NIGC Consultation Topics

Updated on December 12, 2016

2017

NIGC 1849 C Street NW, Mail Stop 1621 Washington, DC 20240 

Tel: 202.632.7003 Fax: 202.632.7066 WWW.NIGC.GOV 

Draft Guidance on the Class III Minimum Internal Control 

Standards 

Proposed Action: 

In 2015, the Commission consulted about the Class III MICS. The Commission recognizes the 

importance of Class III MICS to a large section of the Tribal gaming industry. The agency proposes to suspend 

25 C.F.R. Part 542, which will preserve the text of the regulation in the Code of Federal Regulations, but clarify 

that the regulation is not enforceable by the NIGC. In addition, the Commission will be proposing draft 

voluntary guidance for Class III internal controls for your comment. 

Background:

The NIGC’s Class III Minimum Internal Controls Standards (MICS) were promulgated in 1999 and last 

substantively revised in 2005. In 2006, the D.C. Circuit Court of Appeals1

held that NIGC lacked authority to 

enforce or promulgate such regulations. Since that time, the Class III MICS have remained untouched. 

Technology has advanced rapidly, making some standards obsolete and introducing new areas of risk not 

contemplated by the outdated standards. And yet, tribal-state compacts—even those entered into since 

2006—continue to adopt NIGC Class III MICS by reference. 

Recognizing the industry’s need for updated standards the Commission sought comment on whether 

to draft updated, non-binding guidance for Class III MICS and what to do with the outdated standards still 

lingering in the regulations. Between February 2015 and 2016, over forty tribes provided comment and 

overwhelmingly supported the NIGC proposal for non-binding guidance. On the question of what to do with 

the existing MICS regulations, tribes who commented adamantly opposed withdrawing the 542 regulations. 

Several tribes also commented that they would like to see a tribal advisory committee or have some 

other vehicle to provide meaningful input on the guidance document. Several other tribes were concerned 

with the cost of developing such guidance. In response, the Commission believes the most cost-effective way 

to create a guidance document is by creating the first draft in-house and publishing it for public comment. The 

NIGC has recruited tribal gaming subject matter experts into the agency who are well-versed in operational 

procedures and the risks associated with them. With this expertise, the Commission is confident that it 

developed a quality draft guidance document to begin the discussion. 

Tribal Input Requested: 

 The Commission is seeking feedback on its proposal to suspend 25 C.F.R. Part 542, which will preserve 

the text of the regulation in the Code of Federal Regulations, but clarify that the regulation is not enforceable 

 

1

Colorado River Indian Tribes v. Nat'l Indian Gaming Comm'n, 466 F.3d 134 (D.C. Cir. 2006).
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by the NIGC. The Commission also seeks comments on a draft voluntary guidance for Class III internal controls 

which the NIGC will provide at least 30 days prior to the first date of consultation. 

Rural Outreach 

Proposed Action: 

The NIGC seeks the opportunity to discuss information about smaller gaming operations, and hear 

ideas about how the NIGC can best provide technical assistance and training to smaller, rural operations. In 

addition, the NIGC seeks feedback on creating an eighth regional office out of NIGC’s Rapid City, South Dakota 

satellite office. 

Background:

NIGC outreach to smaller tribal gaming operations in rural areas supports the purpose of the Indian 

Gaming Regulatory Act to protect tribal self-sufficiency and the integrity of the gaming industry. The 

Commission would like the opportunity to discuss with tribes current information about smaller operations 

and to hear ideas about how the NIGC can best provide technical assistance and training to smaller, rural 

operations. The NIGC considers smaller, rural gaming operations to have remote locations and modest 

revenue streams. 

The NIGC recognizes that smaller rural gaming operations have unique challenges because of 

geographic location. These operations often lack financial and human resources to achieve a successful 

operation. Likewise, the remoteness of a tribe’s reservation and gaming operation from an urban area often 

results in less favorable market conditions. It is notable that a majority of tribes (57%) have small gaming 

operations that generate less than $25 million per year in gross gaming revenue. Twenty percent of tribal 

gaming operations produce less than $3 million per year. Often, these smaller operations provide needed jobs 

but are not strong economic drivers for the tribes. 

By making rural outreach to smaller and more remote tribal gaming operations a priority, the NIGC is 

committed to supporting economic development in partnership with those tribes. The NIGC recognizes that a 

one-size-fits-all approach may not work but that some operations may share common challenges. The NIGC 

seeks to consult with tribes about its initiative to support small rural tribes’ needs and obtain any comments 

and guidance from tribes on this subject. 

