shall** be recorded by dedicated cameras that provide coverage of:

**(i)** The table surface, sufficient that the card values and card
suits can be clearly identified;

**(ii)** An overall view of the entire table with sufficient clarity to
identify customers and dealer; and

**(iii)** A view of the progressive meter jackpot amount. If several
tables are linked to the same progressive jackpot meter, only one meter
need be recorded.

**(2)** \[Reserved\]

**(n) *[Gaming machines]{.underline}***.

**(1) Except as otherwise provided in paragraphs (n)(2) and (n)(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:

**(i)** All customers and employees at the gaming machine; and

**(ii)** The face of the gaming machine, with sufficient clarity to
identify the payout line(s) of the gaming machine.

**(2) [In-house progressive machine]{.underline}**. In-house progressive
gaming machines offering a base payout amount (jackpot reset amount) of
more than \$100,000 shall be recorded by a dedicated camera(s) to
provide coverage of:

**(i)** All customers and employees at the gaming machine; and

**(ii)** The face of the gaming machine, with sufficient clarity to
identify the payout line(s) of the gaming machine.

**(3) [Wide-area progressive machine]{.underline}**. Wide-area
progressive gaming machines offering a base payout amount of \$1 million
or more and monitored by an independent vendor utilizing an on-line
progressive computer system shall be recorded by a dedicated camera(s)
to provide coverage of: (Revised August 12, 2005)

**(i)** All customers and employees at the gaming machine; and

**(ii)** The face of the gaming machine, with sufficient clarity to
identify the payout line(s) of the gaming machine.

**(4) Notwithstanding paragraph (n)(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.

**(o) *[Currency and coin]{.underline}*.** The surveillance system shall
record a general overview of all areas where currency or coin may be
stored or counted.

**(p) *[Video recording and/or digital record retention]{.underline}*.**

**(1) All video recordings and/or digital records of coverage provided
by the dedicated cameras or motion-activated dedicated cameras required
by the standards in this section shall** be retained for a minimum of
seven (7) days.

**(2) Recordings involving** suspected or confirmed gaming crimes,
unlawful activity, or detentions by security personnel, must be retained
for a minimum of thirty (30) days.

**(3) Duly authenticated copies** of video recordings and/or digital
records shall be provided to the Commission upon request.

**(q) *[Video library log]{.underline}*.** A video library log, or
comparable alternative procedure approved by the Tribal gaming
regulatory authority, shall be maintained to demonstrate compliance with
the storage, identification, and retention standards required in this
section.

**(r) *[Malfunction and repair log]{.underline}*.**

**(1) Surveillance personnel shall** maintain a log or alternative
procedure approved by the Tribal gaming regulatory authority that
documents each malfunction and repair of the surveillance system as
defined in this section.

**(2) The log shall** state the time, date, and nature of each
malfunction, the efforts expended to repair the malfunction, and the
date of each effort, the reasons for any delays in repairing the
malfunction, the date the malfunction is repaired, and where applicable,
any alternative security measures that were taken.

**[[§542.30 What is a Tier B gaming operation?]{.underline}]{.mark}**

**A Tier B gaming operation is one with gross gaming revenues of more
than \$5 million but not more than \$15 million.**

**[[§542.31 What are the minimum internal control standards for drop and
count for Tier B gaming operations?]{.underline}]{.mark}**

**(a) *[Computer applications]{.underline}***. For any computer
applications 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, will be
acceptable.

**(b) *[Table game drop standards]{.underline}***.

**(1) The setting out of empty table game drop boxes and the drop
shall** be a continuous process.

**(2) At the end** of each shift:

**(i)** All locked table game drop boxes shall be removed from the
tables by a person independent of the pit shift being dropped;

**(ii)** A separate drop box shall be placed on each table opened at any
time during each shift or a gaming operation may utilize a single drop
box with separate openings and compartments for each shift; and

**(iii)** Upon removal from the tables, table game drop boxes shall be
transported directly to the count room or other equivalently secure area
with comparable controls and locked in a secure manner until the count
takes place.

**(3) If drop boxes are not placed on all tables, then the pit
department shall** document which tables were open during the shift.

**(4) The transporting of table game drop boxes shall** be performed by
a minimum of two persons, at least one of whom is independent of the pit
shift being dropped.

**(5) All table game drop boxes shall** be posted with a number
corresponding to a permanent number on the gaming table and marked to
indicate game, table number, and shift.

**(6) Surveillance shall** be notified when the drop is to begin so that
surveillance may monitor the activities.

**(c) *[Soft count room personnel]{.underline}*.**

**(1) The table game soft count and the gaming machine bill acceptor
count shall** be performed by a minimum of two employees.

**(i)** The count shall be viewed live, or on video recording and/or
digital record, within seven (7) days by an employee independent of the
count.

**(ii)** \[Reserved\]

**(2) Count room personnel shall** not be allowed to exit or enter the
count room during the count except for emergencies or scheduled breaks.
At no time during the count, shall there be fewer than two employees in
the count room until the drop proceeds have been accepted into
cage/vault accountability. Surveillance shall be notified whenever count
room personnel exit or enter the count room during the count.

**(3) Count team members shall** be rotated on a routine basis such that
the count team is not consistently the same two persons more than four
(4) days per week. This standard shall not apply to gaming operations
that utilize a count team of more than two persons.

**(4) The count team shall** be independent of transactions being
reviewed and counted. The count team shall be independent of the
cage/vault departments, however, a dealer or a cage cashier may be used
if this person is not allowed to perform the recording function. An
accounting representative may be used if there is an independent audit
of all soft count documentation.

**(d) *[Table game soft count standards]{.underline}*.**

**(1) The table game soft count shall** be performed in a soft count
room or other equivalently secure area with comparable controls.

**(2) Access to the count room during the count shall** be restricted to
members of the drop and count teams, with the exception of authorized
observers, supervisors for resolution of problems, and authorized
maintenance personnel.

**(3) If counts from various revenue centers occur simultaneously in the
count room, procedures shall** be in effect that prevent the commingling
of funds from different revenue centers.

**(4) The table game drop boxes shall** be individually emptied and
counted in such a manner to prevent the commingling of funds between
boxes until the count of the box has been recorded.

**(i)** The count of each box shall be recorded in ink or other
permanent form of recordation.

**(ii)** A second count shall be performed by an employee on the count
team who did not perform the initial count.

**(iii)** Corrections to information originally recorded by the count
team on soft count documentation shall be made by drawing a single line
through the error, writing the correct figure above the original figure,
and then obtaining the initials of at least two count team members who
verified the change, unless the count team only has two (2) members in
which case the initials of only one (1) verifying count team member is
required.

**(5) If currency counters are utilized** and the count room table is
used only to empty boxes and sort/stack contents, a count team member
shall be able to observe the loading and unloading of all currency at
the currency counter, including rejected currency.

**(6) Table game drop boxes, when empty, shall** be shown to another
member of the count team, or to another person who is observing the
count, or to surveillance, provided the count is monitored in its
entirety by a person independent of the count.

**(7) Orders for fill/credit (if applicable) shall** be matched to the
fill/credit slips. Fills and credits shall be traced to or recorded on
the count sheet.

**(8) Pit marker issue and payment slips (if applicable) removed from
the table game drop boxes shall** either be:

**(i)** Traced to or recorded on the count sheet by the count team; or

**(ii)** Totaled by shift and traced to the totals documented by the
computerized system. Accounting personnel shall verify the issue/payment
slip for each table is accurate.

**(9) Foreign currency exchange forms (if applicable) removed from the
table game drop boxes shall** be reviewed for the proper daily exchange
rate and the conversion amount shall be recomputed by the count team.
Alternatively, this may be performed by accounting/auditing employees.

**(10) The opening/closing table and marker inventory forms (if
applicable) shall** either be:

**(i)** Examined and traced to or recorded on the count sheet; or

**(ii)** If a computerized system is used, accounting personnel can
trace the opening/closing table and marker inventory forms to the count
sheet. Discrepancies shall be investigated with the findings documented
and maintained for inspection.

**(11) The count sheet shall** be reconciled to the total drop by a
count team member who shall not function as the sole recorder.

**(12) All members of the count team shall** sign the count document or
a summary report to attest to their participation in the count.

**(13) All drop proceeds and cash equivalents that were counted shall**
be turned over to the cage or vault cashier (who shall be independent of
the count team) or to an authorized person/employee independent of the
revenue generation and the count process for verification. Such person
shall certify by signature as to the accuracy of the drop proceeds
delivered and received.

**(14) The count sheet, with all supporting documents, shall** be
delivered to the accounting department by a count team member or a
person independent of the cashiers department. Alternatively, it may be
adequately secured (e.g., locked container to which only accounting
personnel can gain access) until retrieved by the accounting department.

**(15) Access to stored**, full table game drop boxes shall be
restricted to authorized members of the drop and count teams.

**(e) *[Gaming machine bill acceptor drop standards]{.underline}*.**

**(1) A minimum of two employees shall** be involved in the removal of
the gaming machine drop, at least one of who is independent of the
gaming machine department.

**(2) All bill acceptor canisters shall** be removed only at the time
previously designated by the gaming operation and reported to the Tribal
gaming regulatory authority, except for emergency drops.

**(3) Surveillance shall** be notified when the drop is to begin so that
surveillance may monitor the activities.

**(4) The bill acceptor canisters shall** be removed by a person
independent of the gaming machine department then transported directly
to the count room or other equivalently secure area with comparable
controls and locked in a secure manner until the count takes place.

**(i)** Security shall be provided over the bill acceptor canisters
removed from the gaming machines and awaiting transport to the count
room.

**(ii)** The transporting of bill acceptor canisters shall be performed
by a minimum of two persons, at least one of who is independent of the
gaming machine department.

**(5) All bill acceptor canisters shall** be posted with a number
corresponding to a permanent number on the gaming machine.

**(f) *[Gaming machine bill acceptor count standards]{.underline}*.**

**(1) The gaming machine bill acceptor count shall** be performed in a
soft count room or other equivalently secure area with comparable
controls.

**(2) Access to the count room during the count shall** be restricted to
members of the drop and count teams, with the exception of authorized
observers, supervisors for resolution of problems, and authorized
maintenance personnel.

**(3) If counts from various revenue centers occur simultaneously in the
count room, procedures shall** be in effect that prevent the commingling
of funds from different revenue centers.

**(4) The bill acceptor canisters shall** be individually emptied and
counted in such a manner to prevent the commingling of funds between
canisters until the count of the canister has been recorded.

**(i)** The count of each canister shall be recorded in ink or other
permanent form of recordation.

**(ii)** Corrections to information originally recorded by the count
team on soft count documentation shall be made by drawing a single line
through the error, writing the correct figure above the original figure,
and then obtaining the initials of at least two count team members who
verified the change. (Revised August 12, 2005)

**(5) If currency counters are utilized and the count room table is used
only to empty canisters and sort/stack contents, a count team member
shall** be able to observe the loading and unloading of all currency at
the currency counter, including rejected currency.

**(6) Canisters, when empty, shall** be shown to another member of the
count team, to another person who is observing the count, or to
surveillance, provided that the count is monitored in its entirety by a
person independent of the count.

**(7) The count sheet shall** be reconciled to the total drop by a count
team member who shall not function as the sole recorder.

**(8) All members of the count team shall** sign the count document or a
summary report to attest to their participation in the count.

**(9) All drop proceeds and cash equivalents that were counted shall**
be turned over to the cage or vault cashier (who shall be independent of
the count team) or to an authorized person/employee independent of the
revenue generation and the count process for verification. Such person
shall certify by signature as to the accuracy of the drop proceeds
delivered and received.

**(10) The count sheet, with all supporting documents, shall** be
delivered to the accounting department by a count team member or a
person independent of the cashiers department. Alternatively, it may be
adequately secured (e.g., locked container to which only accounting
personnel can gain access) until retrieved by the accounting department.

**(11) Access to stored bill acceptor canisters, full or empty, shall**
be restricted to:

**(i)** Authorized members of the drop and count teams; and

**(ii)** Authorized personnel in an emergency for the resolution of a
problem.

**(g) *[Gaming machine coin drop standards]{.underline}*.**

**(1) A minimum of two employees shall** be involved in the removal of
the gaming machine drop, at least one of who is independent of the
gaming machine department.

**(2) All drop buckets shall** be removed only at the time previously
designated by the gaming operation and reported to the Tribal gaming
regulatory authority, except for emergency drops.

**(3) Surveillance shall** be notified when the drop is to begin in
order that surveillance may monitor the activities.

**(4) Security shall** be provided over the buckets removed from the
gaming machine drop cabinets and awaiting transport to the count room.

