Mr. Terry L. Pechota 

Pechota Leach 

1617 Sheridan Lake Road 

Rapid City, SD 57702-3483 

Re: Flandreau Santee Sioux Tribe's Pari-Mutuel Betting Ordinance submitted 

March 25,2004 

Dear Mr. Pechota: 

This letter is in response to your request for the National Indian Gaming 

Commission (NIGC) to review and approve the Flandreau Santee Sioux Tribe's 

Pari-Mutuel Betting Ordinance submitted March 25, 2004. The Ordinance was 

received in this ofice on March 26, 2004. The Tribe adopt4 the Code by 

Resolution No. 04-24 on March 18, 2004, with a revision, Resolution No. 04-37, 

adopted on April 29, 2004. This letter constitutes approval of your submission 

under the Indian Gaming Regulatory Act (ERA). It is important to note that the 

Gaming Code is approved for gaming only on Indian lands, as defined in the 

TGXIA, over which the Tribe has jurisdiction. 

ance for review and approval. The MGC staff 

and the Tribe on future gaming issues. 

Chairman 

NATIOWL HEADQUARTERS 1441 1 St. W. Suite 91M, Washington, DC Z000S Tel: 202,632,7003 Fax: 202.632.7066 www.~~~~.cw, 

EC~L oulas Portland, OR; Sacramento, CA: Phoenix, AZ: St. Paul, MN:Tulsa. OK 
, -. ' 

Flandreau Santee Sioux Tribe 

RO. Box 283 Flandreau, SD 57028 Ph. 605-997-3891 

Fa 605-997-3878 

,-I' 2 , 

RESOLUTION NO. 04-24 2 

WHEREAS, the Flandreau Santee Sioux Tribe is a federally recognized Indian tribe 

organized pursuant to the Indian Reorganization Act with a Constitution 

and By-laws approved by the Secretary of the Interior and Commissioner 

of Indian Affairs on April 24, 1936, and amended February 7, 1941, and 

further amended November 16, 1967, and further amended November 14, 

1984, and further amended May 23, 1990, and further amended May 12, 

1997, and 

WHEREAS, Article 111, Section 1 of said amended Constitution and By-laws provides 

that the governing body of the Tribe shall be the Executive Committee, 

and 

WHEREAS, pursuant to Article VIII, Section 1 (0 of said amended Constitution and 

By-laws, the Executive Committee has authority to promulgate 

ordinances, and 

WHEREAS, pursuant to said powers, the Executive Committee has determined that it 

would be in the best interests of the Flandreau Santee Sioux Tribe and its 

Royal River Casino to authorize pari-mutual betting at its Royal River 

Casino, and 

WHEREAS: under the terms of the Indian Gaming Regulatory Act, the Tribe's Class 111 

gaming ordinances are subject to approval of the National Indian Gaming 

Commission. 

NOW THEREFORE BE IT RESOLVED, that the Executive Committee hereby adopts 

the attached Flandreau Santee Sioux Tribe Ordinance on Pari-mutual 

Betting and the attached Flandreau Santee Sioux Pari-mutual Betting 

Gaming Regulations, and 

BE IT FUR'THER RESOLVED, that the Flandreau Santee Sioux Tribe shall have the sole 

proprietary interest and responsibility for the conduct of any operation, but 

this shall not be construed to prohibit the Tribe from entering into a 

Management Agreement, and 
RESOLUTION NO. 04-24 

PAGE: 2 

BE IT FURTHER RESOLVED, the attached Ordinance and Gaming Regulations shall be 

incorporated into the Flandreau Santee Sioux Tribe Law and Order Code 

and authority is given to the compiler of the laws to renumber, reclassify, or 

to cite the Ordinance and Regulations as necessary to incorporate the same 

into the Law and Order Code, and 

BE IT FURTHER RESOLVED, that Leonard Eller, Tribal President, is hereby 

designated as agent for service of any official determination, order, or notice 

of violation as required by 25 CFR 5 19.1, and 

BE IT FURTHER RESOLVED, that the attached Ordinance and Regulations be 

submitted to the National Indian Gaming Commission for review and 

approval and shall become effective upon receipt of such approval. 

CERTIFICAT ION 

The foregoing Resolution was duly enacted and adopted on this /8 day of March 

2004 by the Executive Committee at which a quorum was present by a vote of 3 for, 

_(Z against, and -/- not voting. 

Tribal Secretary Tribal President 
04/23/2004 13:24 FAX 60534107,16 LAW. OFFICE rhl002/003 

SENT BY: ROYAL RIVER CASINO; 605 907 9998; APR-29-04 3:OBPM; PAOE 2/3 I !I j I 

aESOLUnON NO. 04-37 

Raoaivad 04-29-04 22 121 From-606341 071 6 To-2026327066 Para 002 
04/29/2004 19:24 FAX 6053410716 LAW. OFFICE IjJ 003/003 

SENT BY; ROYAL RIVER CASTNO; 805 997 9990; APR-29-04 3:08PM; PAGE 313 

WTLFICATION 

Tribal President . 

Received 04-28-04 22 121 From-605341 0716 10-2026327066 Pare 003 

FLANDREAU SANTEE SIOUX TRIBE 

ORDINANCE 

ON 

PARI-MUTUEL BElTlNG 

INDEX 

Definitions ........................................... 1 

Preliminary statement .................................. 2 

Statelaw ............................................ 3 

Sole interest ......................................... 3 

Conduct of pari-mutuel betting ........................... 3 

Pari-mutuel betting licenses ............................. 3 

Pari-mutuel betting applications .......................... 3 

License fees and remedies .............................. 4 

Contracts required .................................... 4 

Providing of commingled pools ........................... 4 

Notice to commission of hours of c per at ion ................. 4 

Licensing of employees at the Casino ..................... 5 

Employee wagering on site prohibited ..................... 5 

Inspection of Casino ................................... 5 

Approval of transmission method ......................... 5 

Separate transmission of data ........................... 5 

Casino transactions to be maintained as separate account ..... 5 

Testing of satellite equipment ............................ 5 

Availability of replacement equipment ..................... 5 

Provider shall be responsible for reporting delays ............ 5 

Displayposttimes ..................................... 5 

Availability of official daily programs ....................... 5 

Posting of previous day's results .......................... 5 

Television or video monitors required ...................... 6 

Information to be provided .............................. 6 

Video display breakdown of odds ......................... 6 

Discovery of violations ................................. 6 

Patron complaints ..................................... 6 

Patrondisputes ....................................... 6 

Pari-mutuel betting procedures ........................... 6 

Tournaments . Prior approval of Commission needed ......... 7 

Tournaments . Statement to Commission .................. 7 

Casino may determine purse in tournaments ................ 7 

Amount retained by Casino in tournaments ................. 7 

Report to Commission in tournaments ..................... 7 

Pari-mutuel ticket ..................................... 7 

Sale of pari-mutuel tickets ............................... 8 
Wrong ticket claims .................................... 8 

