September 20, 2021 

Summary of Proposed Changes to 25 C.F.R. Parts 502, 543, 556, 558, 559, 571 

National Indian Gaming Commission 

 The National Indian Gaming Commission seeks tribal input, feedback, and suggestions 

concerning proposed amendments to 25 C.F.R. Part 571, specifically as this part applies small 

and charitable gaming operations. 

 Pursuant to the Indian Gaming Regulatory Act, all gaming operations, including small 

and charitable operations, must conduct annual outside audits of the gaming and must submit 

copies of the audit to the NIGC. NIGC regulations currently allow gaming operations grossing 

less than $2 million in the previous fiscal year to submit reviewed financial statements instead of 

audited financials if the gaming operation has three years of financial submissions that comply 

with NIGC’s audit submission requirements or the gaming operation has received a waiver from 

the Commission. 

 The NIGC recognizes that the requirement to submit audited financials and even 

reviewed financials can be burdensome for small and charitable gaming operations. During 

formal and informal consultations, tribal stakeholders have expressed the financial hurdles that 

small and charitable gaming operations face regarding the audit requirement. 

 Accordingly, the NIGC is considering the following revisions to 25 C.F.R. § 571.12: 

 Eliminate the Commission waiver requirement for reviewed financial statements 

and allow all operations grossing less than $2 million in the previous fiscal year to 

submit reviewed financial statements provided that the tribe or tribal gaming 

regulatory authority permits the gaming operation to submit reviewed financials, 

and the gaming operation has no instance of non-compliance with 25 C.F.R. §§ 

571.12 and 571.13 for the three previous years; and 

 [Option 1] [(2) Create a third tier of financial reporting for charitable gaming 

operations with annual gross revenues of $50,000 or less where, if permitted by 

the tribe, a charitable gaming operation may submit financial information on a 

monthly basis to the tribe or the tribal gaming regulatory authority (TGRA) and in 

turn, the tribe or TGRA provides an annual certification to the NIGC regarding 

the charitable gaming operation’s compliance with the financial reporting.] 

 [Option 2] [(2) Create a third tier of financial reporting for charitable gaming 

operations with annual gross revenues of $50,000 or less where, if permitted by 

the tribe, a charitable gaming operation may submit compiled financial statements 

provided the charitable gaming operation has no instance of non-compliance with 

25 C.F.R. §§ 571.12 and 571.13 for the three previous years.] 

 
September 20, 2021 

Summary of Proposed Changes to 25 C.F.R. Parts 502, 543, 556, 558, 559, 571 

National Indian Gaming Commission 

§ 571.12 Audit Standards. 

 (a) Each tribe shall prepare comparative financial statements covering all financial 

activities of each class II and class III gaming operation on the tribe’s Indian lands for each fiscal 

year. 

 (b) A tribe shall engage an independent certified public accountant to provide an annual 

audit of the financial statements of each class II and class III gaming operation on the tribe’s 

Indian lands for each fiscal year. The independent certified public accountant must be licensed 

by a state board of accountancy. Financial statements prepared by the certified public accountant 

shall conform to generally accepted accounting principles and the annual audit shall conform to 

generally accepted auditing standards. 

 (c) If a gaming operation has gross gaming revenues of less than $2,000,000 during the 

prior fiscal year, the annual audit requirement of paragraph (b) of this section is satisfied if: 

(1) The independent certified public accountant completes a review of the financial 

statements conforming to the statements on standards for accounting and review services of the 

gaming operation; and

(2) The gaming operation’s financial statements for the three previous years were sent 

to the Commission in accordance with § 571.13. The tribe or tribal gaming regulatory authority 

(TGRA) permits the gaming operation to submit a review of the financial statements according 

to this paragraph and the tribe or TGRA informs the NIGC of such permission; andUnless 

waived in writing by the Commission, the gaming operation's financial statements for the three 

previous years were sent to the Commission in accordance with § 571.13. 

(3) The gaming operation has otherwise complied with this section and with § 571.13 

for the three previous years.

 (d) If a gaming operation has multiple gaming places, facilities or locations on the tribe’s 

Indian lands, the annual audit requirement of paragraph (b) of this section is satisfied if: 

(1) The tribe chooses to consolidate the financial statements of the gaming places, 

facilities or locations; 

(2) The independent certified public accountant completes an audit conforming to 

generally accepted auditing standards of the consolidated financial statements; 

(3) The consolidated financial statements include consolidating schedules for each 

gaming place, facility, or location; 
September 20, 2021 

Summary of Proposed Changes to 25 C.F.R. Parts 502, 543, 556, 558, 559, 571 

National Indian Gaming Commission 

(4) Unless waived in writing by the Commission, the gaming operation’s financial 

statements for the three previous years, whether or not consolidated, were sent to the 

Commission in accordance with § 571.13; and 

(5) The independent certified public accountant expresses an opinion on the 

consolidated financial statement as a whole and subjects the accompanying financial information 

to the auditing procedures applicable to the audit of consolidated financial statements. 