**(5) As each machine is opened, the contents shall** be tagged with its
respective machine number if the bucket is not permanently marked with
the machine number. The contents shall be transported directly to the
area designated for the counting of such drop proceeds. If more than one
trip is required to remove the contents of the machines, the filled
carts of coins shall be securely locked in the room designed for
counting or in another equivalently secure area with comparable
controls. There shall be a locked covering on any carts in which the
drop route includes passage out of doors.

**(i)** Alternatively, a smart bucket system that electronically
identifies and tracks the gaming machine number, and facilitates the
proper recognition of gaming revenue, shall satisfy the requirements of
this paragraph.

**(ii)** \[Reserved\]

**(6) Each drop bucket in use shall** be:

**(i)** Housed in a locked compartment separate from any other
compartment of the gaming machine and keyed differently than other
gaming machine compartments; and

**(ii)** Identifiable to the gaming machine from which it is removed. If
the gaming machine is identified with a removable tag that is placed in
the bucket, the tag shall be placed on top of the bucket when it is
collected.

**(7) Each gaming machine shall** have drop buckets into which coins or
tokens that are retained by the gaming machine are collected. Drop
bucket contents shall not be used to make change or pay hand-paid
payouts.

(**8) The collection procedures may** include procedures for dropping
gaming machines that have trays instead of drop buckets.

**(h) *[Hard count room personnel]{.underline}*.**

**(1) The weigh/count shall** be performed by a minimum of two
employees.

**(i)** The count shall be viewed either live, or on video recording
and/or digital record within seven (7) days by an employee independent
of the count.

**(ii)** \[Reserved\]

**(2) At no time during the weigh/count shall** there be fewer than two
employees in the count room until the drop proceeds have been accepted
into cage/vault accountability. Surveillance shall be notified whenever
count room personnel exit or enter the count room during the count.

**(i)** If the gaming machine count is conducted with a continuous
mechanical count meter that is not reset during the count and is
verified in writing by at least two employees at the start and end of
each denomination count, then one employee may perform the wrap.

**(ii)** \[Reserved\]

**(3) Count team members shall** be rotated on a routine basis such that
the count team is not consistently the same two persons more than four
(4) days per week. This standard shall not apply to gaming operations
that utilize a count team of more than two persons.

**(4) The count team shall** be independent of transactions being
reviewed and counted. The count team shall be independent of the
cage/vault departments, unless they are non-supervisory gaming machine
employees and perform the laborer function only (A non-supervisory
gaming machine employee is defined as a person below the level of gaming
machine shift supervisor). A cage cashier may be used if this person is
not allowed to perform the recording function. An accounting
representative may be used if there is an independent audit of all count
documentation.

**(i) *[Gaming machine coin count and wrap standards]{.underline}*.**

(**1) Coins shall** include tokens.

**(2) The gaming machine coin count and wrap shall** be performed in a
count room or other equivalently secure area with comparable controls.

**(i)** Alternatively, an on-the-floor drop system utilizing a mobile
scale shall satisfy the requirements of this paragraph, subject to the
following conditions:

**(A)** The gaming operation shall utilize and maintain an effective
on-line gaming machine monitoring system, as described in §542.13(m)(3);

**(B)** Components of the on-the-floor drop system shall include, but
not be limited to, a weigh scale, a laptop computer through which
weigh/count applications are operated, a security camera available for
the mobile scale system, and a VCR to be housed within the video
compartment of the mobile scale. The system may include a mule cart used
for mobile weigh scale system locomotion.

**(C)** The gaming operation must obtain the security camera available
with the system, and this camera must be added in such a way as to
eliminate tampering.

**(D)** Prior to the drop, the drop/count team shall ensure the scale
batteries are charged;

**(E)** Prior to the drop, a videotape shall be inserted into the VCR
used to record the drop in conjunction with the security camera system
and the VCR shall be activated;

**(F)** The weigh scale test shall be performed prior to removing the
unit from the hard count room for the start of the weigh/drop/count;

**(G)** Surveillance shall be notified when the weigh/drop/count begins
and shall be capable of monitoring the entire process;

**(H)** An observer independent of the weigh/drop/count teams
(independent observer) shall remain by the weigh scale at all times and
shall observe the entire weigh/drop/count process;

**(I)** Physical custody of the key(s) needed to access the laptop and
video compartment shall require the involvement of two persons, one of
whom is independent of the drop and count team;

**(J)** The mule key (if applicable), the laptop and video compartment
keys, and the remote control for the VCR shall be maintained by a
department independent of the gaming machine department. The appropriate
personnel shall sign out these keys;

**(K)** A person independent of the weigh/drop/count teams shall be
required to accompany these keys while they are checked out, and observe
each time the laptop compartment is opened;

**(L)** The laptop access panel shall not be opened outside the hard
count room, except in instances when the laptop must be rebooted as a
result of a crash, lock up, or other situation requiring immediate
corrective action;

**(M)** User access to the system shall be limited to those employees
required to have full or limited access to complete the
weigh/drop/count; and

**(N)** When the weigh/drop/count is completed, the independent observer
shall access the laptop compartment, end the recording session, eject
the videotape, and deliver the videotape to surveillance.

**(ii)** \[Reserved\]

**(3) Access to the count room during the count shall** be restricted to
members of the drop and count teams, with the exception of authorized
observers, supervisors for resolution of problems, and authorized
maintenance personnel.

**(4) If counts from various revenue centers occur simultaneously in the
count room, procedures shall** be in effect that prevent the commingling
of funds from different revenue centers.

**(5) The following functions shall** be performed in the counting of
the gaming machine drop:

**(i)** Recorder function, which involves the recording of the gaming
machine count; and

**(ii)** Count team supervisor function, which involves the control of
the gaming machine weigh and wrap process. The supervisor shall not
perform the initial recording of the weigh/count unless a weigh scale
with a printer is used.

**(6) The gaming machine drop shall** be counted, wrapped, and
reconciled in such a manner to prevent the commingling of gaming machine
drop coin with coin (for each denomination) from the next gaming machine
drop until the count of the gaming machine drop has been recorded. If
the coins are not wrapped immediately after being weighed or counted,
they shall be secured and not commingled with other coin.

**(i)** The amount of the gaming machine drop from each machine shall be
recorded in ink or other permanent form of recordation on a gaming
machine count document by the recorder or mechanically printed by the
weigh scale.

**(ii)** Corrections to information originally recorded by the count
team on gaming machine count documentation shall be made by drawing a
single line through the error, writing the correct figure above the
original figure, and then obtaining the initials of at least two count
team members who verified the change.

**(A)** If a weigh scale interface is used, corrections to gaming
machine count data shall be made using either of the following:

(**[1]{.underline}) Drawing a single line through the error** on the
gaming machine document, writing the correct figure above the original
figure, and then obtaining the initials of at least two count team
employees. If this procedure is used, an employee independent of the
gaming machine department and count team shall enter the correct figure
into the computer system prior to the generation of related gaming
machine reports; or

**([2]{.underline}) During the count process**, correct the error in the
computer system and enter the passwords of at least two count team
employees. If this procedure is used, an exception report shall be
generated by the computer system identifying the gaming machine number,
the error, the correction, and the count team employees attesting to the
correction.

**(B)** \[Reserved\]

**(7) If applicable, the weight shall** be converted to dollar amounts
before the reconciliation of the weigh to the wrap.

**(8) If a coin meter is used, a count team member shall** convert the
coin count for each denomination into dollars and shall enter the
results on a summary sheet.

**(9) The recorder and at least one other count team member shall** sign
the weigh tape and the gaming machine count document attesting to the
accuracy of the weigh/count.

**(10) All members of the count team shall** sign the count document or
a summary report to attest to their participation in the count.

**(11) All drop proceeds and cash equivalents that were counted shall**
be turned over to the cage or vault cashier (who shall be independent of
the count team) or to an authorized person/employee independent of the
revenue generation and the count process for verification. Such person
shall certify by signature as to the accuracy of the drop proceeds
delivered and received.

**(12) All gaming machine count and wrap documentation, including any
applicable computer storage media, shall** be delivered to the
accounting department by a count team member or a person independent of
the cashier\'s department. Alternatively, it may be adequately secured
(e.g., locked container to which only accounting personnel can gain
access) until retrieved by the accounting department.

**(13) If the coins are transported off the property, a second
(alternative) count procedure shall** be performed before the coins
leave the property. Any variances shall be documented.

**[(14) *Variances*]{.underline}**. Large (by denomination, either
\$1,000 or 2% of the drop, whichever is less) or unusual (e.g., zero for
weigh/count or patterned for all counts) variances between the
weigh/count and wrap shall be investigated by management personnel
independent of the gaming machine department, count team, and the
cage/vault functions on a timely basis. The results of such
investigation shall be documented, maintained for inspection, and
provided to the Tribal gaming regulatory authority upon request.

**(j) *[Security of the coin room inventory during the gaming machine
coin count and wrap]{.underline}.***

**(1) If the count room serves as a coin room and coin room inventory is
not secured so as to preclude access by the count team, then the
following standards shall** apply:

**(i)** At the commencement of the gaming machine count the following
requirements shall be met:

**(A)** The coin room inventory shall be counted by at least two
employees, one of whom is a member of the count team and the other is
independent of the weigh/count and wrap procedures;

**(B)** The count in paragraph (j)(1)(i)(A) of this section shall be
recorded on an appropriate inventory form;

**(ii)** Upon completion of the wrap of the gaming machine drop:

**(A)** At least two members of the count team (wrap team),
independently from each other, shall count the ending coin room
inventory;

**(B)** The counts in paragraph (j)(1)(ii)(A) of this section shall be
recorded on a summary report(s) that evidences the calculation of the
final wrap by subtracting the beginning inventory from the sum of the
ending inventory and transfers in and out of the coin room;

**(C)** The same count team members shall compare the calculated wrap to
the weigh/count, recording the comparison and noting any variances on
the summary report;

**(D)** A member of the cage/vault department shall count the ending
coin room inventory by denomination and shall reconcile it to the
beginning inventory, wrap, transfers and weigh/count; and

**(E)** At the conclusion of the reconciliation, at least two count/wrap
team members and the verifying employee shall sign the summary report(s)
attesting to its accuracy.

**(iii)** The functions described in paragraph (j)(1)(ii)(A) and (C) of
this section may be performed by only one count team member. That count
team member must then sign the summary report, along with the verifying
employee, as required under paragraph (j)(1)(ii)(E).

**(2) If the count room is segregated** from the coin room, or if the
coin room is used as a count room and the coin room inventory is secured
to preclude access by the count team, all of the following requirements
shall be completed, at the conclusion of the count:

**(i)** At least two members of the count/wrap team shall count the
final wrapped gaming machine drop independently from each other;

**(ii)** The counts shall be recorded on a summary report;

**(iii)** The same count team members (or the accounting department)
shall compare the final wrap to the weigh/count, recording the
comparison, and noting any variances on the summary report;

**(iv)** A member of the cage/vault department shall count the wrapped
gaming machine drop by denomination and reconcile it to the weigh/count;

**(v)** At the conclusion of the reconciliation, at least two count team
members and the cage/vault employee shall sign the summary report
attesting to its accuracy; and

**(vi)** The wrapped coins (exclusive of proper transfers) shall be
transported to the cage, vault or coin vault after the reconciliation of
the weigh/count to the wrap.

**(k) *[Transfers during the gaming machine coin count and
wrap]{.underline}*.**

**(1) Transfers may** be permitted during the count and wrap only if
permitted under the internal control standards approved by the Tribal
gaming regulatory authority.

**(2) Each transfer shall** be recorded on a separate multi-part form
with a preprinted or concurrently-printed form number (used solely for
gaming machine count transfers) that shall be subsequently reconciled by
the accounting department to ensure the accuracy of the reconciled
gaming machine drop.

**(3) Each transfer must be counted and signed** for by at least two
members of the count team and by a person independent of the count team
who is responsible for authorizing the transfer.

**(l) *[Gaming machine drop key control standards]{.underline}*.**

**(1) Gaming machine coin drop cabinet keys, including duplicates,
shall** be maintained by a department independent of the gaming machine
department.

**(2) The physical custody of the keys needed to access gaming machine
coin drop cabinets, including duplicates, shall** require the
involvement of two persons, one of whom is independent of the gaming
machine department.

**(3) Two employees (separate from key custodian) shall** be required to
accompany such keys while checked out and observe each time gaming
machine drop cabinets are accessed, unless surveillance is notified each
time keys are checked out and surveillance observes the person
throughout the period the keys are checked out.