Furthermore, the NIGC is also considering creating an eighth region and expanding the Rapid City 

satellite office to serve it. Presently the NIGC’s regional offices serve seven administrative regions. The NIGC’s 

St. Paul regional office currently covers 9 states, 59 tribes, and 144 gaming operations and is the largest 

administrative region. In 2003, the Rapid City satellite office was added in the St. Paul region to aid the region 

in reaching the tribal gaming operations in North Dakota, South Dakota, Wyoming, and Montana. With this 

proposed change the St. Paul regional office would cover only 5 states (Minnesota, Iowa, Wisconsin, Michigan 

and Nebraska), 37 tribes, and 95 tribal gaming operations and the new Rapid City regional office would cover 4 

states (Montana, Wyoming, North Dakota and South Dakota), 22 tribes, and 45 tribal gaming operations. This 
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change is intended to provide better services by reducing the service area covered by one regional office and 

creating the ability to respond quicker to tribal needs covered in this geographical area. 

Tribal Input Requested: 

 The NIGC would like the opportunity to hear your ideas about how NIGC can best provide technical 

assistance and training to smaller rural operations and feedback on the proposed administrative change of 

splitting the St. Paul regional office into two distinct administrative regions. 

Developing a Strong Tribal Workforce through Training 

Proposed Action: 

One of NIGC’s initiatives is maintaining a strong workforce both within NIGC and among our Tribal 

regulatory partners. The Tribal gaming workforce has a significant part to play in supporting Tribal selfsufficiency and protecting the Tribe’s gaming revenues. To help foster that strong Tribal workforce, the NIGC is 

seeking feedback to assist in the development of its external training for Tribal leadership, tribal gaming 

commissioners, regulators and operators so that regulatory compliance is maintained. 

Background:

 In 2016, the NIGC has performed 341 hours of training for Regional Training Conferences and 

Regulating Gaming Technology Conferences, and provided 80 hours of training for site specific trainings. 

 The NIGC offers two primary training programs for tribes: 1) Regional Training Conferences; and 2) Site 

Specific Training. Regional Training Conferences provide courses designed for the region where they are being 

held. Site Specific Trainings are trainings requested by a tribe to meet the individual needs of its gaming 

commission, regulators and operators. Information on how to request training can be found at

http://www.nigc.gov/training/. 

 Current dates (subject to change) for Regional Training Conferences are as follows: 

 January 10-12, 2017 Sacramento RTC (1), Indio, CA 

 February 14-16, 2017, OKC RTC, Shawnee, OK 

 March 21-23, 2016, Phoenix RTC, Tucson, AZ 

 

 April 18-20, 2018, ST Paul RTC (1), Billings, MT 

 May 16-18, 2017, Sacramento RTC (2), Jackson, CA 

 June 6-8, 2017, Portland RTC, Grande Ronde, OR 
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 July 18-20, 2017, Tulsa RTC, Tulsa, OK 

 August 22-24, 2017, ST Paul RTC (2), Kasheni, WI 

 September 12-14, 2017, Washington DC RTC, Verona, NY 

 The NIGC Training Program seeks to improve the content and style of its training courses and is 

currently revising all of its training materials. For 2017, the NIGC Training Program has developed a two-day 

workshop for Internal Audit and TIC/SICS development. Additionally, the NIGC has developed training to 

support the Commission’s initiative “to protect against gamesmanship on the backs of tribes.” The NIGC’s new 

classes are designed to provide “how to,” hands-on learning with real-life scenarios, exercises and examples. 

Ideally, tribal leadership, tribal regulators and operators will not only understand the regulations but will have 

the tools necessary to effectively measure and maintain compliance in their operations in any reasonable way, 

including facilitating dialogue within the regulatory community on shared best practices. 

 The NIGC is also in the early stages of developing a Learning Management System, which will provide 

on-line training courses and webinar type training to tribal leadership, gaming commissioners, regulators and 

operators. The NIGC is also working towards a system that would allow on-line training on-demand.

 In 2016, the NIGC instituted knowledge reviews in certain audit related classes. The knowledge reviews 

seek to test the student on how well they have learned the material. The testing is done after the class is 

completed, and then repeated ninety days later. The knowledge reviews assist the NIGC to determine the 

efficacy of its training, and assist in determining how training effects compliance. For 2017 the NIGC is looking 

to expand the knowledge reviews to include all of the classes offered in the Regional Training Conferences and 

in Site Specific Trainings. 