Surrender of pari-mutuel tickets required ................... 8 

Time for claiming payments from pari-mutuel pool ............ 8 

Displaying of ticket cashing procedures .................... 8 

Handle reports required ................................ 8 

Payment of fees and deductions to the Commission .......... 8 

Transfer of moneys between host track and Provider .......... 9 

Accounting records .................................... 9 

Audits .............................................. 9 

Record retention . Noncompliance ........................ 9 

Redesignation and renumbering .......................... 9 
FLANDREAU SANTEE SIOUX TRIBE 

ORDINANCE 

PARI-MUTUEL BETTING 

Definitions. Terns used in this chapter mean: 

(1) "Commingled pool," the combination of wagering data and moneys 

wagered for specific pools of the host track with wagering data and 

moneys wagered for specific pools of the Casino for the purposes of 

calculating the odds and the payout prices and allowing for the Casino 

to adopt the host track's takeout rate; 

(2) "Core to core transmission," the accumulation of wagering data in one 

pari-mutuel facility totalizator system and transmission of this data 

directly to the totalizator system of another pari-mutuel facility; 

(3) "Decoder," a device to convert encrypted audiovisual signals or data, 

or both, into a form recognizable as the original content of the signals; 

(4) "Encryption" or "encrypted," the scrambling or other manipulation of 

audiovisual signals to mask the original audio and video content of the 

signals and so cause such signals to be indecipherable and 

unrecognizable to any person receiving such signal unless the person 

has a decoder; 

(5) "Host track," the racetrack that is conducting live racing; 

(6) "Simulcast," a telecast of live audio and visual signals from a live track 

outside the Reservation to the Royal River Casino for the purpose of 

pari-mutuel betting; 

(7) "Royal River Casino," (Casino) the Flandreau Santee Sioux Tribe offtrack betting site authorized by the Tribal Gaming Commission 

(Commission), to receive a broadcast of races for the purpose of 

conducting pari-mutuel betting; 

(8) "Pari-mutuel performance," a schedule of races received by Casino; 

(9) "Provider," a licensee authorized by the Commission to provide parimutuel betting to the Casino; 
(1 0) "Pari-mutuel betting," pari-mutuel betting at the Casino located within 

the Reservation; 

(1 1) "Takeout," the percentage of the pari-mutuel pool deducted by the 

track, which includes pari-mutuel taxes, breakage, etc., prior to 

distribution of the pool; 

(12) "Ticket issuing machine" or "TIM," a machine which prints hard copies 

of wagers; 

(1 3) "Totalizator system," a computer system that accepts, records, issues, 

and accounts for all wagering information and transactions that occur 

during a race meeting; 

(14) "Tote" or "tote board," the board on which payouts and approximate 

odds are posted, the totalizator; 

(1 5) "Handicapping tournament," an organized event, sponsored by one 

or more licensees after approval by the Commission, that permits a 

player to either purchase or be awarded the opportunity to engage in 

competitive play against other players; 

(1 6) "Buy-in," an advertised entry fee paid by each player to participate in 

a handicapping tournament. 

2. Preliminary Statement. This Ordinance provides for and authorizes parimutuel betting on the Flandreau Santee Sioux Indian Reservation. The provisions of the 

existing gaming Ordinance, 94-02, as amended by 99-24, of the Flandreau Santee Sioux 

Tribe pertaining to Class Ill gaming are incorporated herein and are deemed to apply to 

pari-mutuel betting including the following: 

(1 ) Background investigations on key employees, primary management 

officials, or other employees and notification of privacy rights; 

(2) Procedures to issue licenses to primary management officials, key 

employees, or other employees; 

(3) Procedures for resolving disputes between the gaming public and the 

Tribe or management contractor; 

(4) Identification of law enforcement agency to take fingerprints and 

procedures for conducting criminal history; 

(5) Use of net revenues from gaming operations; 
(6) Terminations of licenses, disciplinary actions, and hearing 

procedures; 

(7) Enforcement; 

(8) Access to premises; 

(9) Exclusions; 

(1 0) Gaming operations; and 

(1 1 ) Accounting and surveillance. 

3. State law. All pari-mutuel betting conducted under this Ordinance shall 

comply with the terms of the Compact entered into between the Flandreau Santee Sioux 

Tribe and the State of South Dakota. It is the intent of this Ordinance that its provisions 

' regulating pari-mutuel betting shall be at least as restrictive as the laws of the State of 

South Dakota on the subject. All equipment used shall meet the standards set by the 

South Dakota Commission on Gaming. 

4. Sole interest. The Flandreau Santee Sioux Tribe shall have the sole 

proprietary interest in and responsibility for the conduct of pari-mutuel betting on Tribal 

lands. This provision shall not be deemed to prohibit any agreement with a provider or 

management contractor. 

5. Conduct of pari-mutuel betting. All pari-mutuel betting, including the 

construction, maintenance, and operation of that part of the Royal River Casino where parimutuel betting will take place, shall be conducted in a manner that adequately protects the 

environment and the public health and safety. 

6. Pari-mutuel licenses. The Commission may issue the following pari-mutuel 

licenses, which are required to conduct pari-mutuel betting: 

(1 ) Provider; 

(2) Casino; and 

(3) Pari-mutuel clerk. 

7. Pari-mutuel applications. An applicant for any of the required pari-mutuel 

licenses must apply on a form provided by the Commission. The application may include 

questions concerning the following: 

(1) Personal background information; 

(2) Financial information; 
(3) Participation in legal or illegal gaming activities on the Flandreau 

Santee Sioux Reservation or other jurisdictions, including foreign 

countries; and 

(4) Other information as required. 

8. License fees and remedies. The Commission shall charge the following fee 

for the initial fee and renewal fee on July 1 for each year thereafter: 

(1) Provider license. $500 for initial fee and $500 a year thereafter for 

operator license. 

(2) Casino license. $250 for initial fee and $250 a year thereafter for 

casino license. 

(3) Pari-mutuel license. $100 for initial fee and $1 00 a year thereafter for 

key employee license. 

(4) Support license. $25 for initial fee and $25 a year thereafter. 