**(m) *[Table game drop box key control standards]{.underline}*.**

**(1) Procedures shall** be developed and implemented to insure that
unauthorized access to empty table game drop boxes shall not occur from
the time the boxes leave the storage racks until they are placed on the
tables.

**(2) The involvement of at least two persons independent of the cage
department shall** be required to access stored empty table game drop
boxes.

**(3) The release keys shall** be separately keyed from the contents
keys.

**(4) At least** two count team members are required to be present at
the time count room and other count keys are issued for the count.

**(5) All duplicate keys shall** be maintained in a manner that provides
the same degree of control as is required for the original keys. Records
shall be maintained for each key duplicated that indicate the number of
keys made and destroyed.

**(6) Logs shall** be maintained by the custodian of sensitive keys to
document authorization of personnel accessing keys.

**(n) *[Table game drop box release keys]{.underline}*.**

**(1) The table game drop box release keys shall** be maintained by a
department independent of the pit department.

**(2) Only the person(s) authorized to remove table game drop boxes from
the tables shall** be allowed access to the table game drop box release
keys; however, the count team members may have access to the release
keys during the soft count in order to reset the table game drop boxes.

**(3) Persons authorized to remove the table game drop boxes shall** be
precluded from having simultaneous access to the table game drop box
contents keys and release keys.

**(4) For situations requiring access** to a table game drop box at a
time other than the scheduled drop, the date, time, and signature of
employee signing out/in the release key must be documented.

**(o) *[Bill acceptor canister release keys]{.underline}*.**

**(1) The bill acceptor canister release keys shall** be maintained by a
department independent of the gaming machine department.

(**2) Only the person(s) authorized** to remove bill acceptor canisters
from the gaming machines shall be allowed access to the release keys.

**(3) Persons authorized** to remove the bill acceptor canisters shall
be precluded from having simultaneous access to the bill acceptor
canister contents keys and release keys.

**(4) For situations requiring access** to a bill acceptor canister at a
time other than the scheduled drop, the date, time, and signature of
employee signing out/in the release key must be documented.

**(p) *[Table game drop box storage rack keys]{.underline}***. Persons
authorized to obtain table game drop box storage rack keys shall be
precluded from having simultaneous access to table game drop box
contents keys with the exception of the count team.

**(q) *[Bill acceptor canister storage rack keys]{.underline}***.
Persons authorized to obtain bill acceptor canister storage rack keys
shall be precluded from having simultaneous access to bill acceptor
canister contents keys with the exception of the count team.

**(r) *[Table game drop box contents keys]{.underline}*.**

**(1) The physical custody** of the keys needed for accessing stored,
full table game drop box contents shall require the involvement of
persons from at least two separate departments, with the exception of
the count team.

**(2) Access to** the table game drop box contents key at other than
scheduled count times shall require the involvement of at least two
persons from separate departments, including management. The reason for
access shall be documented with the signatures of all participants and
observers.

**(3) Only count team members shall** be allowed access to table game
drop box contents keys during the count process.

**(s) *[Bill acceptor canister contents keys]{.underline}*.**

**(1) The physical custody** of the keys needed for accessing stored,
full bill acceptor canister contents shall require involvement of
persons from two separate departments, with the exception of the count
team.

**(2) Access to the bill acceptor canister** contents key at other than
scheduled count times shall require the involvement of at least two
persons from separate departments, one of whom must be a supervisor. The
reason for access shall be documented with the signatures of all
participants and observers.

**(3) Only the count team members shall** be allowed access to bill
acceptor canister contents keys during the count process.

***(t) [Gaming machine computerized key security systems.]{.underline}
(Adopted May 4, 2005)***

**(1) Computerized key security systems** which restrict access to the
gaming machine drop and count keys through the use of passwords, keys or
other means, other than a key custodian, must provide the same degree of
control as indicated in the aforementioned key control standards; refer
to paragraphs (l), (o), (q) and (s) of this section. Note: This standard
does not apply to the system administrator. The system administrator is
defined in paragraph (t)(2)(i) of this section.

**(2) For computerized key security systems**, the following additional
gaming machine key control procedures apply:

**(i)** Management personnel independent of the gaming machine
department assign and control user access to keys in the computerized
key security system (i.e., system administrator) to ensure that gaming
machine drop and count keys are restricted to authorized employees.

**(ii)** In the event of an emergency or the key box is inoperable,
access to the emergency manual key(s) (a.k.a. override key), used to
access the box containing the gaming machine drop and count keys,
requires the physical involvement of at least three persons from
separate departments, including management. The date, time, and reason
for access, must be documented with the signatures of all participating
employees signing out/in the emergency manual key(s).

**(iii)** The custody of the keys issued pursuant to paragraph
(t)(2)(ii) of this section, requires the presence of two persons from
separate departments from the time of their issuance until the time of
their return.

**(iv)** Routine physical maintenance that requires accessing the
emergency manual key(s) (override key) and does not involve the
accessing of the gaming machine drop and count keys, only requires the
presence of two persons from separate departments. The date, time and
reason for access must be documented with the signatures of all
participating employees signing out/in the emergency manual key(s).

**(3) For computerized key security systems** controlling access to
gaming machine drop and count keys, accounting/audit personnel,
independent of the system administrator, will perform the following
procedures:

**(i)** Daily, review the report generated by the computerized key
security system indicating the transactions performed by the
individual(s) that adds, deletes, and changes user\'s access within the
system (i.e., system administrator). Determine whether the transactions
completed by the system administrator provide an adequate control over
the access to the gaming machine drop and count keys. Also, determine
whether any gaming machine drop and count key(s) removed or returned to
the key cabinet by the system administrator was properly authorized.

**(ii)** For at least one day each month, review the report generated by
the computerized key security system indicating all transactions
performed to determine whether any unusual gaming machine drop and count
key removals or key returns occurred.

**(iii)** At least quarterly, review a sample of users that are assigned
access to the gaming machine drop and count keys to determine that their
access to the assigned keys is adequate relative to their job position.

**(iv)** All noted improper transactions or unusual occurrences are
investigated with the results documented.

**(4) Quarterly**, an inventory of all count room, drop box release,
storage rack and contents keys is performed, and reconciled to records
of keys made, issued, and destroyed. Investigations are performed for
all keys unaccounted for, with the investigation being documented.

***(u) [Table games computerized key security systems.]{.underline}
(Adopted May 4, 2005)***

**(1) Computerized key security systems** which restrict access to the
table game drop and count keys through the use of passwords, keys or
other means, other than a key custodian, must provide the same degree of
control as indicated in the aforementioned key control standards, refer
to paragraphs (m), (n), (p) and (r) of this section. Note: This standard
does not apply to the system administrator. The system administrator is
defined in paragraph (u)(2)(ii) of this section.

**(2) For computerized key security systems**, the following additional
table game key control procedures apply:

**(i)** Management personnel independent of the table game department
assign and control user access to keys in the computerized key security
system (i.e., system administrator) to ensure that table game drop and
count keys are restricted to authorized employees.

**(ii)** In the event of an emergency or the key box is inoperable,
access to the emergency manual key(s) (a.k.a. override key), used to
access the box containing the table game drop and count keys, requires
the physical involvement of at least three persons from separate
departments, including management. The date, time, and reason for
access, must be documented with the signatures of all participating
employees signing out/in the emergency manual key(s).

**(iii)** The custody of the keys issued pursuant to paragraph
(u)(2)(ii) of this section, requires the presence of two persons from
separate departments from the time of their issuance until the time of
their return.

**(iv)** Routine physical maintenance that requires accessing the
emergency manual key(s) (override key) and does not involve the
accessing of the table games drop and count keys, only requires the
presence of two persons from separate departments. The date, time and
reason for access must be documented with the signatures of all
participating employees signing out/in the emergency manual key(s).

**(3) For computerized key security systems** controlling access to
table games drop and count keys, accounting/audit personnel, independent
of the system administrator, will perform the following procedures:

**(i)** Daily, review the report generated by the computerized key
security system indicating the transactions performed by the
individual(s) that adds, deletes, and changes user\'s access within the
system (i.e., system administrator). Determine whether the transactions
completed by the system administrator provide an adequate control over
the access to the table games drop and count keys. Also, determine
whether any table games drop and count key(s) removed or returned to the
key cabinet by the system administrator was properly authorized.

**(ii)** For at least one day each month, review the report generated by
the computerized key security system indicating all transactions
performed to determine whether any unusual table games drop and count
key removals or key returns occurred.

**(iii)** At least quarterly, review a sample of users that are assigned
access to the table games drop and count keys to determine that their
access to the assigned keys is adequate relative to their job position.

**(iv)** All noted improper transactions or unusual occurrences are
investigated with the results documented.

**(4) Quarterly**, an inventory of all count room, table game drop box
release, storage rack and contents keys is performed, and reconciled to
records of keys made, issued, and destroyed. Investigations are
performed for all keys unaccounted for, with the investigations being
documented.

***(v) [Emergency drop procedures.]{.underline}*** Emergency drop
procedures shall be developed by the Tribal gaming regulatory authority,
or the gaming operation as approved by the Tribal gaming regulatory
authority. (Revised May 4, 2005)

***(w) [Equipment standards for gaming machine count.]{.underline}
(Revised May 4, 2005)***

**(1) A weigh scale calibration module** shall be secured so as to
prevent unauthorized access (e.g., prenumbered seal, lock and key,
etc.).

**(2) A person independent** of the cage, vault, gaming machine, and
count team functions shall be required to be present whenever the
calibration module is accessed. Such access shall be documented and
maintained.

**(3) If a weigh scale interface is used**, it shall be adequately
restricted so as to prevent unauthorized access (passwords, keys, etc.).

**(4) If the weigh scale has a zero adjustment mechanism**, it shall be
physically limited to minor adjustments (e.g., weight of a bucket) or
physically situated such that any unnecessary adjustments to it during
the weigh process would be observed by other count team members.

**(5) The weigh scale and weigh scale interface** (if applicable) shall
be tested by a person or persons independent of the cage, vault, and
gaming machine departments and count team at least quarterly. At least
annually, this test shall be performed by internal audit in accordance
with the internal audit standards. The result of these tests shall be
documented and signed by the person or persons performing the test.

**(6) Prior to the gaming machine count**, at least two employees shall
verify the accuracy of the weigh scale with varying weights or with
varying amounts of previously counted coin for each denomination to
ensure the scale is properly calibrated (varying weights/coin from drop
to drop is acceptable).

**(7) If a mechanical coin counter is used** (instead of a weigh scale),
the Tribal gaming regulatory authority, or the gaming operation as
approved by the Tribal gaming regulatory authority, shall establish and
the gaming operation shall comply with procedures that are equivalent to
those described in paragraphs (u)(4), (u)(5), and (u)(6) of this
section.

**(8) If a coin meter count machine is used**, the count team member
shall record the machine number denomination and number of coins in ink
on a source document, unless the meter machine automatically records
such information.

**(i)** A count team member shall test the coin meter count machine
before the actual count to ascertain if the metering device is
functioning properly with a predetermined number of coins for each
denomination.

**(ii)** \[Reserved\]

**[[§542.32 What are the minimum internal control standards for internal
audit for Tier B gaming operations?]{.underline}]{.mark}**

**(a) *[Internal audit personnel]{.underline}*.**

**(1) For Tier B gaming operations**, a separate internal audit
department must be maintained. Alternatively, designating personnel (who
are independent with respect to the departments/procedures being
examined) to perform internal audit work satisfies the requirements of
this paragraph.

**(2) The internal audit personnel shall** report directly to the Tribe,
Tribal gaming regulatory authority, audit committee, or other entity
designated by the Tribe in accordance with the definition of internal
audit in §542.2.

