Miami Tribe of Oklahoma Business Development Authority 

6365 Montessouri Street, Suite 100  Las Vegas, NV 89113 (702) 207-7077

 

May 30, 2017 

By email (Vannice_Doulou@nigc.gov) 

National Indian Gaming Commission 

Attn: Vannice Doulou 

1849 C Street NW 

Mail Stop #1621 

Washington, DC 20240 

 Re: Comments on Elimination of the Sunset Provision in 25 C.F.R. § 547.5 

 This constitutes the comments of Miami Tribe of Oklahoma Business Development 

Authority on the sunset provision, codified at 25 C.F.R. § 547.5 (b)(1), 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. The sunset provision is 

unnecessary, because the existing grandfathering rule, and the Commission’s Minimum Internal 

Control Standards for Class II games, have proven adequate to protect the integrity of the games. 

Further, the sunset provision will impose tens of millions of dollars in costs on tribal gaming 

facilities. 

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 has provided the NIGC with 

comments on grandfathering that state that there have been no reported compliance issues or 

incidents in ten years. 
Miami Tribe of Oklahoma Business Development Authority 

6365 Montessouri Street, Suite 100  Las Vegas, NV 89113 (702) 207-7077

 

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 this 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).
Miami Tribe of Oklahoma Business Development Authority 

6365 Montessouri Street, Suite 100  Las Vegas, NV 89113 (702) 207-7077

 

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).

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.
Miami Tribe of Oklahoma Business Development Authority 

6365 Montessouri Street, Suite 100  Las Vegas, NV 89113 (702) 207-7077

 

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. 

Thank you for your consideration of this important issue. 

 Sincerely, 

 Gerald L. Danforth, Chairman 

 Miami Tribe of Oklahoma 

Business Development Authority