9. Contracts required. Provider is required to obtain the following contracts and 

submit a copy to the Commission for approval: 

(1) A contract with the tote company to provide totalizator service; 

(2) A contract with the Casino to conduct pari-mutuel betting via core to 

core or machine (TIM) to tote transmissions with an out-of-state host 

track; and 

(3) A contract with the out-of-state host track. 

10. Providing of commingled pools. Provider may only offer commingled pools, 

which are the same as those offered by the host track, but Provider is not required to offer 

each pool offered by the host track. Provider may elect to exclude certain pools offered 

by the host track upon contractual agreement between Provider and the host track. The 

host track shall determine the minimum ticket price that is available for each pool. 

11. Notice to commission of hours of operation. Provider must notify the 

Commission in writing of its normal hours of operation. 

12. Licensing of employees at the Casino. Only a person licensed by the 

Commission may be employed by Provider to accept or cash pari-mutuel wagers at the 

Casino. 

13. Employee wagering on site prohibited. No licensed employee of Casino may 

place a wager for their own benefit at the Casino. 
14. Inspection of Casino. Prior to the Casino accepting pari-mutuel wagers, 

Commission staff shall perform an inspection of the facilities and equipment. 

15. Approval of transmission method. The Commission shall approve the method 

used to transmit wagering output data based on the determination that provisions to secure 

the system and transmissions are satisfactory. 

16. Separate transmission of data. Sales transaction data must be transmitted 

separately from pari-mutuel output and the visual display of the races. 

17. Casino transactions to be maintained as separate account. All sales 

transaction data from Casino and the tote company to Provider must be maintained as a 

separate account for audit purposes. 

18. Testing of pari-mutuel equipment. No later than fifteen minutes prior to the 

commencement of transmission of a race, the Casino shall perform a test to assure proper 

operation of the broadcast system. The following items must be included in the test: the 

transmitter, encryption, decoding, and data communication. Any irregularity shall be 

reported to the'commission within twenty-four hours. 

19. Availability of replacement equipment. Replacement equipment or a 

totalizator mechanic must be available at the Casino to provide for immediate repair in the 

case of equipment failure. 

20. Provider shall be responsible for reporting delays. Provider and the Casino 

are responsible for reporting any problems or delays to the public. 

21. Display post times. The Casino shall display the post time for each host track 

in the Casino's local time. 

22. Availability of official daily programs. Provider shall make available to the 

Casino's patrons a copy or facsimile of the official daily race program from the host track 

sending a signal to the Casino. 

23. Posting of previous day's results. The results of each race and the payoffs 

shall be posted at the Casino the next race day following the day of the race. 

24. Television or video monitors required. The Casino must provide sufficient 

television or video monitors for both the pari-mutuel employees and patrons to view each 

televised race. 

25. Information to be provided. A video monitor for each racetrack from which 

races are being televised must be in operation in public view during hours of operation. The 

monitor shall display the following information: 
(1) Odds; 

(2) Race results; 

(3) Prices or payoffs; and 

(4) Minutes to post. 

26. Video display breakdown of odds. A breakdown in the video display as 

required in § 25 may cause the closing down of pari-mutuel betting if there are no 

provisions for audio or visual odds or payoffs. 

27. . Discovery of violations. Provider must immediately notify the Commission 

of the discovery of a violation or of a suspected violation of this article. 

28. Patron complaints. Provider and the Casino shall address patron complaints 

and questions. 

29. Patron disputes. Provider must notify the disputing patron that the patron has 

a right to file a complaint with the Commission. If Provider refuses payment of alleged 

winnings to a patron, Provider and the patron are unable to resolve the dispute to the 

patron's satisfaction, or the dispute involves at least $250, Provider must immediately 

notify the Commission. The Commission shall conduct an investigation. The Commission 

must notify Provider and the patron in writing of the Commission's decision regarding the 

dispute within 30 days after the date that the notice of the dispute was received by the 

Commission. The failure of Provider to notify the Commission, to notify the patron of the 

patron's rights, or to pay after an adverse decision is grounds for disciplinary action. 

30. Pari-mutuel betting procedures. Pari-mutuel betting procedures include: 

(I) Prior to the commencement of wagering of the first race on a parimutuel betting program, either the audio or video signals must be 

present at the Casino in order for pari-mutuel betting to be conducted. 

If both the audio and visual signals are lost, wagering may continue 

only until the scheduled post time of the current race at the host track 

and may not resume until either the audio or visual signal is restored. 

Any advance bets made, provided there has not been an 

accompanying data transmission failure, must be treated as valid bets 

and paid out accordingly. Any wager that encompasses more than 

one race shall be unaffected by signal problems encountered in any 

race of the sequence other than the first; and 

(2) If either the Casino or host track's totalizator system fails and there is 

an impairment of the ability of a totalizator to record, classify, or 

accumulate wagering data or to do calculations, or if wagering data is 

lost, the following procedures shall apply: 
Any money wagered on the race that was entered into the host 

track's pools from the Casino's totalizator system prior to the 

time of failure shall remain in the host track's pools and the 

Casino shall pay the track prices. If money wagered is not 

entered into the host track's pool, the Casino has the option to 

refund each wager, pay track odds, or form separate pools. 

A set policy shall be determined by the Casino and shall be posted. 

31. Tournaments - Prior approval of Commission needed. A handicapping . . 

tournament must have prior approval of the Commission. 

32. Tournaments -- Statement to Commission. Before a handicapping 

toumament begins, the Casino must submit to the Commission a written statement 

containing the rules, places which shall be declared winners, disbursements of the prize 

, . , money, and the dates of the toumament. 

33. Casino may determine purse in tournaments. The Casino may determine the 

amount of the tournament purse and the method of distribution by utilizing any method 

approved by the Commission. The number of winning places shall be determined by the 

Casino and submitted to the Commission prior to the commencement of a tournament. 

34. Amount retained by Casino in tournaments. No more than ten percent of the 

total buy-ins or entry fees paid in a tournament may be retained by the Casino as adjusted 

gross proceeds. 

35. Report to Commission in tournaments. Within 48 hours after the conclusion 

of a tournament, the Casino shall prepare a written report containing a list of each 

participant, winner, place taken, amount of prizes awarded, and the amount of funds 

retained by the licensee. The Casino shall maintain this list in the Casino's records for five , years. 

36. Pari-mutuel ticket. Each pari-mutuel ticket issued must have printed on it: 

(1) The name of the racetrack or association; 

(2) The number of the race; 

(3) The unique computer-generated ticket number; 

(4) The date the ticket was issued; 

(5) The date of the race for which the ticket was issued; 

(6) The number of the ticket-issuing machine; 

(7) The type of pool; 

(8) The number of each entry on which the wager was placed; and 

(9) The dollar amount of the wager. 
37. Sale of pari-mutuel tickets. No pari-mutuel tickets may be sold except through 

regular ticket windows or pari-mutuel terminals approved by the Commission. Each ticket 

sale must be a cash sale. A valid winning ticket or a credit voucher issued by a pari-mutuel 

machine from the same facility may be considered cash for purposes of this section. 