**(b) *[Audits]{.underline}*.**

**(1) Internal audit personnel shall** perform audits of all major
gaming areas of the gaming operation. The following shall be reviewed at
least annually:

**(i)** Bingo, including but not limited to, bingo card control, payout
procedures, and cash reconciliation process;

**(ii)** Pull tabs, including but not limited to, statistical records,
winner verification, perpetual inventory, and accountability of sales
versus inventory;

**(iii)** Card games, including but not limited to, card games
operation, cash exchange procedures, shill transactions, and count
procedures;

**(iv)** Keno, including but not limited to, game write and payout
procedures, sensitive key location and control, and a review of keno
auditing procedures;

**(v)** Pari-mutual wagering, including write and payout procedures, and
pari-mutual auditing procedures;

**(vi)** Table games, including but not limited to, fill and credit
procedures, pit credit play procedures, rim credit procedures, soft
drop/count procedures and the subsequent transfer of funds, unannounced
testing of count room currency counters and/or currency interface,
location and control over sensitive keys, the tracing of source
documents to summarized documentation and accounting records, and
reconciliation to restricted copies;

\(vii\) Gaming machines, including but not limited to, jackpot payout
and gaming machine fill procedures, gaming machine drop/count and bill
acceptor drop/count and subsequent transfer of funds, unannounced
testing of weigh scale and weigh scale interface, unannounced testing of
count room currency counters and/or currency interface, gaming machine
drop cabinet access, tracing of source documents to summarized
documentation and accounting records, reconciliation to restricted
copies, location and control over sensitive keys, compliance with EPROM
duplication procedures, and compliance with MICS procedures for gaming
machines that accept currency or coin(s) and issue cash-out tickets or
gaming machines that do not accept currency or coin(s) and do not return
currency or coin(s);

**(viii)** Cage and credit procedures including all cage, credit, and
collection procedures, and the reconciliation of trial balances to
physical instruments on a sample basis. Cage accountability shall be
reconciled to the general ledger;

**(ix)** Information technology functions, including review for
compliance with information technology standards;

**(x)** Complimentary service or item, including but not limited to,
procedures whereby complimentary service items are issued, authorized,
and redeemed; and

**(xi)** Any other internal audits as required by the Tribe, Tribal
gaming regulatory authority, audit committee, or other entity designated
by the Tribe.

**(2) In addition** to the observation and examinations performed under
paragraph (b)(1) of this section, follow-up observations and
examinations shall be performed to verify that corrective action has
been taken regarding all instances of noncompliance cited by internal
audit, the independent accountant, and/or the Commission. The
verification shall be performed within six (6) months following the date
of notification.

**(3) Whenever possible**, internal audit observations shall be
performed on an unannounced basis (i.e., without the employees being
forewarned that their activities will be observed). Additionally, if the
independent accountant also performs the internal audit function, the
accountant shall perform separate observations of the table games/gaming
machine drops and counts to satisfy the internal audit observation
requirements and independent accountant tests of controls as required by
the American Institute of Certified Public Accountants guide.

**(c) *[Documentation]{.underline}*.**

**(1) Documentation** (e.g., checklists, programs, reports, etc.) shall
be prepared to evidence all internal audit work performed as it relates
to the requirements in this section, including all instances of
noncompliance.

**(2) The internal audit department shall** operate with audit programs,
which, at a minimum, address the MICS. Additionally, the department
shall properly document the work performed, the conclusions reached, and
the resolution of all exceptions. Institute of Internal Auditors
standards are recommended but not required.

**(d) *[Reports]{.underline}***.

**(1) Reports documenting audits performed shall** be maintained and
made available to the Commission upon request.

**(2) Such audit reports shall** include the following information:

**(i)** Audit objectives;

**(ii)** Audit procedures and scope;

**(iii)** Findings and conclusions;

**(iv)** Recommendations, if applicable; and

**(v)** Management\'s response.

**(e) *[Material exceptions]{.underline}*.** All material exceptions
resulting from internal audit work shall be investigated and resolved
with the results of such being documented and retained for five years.

**(f) *[Role of management]{.underline}*.**

**(1) Internal audit findings shall** be reported to management.

**(2) Management shall** be required to respond to internal audit
findings stating corrective measures to be taken to avoid recurrence of
the audit exception.

**(3) Such management responses shall** be included in the internal
audit report that will be delivered to management, the Tribe, Tribal
gaming regulatory authority, audit committee, or other entity designated
by the Tribe.

***(g) [Internal Audit Guidelines]{.underline}.*** In connection with
the internal audit testing pursuant to paragraph (b)(1) of this section,
the Commission shall develop recommended Internal Audit Guidelines,
which shall be available upon request. (Adopted August 12, 2005)

**[[§542.33 What are the minimum internal control standards for
surveillance for Tier B gaming operations?]{.underline}]{.mark}**

**(a) The surveillance system shall** be maintained and operated from a
staffed surveillance room and shall provide surveillance over gaming
areas.

**(b) The entrance to the surveillance room shall** be located so that
it is not readily accessible by either gaming operation employees who
work primarily on the casino floor, or the general public.

**(c) Access to the surveillance room shall** be limited to surveillance
personnel, designated employees, and other persons authorized in
accordance with the surveillance department policy. Such policy shall be
approved by the Tribal gaming regulatory authority. The surveillance
department shall maintain a sign-in log of other authorized persons
entering the surveillance room.

**(d) Surveillance room equipment shall** have total override capability
over all other satellite surveillance equipment located outside the
surveillance room.

**(e) The surveillance system shall** include date and time generators
that possess the capability to display the date and time of recorded
events on video and/or digital recordings. The displayed date and time
shall not significantly obstruct the recorded view.

**(f) The surveillance department shall** strive to ensure staff is
trained in the use of the equipment, knowledge of the games, and house
rules.

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

**(h) Each camera required by the standards in this section shall**
possess the capability of having its picture displayed on a monitor and
recorded. The surveillance system shall include sufficient numbers of
monitors and recorders to simultaneously display and record multiple
gaming and count room activities, and record the views of all dedicated
cameras and motion activated dedicated cameras.

**(i) Reasonable effort shall** be made to repair each malfunction of
surveillance system equipment required by the standards in this section
within seventy-two (72) hours after the malfunction is discovered. The
Tribal gaming regulatory authority shall be notified of any camera(s)
that has malfunctioned for more than twenty-four (24) hours.

**(1) In the event of a dedicated camera malfunction,** the gaming
operation and/or surveillance department shall immediately provide
alternative camera coverage or other security measures, such as
additional supervisory or security personnel, to protect the subject
activity.

**(2)** \[Reserved\]

**(j) *[Bingo]{.underline}*.**

**(1) The surveillance system shall** possess the capability to monitor
the bingo ball drawing device or random number generator, which shall be
recorded during the course of the draw by a dedicated camera with
sufficient clarity to identify the balls drawn or numbers selected.

**(2) The surveillance system shall** monitor and record the game board
and the activities of the employees responsible for drawing, calling,
and entering the balls drawn or numbers selected.

**(k) *[Card games]{.underline}***. The surveillance system shall
monitor and record general activities in each card room with sufficient
clarity to identify the employees performing the different functions.

**(l) *[Progressive card games]{.underline}*.**

**(1) Progressive card games with a progressive jackpot of \$25,000 or
more shall** be monitored and recorded by dedicated cameras that provide
coverage of:

**(i)** The table surface, sufficient that the card values and card
suits can be clearly identified;

**(ii)** An overall view of the entire table with sufficient clarity to
identify customers and dealer; and

**(iii)** A view of the posted jackpot amount.

**(2)** \[Reserved\]

**(m) *[Keno]{.underline}*.**

**(1) The surveillance system shall** possess the capability to monitor
the keno ball-drawing device or random number generator, which shall be
recorded during the course of the draw by a dedicated camera with
sufficient clarity to identify the balls drawn or numbers selected.

**(2) The surveillance system shall** monitor and record general
activities in each keno game area with sufficient clarity to identify
the employees performing the different functions.

**(n) *[Pari-mutuel]{.underline}*.** The surveillance system shall
monitor and record general activities in the pari-mutuel area, to
include the ticket writer and cashier areas, with sufficient clarity to
identify the employees performing the different functions.

**(o) *[Table games]{.underline}*.**

**(1) [Operations with four (4) or more table games]{.underline}.**
Except as otherwise provided in paragraphs (o)(3), (o)(4), and (o)(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:

**(i)** With sufficient clarity to identify customers and dealers; and

**(ii)** With sufficient coverage and clarity to simultaneously view the
table bank and determine the configuration of wagers, card values, and
game outcome.

**(iii)** One (1) dedicated camera per table and one (1) pan-tilt-zoom
camera per four (4) tables may be an acceptable alternative procedure to
satisfy the requirements of this paragraph.

**(2) [Operations with three (3) or fewer table games]{.underline}**.
The surveillance system of gaming operations operating three (3) or
fewer table games shall:

**(i)** Comply with the requirements of paragraph (o)(1) of this
section; or

**(ii)** Have one (1) overhead camera at each table.

**(3) [Craps]{.underline}**. All craps tables shall have two (2)
dedicated cross view cameras covering both ends of the table.

**(4) [Roulette]{.underline}**. All roulette areas shall have one (1)
overhead dedicated camera covering the roulette wheel and shall also
have one (1) dedicated camera covering the play of the table.

(**5) [Big wheel]{.underline}**. All big wheel games shall have one (1)
dedicated camera viewing the wheel.

**(p) *[Progressive table games]{.underline}*.**

**(1) Progressive table games with a progressive jackpot of \$25,000 or
more shall** be monitored and recorded by dedicated cameras that provide
coverage of:

**(i)** The table surface, sufficient that the card values and card
suits can be clearly identified;

**(ii)** An overall view of the entire table with sufficient clarity to
identify customers and dealer; and

**(iii)** A view of the progressive meter jackpot amount. If several
tables are linked to the same progressive jackpot meter, only one meter
need be recorded.

**(2)** \[Reserved\]

**(q) *[Gaming machines]{.underline}*.**

**(1) Except as otherwise provided in paragraphs (q)(2) and (q)(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:

**(i)** All customers and employees at the gaming machine, and

**(ii)** The face of the gaming machine, with sufficient clarity to
identify the payout line(s) of the gaming machine.

**(2) [In-house progressive machine]{.underline}**. In-house progressive
gaming machines offering a base payout amount (jackpot reset amount) of
more than \$100,000 shall be monitored and recorded by a dedicated
camera(s) to provide coverage of:

**(i)** All customers and employees at the gaming machine; and

**(ii)** The face of the gaming machine, with sufficient clarity to
identify the payout line(s) of the gaming machine.

**(3) [Wide-area progressive machine]{.underline}**. Wide-area
progressive gaming machines offering a base payout amount of \$1 million
or more and monitored by an independent vendor utilizing an on-line
progressive computer system shall be recorded by a dedicated camera(s)
to provide coverage of: (Revised August 12, 2005)

**(i)** All customers and employees at the gaming machine; and

**(ii)** The face of the gaming machine, with sufficient clarity to
identify the payout line(s) of the gaming machine.

**(4) Notwithstanding paragraph (q)(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.

**(r) *[Cage and vault]{.underline}*.**

**(1) The surveillance system shall** monitor and record a general
overview of activities occurring in each cage and vault area with
sufficient clarity to identify employees within the cage and customers
and employees at the counter areas.

**(2) Each cashier station shall** be equipped with one (1) dedicated
overhead camera covering the transaction area.

(**3) The surveillance system shall** provide an overview of cash
transactions. This overview should include the customer, the employee,
and the surrounding area.

**(s) *[Fills and credits]{.underline}***.

**(1) The cage or vault area in which fills and credits are transacted
shall** 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 fill and
credit slips.

(**2) Controls provided by a computerized fill and credit system may**
be deemed an adequate alternative to viewing the fill and credit slips.

**(t) *[Currency and coin]{.underline}*.**

**(1) The surveillance system shall** monitor and record with sufficient
clarity all areas where currency or coin may be stored or counted.

**(2) The surveillance system shall** provide for:

**(i)** Coverage of scales shall be sufficiently clear to view any
attempted manipulation of the recorded data.

**(ii)** Monitoring and recording of the table game drop box storage
rack or area by either a dedicated camera or a motion-detector activated
camera.

**(iii)** Monitoring and recording of all areas where coin may be stored
or counted, including the hard count room, all doors to the hard count
room, all scales and wrapping machines, and all areas where uncounted
coin may be stored during the drop and count process.

**(iv)** Monitoring and recording of soft count room, including all
doors to the room, all table game drop boxes, safes, and counting
surfaces, and all count team personnel. The counting surface area must
be continuously monitored and recorded by a dedicated camera during the
soft count.

**(v)** Monitoring and recording of all areas where currency is sorted,
stacked, counted, verified, or stored during the soft count process.

**(u) *[Change booths]{.underline}***. The surveillance system shall
monitor and record a general overview of the activities occurring in
each gaming machine change booth.

**(v) *[Video recording and/or digital record retention]{.underline}*.**

**(1) All video recordings** and/or digital records of coverage provided
by the dedicated cameras or motion-activated dedicated cameras required
by the standards in this section shall be retained for a minimum of
seven (7) days.

**(2) Recordings** involving suspected or confirmed gaming crimes,
unlawful activity, or detentions by security personnel, must be retained
for a minimum of thirty (30) days.

