Miami Tribe of Oklahoma Business Development Authority 

66201 E 290 Road  Grove, OK 74344 (918) 791-7710

 

November 13, 2017 

By email (547.5_Comments@nigc.gov) & mail 

National Indian Gaming Commission 

1849 C Street NW 

MS 1621 

Washington, DC 20240 

Re: Comments on Discussion Proposed Rule 25 C.F.R. § 547—Technical Standards, 82 

Federal Register 45288 (Sept. 28, 2017) 

 This constitutes the comments of Miami Tribe of Oklahoma Business Development 

Authority on the proposed rule to amend 25 C.F.R. Part 547 published in 82 Federal Register 

45288 (Sept. 28, 2017). We are pleased that the proposed rule will remove the sunset provision 

that is in the current rule that would require tribal gaming facilities to remove from operation and 

to replace their existing Class II grandfathered games by November 10, 2018, unless the games 

are brought into full compliance with all provisions of the minimum technical standards before 

that time. We write in support of this rule change. Removal of the sunset provision is justified 

because it is unnecessary: there has been no history of problems with the grandfathered games, 

and the existing grandfathering rule, along with the Commission’s Minimum Internal Control 

Standards for Class II games, has proven adequate to protect the integrity of the games. Further, 

the sunset provision would impose tens of millions of dollars in costs on tribal gaming facilities. 

These reasons supporting the removal of the sunset provision are further set out below. 

I. There has been no history of problems with grandfathered games 

When the Commission amended the minimum technical standards rule in 2012 to extend 

the sunset period to November 2018, it acknowledged that there had been no “major incidents” 

due to the operation of grandfathered games. 77 Federal Register 58473, 58475 (Sept. 21, 2012). 

As the Commission stated: “The Commission acknowledges that grandfathered machines have, 

for the most part, continued to operate with relatively few problems to the patron or the gaming 

operations.” Id. 

This continues to be the case to the present. We are not aware of any serious problems with 

any grandfathered games offered by MBDA. The gaming tribes that we provide games to would 

certainly have made us aware of any serious problems, as would the Tribal Gaming Regulatory 

Authorities (TGRAs) regulating those games. Many of our customers are in Oklahoma, and we 

are aware that the Oklahoma Tribal Gaming Regulators Association previously provided the 

Commission with comments on the discussion draft of a rule change that led to this proposed rule 

that state that there have been no reported compliance issues or incidents in ten years. 
Miami Tribe of Oklahoma Business Development Authority 

66201 E 290 Road  Grove, OK 74344 (918) 791-7710

 

II. Existing Regulations Protect the Integrity of the Games 

That grandfathered gaming systems have not presented problems is hardly surprising, 

given that they are highly regulated. The Commission's minimum technical standards impose 

certain non-waivable standards even on grandfathered games. 25 C.F.R. § 547.5 (a)(4). 

Grandfathered games must be certified to comply with the technical standards for game initiation 

and play, 25 C.F.R. § 547.8 (b), software signature verification, 25 C.F.R. § 547.8 (f), and 

electronic number generators. 25 C.F.R. § 547.14. Modifications to the software or hardware of 

grandfathered games must meet certain standards, as determined by the TGRA. 25 C.F.R. § 547.5 

(b) (5). In many instances, software or hardware modifications have advanced the overall 

compliance of grandfathered games with the minimum technical standards TGRAs are also free to 

impose additional standards. 

Significantly, there is substantial redundancy or overlap between the minimum technical 

standards and the Minimum Internal Control Standards (“MICS”) applicable to class II games, so 

that the gaming public is protected by the MICS when engaging in gaming using grandfathered 

gaming systems as grandfathered games must comply with all of the MICS. The following chart 

illustrates some areas of overlap. 

Technical Standards MICS

requires account access components to be 

located within a secure and locked area. 25 

C.F.R. §§ 547.7(e).

requires controls and procedures to ensure 

adequate control of physical access to 

information technology environment and 

infrastructure. 25 C.F.R. § 543.20(c).

requires last game recall. 25 C.F.R. § 547.8 

(d). 

provides for verification of draws where 

prizes are over $1,200 for a minimum of 24 

hours. 25 C.F.R. § 543.8 (d).

each gaming system is required to maintain 

data for the total value of all financial 

instruments accepted and paid out. 25 C.F.R. 

§§ 547.9(a)(1) & (2).

Requires, inter alia, a drop and count 

procedure that records individually the 

financial instrument storage components and 

compares them against the currency 

counter/system. 25 C.F.R. §§ 543.17(g) (8) & 

(15)(i).

requires the recording of fault events, 

including malfunctions, and actions to be 

taken during certain faults to ensure integrity 

of the machines. 25 C.F.R. §§ 547.10(a)(1)(i) 

- (vii).

requires procedures to document 

malfunctions, and verification of the integrity 

of the Class II gaming components before 

restoring it to operation. 25 C.F.R. § 

543.8(h)(1).

Sets technical standards for downloads to 

gaming machines. 25 C.F.R. § 547.12.

requires that downloads be performed in 

accordance with 25 C.F.R. § 547.12. 25 

C.F.R. § 543.20(k).

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Miami Tribe of Oklahoma Business Development Authority 

66201 E 290 Road  Grove, OK 74344 (918) 791-7710

 

requires downloaded software on a Class II 

gaming system must be capable of being 

verified by the using a software signature 

verification method. 25 C.F.R. § 547.12(b). 

requires verification by using a software 

verification method. 25 C.F.R. § 543.20(l).

allows remote communications between 

system components if authorized by TGRA 

and the access is secure from eavesdropping 

and unauthorized access. 25 C.F.R. § 547.15.

allows remote access provided that it is 

preformed via a secure method. 25 C.F.R. § 

543.20(h).

requires display of game rules and 

disclaimers. 25 C.F.R. § 547.16 (a) & (b).

requires display of game rules and 

disclaimers. 25 C.F.R. § 543.8 (g)(6). 

The MICs also contain other provisions that require or enable the TGRAs to protect the 

integrity of class II gaming. The MICS require controls to be established and procedures 

implemented to safeguard the integrity of technologic aids to the play of bingo. 25 C.F.R. § 543.8 

(g). In addition, the MICS provide minimum standards for surveillance, 25 C.F.R. § 543.21, and 

TGRAs and tribal gaming facilities employ surveillance as an important tool in maintaining game 

security. 

III. The Sunset Provision Will Cost Tribes Tens of Millions of Dollars 

The sunset provision would require tribal gaming facilities to remove from operation and 

to replace their existing class II grandfathered games by November 10, 2018, unless the games are 

brought into full compliance with all provisions of the minimum technical standards before that 

time. During consultation with tribes in 2012 concerning the technical standards, tribes submitted 

information showing that replacement of the games would cost tribes tens of millions of dollars, 

as the Commission noted in the notice announcing the final rule. 77 Federal Register 58475 

(noting that one commenter asserted that replacing grandfather systems could cost Oklahoma 

tribes alone $82 million, while other estimates for replacing grandfathered systems ranged from 

$46 million to $65.5 million). We understand that this is still the case. If anything, the cost of 

replacing grandfathered games with fully compliant games has increased. 

Conclusion 

In conclusion, the Commission should delete the sunset provision in 25 C.F.R. § 547.5 

(b)(1) because it is unnecessary and it will impose tens of millions of dollars in costs on tribal 

gaming facilities. We have no comments on the other changes proposed. 

 Sincerely, 

 Gerald L. Danforth, Chairman 

 Miami Tribe of Oklahoma Business Development Authority 

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