38. Wrong ticket claims. Any claim by a person that a wrong ticket has been 

delivered to the person must be made before leaving the ticket window. No claim may be 

considered thereafter and no claim need be considered for tickets thrown away, lost, 

changed, destroyed, or mutilated beyond identification. Payments of wagers shall be made 

only on presentation of appropriate tickets. 

39. Surrender of pari-mutuel tickets required. Payment of any winning parimutuel ticket shall be made only upon presentation and surrender of the ticket. No claim 

may be allowed for any lost or destroyed winning tickets. 

40. Time for claiming payments from pari-mutuel pool. Any claim for any part of 

a redistribution from a pari-mutuel pool shall be made within 60 days from the end of the 

meet of the host track or be forever barred. Any sum so barred shall become the property 

of Provider 

41. Displaying of ticket cashing procedures. The Casino shall publicly display 

information regarding the amount of time patrons have to cash pari-mutuel tickets at the 

casino. The tickets may only be cashed at the Casino. 

42. Handle reports required. Provider shall report the daily handle to the 

Commission on a weekly basis. The report must allow the Commission to examine the 

handle, track Commission, breakage, and winners share for each casino and in total. 

43. Payment of fees and deductions to the Commission - Time frames. Any fee 

and deduction from any pari-mutuel pool must be paid to the Commission within 15 days 

of the last racing day of the week for which the payment is made. The weekly race report 

pari-mutuel performances and the daily handle reports shall be submitted along with each 

fee and deduction. 

44. Transfer of moneys between host tracks and Provider. In order to facilitate 

the transfer of money between host tracks, Provider and Casino, the Casino and Provider 

shall perform a daily reconciliation of racing accounts and any amount payable or 

receivable to the host track. The frequency of the transfer of moneys between host tracks 

and Provider shall be as specified by contract. 

45. Accounting records. Provider must keep accurate, complete, legible, and 

permanent records of each transaction relating to revenue that is taxable or subject to fees 

under this article in a manner approved or required by the Commission. 
Provider must keep general accounting records on a double entry system of 

accounting, maintaining detailed, supporting, subsidiary records, including the following: 

(1) Detailed records identifying revenues, expenses, assets, liabilities, 

and equity for each establishment; 

(2) Detailed records of each returned check; 

(3) Information received from the tote company in regards to pari-mutuel 

betting; and 

(4) Journal entries prepared by Provider and its independent accountant. 

Provider must create and maintain a record sufficient to reflect accurately gross 

income and expenses relating to its pari-mutuel operations. 

46. Audits. The Flandreau Santee Sioux Tribe shall cause to be conducted 

independent audits of any pari-mutuel betting operation and provide the results to the 

National Indian Gaming Commission. Included within the scope of this audit shall be all 

gaming related contracts that result in purchases of supplies, services, or concessions for 

more than $25,000, except contracts for professional or legal services. All or a portion of 

the costs of this audit may be collected from the manager or Provider of the pari-mutuel 

betting operation. 

47. Record retention -- Noncompliance. Provider must provide, upon request, 

to the Commission the records that are required to be maintained. Unless the Commission 

approves or requires otherwise in writing, Provider must retain all records within the 

Reservation for at least five years. Failure to keep and provide the records is grounds for 

disciplinary action. 

48. Redesignation and renumbering. Authority is given to the compiler of the 

laws of the Flandreau Santee Sioux Tribe to renumber, redesignate, or to cite the 

provisions of this Ordinance as necessary to assure uniformity and accessibility. 

FLANDREAU SANTEE SIOUX TRIBE 

GAMING COMMISSION 

PARI-MUTUEL WAGERING 

GENERAL 

26.010 Policy ............................................................................... 1 

26.020 Scope .............................................................................. 1 

26.030 Federal minimum internal control standards ................... 1 

26.040 Definitions ........................................................................ 1 

26.050 Licensing ......................................................................... 2 

26.060 Facilities and location ...................................................... 2 

26.070 Accounting ....................................................................... 3 

MANAGEMENT OF PARI-MUTUEL BElTlNG 

26.080 Operation of pari-mutuel betting facilities ........................ 3 

26.090 Manager .......................................................................... 4 

COMPUTATION EQUIPMENT AND OPERATION 

26.1 00 Electronic totalizator ........................................................ 4 

26.1 10 Totalizator failure ............................................................. 5 

26.1 20 Manual computations ...................................................... 5 

WAGERS 

26.130 Wagers ............................................................................ 6 

26.140 Prohibited wagers ............................................................ 6 

26.150 Pari-mutuel betting tickets ............................................... 6 

26.1 60 Wagers by messenger .................................................... 7 

26.1 70 Refunds on coupled entries ............................................. 7 

26.1 80 Restriction on wagering, scratch of entrant ..................... 8 

26.1 90 Effect of certain wagers ................................................... 8 

26.200 Daily doubles ................................................................... 8 

26.21 0 Separate pools ................................................................ 8 

COMPUTATIONS AND PAYOFFS 

26.220 Payoff calculations .......................................................... 8 

26.230 Payoff-daily double ........................................................ 10 

26.240 Payoff-quinella ............................................................... 10 

26.250 Payoff-exacta ................................................................ 11 

26.260 Payment on wagers ....................................................... 12 

26.270 Errors in posting ............................................................ 12 

26.280 Payment for errors ......................................................... 13 
MISCELLANEOUS 

Gaming employees ...................... 13 

Access to premises and records ............ 13 

Records and reports ..................... 14 

Disciplinary actions ...................... 14 

Internal Control ......................... 14 

Summary of Required Documentation ........ 15 

Recodification .......................... 17 
GENERAL 

26.010 Policy. It is the policy of the Commission that pari-mutuel betting 

on sporting events is materially different from other types of gaming and that the 

public health, safety, morals, good order and general welfare of the inhabitants of 

the Tribe require stringent regulation of pari-mutuel betting conducted in 

conjunction with sporting events; accordingly, licensees operating pari-mutuel 

betting facilities on sporting events and races, are required to comply with the 

following regulation in addition to any existing regulations applicable to Class Ill 

gaming licenses in general. 