Tribal Input Requested: 

 The NIGC strives to ensure that tribes receive substantive and valuable training to ensure the integrity 

of their gaming operations. During the consultation sessions, the NIGC would like to share with you what is in 

the agency’s plans for future training, how to facilitate dialogue to include industry best practices in training 

development and discuss how NIGC can continue to improve its training program for Tribal leaders, tribal 

gaming commissions, regulators, and operators to support a strong Tribal workforce. 

Management Contract Regulations and Procedures 

Proposed Action: 

While the agency has always strived to make its management contract approval processes as efficient 

as possible, there has been a significant increase in management agreement submissions. The Commission is 

seeking feedback on any recommended changes to the management contract and background investigation 

regulations. See C.F.R. Parts 531, 533, 535 and 537. Specifically, the NIGC seeks any input that may improve 

NIGC’s efficiency in processing management agreements and background investigations. 
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Background:

 According to the Indian Gaming Regulatory Act, Indian tribes may enter into a management contract 

for the operation and management of its gaming activity subject to the approval of the NIGC Chair. The 

agency’s regulations at 25 C.F.R. Parts 531, 533, 535, and 537 concern the review and approval of 

management contracts, including background investigations of entities and individuals with an interest in the 

management contract. The purpose of these regulations is to ensure that the tribe is the primary beneficiary 

of its gaming operation. 

 NIGC staff reviews the contents of the management contract and other related agreements, conducts 

background investigations on persons or entities with a financial interest in, or having management 

responsibility for, the management contract, and provides an analysis of this information to the Chair. The 

Chair then approves or disapproves the management contract, amendment or contract modifications 

submitted by tribes and management contractors. Unapproved management contracts are void. 

The Chair’s determination includes:

 Review of the management contract and related agreements to ensure that the submission and terms 

comply with the intent of IGRA and 25 C.F.R. Parts 531, 533 and 535; and 

 Background investigations conducted under 25 C.F.R. Part 537 for the NIGC Chair to determine 

suitability of the manager for new management contract submissions, amendments and/or changes to 

previously approved manager personnel or entities. The level of investigation will vary depending on 

the complexity of the manager’s organization and whether the management contract is for Class II or 

Class III gaming. The manager is required to pay for the cost of the NIGC background investigation. 

 The NIGC provides management contract checklists as a guide to assist tribes and management 

contractors with management contract submissions and background investigation processes. The checklists 

identify items that are required in management contracts and that should be provided as part of any 

background investigation. The NIGC web site – http://www.nigc.gov/finance/management-contracts –

provides links to management contracts approved by the NIGC Chair (confidential terms redacted), checklists 

for management contract approval, and helpful resources. 

Tribal Input Requested: 

The Commission is seeking feedback on any recommended changes to the management contract and 

background investigation regulations and technical assistance. 

Technical Standards for Mobile Gaming Devices 

Proposed Action: 

 The National Indian Gaming Commission is considering draft language to amend 25 C.F.R. § 457.18, 

which would add technical standards for wireless gaming systems and communications between mobile 

communication devices and mobile gaming systems. This draft language is based on input from and 

collaboration with our tribal partners. 
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Background:

Handheld gaming devices are electronic devices that allow casino patrons to play anywhere within the 

casino or within tribal lands (as defined by the Indian Gaming Regulatory Act), such as restaurants, hotels or 

other amenities. Portable handheld gaming devices have been around for many years and are authorized in 

many state jurisdictions. Although Part 547 applies to all technology used in the play of Class II games, the 

NIGC is considering implementing regulations to more specifically address mobile gaming devices.

 The draft technical standards for mobile gaming devices will not authorize internet gaming. These draft 

technical standards only address handheld mobile devices within tribal lands. 

Tribal Input Requested: 

 The draft technical standards will be provided at least 30 days prior to the first consultation date. 

These draft technical standards are proposed for tribal review, comment and consultation. 

Fees 

Proposed Action: 

Under the current requirements of NIGC’s fee regulations, at 25 C.F.R. Part 514, the Commission 

adopts a preliminary fee rate by March 1 and a final fee rate by June 1 of every year. In addition, the NIGC 

annually reviews the costs involved in processing fingerprint cards and adopts a preliminary rate by March 1 

and a final rate by June 1. The NIGC seeks comments on proposed changes to the time period these fee rates 

are published. 

Background:

 The Commission is considering amending the language to 25 C.F.R. Part 514 to (1) remove the 

requirement to adopt a preliminary fee rate on March 1, and (2) change the announcement date for the final 

fee rate from June 1 to November 1 of every year. These changes are intended to improve the fee rate 

analysis and publication process to coincide with the completion of the Commission budget for the fiscal year 

(established by September 30 of each year) and also the annual release of the industry’s Gross Gaming 

Revenue (complied and released in July each year). Additionally it is anticipated that this amendment would 

reduce the margin of error for fee calculations as the rate would only be set once within a fiscal year. 

