§ 518.5 What criteria must a tribe meet to receive a certificate of self-regulation? ( a ) The Commission shall issue a certificate of self-regulation if it determines that for a three (3)-year period, the tribe has: ( 1 ) Conducted its gaming activity in a manner that: ( i ) Has resulted in an effective and honest accounting of all revenues;
( ii ) Has resulted in a reputation for safe, fair, and honest operation of the activity; and
( iii ) Has been generally free of evidence of criminal or dishonest activity;
( 2 ) Conducted its gaming operation on a fiscally and economically sound basis;
( 3 ) Conducted its gaming activity in compliance with the IGRA, NIGC regulations in this chapter, and the tribe's gaming ordinance and gaming regulations; and
( 4 ) Adopted and is implementing adequate systems for: ( i ) Accounting of all revenues from the gaming activity;
( ii ) Investigating, licensing and monitoring of all employees of the gaming activity;
( iii ) Investigating, enforcing, prosecuting, or referring for prosecution violations of its gaming ordinance and regulations; and
( iv ) Prosecuting criminal or dishonest activity or referring such activity for prosecution.
( b ) A tribe may illustrate that it has met the criteria listed in paragraph (a) of this section by addressing factors such as those listed in paragraphs (b)(1) through (9) of this section. The list of factors is not all-inclusive; other factors not listed here may also be addressed and considered. ( 1 ) The tribe adopted and is implementing minimum internal control standards which are at least as stringent as those promulgated by the Commission;
( 2 ) The tribe requires tribal gaming regulators to meet the same suitability requirements as those required for key employees and primary management officials of the gaming operation(s);
( 3 ) The tribe's gaming operation utilizes an adequate system for accounting of all gaming revenues from Class II gaming activity;
( 4 ) The tribe has a dispute resolution process for gaming operation customers and has taken steps to ensure that the process is adequately implemented;
( 5 ) The tribe has a gaming regulatory body which: ( i ) Monitors gaming activities to ensure compliance with Federal and tribal laws and regulations;
( ii ) Monitors the gaming revenues accounting system for continued effectiveness;
( iii ) Performs routine operational or other audits of the Class II gaming activities;
( iv ) Routinely receives and reviews gaming revenue accounting information from the gaming operation(s);
( v ) Has access to, and may inspect, examine, photocopy and audit, all papers, books, and records of the gaming operation(s) and Class II gaming activities;
( vi ) Monitors compliance with minimum internal control standards for the gaming operation;
( vii ) Has adopted and is implementing an adequate system for investigating, licensing, and monitoring of all employees of the gaming activity;
( viii ) Maintains records on licensees and on persons denied licenses, including persons otherwise prohibited from engaging in gaming activities within the tribe's jurisdiction;
( ix ) Establishes standards for, and issues, vendor licenses or permits to persons or entities who deal with the gaming operation, such as manufacturers and suppliers of services, equipment and supplies;
( x ) Establishes or approves the rules governing Class II games, and requires their posting;
( xi ) Has adopted and is implementing an adequate system for the investigation of possible violations of the tribal gaming ordinance and regulations, and takes appropriate enforcement actions; and
( xii ) Takes testimony and conducts hearings on regulatory matters, including matters related to the revocation of primary management officials, key employee and vendor licenses;
( 6 ) The tribe allocates and appropriates a sufficient source of permanent and stable funding for the tribal regulatory body;
( 7 ) The tribe has adopted and is implementing a conflict of interest policy for the regulators/regulatory body and their staff;
( 8 ) The tribe has adopted and is implementing a system for adequate prosecution of violations of the tribal gaming ordinance and regulations or referrals for prosecution; and
( 9 ) The tribe demonstrates that the operation is being conducted in a manner which adequately protects the environment and the public health and safety.
( c ) The tribe assists the Commission with access and information-gathering responsibilities during the certification process.
( d ) The burden of establishing self-regulation is upon the tribe filing the petition.
[78 FR 20241, Apr. 4, 2013, as amended at 87 FR 62986, Oct. 18, 2022]