26.020 Scope. These regulations shall govern all pari-mutuel betting for 

which a license has been granted by the Flandreau Santee Sioux Tribe Gaming 

Commission, heretofore and hereafter referred to as the Commission, pursuant to 

the Gaming Compact between the Flandreau Santee Sioux Tribe and the State of 

South Dakota. Existing rules and regulations, to the extent not inconsistent with 

these regulations, are applicable to those making application or receiving a parimutuel gaming license hereunder. 

26.030 Federal minimum internal control standards. The minimum 

internal control standards for pari-mutuel betting set out at 24 CFR 542.10 or any 

future federal law or regulation are incorporated herein by reference. Any minimum 

federal internal control standard shall be given preference and priority over any 

inconsistent regulation set out herein. 

26.040 Definitions. The following definitions shall applythroughout this 

regulation, and where notinconsistentelsewhere, shall apply to all other regulations 

of the Commission. 

1. Breakage: Odd cents over a multiple of 10 cents arising 

from the computation of odds and payouts. 

2. Percentage: An amountretained and notdistributed by the 

licensee from the total sums wagered on an event. The term does not include 

breakage. 

3. Daily double: A wager requiring the selection ofthe winners 

of two separate program events designated by the licensee as a daily double. 

4. Entry: Two (2) or more entrants competing in a given event 

and coupled because of common ties. 

5. Exacta: The selection, in order of finishing, of the entrants 

finishing first and second in a given event. 

6. Field: All the entrants in an event whose assigned numerical 

designation exceeds one less than the numbering capacity of the post positions on 

the tote board. 
7. Gross pool: The total amount of money wagered on the 

outcome of a particular event without any deduction therefrom. 

8. Handle: Gross amount of money risked in pari-mutuel 

betting. 

9. Licensee: As used herein, a person to whom a pari-mutuel 

betting license has been issued by the Commission. 

10. Net pool: Gross pool less percentage deducted. 

1 1. Pari-mutuel: A system of betting on a race or sporting event 

whereby the winners divide the total amount bet, after deducting percentage, fees, 

and taxes, in proportion to the amount individually wagered. 

12. Profits: Net pool less the gross amount wagered upon a 

given entrant in a particular instance. 

13. Quinella: The selection of the entrants finishing first and 

second in any order in any given event. 

14. Entrant: A participant in a race, sporting event or contest 

upon which a wager may be placed as to the participants' finishing position in the 

event. 

15. Event: An individual race, game or contest wherein parimutuel betting is conducted upon the competing entrants. 

16. Win, place, show: Refers to the entrants respectively 

placing first, second and third in the outcome of an event; also refers to the 

respective wagers or pools. 

17. Pari-mutuel betting: Pari-mutuel betting at the Casino 

located within the Reservation. 

18. Simulcast: A telecast of live audio and visual signalsfrom 

a live track outside the reservation to the Royal River Casino for the purpose of parimutuel betting. 

26.050 Licensing. A pari-mutuel betting license and any other applicable 

tribal license or permit shall first be required to conduct pari-mutuel betting. The parimutuel betting license shall be applied for and issued in the same manner as a nonrestricted gaming license. 

26.060 Facilities and location. Unless otherwise permitted, no other 

form of gaming shall be conducted in an area containing pari-mutuel betting; such 
area shall be within a well-defined enclosure to which no direct ingress or egress 

may be made to or from a contiguous area containing other forms of gaming; 

however, pari-mutuel betting may be held in the same building where other gaming 

is permitted. 

26.070 Accounting. 

1. Each licensee shall prepare and maintain in a manner 

suitable to the Commission, complete and accurate accounting records, kept in 

accordance with Generally Accepted Accounting Principles (GAAP), information and 

data which shall be generated by an approved computer system and which reflects 

the following on a daily basis for each event upon which pari-mutuel betting was 

held: 

(a) Gross amount wagered on each event; 

(b) Gross and net amounts of each pool; 

(c) Percentages deducted; 

(d) Tax and breakage on each pool; 

(e) Number and value of tickets sold on each pool; 

(f) Final odds; 

(g) Payoff prices; and 

(h) The amount paid on all winning pari-mutuel betting 

tickets. 

2. A daily reconciliation of all cash received and paid on each 

pool of each event shall be recorded along with the cash count of the money room. 

MANAGEMENT OF PARI-MUTUEL BETTING 

26.080 Operation of pari-mutuel betting facilities. 

1. The pari-mutuel betting operation shall be conducted by the 

licensee under the control and supervision of a Manager who, along with all ticket 

sellers, cashiers, and money counters, shall be an employee of the licensee. 

2. Should any portion of the pari-mutuel betting operation be 

subcontracted to any person or entity other than the licensee, such arrangement 

shall first be approved by the Commission which may require such person or entity 

or their employees to be licensed. 
3. All bettor or spectator complaints shall be registered at an 

information window; a written report as to the substance and disposition of the 

complaint shall be made, and copy thereof delivered to the Commission as soon as 

reasonably practicable. 

26.090 Manager. 

1. The general operation of the pari-mutuel betting shall be 

directed by a Manager who shall have extensive experience in the operation of parimutuel betting. 

2. Total responsibility shall rest with the Manager for: 

(a) The entire operation of pari-mutuel betting in 

accordance with this regulation; 

'@ (b) The correct computation of pools, odds, breakage, 

payouts and percentages; 

(c) The conduct of all persons directly or indirectly 

employed in the pari-mutuel betting department. 

3. Any emergency arising from the operation of the pari-mutuel 

betting, not covered by this regulation and requiring immediate action, shall be 

handled by the Manager who shall make the necessary decisions and render a 

report to the Commission within 24 hours. 

COMPUTATION EQUIPMENT AND OPERATION 

26.100 Electronic totalizator. 

I. An electronic totalizator shall be used for each event upon 

which pari-mutuel betting is conducted, unless written consent is given by the 

Commission to use different equipment or methods. The equipment shall 

automatically register: the total amount wagered in each pari-mutuel betting pool; 

the total amount wagered on each participant in a game or race for win, place and 

show; the total amount wagered on each combination in a daily double, quinella or 

exacta, and shall print and issue a ticket representing each wager comprising each 

required total. 

2. A license may not be issued until such tests as required and 

performed by the Commission have been made and the equipment conforms to the 

requirements of these regulations and the Commission; provided, however, a 

license may be conditionally issued based upon further testing of the equipment. 
3. The licensee may be required to conduct such test as the 

Commission may prescribe from time to time upon totalizators and ancillary 

equipment. 

4. Failure of the totalizator to meet the requirements as 

established by these regulations and the Commission shall be grounds for ordering 

the suspension of pari-mutuel betting until such time as the deficiencies have been 

corrected.. 