**(3) Duly authenticated copies** of video recordings and/or digital
records shall be provided to the Commission upon request.

**(w) *[Video library log]{.underline}*.** A video library log, or
comparable alternative procedure approved by the Tribal gaming
regulatory authority, shall be maintained to demonstrate compliance with
the storage, identification, and retention standards required in this
section.

**(x) *[Malfunction and repair log]{.underline}*.**

**(1) Surveillance personnel shall** maintain a log or alternative
procedure approved by the Tribal gaming regulatory authority that
documents each malfunction and repair of the surveillance system as
defined in this section.

**(2) The log shall** state the time, date, and nature of each
malfunction, the efforts expended to repair the malfunction, and the
date of each effort, the reasons for any delays in repairing the
malfunction, the date the malfunction is repaired, and where applicable,
any alternative security measures that were taken.

**(y) *[Surveillance log]{.underline}*.**

**(1) Surveillance personnel shall** maintain a log of all surveillance
activities.

**(2) Such log shall** be maintained by surveillance room personnel and
shall be stored securely within the surveillance department.

**(3) At a minimum, the following information shall** be recorded in a
surveillance log:

**(i)** Date;

**(ii)** Time commenced and terminated;

**(iii)** Activity observed or performed; and

**(iv)** The name or license credential number of each person who
initiates, performs, or supervises the surveillance.

**(4) Surveillance personnel shall** also record a summary of the
results of the surveillance of any suspicious activity. This summary may
be maintained in a separate log.

**[[§542.40 What is a Tier C gaming operation?]{.underline}]{.mark}**

**A Tier C gaming operation is one with annual gross gaming revenues of
more than \$15 million.**

**[[§542.41 What are the minimum internal control standards for drop and
count for Tier C gaming operations?]{.underline}]{.mark}**

**(a) *[Computer applications]{.underline}***. For any computer
applications 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, will be
acceptable.

**(b) *[Table game drop standards]{.underline}***.

**(1) The setting out of empty table game drop boxes and the drop
shall** be a continuous process.

**(2) At the end of each shift:**

**(i)** All locked table game drop boxes shall be removed from the
tables by a person independent of the pit shift being dropped;

**(ii)** A separate drop box shall be placed on each table opened at any
time during each shift or a gaming operation may utilize a single drop
box with separate openings and compartments for each shift; and

**(iii)** Upon removal from the tables, table game drop boxes shall be
transported directly to the count room or other equivalently secure area
with comparable controls and locked in a secure manner until the count
takes place.

**(3) If drop boxes are not placed on all tables, then the pit
department shall** document which tables were open during the shift.

**(4) The transporting of table game drop boxes shall** be performed by
a minimum of two persons, at least one of whom is independent of the pit
shift being dropped.

**(5) All table game drop boxes shall** be posted with a number
corresponding to a permanent number on the gaming table and marked to
indicate game, table number, and shift.

**(6) Surveillance shall** be notified when the drop is to begin so that
surveillance may monitor the activities.

**(c) *[Soft count room personnel]{.underline}*.**

**(1) The table game soft count and the gaming machine bill acceptor
count shall** be performed by a minimum of three employees.

**(2) Count room personnel shall** not be allowed to exit or enter the
count room during the count except for emergencies or scheduled breaks.
At no time during the count, shall there be fewer than three employees
in the count room until the drop proceeds have been accepted into
cage/vault accountability. Surveillance shall be notified whenever count
room personnel exit or enter the count room during the count.

**(3) Count team members shall** be rotated on a routine basis such that
the count team is not consistently the same three persons more than four
(4) days per week. This standard shall not apply to gaming operations
that utilize a count team of more than three persons.

**(4) The count team shall** be independent of transactions being
reviewed and counted. The count team shall be independent of the
cage/vault departments, however, an accounting representative may be
used if there is an independent audit of all soft count documentation.

**(d) *[Table game soft count standards]{.underline}*.**

(**1) The table game soft count shall** be performed in a soft count
room or other equivalently secure area with comparable controls.

**(2) Access to the count room during the count shall** be restricted to
members of the drop and count teams, with the exception of authorized
observers, supervisors for resolution of problems, and authorized
maintenance personnel.

**(3) If counts from various revenue centers occur simultaneously in the
count room, procedures shall** be in effect that prevent the commingling
of funds from different revenue centers.

**(4) The table game drop boxes shall** be individually emptied and
counted in such a manner to prevent the commingling of funds between
boxes until the count of the box has been recorded.

**(i)** The count of each box shall be recorded in ink or other
permanent form of recordation.

**(ii)** A second count shall be performed by an employee on the count
team who did not perform the initial count.

**(iii)** Corrections to information originally recorded by the count
team on soft count documentation shall be made by drawing a single line
through the error, writing the correct figure above the original figure,
and then obtaining the initials of at least two count team members who
verified the change.

**(5) If currency counters** are utilized and the count room table is
used only to empty boxes and sort/stack contents, a count team member
shall be able to observe the loading and unloading of all currency at
the currency counter, including rejected currency.

**(6) Table game drop boxes, when empty, shall** be shown to another
member of the count team, or to another person who is observing the
count, or to surveillance, provided the count is monitored in its
entirety by a person independent of the count.

**(7) Orders for fill/credit (if applicable) shall** be matched to the
fill/credit slips. Fills and credits shall be traced to or recorded on
the count sheet.

**(8) Pit marker issue** and payment slips (if applicable) removed from
the table game drop boxes shall either be:

**(i)** Traced to or recorded on the count sheet by the count team; or

**(ii)** Totaled by shift and traced to the totals documented by the
computerized system. Accounting personnel shall verify the issue/payment
slip for each table is accurate.

**(9) Foreign currency exchange forms (if applicable) removed from the
table game drop boxes shall** be reviewed for the proper daily exchange
rate and the conversion amount shall be recomputed by the count team.
Alternatively, this may be performed by accounting/auditing employees.

**(10) The opening/closing** table and marker inventory forms (if
applicable) shall either be:

**(i)** Examined and traced to or recorded on the count sheet; or

**(ii)** If a computerized system is used, accounting personnel can
trace the opening/closing table and marker inventory forms to the count
sheet. Discrepancies shall be investigated with the findings documented
and maintained for inspection.

**(11) The count sheet shall** be reconciled to the total drop by a
count team member who shall not function as the sole recorder.

**(12) All members of the count team shall** sign the count document or
a summary report to attest to their participation in the count.

**(13) All drop proceeds and cash equivalents that were counted shall**
be turned over to the cage or vault cashier (who shall be independent of
the count team) or to an authorized person/employee independent of the
revenue generation and the count process for verification. Such person
shall certify by signature as to the accuracy of the drop proceeds
delivered and received.

**(14) The count sheet, with all supporting documents, shall** be
delivered to the accounting department by a count team member or a
person independent of the cashiers department. Alternatively, it may be
adequately secured (e.g., locked container to which only accounting
personnel can gain access) until retrieved by the accounting department.

**(15) Access to stored, full table game drop boxes shall** be
restricted to authorized members of the drop and count teams.

**(e) *[Gaming machine bill acceptor drop standards]{.underline}*.**

**(1) A minimum of three employees shall** be involved in the removal of
the gaming machine drop, at least one of who is independent of the
gaming machine department.

**(2) All bill acceptor canisters shall** be removed only at the time
previously designated by the gaming operation and reported to the Tribal
gaming regulatory authority, except for emergency drops.

**(3) Surveillance shall** be notified when the drop is to begin so that
surveillance may monitor the activities.

**(4) The bill acceptor canisters shall** be removed by a person
independent of the gaming machine department then transported directly
to the count room or other equivalently secure area with comparable
controls and locked in a secure manner until the count takes place.

**(i)** Security shall be provided over the bill acceptor canisters
removed from the gaming machines and awaiting transport to the count
room.

**(ii)** The transporting of bill acceptor canisters shall be performed
by a minimum of two persons, at least one of who is independent of the
gaming machine department.

**(5) All bill acceptor canisters shall** be posted with a number
corresponding to a permanent number on the gaming machine.

**(f) *[Gaming machine bill acceptor count standards]{.underline}*.**

**(1) The gaming machine bill acceptor count shall** be performed in a
soft count room or other equivalently secure area with comparable
controls.

**(2) Access to the count room during the count shall** be restricted to
members of the drop and count teams, with the exception of authorized
observers, supervisors for resolution of problems, and authorized
maintenance personnel.

**(3) If counts from various revenue centers** occur simultaneously in
the count room, procedures shall be in effect that prevent the
commingling of funds from different revenue centers.

**(4) The bill acceptor canisters shall** be individually emptied and
counted in such a manner to prevent the commingling of funds between
canisters until the count of the canister has been recorded.

**(i)** The count of each canister shall be recorded in ink or other
permanent form of recordation.

**(ii)** Corrections to information originally recorded by the count
team on soft count documentation shall be made by drawing a single line
through the error, writing the correct figure above the original figure,
and then obtaining the initials of at least two count team members who
verified the change. (Revised August 12, 2005)

**(5) If currency counters are utilized** and the count room table is
used only to empty canisters and sort/stack contents, a count team
member shall be able to observe the loading and unloading of all
currency at the currency counter, including rejected currency.

**(6) Canisters, when empty, shall** be shown to another member of the
count team, or to another person who is observing the count, or to
surveillance, provided that the count is monitored in its entirety by a
person independent of the count.

**(7) The count sheet shall** be reconciled to the total drop by a count
team member who shall not function as the sole recorder.

**(8) All members of the count team shall** sign the count document or a
summary report to attest to their participation in the count.

**(9) All drop proceeds and cash equivalents that** were counted shall
be turned over to the cage or vault cashier (who shall be independent of
the count team) or to an authorized person/employee independent of the
revenue generation and the count process for verification. Such person
shall certify by signature as to the accuracy of the drop proceeds
delivered and received.

**(10) The count sheet**, with all supporting documents, shall be
delivered to the accounting department by a count team member or a
person independent of the cashiers department. Alternatively, it may be
adequately secured (e.g., locked container to which only accounting
personnel can gain access) until retrieved by the accounting department.

**(11) Access to stored bill acceptor canisters, full or empty, shall**
be restricted to:

**(i)** Authorized members of the drop and count teams; and

**(ii)** Authorized personnel in an emergency for the resolution of a
problem.

**(g) *[Gaming machine coin drop standards]{.underline}*.**

**(1) A minimum of three employees shall** be involved in the removal of
the gaming machine drop, at least one of who is independent of the
gaming machine department.

**(2) All drop buckets shall** be removed only at the time previously
designated by the gaming operation and reported to the Tribal gaming
regulatory authority, except for emergency drops.

**(3) Surveillance shall** be notified when the drop is to begin in
order that surveillance may monitor the activities.

**(4) Security shall** be provided over the buckets removed from the
gaming machine drop cabinets and awaiting transport to the count room.

**(5) As each machine is opened, the contents shall** be tagged with its
respective machine number if the bucket is not permanently marked with
the machine number. The contents shall be transported directly to the
area designated for the counting of such drop proceeds. If more than one
trip is required to remove the contents of the machines, the filled
carts of coins shall be securely locked in the room designed for
counting or in another equivalently secure area with comparable
controls. There shall be a locked covering on any carts in which the
drop route includes passage out of doors.

**(i)** Alternatively, a smart bucket system that electronically
identifies and tracks the gaming machine number, and facilitates the
proper recognition of gaming revenue, shall satisfy the requirements of
this paragraph.

**(ii)** \[Reserved\]

**(6) Each drop bucket in use shall** be:

**(i)** Housed in a locked compartment separate from any other
compartment of the gaming machine and keyed differently than other
gaming machine compartments; and

**(ii)** Identifiable to the gaming machine from which it is removed. If
the gaming machine is identified with a removable tag that is placed in
the bucket, the tag shall be placed on top of the bucket when it is
collected.

**(7) Each gaming machine shall** have drop buckets into which coins or
tokens that are retained by the gaming machine are collected. Drop
bucket contents shall not be used to make change or pay hand-paid
payouts.

**(8) The collection procedures may** include procedures for dropping
gaming machines that have trays instead of drop buckets.

**(h) *[Hard count room personnel]{.underline}*.**

**(1) The weigh/count shall** be performed by a minimum of three
employees.

**(2) At no time during the weigh/count shall** there be fewer than
three employees in the count room until the drop proceeds have been
accepted into cage/vault accountability. Surveillance shall be notified
whenever count room personnel exit or enter the count room during the
count.

