NIGC Notice of Inquiry Comments

NIGC Regulation Title Comment 

502(A)(1)(a) Net Revenues / Management Fee The Commission has inquired whether the ter

should be defined differently for purposes of management fees under 25 U.S.C. § 2711 and allowable uses of gaming revenues under 25 UWith respect to whether having differing defidesirable, AIGA takes no position, but notes tits members may take a position on that issueIf the Commission concludes that the term “Nshould have different meanings for purposes o§ 2710(b) and 25 U.S.C. § 2711, AIGA notes Revenues” was defined by Congress in 25 U.which states: 

“The term “net revenues” means gross an Indian gaming activity less amountor paid for, prizes and total operating excluding management fees.” 

NIGC does not have the power to alter by regdefinition, which applies to both 25 U.S.C. § U.S.C. § 2711, regardless any benefit from do

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NIGC Regulation Title Comment 

502(A)(2) Management Contract The current definition of management contract sh

expanded to include any contract, such as slot leathat pays a fee based on a percentage of gaming rManagement Contract is an agreement to manage the tribal casino. A tribe may utilize a managemetheir knowledge, experience, and expertise regardday operation of a casino, management of the gamincluding gaming devices, games, personnel, marpurchasing, accounting and other aspects of the ogaming facility. Consequently, the tribe agrees to management contractor a percentage fee based upmanagement of the casino and success of the ope

On the other hand, a tribe may pay a percentage orevenues pursuant to a slot lease, or other similarbased upon the performance of those gaming devagreements, slot machines are leased to a tribe, plcasino floor and the gaming manufacturer or lessopercentage of revenue from play of the machine(susually no involvement in the casino operation bethe machines. Thus, there is no management of thoperation. On whether there should be a definition regarding compensation to a management contractor, we fecurrently defined in IGRA as stated in 25 U.S.C. 

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NIGC Regulation Title Comment 

514 Fees We agree with the Commission on changing f

A fiscal year calculation would be consistent operation’s accounting calendar making it easalso agree that fingerprinting processing fees as part of the total revenue collected by the Creviewed on an annual basis and, if necessaryfingerprint processing fee accordingly. FinallyCommission should utilize a type of “ticket” so that an NOV would only be issued in instanegligence or wanton behavior, or in a dollar the tribe to reap an economic benefit from its timely manner. 

531 Collateral Agreements The current definition of management contrac

agreements if they provide for management ogaming operation. Since the Commission revi

management contracts, which by definition in

collateral agreements, then such collateral agrincluded in the Commission’s review and appCommission cannot ignore the cumulative affcontracts that could violate the sole proprietarprovisions of IGRA, as well as, NIGC regulatceiling on management contract payments. 

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NIGC Regulation Title Comment 

533 Approval of Management 

Contracts 

We agree the Commission should clarify the tadd that two grounds for possible disapproval 533.6(b) are that the management contract: disubmission requirements of the 25 CFR part 5contain the 25 CFR part 531 requirements. 

537 Background investigations for 

Persons or Entities with a Financial Interest in, or Having Management Responsibilities for, a Management Contract 

It appears quite clear that pursuant to 25 USC Chairman shall not approve “any contract if thdetermines that – *** (4) a trustee, exercising diligence that a trustee is commonly held to, wthe contract.” A trustee should only approve sknows the background information of the peroperating under such management contract wOtherwise, such trustee could be in violation to the tribe. It seems that any confusion in para management contractor should be required tbackground information could be clarified in 537.1(a) by either deleting “class II gaming” after “class II.” 

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NIGC Regulation Title Comment 

542 Class III Minimum Internal 

Control Standards 

If the Class III MICS are to be revised, the rshould focus on defining regulatory goals anstandards, rather than attempting to dictate sgaming operation meets those regulatory gostandards. In many cases, the existing NIGforth regulatory goals and minimum standardetailed policies and procedures that require meet what often are unstated regulatory goaparticular means of implementing the unstaThe MICS instead should instead set goals lpotential for unauthorized transactions throustandards such as requiring the involvement employees from independent departments to transaction and requiring backup documentapaper, or both) that provides a clear audit tr

556 (1) Background Investigation for 

Licensing 

The “pilot project” should be formalized by available to all tribes. The data gathered shoavailable to tribal regulators in the form of a 

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NIGC Regulation Title Comment 

556 (2) Finger printing for Non-Primary 

Management Officials or Key Employees 

We believe that allowing Tribal Gaming Offifingerprint cards for vendors, consultants and employees would be a beneficial change. We promul

gation of a re

gulation allowin

g this 

pro

559 Facility License Notifications, 

Renewals, and Submissions 

AIGA would like to formally request a report this process from the time of its implementati

571.1-571.7 Inspection and Access 

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The Commission requested comment on whetits regulations in 25 C.F.R. §§ 571.5 and 571.Commission has the right to access records at noting that the Commission has been denied arecords “at times” in the past. AIGA sees no revision, as the Commission’s right to require to obtain such records and to make them avaiCommission is clearly set forth in the existing 25 C.F.R. § 571.5 provides that the “Commisrepresentative may enter the premises of an Inoperation to inspect, examine, photocopy, and books, and records” concerning Class II gamirepresentative to provide official identificatio25 C.F.R. § 571.6 provides that, after a Commrepresentative provides proper identification, shall provide the authorized representative wipapers, books, and records (including computconcerning class II gaming or any other matteCommission requires such access to carry out Act.” 
NIGC Regulation Title Comment 

571.1-571.7 Inspection and Access -continued That same regulation further provides: 

“If such papers, books, and rare not available at the locatithe gaming operation, the gaoperation shall make them avat a time and place conveniethe Commission's authorized representative.” 

25 C.F.R. § 571.6(b). If a gaming operation the requirements of 25 C.F.R. § 571.6(b), thexercise its considerable enforcement poweto compel compliance–not draft another regexisting regulation. 

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