5. The Commission shall issue a policy statement setting forth 

the standards required for the totalizator system, in addition to any standards set 

forth in these regulations. 

6. The totalizator shall calculate the total amounts in each pool 

and the amounts wagered on each entrant or combination from time to time as 

wagering progresses. Operated in connection with the totalizator shall be one or 

more boards prominently displaying to the public the winning odds on each entrant 

or combination during the progress of wagering at intervals of not more than 90 

seconds between each complete change. 

7. The totalizator shall be designed so that all ticket machines 

shall automatically lock and close upon the activation of the off bell which shall be 

activated no later than the start of the event. In no case shall the machines be 

opened until after a declaration that the results of the event are official. 

26.1 10 Totalizator failure. 

I. A report of any faulty operation of the totalizator or tote 

board shall be filed with the Commission within 24 hours following the malfunction. 

2. Whenever the totalizator mechanism fails and is obviously 

unreliable as to the amounts wagered, all figures on the tote board so affected shall 

be removed immediately, and the payoff shall be compiled on the sum wagered in 

each pool as shown by the recapitulation of the sales registered by each individual 

ticket issuing machine. If an individual ticket issuing machine fails and a computer 

system is being employed, then the figures as stored in the computer shall be used 

to calculate the payoff. If the type of wagering equipment used renders this 

recapitulation impossible, all moneys wagered on the sporting event shall be 

refunded. 

26.120 Manual computations. 

1. If payoff prices are computed manually, before posting the 

payoff prices of any pool for any event, each of the calculating sheets of such event 

shall be proved by the calculators and the winners verified. Such proof shall show 

payouts, breakage, and percentage and, when totaled together, shall equal the 
gross pool. All payslips shall be checked with the calculating sheets as to winners 

and prices before being issued to cashiers, and all board prices shall be rechecked 

with a calculator before being released to the public. The above shall not apply if a 

computer system is used for the purposes of calculating payoffs. 

2. If manual calculation of approximate odds is used, a 

complete and detailed handwritten record of each event shall be kept containing: 

(a) Each change in odds; 

(b) The percentage figures on the final reading; and 

(c) The actual possible payoff on each entrant. 

3. Such records shall be retained for a period of 3 years. 

WAGERS 

26.130 Wagers. All pari-mutuel wagers shall be made only in cash, 

chips or tokens of the Royal River Casino and shall be consummated on the parimutuel betting premises. 

26.140 Prohibited wagers. 

1. No pari-mutuel betting ticket shall be sold to, or cashed for, 

a person under 21 years of age. 

2. No employee of a pari-mutuel betting department, officials, 

participants of a sporting event, or other employees on duty in the playing or 

spectator areas shall purchase or cash a pari-mutuel betting ticket; provided, 

however, the selling and cashing of pari-mutuel betting tickets for patrons by 

messengers employed by the licensee for that purpose may be allowed, if permitted 

by the Compact with the State of South Dakota. 

3. No mailed or telephone wagers from outside the pari-mutuel 

betting enclosure shall be permitted. This shall not be construed to prevent use of 

runners, if permitted by the Compact with the State of South Dakota. 

4. Resale of pari-mutuel betting tickets between individuals is 

prohibited and constitutes grounds for ejection from the premises wherein parimutuel betting or the sporting event is conducted. 

26.150 Pari-mutuel betting tickets. 

1. Pari-mutuel betting tickets shall evidence or contain: 
(a) A designation for each race, game or event; 

(b) Entrant or player number; 

(c) Race or game number; 

(d) Date; and 

(e) Amount wagered. 

2. Pari-mutuel betting tickets shall be sold only through 

designated ticket windows prominently displaying the denomination and type of 

tickets sold. 

26.1 60 Wagers by messenger. 

1. If permitted by the Compact with the State of South Dakota, 

wagers may be placed by messengers or runners who shall be employees of the 

licensee; the taking, placing and paying of wagers shall be done only within the 

enclosure wherein pari-mutuel betting is conducted. 

2. The following constitutes the minimum requirements for 

wagering permitted by this section: 

(a) The wager of an individual bettor shall be first recorded 

upon a sequentially pre-numbered duplicate betting slip indicating the type, number 

and cost of each bet, and the total bets and amounts wagered. 

(b) The runner shall retain the original bet slip with the 

duplicate being held by the customer who shall tender the total money wagered; 

thereafter, the wager shall be placed and tickets issued at the pari-mutuel betting 

window, and the tickets returned to the customer in exchange for the duplicate slip. 

(c) No wager .is deemed to have been made until the 

runner has purchased the tickets indicated on the betting slips. 

(d) The customer may tender a winning ticket to a runner 

for payment which shall be made at a pari-mutuel betting window. 

3. A runner shall not accept any wager which cannot 

reasonably be expected to be placed before the pari-mutuel betting machines are 

locked. Any moneys so received and not bet before the pari-mutuel betting 

machines are locked shall be returned to the customer. 

26.170 ~efunds on coupled entries. When two or more entrants in an 

event are coupled on the same pari-mutuel betting ticket, there shall be no refund 
unless all of the entrants so coupled are cancelled before the event begins. 

26.180 Restriction on wagering, scratch of entrant. 

I. When no more than five entrants start an event, show 

wagering on the event may be deleted or cancelled. 

2. When no more than four entrants start an event, both place 

and show wagering on the event may be deleted or cancelled. 

3. Wagering on an event may be prohibited when less than 

three entrants start an event and both entrants are coupled in an entry. 

4. A refund shall be made of wagers placed on an entrant 

scratched before the betting has closed. 

26.190 Effect of certain wagers. 

1. A wager on any one entrant in an entry shall be a wager on 

all such entrants. 

2. A wager on any one entrant in a field shall constitute a 

wager on all entrants comprising the field. 

26.200 Daily doubles. 

1. Except in the circumstances enumerated in section 26.250, 

no payoff shall be made on a ticket on which both entrants chosen have not in fact 

won their respective events. 

2. No daily double wagering shall be allowed on events with 

entry or field entrants. 

3. All daily double tickets shall be sold only from automatic 

double machines, and the daily double windows shall be closed and the machines 

locked at the start of the first event of the daily double. 

26.210 Separate pools. Quinella, exacta and daily double wagering 

shall individually constitute separate pools and not comprise or be a part of any 

other win, place, or show pool. 

COMPUTATIONS AND PAYOFFS 

26.220 Payoff calculations. 

1. The gross percentage shall be first deducted from the gross 

amount wagered on each individual pool, viz., win, place, show, thereby providing 
a respective net pool. 