(e) If there are multiple gaming operations on a tribe’s Indian lands and each operation has gross 

gaming revenues of less than $2,000,000 during the prior fiscal year, the annual audit 

requirement of paragraph (b) of this section is satisfied if: 

(1) The tribe chooses to consolidate the financial statements of the gaming operations; 

(2) The consolidated financial statements include consolidating schedules for each 

operation; 

(3) The independent certified public accountant completes a review of the 

consolidated schedules conforming to the statements on standards for accounting and review 

services for each gaming facility or location; 

(4) The gaming operation’s financial statements for the three previous years were sent 

to the Commission in accordance with § 571.13. The gaming operation has otherwise complied 

with this section and with § 571.13 for the three previous years;Unless waived in writing by the 

Commission, the gaming operations’ financial statements for the three previous years, whether or 

not consolidated, were sent to the Commission in accordance with § 571.13; and 

(5) The independent certified public accountant expresses an opinion on the 

consolidated financial statements as a whole and subjects the accompanying financial 

information to the auditing procedures applicable to the audit of consolidated financial 

statements. 

[OPTION 1 for Charitable Gaming Operations]

 (f) (1) If a charitable gaming operation has gross gaming revenues of less than $50,000 

during the prior fiscal year, the annual audit requirement of paragraph (b) of this section is 

satisfied if: 

(i) The charitable gaming operation creates, prepares, and maintains records in 

accordance with Generally Accepted Accounting Principles; 

(ii) At a minimum, the charitable gaming operation provides the tribe or tribal 

gaming regulatory authority (TGRA) with the following financial information on a monthly 

basis: 
September 20, 2021 

Summary of Proposed Changes to 25 C.F.R. Parts 502, 543, 556, 558, 559, 571 

National Indian Gaming Commission 

(A)Each occasion when gaming was offered in a month;

(B) Gross gaming revenue for each month;

(C) Amounts paid out as, or paid for, prizes for each month; 

(D) Amounts paid as operating expenses, providing each recipient’s name; the 

date, amount, and check number or electronic transfer confirmation number of the payment; and 

a brief description of the purpose of the operating expense; 

(E) All deposits of gaming revenue; 

(F) All withdrawals of gaming revenue; 

(G) All expenditures of net gaming revenues, including the recipient’s name, 

the date, amount, and check number or electronic transfer confirmation number of the payment; 

and a brief description of the purpose of the expenditure; and 

(H) The names of each employee and volunteer, and the salary or other 

compensation paid to each person. 

(iii) The tribe or TGRA permits the charitable gaming operation to be subject to 

this paragraph (f), and the tribe or TGRA informs the NIGC in writing of such permission; 

(iv) The NIGC [or Chair of the NIGC] permits the charitable gaming operation to 

be subject to this paragraph (f) and the NIGC [or Chair of the NIGC] informs the tribe or TGRA 

in writing of such permission; and 

(v) Within 120 days of the gaming operation’s fiscal year end, the tribe or the 

TGRA provides a certification to the NIGC that the tribe or TGRA reviewed the charitable 

gaming operation’s financial information, and after such review, the tribe or TGRA concludes 

that the charitable gaming operation conducted the gaming in a manner that protected the 

integrity of the games offered and safeguarded the assets used in connection with the gaming 

operation, and the charitable gaming operation expended net gaming revenues in a manner 

consistent with IGRA, NIGC regulations, the tribe’s gaming ordinance or resolution, and the 

tribe’s gaming regulations. 

(2) If the tribe or TGRA does not or cannot provide the NIGC with the certification 

required by subparagraph (f)(1)(v) within 120 days of the gaming operation’s fiscal year end, the 

charitable gaming operation must otherwise comply with the annual audit requirement of 

paragraph (b). 

(3) The tribe or TGRA may impose additional financial reporting requirements on 

charitable gaming operations that otherwise qualify under this paragraph (f). 

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September 20, 2021 

Summary of Proposed Changes to 25 C.F.R. Parts 502, 543, 556, 558, 559, 571 

National Indian Gaming Commission 

(4) The Chair of the NIGC may, at his or her discretion, require any gaming operation 

subject to this paragraph (f) to comply with the annual audit requirement of paragraph (b). 

(5) This paragraph (f) does not affect other requirements of IGRA and NIGC 

regulations, including, but not limited to, fees and quarterly fee statements (25 U.S.C. § 2717; 25 

C.F.R. part 514); requirements for revenue allocation plans (25 U.S.C. § 2710(b)(3)); 

requirements for individually-owned gaming (25 U.S.C. § 2710(b)(4), (d); 25 C.F.R. § 522.10); 

minimum internal control standards for Class II gaming and agreed-upon procedures reports (25 

C.F.R. part 543); background and licensing for primary management officials and key employees 

of a gaming operation (25 U.S.C. § 2710(b)(2)(F); 25 C.F.R. parts 556, 558); and facility 

licenses (25 C.F.R. part 559). 

[Option 2 for Charitable Gaming Operations]

 (f) If a charitable gaming operation has gross gaming revenues of less than $50,000 

during the prior fiscal year, the annual audit requirement of paragraph (b) of this section is 

satisfied if: 

(1) The independent certified public accountant completes a compilation of the 

financial statements conforming to the statements on standards for accounting and compilation 

services of the gaming operation; 

(2) The tribe or TGRA permits the charitable gaming operation to submit a review of 

the financial statements according to this paragraph and the tribe or TGRA informs the NIGC of 

such permission; and 

(3) The gaming operation has otherwise complied with this section and with § 571.13 

for the three previous years.