**(i)** If the gaming machine count is conducted with a continuous
mechanical count meter that is not reset during the count and is
verified in writing by at least three employees at the start and end of
each denomination count, then one employee may perform the wrap.

**(ii)** \[Reserved\]

**(3) Count team members shall** be rotated on a routine basis such that
the count team is not consistently the same three persons more than four
(4) days per week. This standard shall not apply to gaming operations
that utilize a count team of more than three persons.

**(4) The count team shall** be independent of transactions being
reviewed and counted. The count team shall be independent of the
cage/vault departments, unless they are non-supervisory gaming machine
employees and perform the laborer function only (A non-supervisory
gaming machine employee is defined as a person below the level of gaming
machine shift supervisor). A cage cashier may be used if this person is
not allowed to perform the recording function. An accounting
representative may be used if there is an independent audit of all count
documentation.

**(i) *[Gaming machine coin count and wrap standards]{.underline}*.**

**(1) Coins shall** include tokens.

**(2) The gaming machine coin count and wrap shall** be performed in a
count room or other equivalently secure area with comparable controls.

**(i)** Alternatively, an on-the-floor drop system utilizing a mobile
scale shall satisfy the requirements of this paragraph, subject to the
following conditions:

**(A)** The gaming operation shall utilize and maintain an effective
on-line gaming machine monitoring system, as described in §542.13(m)(3);

**(B)** Components of the on-the-floor drop system shall include, but
not be limited to, a weigh scale, a laptop computer through which
weigh/count applications are operated, a security camera available for
the mobile scale system, and a VCR to be housed within the video
compartment of the mobile scale. The system may include a mule cart used
for mobile weigh scale system locomotion.

**(C)** The gaming operation must obtain the security camera available
with the system, and this camera must be added in such a way as to
eliminate tampering.

**(D)** Prior to the drop, the drop/count team shall ensure the scale
batteries are charged;

**(E)** Prior to the drop, a videotape shall be inserted into the VCR
used to record the drop in conjunction with the security camera system
and the VCR shall be activated;

**(F)** The weigh scale test shall be performed prior to removing the
unit from the hard count room for the start of the weigh/drop/count;

**(G)** Surveillance shall be notified when the weigh/drop/count begins
and shall be capable of monitoring the entire process;

**(H)** An observer independent of the weigh/drop/count teams
(independent observer) shall remain by the weigh scale at all times and
shall observe the entire weigh/drop/count process;

**(I)** Physical custody of the key(s) needed to access the laptop and
video compartment shall require the involvement of two persons, one of
whom is independent of the drop and count team;

**(J)** The mule key (if applicable), the laptop and video compartment
keys, and the remote control for the VCR shall be maintained by a
department independent of the gaming machine department. The appropriate
personnel shall sign out these keys;

**(K)** A person independent of the weigh/drop/count teams shall be
required to accompany these keys while they are checked out, and observe
each time the laptop compartment is opened;

**(L)** The laptop access panel shall not be opened outside the hard
count room, except in instances when the laptop must be rebooted as a
result of a crash, lock up, or other situation requiring immediate
corrective action;

**(M)** User access to the system shall be limited to those employees
required to have full or limited access to complete the
weigh/drop/count; and

**(N)** When the weigh/drop/count is completed, the independent observer
shall access the laptop compartment, end the recording session, eject
the videotape, and deliver the videotape to surveillance.

**(ii)** \[Reserved\]

**(3) Access to the count room during the count shall** be restricted to
members of the drop and count teams, with the exception of authorized
observers, supervisors for resolution of problems, and authorized
maintenance personnel.

**(4) If counts from various revenue centers** occur simultaneously in
the count room, procedures shall be in effect that prevent the
commingling of funds from different revenue centers.

**(5) The following functions shall** be performed in the counting of
the gaming machine drop:

**(i)** Recorder function, which involves the recording of the gaming
machine count; and

**(ii)** Count team supervisor function, which involves the control of
the gaming machine weigh and wrap process. The supervisor shall not
perform the initial recording of the weigh/count unless a weigh scale
with a printer is used.

**(6) The gaming machine drop shall** be counted, wrapped, and
reconciled in such a manner to prevent the commingling of gaming machine
drop coin with coin (for each denomination) from the next gaming machine
drop until the count of the gaming machine drop has been recorded. If
the coins are not wrapped immediately after being weighed or counted,
they shall be secured and not commingled with other coin.

**(i)** The amount of the gaming machine drop from each machine shall be
recorded in ink or other permanent form of recordation on a gaming
machine count document by the recorder or mechanically printed by the
weigh scale.

**(ii)** Corrections to information originally recorded by the count
team on gaming machine count documentation shall be made by drawing a
single line through the error, writing the correct figure above the
original figure, and then obtaining the initials of at least two count
team members who verified the change.

**(A)** If a weigh scale interface is used, corrections to gaming
machine count data shall be made using either of the following:

**([1]{.underline}) Drawing a single line through the error** on the
gaming machine document, writing the correct figure above the original
figure, and then obtaining the initials of at least two count team
employees. If this procedure is used, an employee independent of the
gaming machine department and count team shall enter the correct figure
into the computer system prior to the generation of related gaming
machine reports; or

**([2]{.underline}) During the count process,** correct the error in the
computer system and enter the passwords of at least two count team
employees. If this procedure is used, an exception report shall be
generated by the computer system identifying the gaming machine number,
the error, the correction, and the count team employees attesting to the
correction.

**(B)** \[Reserved\]

**(7) If applicable, the weight shall** be converted to dollar amounts
before the reconciliation of the weigh to the wrap.

**(8) If a coin meter is used, a count team member shall** convert the
coin count for each denomination into dollars and shall enter the
results on a summary sheet.

**(9) The recorder and at least one other count team member shall** sign
the weigh tape and the gaming machine count document attesting to the
accuracy of the weigh/count.

**(10) All members of the count team shall** sign the count document or
a summary report to attest to their participation in the count.

**(11) All drop proceeds and cash equivalents that were counted shall**
be turned over to the cage or vault cashier (who shall be independent of
the count team) or to an authorized person/employee independent of the
revenue generation and the count process for verification. Such person
shall certify by signature as to the accuracy of the drop proceeds
delivered and received.

**(12) All gaming machine count** and wrap documentation, including any
applicable computer storage media, shall be delivered to the accounting
department by a count team member or a person independent of the
cashier\'s department. Alternatively, it may be adequately secured
(e.g., locked container to which only accounting personnel can gain
access) until retrieved by the accounting department.

**(13) If the coins are transported off the property,** a second
(alternative) count procedure shall be performed before the coins leave
the property. Any variances shall be documented.

**[(14) Variances]{.underline}**. Large (by denomination, either \$1,000
or 2% of the drop, whichever is less) or unusual (e.g., zero for
weigh/count or patterned for all counts) variances between the
weigh/count and wrap shall be investigated by management personnel
independent of the gaming machine department, count team, and the
cage/vault functions on a timely basis. The results of such
investigation shall be documented, maintained for inspection, and
provided to the Tribal gaming regulatory authority upon request.

**(j) *[Security of the count room inventory during the gaming machine
coin count and wrap]{.underline}.***

**(1) If the count room serves** as a coin room and coin room inventory
is not secured so as to preclude access by the count team, then the
following standards shall apply:

**(i)** At the commencement of the gaming machine count the following
requirements shall be met:

**(A)** The coin room inventory shall be counted by at least two
employees, one of whom is a member of the count team and the other is
independent of the weigh/count and wrap procedures;

**(B)** The count in paragraph (j)(1)(i)(A) of this section shall be
recorded on an appropriate inventory form;

**(ii)** Upon completion of the wrap of the gaming machine drop:

**(A)** At least two members of the count team (wrap team),
independently from each other, shall count the ending coin room
inventory;

**(B)** The counts in paragraph (j)(1)(ii)(A) of this section shall be
recorded on a summary report(s) that evidences the calculation of the
final wrap by subtracting the beginning inventory from the sum of the
ending inventory and transfers in and out of the coin room;

**(C)** The same count team members shall compare the calculated wrap to
the weigh/count, recording the comparison and noting any variances on
the summary report;

**(D)** A member of the cage/vault department shall count the ending
coin room inventory by denomination and shall reconcile it to the
beginning inventory, wrap, transfers, and weigh/count; and

**(E)** At the conclusion of the reconciliation, at least two count/wrap
team members and the verifying employee shall sign the summary report(s)
attesting to its accuracy.

**(2) If the count room is segregated** from the coin room, or if the
coin room is used as a count room and the coin room inventory is secured
to preclude access by the count team, all of the following requirements
shall be completed, at the conclusion of the count:

**(i)** At least two members of the count/wrap team shall count the
final wrapped gaming machine drop independently from each other;

**(ii)** The counts shall be recorded on a summary report;

**(iii)** The same count team members (or the accounting department)
shall compare the final wrap to the weigh/count, recording the
comparison and noting any variances on the summary report;

**(iv)** A member of the cage/vault department shall count the wrapped
gaming machine drop by denomination and reconcile it to the weigh/count;

**(v)** At the conclusion of the reconciliation, at least two count team
members and the cage/vault employee shall sign the summary report
attesting to its accuracy; and

**(vi)** The wrapped coins (exclusive of proper transfers) shall be
transported to the cage, vault or coin vault after the reconciliation of
the weigh/count to the wrap.

**(k) *[Transfers during the gaming machine coin count and
wrap]{.underline}*.**

(**1) Transfers may** be permitted during the count and wrap only if
permitted under the internal control standards approved by the Tribal
gaming regulatory authority.

**(2) Each transfer shall** be recorded on a separate multi-part form
with a preprinted or concurrently-printed form number (used solely for
gaming machine count transfers) that shall be subsequently reconciled by
the accounting department to ensure the accuracy of the reconciled
gaming machine drop.

**(3) Each transfer must** be counted and signed for by at least two
members of the count team and by a person independent of the count team
who is responsible for authorizing the transfer.

**(l) *[Gaming machine drop key control standards]{.underline}*.**

**(1) Gaming machine coin drop cabinet keys, including duplicates,
shall** be maintained by a department independent of the gaming machine
department.

**(2) The physical custody of the keys** needed to access gaming machine
coin drop cabinets, including duplicates, shall require the involvement
of two persons, one of whom is independent of the gaming machine
department.

**(3) Two employees (separate from key custodian) shall** be required to
accompany such keys while checked out and observe each time gaming
machine drop cabinets are accessed, unless surveillance is notified each
time keys are checked out and surveillance observes the person
throughout the period the keys are checked out.

**(m) *[Table game drop box key control standards]{.underline}*.**

**(1) Procedures shall** be developed and implemented to insure that
unauthorized access to empty table game drop boxes shall not occur from
the time the boxes leave the storage racks until they are placed on the
tables.

**(2) The involvement of at least two persons independent of the cage
department shall** be required to access stored empty table game drop
boxes.

**(3) The release keys shall** be separately keyed from the contents
keys.

**(4) At least three (two for table game drop box keys in operations
with three tables or fewer) count team members are required** to be
present at the time count room and other count keys are issued for the
count.

**(5) All duplicate keys shall** be maintained in a manner that provides
the same degree of control as is required for the original keys. Records
shall be maintained for each key duplicated that indicate the number of
keys made and destroyed.

**(6) Logs shall** be maintained by the custodian of sensitive keys to
document authorization of personnel accessing keys.

**(n) *[Table game drop box release keys]{.underline}*.**

**(1) The table game drop box release keys shall** be maintained by a
department independent of the pit department.

**(2) Only the person(s) authorized to remove table game drop boxes from
the tables shall** be allowed access to the table game drop box release
keys; however, the count team members may have access to the release
keys during the soft count in order to reset the table game drop boxes.

**(3) Persons authorized to remove the table game drop boxes shall** be
precluded from having simultaneous access to the table game drop box
contents keys and release keys.

**(4) For situations requiring access** to a table game drop box at a
time other than the scheduled drop, the date, time, and signature of
employee signing out/in the release key must be documented.

**(o) *[Bill acceptor canister release keys]{.underline}*.**

(**1) The bill acceptor canister release keys shall** be maintained by a
department independent of the gaming machine department.

**(2) Only the person(s) authorized** to remove bill acceptor canisters
from the gaming machines shall be allowed access to the release keys.

**(3) Persons authorized to** remove the bill acceptor canisters shall
be precluded from having simultaneous access to the bill acceptor
canister contents keys and release keys.

**(4) For situations requiring** access to a bill acceptor canister at a
time other than the scheduled drop, the date, time, and signature of
employee signing out/in the release key must be documented.