2. Win pool (first place). The payoff amount per dollar wagered 

which shall include the gross dollar wagered on the winner, for each gross dollar 

wagered on the winner shall be determined by dividing the net pool by the gross 

sum wagered on the winner. In the event of a tie for win, the payoff shall be figured 

in the same manner as a place pool. 

3. Place pool (second place). 

(a) The payoff amount per dollar wagered, which shall 

include the gross dollar wagered upon the winning entrant to place, shall be 

determined by dividing the gross amount wagered upon the winner to place into the 

sum of: the gross amount wagered upon the winner to place, plus one-half of the 

difference between the net pool for place and the combined sum wagered on the 

winning and placing entrants to place. 

(b) The payoff amount per dollar wagered, which shall 

include the gross dollar wagered upon the placing entrant to place, shall be 

determined by dividing the gross amount wagered upon the placing entrant to place 

into the sum of: the gross amount wagered upon the placing entrant to place, plus 

one-half of the difference between the net pool for place and the combined sum 

wagered on the winning and placing entrants to place. 

(c) In the event of a tie for place, one-half of the profits of 

the place pool shall be paid upon the winner, and the remaining one-half prorated 

equally among the entrants constituting the tie. 

4. Show pool (third place). 

(a) The payoff amount per dollar wagered, which shall 

include the gross dollar wagered upon the winning entrant to show, shall be 

determined by dividing the gross amount wagered upon such winning entrant to 

show into the sum of: the gross amount wagered on the winning entrant to show, 

plus one-third of the difference between the net pool for show and the combined 

sums wagered on the entrants which placed first, second, and third to show. 

(b) The payoff amount per dollar wagered, which shall 

include the gross dollar wagered upon the second place entrant to show, shall be 

determined by dividing the gross amount wagered upon such entrant to show into 

the sum of: the gross amount wagered on the second place entrant to show, plus 

one-third of the difference between the net pool for show and the combined sums 

wagered on the entrants which placed first, second and third to show. 

(c) The payoff amaunt per dollar wagered, which shall 

include the gross dollar wagered upon the .third place entrant to show, shall be 
determined by dividing the gross amount wagered upon such entrant to show into 

the sum of: the gross amount wagered on the third place entrant to show, plus onethird of the difference between the net pool for show and the combined sums 

wagered on the entrants which placed first, second and third to show. 

(d) In the event of a tie for show, one-third each of the 

profits of the show pool shall be paid upon the entrants placing first and second, and 

the remaining one-third prorated equally among the entrants constituting the tie. 

26.230 Payoff4aily double. 

1. Except as provided below, or section 26.170 in case of 

refunds, the payoff on a winning daily double combination shall be made pursuant 

to section 26.220, subsections 1 and 2. 

2. When no ticket exists combining the winner of both events, • the net pool shall be calculated and distributed as follows under the circumstances 

enumerated below: 

(a) When the winners of both events have been selected 

individually, but not selected as a combination, the net pool shall be distributed as 

a place pool upon the winners of either event. 

(b) When only one winner of the two events has been 

chosen, the net pool shall be paid as a win pool on the chosen winner. 

(c) When no winner has been selected foreitherevent, the 

net pool shall be distributed as a win pool to holders of tickets combining the 

entrants placing second. 

3. When no ticket exists requiring distribution under 

subsections 1 or 2, or when the first event of the daily double is cancelled, the gross 

pool shall be distributed pro rata to those persons wagering on the daily double. 

4. When the second event of a daily double is cancelled, the 

payoff shall be computed and distributed as a win pool upon the tickets covering the 

winner of the first event, and if no such ticket exists, the net pool shall be distributed 

as a win pool upon tickets covering the entrant which finished second in the first 

event. If no tickets exist covering the entrants placing first or second, the gross pool 

shall be distributed pro rata to those persons wagering on the daily double. 

1. Except in cases specified below, the winning combination 

in a quinella pool shall be computed and distributed in accordance with section 

26.220, subsections 1 and 2. 
2. In case of a tie for first place between two entrants, the 

payoff shall be made upon tickets combining both entrants. In case of a tie for 

second place, the net pool shall be treated as a place pool with the payoff made on 

the tickets combining the winning entrant and either of the two entrants finishing 

second. 

3. When a tie for second place occurs and no ticket has been 

issued covering one of the two winning combination, the net pool shall be calculated 

and distributed as a win pool and the payoff made on the tickets covering the 

winning combination. 

4. Should no ticket exist covering the winning combination of 

a quinella, the net pool shall be treated as a place pool and distributed equally 

among the tickets combining the entrants which place first or second with a nonplacing entrant. 

a 5. When tickets have been sold on only one of the first two 

finishers, the net pool shall be distributed as a win pool to holders of such tickets. 

6. When no ticket exists requiring distribution under any of the 

foregoing subsections, the gross pool shall be distributed pro rata among the 

persons wagering on the quinella. 

1. Except for cases specified below, the winning combination 

in an exacta pool shall be computed and distributed in accordance with section 

26.220, subsections 2 and 3. 

2. In case of a tie for first place by two entrants, the payoff shall 

be made only upon tickets combining both entrants. In the case of a tie for second 

place, the net pool shall be treated as a place pool and the payoff made on tickets 

combining the winning entrant with either of the two entrants finishing second. 

3. When a tie for second place occurs and tickets are issued 

combining only one of the two possible winning combinations, the net pool shall be 

calculated and distributed as a win pool. 

4. When no ticket is issued combining the winning combination 

of an exacta, the net pool shall be calculated and distributed as a place pool and 

distributed equally among the tickets combining the entrants which placed first or 

second with a non-placing entrant. 

5. When tickets have been sold on only one of the first two 

finishers, the net pool shall be distributed as a win pool to holders of such tickets. 
6. When no ticket exists requiring distribution under any of the 

foregoing subsections, the gross pool shall be distributed pro rata among the 

persons wagering on the exacta. 

26.260 Payment on wagers. 

1. Payment of wagers will be made only on presentation of 

appropriate pari-mutuel betting tickets.-~ny claim by a bettor that a wrong ticket has 

been delivered to him at the pari-mutuel betting ticket window shall be made before 

leaving the window, and thereafter no such claim may be considered. 

2. A licensee shall cash all valid unmutilated winning tickets 

when such tickets are presented for payment during the course of the day when sold 

and for the period of 30 days thereafter. Subsequent thereto, the licensee shall 

'0 

have no liability relating to such tickets, providing the premises are conspicuously 

posted with signs stating that winning tickets shall be presented for payment within 

30 days from date of issuance, and that each ticket issue shall also bear a similar 

notation. 