 The proposed changes on the fee rate publication dates will also apply to the fingerprint processing fee 

rate if implemented. Pursuant to 25 C.F.R. Part 514, the Commission annually reviews the cost of processing 

fingerprint cards and sets a fee based on the amount charged by the Federal Bureau of Investigation and costs 

incurred by the Commission. Commission costs include Commission personnel, supplies, equipment costs, and 

postage to submit the results to the requesting tribe. If amended the fingerprint processing final fee rate will 

also be adopted by November 1 of every year. 

Tribal Input Requested: 

The NIGC requests your comments and feedback on this proposal and will provide draft regulatory 

changes at least 30 days prior to the first consultation date. 
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25 C.F.R. Part 547 Grandfathered Class II Gaming Systems 

Proposed Action: 

 The Commission initially implemented the Part 547 Class II technical standards in 2008 to mitigate 

certain risks it believed existed in the ever-advancing Class II gaming system technology. Recognizing that the 

standards were new, though, it allowed for non-compliant games developed before November 10, 2008, to be 

fully compliant within a set amount of time. The Commission extended that “grandfathering period” in 2012 

and, pursuant to the current regulation, all Class II gaming systems must meet the minimum technical 

standards by November 10, 2018. The Commission is interested in any information related to the steps Tribes 

have taken to comply with the grandfathering provision and any difficulties in implementing those provisions, 

as well as what risks, if any, the grandfathered games may pose to a gaming operation or the gaming public 

and how those risks may be mitigated by means other than Part 547. 

Background:

 Development of Class II minimum technical standards (Technical Standards) began in 2004 as a 

collaborative effort between the National Indian Gaming Commission, tribes, and manufactures to mitigate 

certain risks believed to exist in the ever-advancing Class II gaming system technology. The NIGC initially 

implemented the Technical Standards in 2008. The Technical Standards require that before a Class II gaming 

system may be placed on the floor offered to the public for pay, it must be submitted to an independent 

gaming laboratory which would test the system against the Technical Standards. 

 It was recognized by tribes, the industry, and NIGC that implementation of the Technical Standards 

would come at a financial cost to the gaming industry and to Tribes. Of particular concern however, was the 

potential financial burden on bringing gaming systems that had already been manufactured and/or put into 

play – and “compliant” with applicable law in the absence of the Technical Standards – into compliance with 

the new 2008 rule. Thus, to reduce that cost, the NIGC provided that gaming systems manufactured prior to 

issuance of the standards in 2008 could be certified to an alternate minimum standard “Grandfathered” 

systems. To be offered for play as a Grandfathered system, the tribal gaming regulatory authority was 

required to submit the system to a testing laboratory for certification as such within a 120 day window after 

the 2008 would be required to meet the full Technical Standards. 

 Grandfathered systems were permitted to continue being offered for play during a five year 

“grandfather period.” By 2013, all Grandfathered systems would be required to be removed from operation. It 

was thought at the time that natural market forces would cause new, fully compliant systems to replace the 

old Grandfathered systems and that the looming sunset of the grandfather period would otherwise incentivize 

the industry’s transition to fully compliant systems. The Technical Standards further provided that 

Grandfathered systems could be modified to become fully compliant with those Standards and thus would be 

removed from Grandfathered status and continue to operate after 2013. 

 By 2012 however, it was clear that the industry would be unable to bring all Class II gaming systems 

into full compliance with the Technical Standards. Through consultation with its tribal partners the NIGC 

extended the grandfather period an additional 5 years to November 10, 2018. With this date fast approaching 

there is renewed interest in Grandfathered Systems. For the Final 2012 Minimum Technical Standards for 
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Class II Gaming Systems and Equipment federal register notice, see https://www.gpo.gov/fdsys/pkg/FR-2012-

09-21/pdf/2012-23161.pdf. 

Tribal Input Requested: 

 The Commission is interested in consulting on this topic, including but not limited to, obtaining (1) any 

information related to the steps tribes have taken to comply with the grandfathering provision and any 

difficulties in implementing those provisions; (2) what risks, if any, the grandfathered games may pose to a 

gaming operation or the gaming public; (3) how those risks may be mitigated by means other than Part 547; 

and (4) what impacts, if any will the November 10, 2018 deadline have on your operation?