**(p) *[Table game drop box storage rack keys]{.underline}*.**

**(1) A person independent of the pit department shall** be required to
accompany the table game drop box storage rack keys and observe each
time table game drop boxes are removed from or placed in storage racks.

**(2) Persons authorized to obtain table game drop box storage rack keys
shall** be precluded from having simultaneous access to table game drop
box contents keys with the exception of the count team.

**(q) *[Bill acceptor canister storage rack keys]{.underline}*.**

**(1) A person independent** of the gaming machine department shall be
required to accompany the bill acceptor canister storage rack keys and
observe each time canisters are removed from or placed in storage racks.

**(2) Persons authorized to obtain** bill acceptor canister storage rack
keys shall be precluded from having simultaneous access to bill acceptor
canister contents keys with the exception of the count team.

**(r) *[Table game drop box contents keys]{.underline}*.**

**(1) The physical custody of the keys needed for** accessing stored,
full table game drop box contents shall require the involvement of
persons from at least two separate departments, with the exception of
the count team.

**(2) Access to the table game drop box contents** key at other than
scheduled count times shall require the involvement of at least three
persons from separate departments, including management. The reason for
access shall be documented with the signatures of all participants and
observers.

**(3) Only count team members shall** be allowed access to table game
drop box content keys during the count process.

**(s) *[Bill acceptor canister contents keys]{.underline}*.**

**(1) The physical custody of the keys** needed for accessing stored,
full bill acceptor canister contents shall require involvement of
persons from two separate departments, with the exception of the count
team.

**(2) Access to the bill acceptor canister contents** key at other than
scheduled count times shall require the involvement of at least three
persons from separate departments, one of whom must be a supervisor. The
reason for access shall be documented with the signatures of all
participants and observers.

**(3) Only the count team members shall** be allowed access to bill
acceptor canister contents keys during the count process.

***(t) [Gaming machine computerized key security systems.]{.underline}
(Adopted May 4, 2005)***

**(1) Computerized key security systems** which restrict access to the
gaming machine drop and count keys through the use of passwords, keys or
other means, other than a key custodian, must provide the same degree of
control as indicated in the aforementioned key control standards; refer
to paragraphs (l), (o), (q) and (s) of this section. Note: This standard
does not apply to the system administrator. The system administrator is
defined in paragraph (t)(2)(i) of this section.

**(2) For computerized key security systems**, the following additional
gaming machine key control procedures apply:

**(i)** Management personnel independent of the gaming machine
department assign and control user access to keys in the computerized
key security system (i.e., system administrator) to ensure that gaming
machine drop and count keys are restricted to authorized employees.

**(ii)** In the event of an emergency or the key box is inoperable,
access to the emergency manual key(s) (a.k.a. override key), used to
access the box containing the gaming machine drop and count keys,
requires the physical involvement of at least three persons from
separate departments, including management. The date, time, and reason
for access, must be documented with the signatures of all participating
employees signing out/in the emergency manual key(s).

**(iii)** The custody of the keys issued pursuant to paragraph
(t)(2)(ii) of this section requires the presence of two persons from
separate departments from the time of their issuance until the time of
their return.

**(iv)** Routine physical maintenance that requires accessing the
emergency manual key(s) (override key) and does not involve the
accessing of the gaming machine drop and count keys, only requires the
presence of two persons from separate departments. The date, time and
reason for access must be documented with the signatures of all
participating employees signing out/in the emergency manual key(s).

**(3) For computerized key security systems** controlling access to
gaming machine drop and count keys, accounting/audit personnel,
independent of the system administrator, will perform the following
procedures:

**(i)** Daily, review the report generated by the computerized key
security system indicating the transactions performed by the
individual(s) that adds, deletes, and changes user\'s access within the
system (i.e., system administrator). Determine whether the transactions
completed by the system administrator provide an adequate control over
the access to the gaming machine drop and count keys. Also, determine
whether any gaming machine drop and count key(s) removed or returned to
the key cabinet by the system administrator was properly authorized.

**(ii)** For at least one day each month, review the report generated by
the computerized key security system indicating all transactions
performed to determine whether any unusual gaming machine drop and count
key removals or key returns occurred.

**(iii)** At least quarterly, review a sample of users that are assigned
access to the gaming machine drop and count keys to determine that their
access to the assigned keys is adequate relative to their job position.

**(iv)** All noted improper transactions or unusual occurrences are
investigated with the results documented.

**(4) Quarterly**, an inventory of all count room, drop box release,
storage rack and contents keys is performed, and reconciled to records
of keys made, issued, and destroyed. Investigations are performed for
all keys unaccounted for, with the investigation being documented.

***(u) [Table games computerized key security systems.]{.underline}
(Adopted May 4, 2005)***

**(1) Computerized key security systems** which restrict access to the
table game drop and count keys through the use of passwords, keys or
other means, other than a key custodian, must provide the same degree of
control as indicated in the aforementioned key control standards; refer
to paragraphs (m), (n), (p) and (r) of this section. Note: This standard
does not apply to the system administrator. The system administrator is
defined in paragraph (u)(2)(ii) of this section.

**(2) For computerized key security systems**, the following additional
table game key control procedures apply:

**(i)** Management personnel independent of the table game department
assign and control user access to keys in the computerized key security
system (i.e., system administrator) to ensure that table game drop and
count keys are restricted to authorized employees.

**(ii)** In the event of an emergency or the key box is inoperable,
access to the emergency manual key(s) (a.k.a. override key), used to
access the box containing the table game drop and count keys, requires
the physical involvement of at least three persons from separate
departments, including management. The date, time, and reason for
access, must be documented with the signatures of all participating
employees signing out/in the emergency manual key(s).

**(iii)** The custody of the keys issued pursuant to paragraph
(u)(2)(ii) of this section requires the presence of two persons from
separate departments from the time of their issuance until the time of
their return.

**(iv)** Routine physical maintenance that requires accessing the
emergency manual key(s) override key) and does not involve the accessing
of the table games drop and count keys, only requires the presence of
two persons from separate departments. The date, time and reason for
access must be documented with the signatures of all participating
employees signing out/in the emergency manual key(s).

**(3) For computerized key security systems** controlling access to
table games drop and count keys, accounting/audit personnel, independent
of the system administrator, will perform the following procedures:

**(i)** Daily, review the report generated by the computerized key
security system indicating the transactions performed by the
individual(s) that adds, deletes, and changes user\'s access within the
system (i.e., system administrator). Determine whether the transactions
completed by the system administrator provide an adequate control over
the access to the table games drop and count keys. Also, determine
whether any table games drop and count key(s) removed or returned to the
key cabinet by the system administrator was properly authorized.

**(ii)** For at least one day each month, review the report generated by
the computerized key security system indicating all transactions
performed to determine whether any unusual table games drop and count
key removals or key returns occurred.

**(iii)** At least quarterly, review a sample of users that are assigned
access to the table games drop and count keys to determine that their
access to the assigned keys is adequate relative to their job position.

**(iv)** All noted improper transactions or unusual occurrences are
investigated with the results documented.

**(4) Quarterly**, an inventory of all count room, table game drop box
release, storage rack and contents keys is performed, and reconciled to
records of keys made, issued, and destroyed. Investigations are
performed for all keys unaccounted for, with the investigations being
documented.

**(v) *[Emergency drop procedures]{.underline}*.** Emergency drop
procedures shall be developed by the Tribal gaming regulatory authority,
or the gaming operation as approved by the Tribal gaming regulatory
authority. (Revised May 4, 2005)

**(w) *[Equipment standards for gaming machine count]{.underline}.
(Revised May 4, 2005) ***

**(1) A weigh scale calibration module shall** be secured so as to
prevent unauthorized access (e.g., prenumbered seal, lock and key,
etc.).

**(2) A person independent of the cage, vault, gaming machine, and count
team functions shall** be required to be present whenever the
calibration module is accessed. Such access shall be documented and
maintained.

**(3) If a weigh scale interface is used, it shall** be adequately
restricted so as to prevent unauthorized access (passwords, keys, etc.).

**(4) If the weigh scale has a zero adjustment mechanism, it shall** be
physically limited to minor adjustments (e.g., weight of a bucket) or
physically situated such that any unnecessary adjustments to it during
the weigh process would be observed by other count team members.

**(5) The weigh scale and weigh scale interface (if applicable) shall**
be tested by a person or persons independent of the cage, vault, and
gaming machine departments and count team at least quarterly. At least
annually, this test shall be performed by internal audit in accordance
with the internal audit standards. The result of these tests shall be
documented and signed by the person or persons performing the test.

**(6) Prior to the gaming machine count, at least two employees shall**
verify the accuracy of the weigh scale with varying weights or with
varying amounts of previously counted coin for each denomination to
ensure the scale is properly calibrated (varying weights/coin from drop
to drop is acceptable).

**(7) If a mechanical coin counter is used** (instead of a weigh scale),
the Tribal gaming regulatory authority, or the gaming operation as
approved by the Tribal gaming regulatory authority, shall establish and
the gaming operation shall comply with procedures that are equivalent to
those described in paragraphs (u)(4), (u)(5), and (u)(6) of this
section.

**(8) If a coin meter count machine is used**, the count team member
shall record the machine number denomination and number of coins in ink
on a source document, unless the meter machine automatically records
such information.

**(i)** A count team member shall test the coin meter count machine
before the actual count to ascertain if the metering device is
functioning properly with a predetermined number of coins for each
denomination.

**(ii)** \[Reserved\]

**[[§542.42 What are the minimum internal control standards for internal
audit for Tier C gaming operations?]{.underline}]{.mark}**

**[(a) *Internal audit personnel*]{.underline}**.

**(1) For Tier C gaming operations**, a separate internal audit
department shall be maintained whose primary function is performing
internal audit work and that is independent with respect to the
departments subject to audit.

**(2) The internal audit personnel shall** report directly to the Tribe,
Tribal gaming regulatory authority, audit committee, or other entity
designated by the Tribe in accordance with the definition of internal
audit in §542.2.

**(b) *[Audits]{.underline}*.**

**(1) Internal audit personnel shall** perform audits of all major
gaming areas of the gaming operation. The following shall be reviewed at
least annually:

**(i)** Bingo, including but not limited to, bingo card control, payout
procedures, and cash reconciliation process;

**(ii)** Pull tabs, including but not limited to, statistical records,
winner verification, perpetual inventory, and accountability of sales
versus inventory;

**(iii)** Card games, including but not limited to, card games
operation, cash exchange procedures, shill transactions, and count
procedures;

**(iv)** Keno, including but not limited to, game write and payout
procedures, sensitive key location and control, and a review of keno
auditing procedures;

**(v)** Pari-mutual wagering, including write and payout procedures, and
pari-mutual auditing procedures;

**(vi)** Table games, including but not limited to, fill and credit
procedures, pit credit play procedures, rim credit procedures, soft
drop/count procedures and the subsequent transfer of funds, unannounced
testing of count room currency counters and/or currency interface,
location and control over sensitive keys, the tracing of source
documents to summarized documentation and accounting records, and
reconciliation to restricted copies;

**(vii)** Gaming machines, including but not limited to, jackpot payout
and gaming machine fill procedures, gaming machine drop/count and bill
acceptor drop/count and subsequent transfer of funds, unannounced
testing of weigh scale and weigh scale interface, unannounced testing of
count room currency counters and/or currency interface, gaming machine
drop cabinet access, tracing of source documents to summarized
documentation and accounting records, reconciliation to restricted
copies, location and control over sensitive keys, compliance with EPROM
duplication procedures, and compliance with MICS procedures for gaming
machines that accept currency or coin(s) and issue cash-out tickets or
gaming machines that do not accept currency or coin(s) and do not return
currency or coin(s);

**(viii)** Cage and credit procedures including all cage, credit, and
collection procedures, and the reconciliation of trial balances to
physical instruments on a sample basis. Cage accountability shall be
reconciled to the general ledger;

**(ix)** Information technology functions, including review for
compliance with information technology standards;

**(x)** Complimentary service or item, including but not limited to,
procedures whereby complimentary service items are issued, authorized,
and redeemed; and

**(xi)** Any other internal audits as required by the Tribe, Tribal
gaming regulatory authority, audit committee, or other entity designated
by the Tribe.

**(2) In addition to** the observation and examinations performed under
paragraph (b)(1) of this section, follow-up observations and
examinations shall be performed to verify that corrective action has
been taken regarding all instances of noncompliance cited by internal
audit, the independent accountant, and/or the Commission. The
verification shall be performed within six (6) months following the date
of notification.

