MICS MICS Review Comments

Section Proposed Change or Question 

CFR 25 Part

502

Net RevenuesShould the Commission consider further defining "Net Revenues‐Management

Fee"?

Clarification would be helpful. D

statement of revenues, expense

the captions on the statements 

when trying to apply the definiti

revenues to arrive at the bottom 

income statement.

CFR 25 Part

502

Net Revenue Allowable UsesShould the Commission consider further defining "Net Revenues‐Allowable Uses"

to be based on cash flow? For example, should the new definition be "Cash Flow"

equals "Net Income plus depreciation minus principal loan payments and reserve

funding?" The purpose of this would be to consider the overall financial integrity

of the gaming operation before funding other tribal programs.

Rather than focusing on "allowa

distributions." The cash flow iss

leaders to help them understand 

distributable funds. Illustrating 

asset purchase, as well as, adjus

We believe there is a related iss

leaders when the casino is called 

not related to the operation of t

behalf of the tribe. If the tribe h

likely in violation of the Plan. Em

members that are not a part of t

CFR 25 Part

502

Management ContractShould the definition of management contract be expanded to include any

contract, such as slot lease agreements, that pays a fee based on a percentage of

gaming revenues?

The definition of management c

percent of gaming revenues. Co

itself provides. Gaming machine 

merely provide games. The reve

casinos without having to come 

definition of management contr

number of vendors offering gam

contract approval process. We b

approval process could want mo

would be desirable in my opinio

CFR 25 Part

502

Management Contract Acceptable Compensation

Should there by a definition regarding acceptable compensation to a manager

contractor?

Depending on where a casino is 

receive more cash than the tribe

lenders are likely to receive the 

this fact is not really highlighted 

practical in many instances given 

the types of reimbursement and 

upper limits set as it is with man

Revised: January 13, 2011 Page 1 of 6 
MICS MICS Review Comments

Section Proposed Change or Question 

CFR 25 Part

514

NIGC Fee CalculationShould the calculation of NIGC fees be changed to "fiscal" year rather than

"calendar" year for calculation? If this revision is helpful, what is the best method

for implementation? Should they provide for 18 months for transition? How would

the commission set dates for payment due dates as tribes have different fiscal

years?

Calculating the fee on an calend

year ends that differ. Casino's m

basis. If the casino has adequate 

burdensome.

CFR 25 Part

514

Gross Gaming Revenue Definition

Should the Commission define gross gaming revenue to be consistent with GAAP

definition of the term? Would this make fee calculation easier?

In practice, some CPAs apply the 

clear definition from the NIGC h

CFR 25 Part

514

Should this section be revised to include fingerprint processing fees? Should it

specify that fee collected from the gaming tribes for processing fingerprints with

the FBI are included in the total revenue collected by the Commission that is

subject to statutory limitation? Should the Commission include a requirement for

it to review fingerprint processing costs on an annual basis and, if necessary,

adjust the fingerprint processing fee accordingly?

We believe that most fingerprin

should be kept separate. We be

reasonable and this language sh

CFR 25 Part

514

Late Payment System

Should the Commission consider a late payment system in lieu of a Notice of

Violation for submitting late fees? As an NOV could lead to closure of a gaming

facility, the Commission questions whether an NOV is an appropriate response to

a late fee submittal caused by a change in employees or other minor issue? Should

the Commission consider adding a type of "ticket" system to part 514 so that an

NOV would only be issued in instances of gross negligence or wanton behavior, or

in a dollar amount that allowed the tribe to reap an economic benefit from is

failure to pay in a timely manner.

We wholeheartedly agree that a 

to the Commission's operation, 

inconsequential to each casino s

penalties seems like a more app

CFR 25 Part

518

Self RegulationShould the Commission revise part 518, Self Regulation of Class II gaming? They

have been told that this regulation is overly burdensome and that the burden of

completing the process to obtain certification outweighs any benefits gained from

self regulation.

No comment

Revised: January 13, 2011 Page 2 of 6 
MICS MICS Review Comments

Section Proposed Change or Question 

CFR 25 Part

523

Gaming OrdinancesShould part 523 be eliminated as being obsolete? The Commission believe that

there may not be any such ordinances that have not been submitted.

