20 July 2017

Jonodev Chaudhuri, Chairman
National Indian Gaming Commission
1849 C Street NW

Mail Stop #1621

Washington, D.C. 20240

Re: Comments on 25 C.F.R. Part 547.5 Discussion Draft
Chairman Chaudhuri:

| am writing on behalf of the Cherokee Nation Gaming Commission (CNGC) to provide
comments on the "25 C.F.R. Part 547.5 Discussion Draft” offered by the National Indian
Gaming Commission (NIGC) on 14 June 2017. Overall, the CNGC is pleased with the
efforts undertaken by the NIGC in revising the technical standards for Class Il gaming
systems to do away with the artificial constraints currently placed on one of the key
components of the tribal gaming industry.

The CNGC has carefully considered the changes proposed in the Discussion Draft and

believes, with the few minor alterations outlined below, they represent a viable
approach toward the continued protection of the Class Il gaming industry.

Removal of the “Sunset” provision

The CNGC appreciates the NIGC’s work to streamline the requirements contained within
Section 547.5 and further applauds the decision to remove the artificial barrier created
by the sunset provision. Prior to the adoption of the sunset provision, and in the decade
of operation since, the Cherokee Nation has not experienced a single compliance issue
related to game play or game integrity associated with any grandfathered Class II
gaming system.

By eliminating the sunset provision, the NIGC has relieved all Class Il gaming tribes of
the considerable financial burden and negative economic impact that would have been
associated with the removal of grandfathered systems. In doing so, the NIGC has


helped tribes retain millions of dollars that can be used for the benefits of our tribal
members.

The CNGC keeps a watchful eye on all activities surrounding Class II systems to ensure

any changes made to such systems further implement the standards contained in the
technical standards so that the systems’ securities remain robust.

Annual Systems Testing & Reporting

The provision contained in Section 547.5 (a)(2)(iii) presents a challenge for the CNGC in
that it would require the CNGC to dramatically increase its testing efforts without the
assurance of receiving any added benefit. As mentioned earlier, the CNGC closely
reviews all activities associated with approved Class Il gaming systems, including
evaluating each Class Il gaming system, whether an initial submission or a modification,
and associated independent test laboratory certification letters prior to installation in
Cherokee gaming facilities. Thereafter, the CNGC annually performs the industry
standard review by comparing 10% of its Class Il systems and components to the
certification letters and to CNGC records for system approvals.

Similarly, the annual reporting requirement creates an unnecessary administrative
obligation on the CNGC (and all tribal gaming regulators) and the NIGC alike. In
addition to the above, the record keeping requirements contained in other portions of
Section 547, as well as provisions of the Minimum Internal Control Standards, aid the
CNGC in demonstrating each gaming systems’ compliance with the technical standards.
The entirety of information collected and maintained by the CNGC is available to the
NIGC upon request.

Privacy Protection Concerns

The CNGC understands the NIGC will strive to protect any information submitted under
Section 547.5 (a)(2)(iii), if unchanged; however, this information is proprietary to tribes
and is not subject to mandatory disclosure to third parties. Although the NIGC intends
to restrict access to this information, presumably in the same manner that annual


financial audit information is protected, the potential release of any confidential tribal
gaming data without tribal consent remains a concern.

The CNGC hopes these comments will assist the NIGC as it considers the future of the
Class Il gaming technical standards. Should you have any questions, please contact
Jamie Hummingbird, Cherokee Nation Gaming Commission Director, at either
918.207.3848 or via e-mail at jhummingbird@cherokee.org.

Respectfully,