**(3) Whenever possible**, internal audit observations shall be
performed on an unannounced basis (i.e., without the employees being
forewarned that their activities will be observed). Additionally, if the
independent accountant also performs the internal audit function, the
accountant shall perform separate observations of the table games/gaming
machine drops and counts to satisfy the internal audit observation
requirements and independent accountant tests of controls as required by
the American Institute of Certified Public Accountants guide.

**(c) *[Documentation]{.underline}*.**

**(1) Documentation** (e.g., checklists, programs, reports, etc.) shall
be prepared to evidence all internal audit work performed as it relates
to the requirements in this section, including all instances of
noncompliance.

**(2) The internal audit department shall** operate with audit programs,
which, at a minimum, address the MICS. Additionally, the department
shall properly document the work performed, the conclusions reached, and
the resolution of all exceptions. Institute of Internal Auditors
standards are recommended but not required.

**(d) *[Reports]{.underline}*.**

**(1) Reports documenting audits performed shall** be maintained and
made available to the Commission upon request.

**(2) Such audit reports shall** include the following information:

**(i)** Audit objectives;

**(ii)** Audit procedures and scope;

**(iii)** Findings and conclusions;

**(iv)** Recommendations, if applicable; and

**(v)** Management\'s response.

**(e) *[Material exceptions]{.underline}*.** All material exceptions
resulting from internal audit work shall be investigated and resolved
with the results of such being documented and retained for five years.

**(f) *[Role of management]{.underline}*.**

(**1) Internal audit findings shall** be reported to management.

**(2) Management shall** be required to respond to internal audit
findings stating corrective measures to be taken to avoid recurrence of
the audit exception.

(**3) Such management responses shall** be included in the internal
audit report that will be delivered to management, the Tribe, Tribal
gaming regulatory authority, audit committee, or other entity designated
by the Tribe.

***(g) [Internal Audit Guidelines]{.underline}.*** In connection with
the internal audit testing pursuant to paragraph (b)(1) of this section,
the Commission shall develop recommended Internal Audit Guidelines,
which shall be available upon request. (Adopted August 12, 2005)

**[[§542.43 What are the minimum internal control standards for
surveillance for a Tier C gaming operation?]{.underline}]{.mark}**

**(a) The surveillance system shall** be maintained and operated from a
staffed surveillance room and shall provide surveillance over gaming
areas.

**(b) The entrance to the surveillance room shall** be located so that
it is not readily accessible by either gaming operation employees who
work primarily on the casino floor, or the general public.

**(c) Access to the surveillance room shall** be limited to surveillance
personnel, designated employees, and other persons authorized in
accordance with the surveillance department policy. Such policy shall be
approved by the Tribal gaming regulatory authority. The surveillance
department shall maintain a sign-in log of other authorized persons
entering the surveillance room.

**(d) Surveillance room equipment shall** have total override capability
over all other satellite surveillance equipment located outside the
surveillance room.

**(e) In the event of power loss to the surveillance system, an
auxiliary or backup power source shall** be available and capable of
providing immediate restoration of power to all elements of the
surveillance system that enable surveillance personnel to observe the
table games remaining open for play and all areas covered by dedicated
cameras. Auxiliary or backup power sources such as a UPS System, backup
generator, or an alternate utility supplier, satisfy this requirement.

**(f) The surveillance system shall** include date and time generators
that possess the capability to display the date and time of recorded
events on video and/or digital recordings. The displayed date and time
shall not significantly obstruct the recorded view.

**(g) The surveillance department shall** strive to ensure staff is
trained in the use of the equipment, knowledge of the games, and house
rules.

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

**(i) Each camera required by the standards in this section shall**
possess the capability of having its picture displayed on a monitor and
recorded. The surveillance system shall include sufficient numbers of
monitors and recorders to simultaneously display and record multiple
gaming and count room activities, and record the views of all dedicated
cameras and motion activated dedicated cameras.

**(j) Reasonable effort shall** be made to repair each malfunction of
surveillance system equipment required by the standards in this section
within seventy-two (72) hours after the malfunction is discovered. The
Tribal gaming regulatory authority shall be notified of any camera(s)
that has malfunctioned for more than twenty-four (24) hours.

**(1) In the event of a dedicated camera malfunction, the gaming
operation and/or the surveillance department shall** immediately provide
alternative camera coverage or other security measures, such as
additional supervisory or security personnel, to protect the subject
activity.

**(2)** \[Reserved\]

**(k) *[Bingo]{.underline}***.

**(1) The surveillance system shall** possess the capability to monitor
the bingo ball drawing device or random number generator, which shall be
recorded during the course of the draw by a dedicated camera with
sufficient clarity to identify the balls drawn or numbers selected.

**(2) The surveillance system shall** monitor and record the game board
and the activities of the employees responsible for drawing, calling,
and entering the balls drawn or numbers selected.

**(l) *[Card games]{.underline}***. The surveillance system shall
monitor and record general activities in each card room with sufficient
clarity to identify the employees performing the different functions.

**(m) *[Progressive card games]{.underline}*.**

**(1) Progressive card games with a progressive jackpot of \$25,000 or
more shall** be monitored and recorded by dedicated cameras that provide
coverage of:

**(i)** The table surface, sufficient that the card values and card
suits can be clearly identified;

**(ii)** An overall view of the entire table with sufficient clarity to
identify customers and dealer; and

**(iii)** A view of the posted jackpot amount.

**(2)** \[Reserved\]

**(n) *[Keno]{.underline}***.

**(1) The surveillance system shall** possess the capability to monitor
the keno ball-drawing device or random number generator, which shall be
recorded during the course of the draw by a dedicated camera with
sufficient clarity to identify the balls drawn or numbers selected.

**(2) The surveillance system shall** monitor and record general
activities in each keno game area with sufficient clarity to identify
the employees performing the different functions.

**(o) *[Pari-mutuel]{.underline}*.** The surveillance system shall
monitor and record general activities in the pari-mutuel area, to
include the ticket writer and cashier areas, with sufficient clarity to
identify the employees performing the different functions.

**(p) *[Table games]{.underline}*.**

**(1) [Operations with four (4) or more table games]{.underline}**.
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:

**(i)** With sufficient clarity to identify customers and dealers; and

**(ii)** With sufficient coverage and clarity to simultaneously view the
table bank and determine the configuration of wagers, card values, and
game outcome.

**(iii)** One (1) dedicated camera per table and one (1) pan-tilt-zoom
camera per four (4) tables may be an acceptable alternative procedure to
satisfy the requirements of this paragraph.

**(2) [Operations with three (3) or fewer table games]{.underline}.**
The surveillance system of gaming operations operating three (3) or
fewer table games shall:

**(i)** Comply with the requirements of paragraph (p)(1) of this
section; or

**(ii)** Have one (1) overhead camera at each table.

**(3) [Craps]{.underline}**. All craps tables shall have two (2)
dedicated cross view cameras covering both ends of the table.

**(4) [Roulette]{.underline}**. All roulette areas shall have one (1)
overhead dedicated camera covering the roulette wheel and shall also
have one (1) dedicated camera covering the play of the table.

**(5) [Big wheel]{.underline}**. All big wheel games shall have one (1)
dedicated camera viewing the wheel.

**(q) *[Progressive table games]{.underline}***.

(**1) Progressive table games with a progressive jackpot of \$25,000 or
more shall** be monitored and recorded by dedicated cameras that provide
coverage of:

**(i)** The table surface, sufficient that the card values and card
suits can be clearly identified;

**(ii)** An overall view of the entire table with sufficient clarity to
identify customers and dealer; and

**(iii)** A view of the progressive meter jackpot amount. If several
tables are linked to the same progressive jackpot meter, only one meter
need be recorded.

**(2)** \[Reserved\]

**(r) *[Gaming machines]{.underline}*.**

**(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:

**(i)** All customers and employees at the gaming machine, and

**(ii)** The face of the gaming machine, with sufficient clarity to
identify the payout line(s) of the gaming machine.

**(2) [In-house progressive machine]{.underline}**. In-house progressive
gaming machines offering a base payout amount (jackpot reset amount) of
more than \$100,000 shall be monitored and recorded by a dedicated
camera(s) to provide coverage of:

**(i)** All customers and employees at the gaming machine; and

**(ii)** The face of the gaming machine, with sufficient clarity to
identify the payout line(s) of the gaming machine.

(**3) [Wide-area progressive machine]{.underline}**. Wide-area
progressive gaming machines offering a base payout amount of \$1 million
or more and monitored by an independent vendor utilizing an on-line
progressive computer system shall be recorded by a dedicated camera(s)
to provide coverage of: (Revised August 12, 2005)

**(i)** All customers and employees at the gaming machine; and

**(ii)** The face of the gaming machine, with sufficient clarity to
identify the payout line(s) of the gaming machine.

**(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.

**(s) *[Cage and vault]{.underline}*.**

\(1\) **The surveillance system shall** monitor and record a general
overview of activities occurring in each cage and vault area with
sufficient clarity to identify employees within the cage and customers
and employees at the counter areas.

**(2) Each cashier station shall** be equipped with one (1) dedicated
overhead camera covering the transaction area.

**(3) The surveillance system shall** provide an overview of cash
transactions. This overview should include the customer, the employee,
and the surrounding area.

**(t) *[Fills and credits]{.underline}*.**

**(1) The cage or vault area in which fills and credits are transacted
shall** 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 fill and
credit slips.

**(2) Controls provided by a computerized fill** and credit system maybe
deemed an adequate alternative to viewing the fill and credit slips.

**(u) *[Currency and coin]{.underline}*.**

**(1) The surveillance system shall** monitor and record with sufficient
clarity all areas where currency or coin may be stored or counted.

**(2) Audio capability of the soft count room shall** also be
maintained.

**(3) The surveillance system shall** provide for:

**(i)** Coverage of scales shall be sufficiently clear to view any
attempted manipulation of the recorded data.

**(ii)** Monitoring and recording of the table game drop box storage
rack or area by either a dedicated camera or a motion-detector activated
camera.

**(iii)** Monitoring and recording of all areas where coin may be stored
or counted, including the hard count room, all doors to the hard count
room, all scales and wrapping machines, and all areas where uncounted
coin may be stored during the drop and count process.

**(iv)** Monitoring and recording of soft count room, including all
doors to the room, all table game drop boxes, safes, and counting
surfaces, and all count team personnel. The counting surface area must
be continuously monitored and recorded by a dedicated camera during the
soft count.

**(v)** Monitoring and recording of all areas where currency is sorted,
stacked, counted, verified, or stored during the soft count process.

**(v) *[Change booths]{.underline}*.** The surveillance system shall
monitor and record a general overview of the activities occurring in
each gaming machine change booth.

**(w) *[Video recording and/or digital record retention]{.underline}*.**

**(1) All video recordings** and/or digital records of coverage provided
by the dedicated cameras or motion-activated dedicated cameras required
by the standards in this section shall be retained for a minimum of
seven (7) days.

**(2) Recordings** involving suspected or confirmed gaming crimes,
unlawful activity, or detentions by security personnel, must be retained
for a minimum of thirty (30) days.

**(3) Duly authenticated copies** of video recordings and/or digital
records shall be provided to the Commission upon request.

**(x) *[Video library log]{.underline}*.** A video library log, or
comparable alternative procedure approved by the Tribal gaming
regulatory authority, shall be maintained to demonstrate compliance with
the storage, identification, and retention standards required in this
section.

**(y) *[Malfunction and repair log]{.underline}*.**

**(1) Surveillance personnel shall** maintain a log or alternative
procedure approved by the Tribal gaming regulatory authority that
documents each malfunction and repair of the surveillance system as
defined in this section.

**(2) The log shall** state the time, date, and nature of each
malfunction, the efforts expended to repair the malfunction, and the
date of each effort, the reasons for any delays in repairing the
malfunction, the date the malfunction is repaired, and where applicable,
any alternative security measures that were taken.

**(z) *[Surveillance log]{.underline}*.**

**(1) Surveillance personnel shall** maintain a log of all surveillance
activities.

**(2) Such log shall** be maintained by surveillance room personnel and
shall be stored securely within the surveillance department.

**(3) At a minimum, the following information shall** be recorded in a
surveillance log:

**(i)** Date;

**(ii)** Time commenced and terminated;

**(iii)** Activity observed or performed; and

**(iv)** The name or license credential number of each person who
initiates, performs, or supervises the surveillance.

**(4) Surveillance personnel shall** also record a summary of the
results of the surveillance of any suspicious activity. This summary may
be maintained in a separate log.

This Final Rule was prepared under direction of the National Indian
Gaming Commission, 1441 L Street, NW, Suite 9100, Washington, DC 20005.