Yes

CFR 25 Part

531

Collateral Agreements

Should the Commission consider whether is has authority to approve collateral

agreements to a management contract? Some tribes have asked the Commission

to review the contract and collateral agreements to determine if they have a

detrimental accumulative effect on the tribe. For example, if the management

portion of the contract only requires payment of 5% of the net win, collateral

agreements can result in excess of 80% being paid resulting in a loss for the tribe.

It seems appropriate that the NI

could create a situation that is e

approve certain actions. The cu

agreement could certainly seem 

based on the management and 

of a highly leveraged casino dev

flow from the operation depend

arrangement reasonable and co

CFR 25 Part

533

Submission Requirements for Management Contracts

Should the commission issue an amendment that would clarify the trustee

standard by adding two additional grounds for the possible disapproval of a

management contract. If the contract was not submitted in accordance with the

submission requirements of part 533, or if the contract does not include the

regulatory requirements for approval pursuant to Part 531.

Additional guidance is helpful as 

judgment. The trustee standard 

the grounds that a "reasonable 

but we believe useful as some tr

not good for them. They may m

conditions be outside the indust

CFR 25 Part

537

Background Submission for Management Contractor

Should the Commission revise part 537 as there has been confusion as to whether

a management contractor must submit the Class II background information when

the contract only includes class III gaming. IGRA does specify the approval of

contracts for both Class II and III as a power of the Chairwoman.

This one is difficult to answer if t

then it might be extremely helpf

information provided by the NIG

time, no response is the respons

addition, however if this process 

accurate, then this information w

CFR 25 Part

537

Appeal of NOV

Should the Commission consider more comprehensive and detailed procedural

rules, especially in areas such as motion practice, that are largely unaddressed by

the present rules?

Yes, we do agree that if the NIGC 

clearly outlined process for disp

Revised: January 13, 2011 Page 3 of 6 
MICS MICS Review Comments

Section Proposed Change or Question 

CFR 25 Part

542

Class III Minimum Internal Control Standards

Should the Class III MICS be struck as suggested? The Commission is seeking

comment on whether the Class III MICS has a positive impact on the industry, and,

if changed to a guideline (recommended), what, if any, impact might this have on

tribal gaming? Many tribal gaming regulatory authorities have relied on the

regulation to define the foundation of their minimum internal control standards,

others have merely adopted the federal rule verbatim, while others have drafted

their own.

Since the MICS are "minimum", 

remain as required standards. T

things in their own way as long a

requirement helps to insure tha

CFR 25 Part

542

Class III Minimum Internal Control Standards

Additionally, how would the state compacts that incorporate the Class III MICS be

affected?

Speaking only of Oklahoma, the 

very specific on the technical req

when the regulation provides m

change.

CFR 25 Part

542

Class III Minimum Internal Control Standards

If struck and revised but not placed in to regulation, how should the Commission

publish them? A Tribal Advisory Committee? Does it need to be comprised of

different members than the Class II MICS TAC? How should the member be

selected? What process should the NIGC utilize to make revisions?

A tribal advisory committee sho

current proposed draft before it 

nominations from the industry a

industry. Representatives shoul

CFR 25 Part

542

Class II Minimum Internal Control Standards

The process of revising the Class II MICS has been under significant scrutiny and

objection. The Commission is dedicated to making revisions using a process that is

inclusive of all interested parties. Should tribal gaming regulatory authorities be

provided an opportunity to proved comment on the proposed rule before public

meetings? Should comment be sought from accounting practitioners?

A process that allowed tribal gam

ones who will have to enforce th

accounting profession would als

processes and the majority of tr

transactions. Accountants and t

collaboration would be a better 

CFR 25 Part

542

Class II Minimum Internal Control Standards

Should a tribal advisory committee be assembled to provide advice to the NIGC in

the administration of the rule once adopted?

A tribal advisory committee wou

and creation or revision of this o

CFR 25 Part

542

Class II Minimum Internal Control Standards

How should the Commission process the revisions of the Class II MICS? Should

they start with the current proposed draft? Should they establish a tribal advisory

committee to participate? How would the members be selected? What will the

revision process be?

A tribal advisory committee sho

current proposed draft before it 

nominations from the industry a

industry. Representatives shoul

Revised: January 13, 2011 Page 4 of 6 
MICS MICS Review Comments

Section Proposed Change or Question 

CFR 25 Part

547

Minimum Internal Control Standards for Gaming Equipment Used with the Play of

Class II GamesShould this section be further revised? Should the NIGC start with the current

proposed draft? Should they establish a tribal advisory committee? How would

the members be selected?

A tribal advisory committee sho

current proposed draft before it 

nominations from the industry a

industry. Representatives shoul

CFR 25 Part

556

Backgrounds and Licensing

Should the pilot program be formalized?

It should be formalized and a tim

CFR 25 Part

556

Fingerprinting for Vendors, Consultants, and other Non‐Employees

Should the Commission adopt regulations that would allow tribes to submit

fingerprint cards to the Commission for vendors, consultants, and other non‐

employees?

Since many tribes license vendo

the Commission to process finge

CFR 25 Part

559

Facility License Notifications, Renewals, an Submissions

Should this part be revised?

We can't think of any major revi

complied.

CFR 25 Part

571.1

Records Access

Should the Commission revise the regulations to clarify that the access includes

access to records at off‐site locations including sites maintained by third parties?

It would seem implied that acce

tribes have not understood this, 

help serve as a reminder to all.

CFR 25 Part

573

EnforcementShould the Commission promulgate a regulation concerning withdrawal of a NOV

after it has been issued? Under what conditions or concerns the NOV could be

withdrawn? Would it be withdrawn at the sole discretion of the Chairwoman?

It makes sense to have a mecha

issuance of the NOV are erroneo

Commission's view of the matte

withdraw the NOV since the Cha

Potential

New

Regulations

Tribal Advisory Committee

Should the Commission develop a regulation or policy identifying when a tribal

advisory committee will be formed to provide input and advice to the NIGC and if

so how the members will be selected?

A tribal advisory committee sho

NIGC with useful input and pers

accept nominations from the ind

the industry. Representatives sh

operations. The number of repre

market so that all areas are prop

Revised: January 13, 2011 Page 5 of 6 
MICS MICS Review Comments

Section Proposed Change or Question 

Potential

New

Regulations

Sole Proprietary Interest Regulation

The IGRA requires that the tribe have sole proprietary interest in the gaming

operation. Should the Commission consider a regulation identifying when the sole

proprietary interest provision is violated and providing a process whereby at the

tribe's request the NIGC will review the documents of agreements and make a

determination?

We believe that guidance from t

their legal counsels who assist th

limiting or restrictive as to bar th

services to their casinos when it 

Potential

New

Regulations

Communication policy or regulation identifying when and how the NIGC

communicates with tribes.Should the NIGC develop a regulation or include as part of a regulation a process

for determining how it communicates with tribes? The NIGC has a government to

government relationship with federally recognized tribes, however, the NIGC staff

often communicates primarily with the Gaming Commissions or Tribal Gaming

Regulatory Authority. On issues related to broad policy change or compliance

issues such as NOVs. How should the NIGC communicate when the tribe and the

TGRA are at odds with each other? Should the NIGC consider requiring a

resolution from the elected tribal council setting forth which entity communicates

with the NIGC? Alternatively, should the NIGC promulgate a regulation or policy

establishing a default method of formal communication unless otherwise directed

by resolution?

A regulation that sets forth a de

sent to tribal leaders who may n

notices may not be forwarded in 

As a default, if notices or commu

regulators and casino managem

would help when the parties are 

should certainly be allowed to sp

parties should be included in mo

Potential

New

Regulations

Buy Indian Act Regulation

The Commission is considering adopting a regulation which would require the

NIGC to give preference to qualified Indian‐owned businesses when purchasing

goods or services as defined by the "Buy Indian Act". The Commission seeks

comment on whether this is appropriate?

It certainly seems appropriate th

businesses for its own purchasin

to consider whether the potenti

Tribes who the Commission also 

businesses.

Other

Regulations

Part 501 Purpose and Scope, Part 503 Commission Information Collection

Requirements under the Paperwork Reduction Act: OMB Control Numbers and

Expiration Dates, Part 513 Debt Collection, Part 515 Privacy Act Procedures, Part

517 Freedom of Information Act Procedures, Part 522 Submission of Gaming

Ordinance or Resolution, Part 531 Content of Management Contracts, Part 535

Post Approval Procedures, Part 571.8 ‐ 571.11 Subpoenas and Depositions, Part

571.12 ‐ 571.14 Annual Audits, Part 575 Civil Fines

We agree that these areas are n

Revised: January 13, 2011 Page 6 of 6