3. The licensee shall have no obligation or liability for tickets 

thrown away, lost, changed, destroyed, or mutilated beyond identification. In the 

case of mutilated tickets when the portions of the tickets presented are sufficient to 

definitely identify the ticket as a winning ticket, the licensee may accept the mutilated 

ticket and make payment without the necessity of the ticket holder submitting a 

claim to the Commission. 

4. In the event of a dispute over the validity of a ticket, the 

licensee may accept from the holder of such ticket a written and verified claim to be 

filed by the licensee with the Commission, and the Commission will render a 

a decision as to payment. 

5. Every licensee shall carry on its books an account which 

shows the total payoff amount of outstanding unredeemed pari-mutuel betting 

tickets representing winning tickets not presented for payment. 

6. A payoff shall not be less than $1 .I0 for each $1 .OO 

wagered; however, the tote boards shall indicate the amount due on each $2.00 

winning ticket. 

7. The entire loss resulting from a minus pool shall be borne 

by the licensee. 

26.270 Errors in posting. Any error made in posting on the tote board 

of the payoff prices shall be promptly corrected, and the public immediately advised 

of the correction by announcement over a public address system. 
26.280 Payment for errors. If an error occurs in payment upon tickets 

cashed or entitled to be cashed, and as a result the pool involved is not correctly 

distributed among the winning ticket holders, the following shall apply: 

1. The licensee shall bear the cost of any overpayment. 

2. In the event of under-payment: 

(a) The licensee shall accept timely claims, pay each 

claim, or a part thereof, which it determines to be valid; notice shall be given to any 

claimant whose claim is rejected. 

(b) Any person whose claim is rejected by the licensee 

may, within 10 days from the date notice of rejection is received, request the 

Commission to determine the validity of the claim. The failure to file such request 

with the Commission within 10 days shall constitute a waiver of the claim, provided 

the claimant has received notice of a right of appeal to the Commission. 

(c) A hearing before the Commission shall be held on each 

claim timely filed, and the Commission may determine a claim to be valid, in whole 

or in part, and thereafter order the licensee to make payment accordingly. Any such 

determination shall be final and binding on all parties. 

(d) Claims not filed with the licensee within 30 days 

inclusive of the date on which the under-payment was discovered shall be deemed 

waived, and the licensee shall have no further liability therefor. 

3. The Commission shall be notified of any claims over 

$250.00. 

MISCELLANEOUS 

26.290 Gaming employees. All ticket sellers and cashiers, money 

counters, runners and totalizator operators and programmers are deemed to be 

employees of the operator and subject to the provisions the Commission. 

26.300 Access to premises and records.The Commission and their 

agents, inspectors and employees have the authority: 

1. To inspect and examine all premises where pari-mutuel 

betting is conducted and all premises where sporting events, races or games are 

held on which pari-mutuel betting is conducted. 

2. To inspect and examine all equipment and supplies in, upon, 

or about such premises. 
3. To summarily seize and remove from such premises and 

impound any such equipment or supplies for the purpose of examination and 

inspection. 

4. To demand access to and inspect, make copies of, examine 

and audit all papers, books and records of applicants and licensees respecting the 

gross income produced by any pari-mutuel betting business, require verification of 

income, and all other matters affecting the enforcement of the policy of any of the 

provisions of these regulations. 

26.310 Records and reports. The licensee shall also provide such 

financial and other information and reports upon forms furnished by the Commission 

as the Commission may require from time to time. 

26.320 Disciplinary actions.Any pari-mutuel betting license is subject 

to suspension ,or modification and/or a fine imposed by the Commission in any case 

where any condition of the license has not been complied with or when any violation, 

law or regulation has occurred. 

26.330 Internal Control 

1. If personal checks are cashed in the pari-mutuel betting 

cage, the gaming operation shall establish appropriate controls for purposes of 

security and integrity. 

2. The gaming operation shall establish and comply with 

procedures for the acceptance of personal checks and collecting and recording 

checks returned to the gaming operation after deposit and redeposit. 

3. The gaming operation shall establish and comply with 

i procedures for the write-off authorizations of returned checks. 

4. All transactions that flow through the pari-mutuel betting 

cage shall be summarized on a cage accountability form on a per shift basis. 

5. The pari-mutuel betting cage inventories shall be counted 

by the incoming and outgoing cashiers and recorded at the end of each shift during 

which activity took place. 

6. Both the incoming and outgoing cashiers shall make 

individual counts for comparison of accuracy and maintenance of individual 

accountability that is recorded at the end of each shift in which activity took place. 

7. All discrepancies in the above should be noted and 

investigated. 
8. The gaming operation shall establish and comply with a 

minimum bankroll formula to ensure the gaming operation maintains cash or cash 

equivalents in an amount sufficient to satisfy obligations to the gaming operation's 

customers as they are incurred. 

9. The gaming operation shall maintain a sufficient bankroll to 

satisfy obligations to the gaming operation's customers as they are incurred. 

10. Pari-mutuel betting cage accountability shall be reconciled 

to the general ledger at least monthly. 

1 1. If the pari-mutuel betting cage accepts chips and tokens, the 

gaming operation shall comply with procedures for the receipt, inventory, storage 

and destruction of gaming chips and tokens. 

12. The gaming operation shall establish and comply with 

procedures to address the transporting of extraneous items, such as coats, purses, 

andlor boxes, into and out of the pari-mutuel betting cage. 

13. The gaming operation shall develop internal control 

standards that contain Title 31 currency transaction reporting requirements and a 

formalized audit plan shall be developed to test and verify compliance with Title 31 

internal control standards. The results of these compliance tests shall be 

communicated to gaming operations management and management shall respond 

to the findings. 

14. The gaming operation shall have a formalized Title 31 

training program and personnel shall be trained on a periodic basis. 

26.340 Summary of Required Documentation 

1 . Any emergency arising from the operation of the pari-mutuel 

betting, not covered by regulation 26.090 and requiring immediate action, shall be 

handled by the Manager who shall make the necessary decisions and render a 

report to the Commission within 24 hours. 

2. A report of any faulty operation of the totalizator or tote 

board shall be filed with the Commission within 24 hours following the malfunction. 

3. In the event of a dispute over the validity of a ticket, the 

licensee may accept from the holder of such ticket a written and verified claim to be 

filed by the licensee with the Commission, and the Commission will render a 

decision as to payment. 

4. Any person whose claim is rejected by the licensee may, 

within 10 days from the date notice of rejection is received, request the Commission 
to determine the validity of the claim. The failure to file such request with the 

Commission within 10 days shall constitute a waiver of the claim, provided the 

claimant has received notice of a right of appeal to the Commission. 

5. The Commission shall be notified of any claims of errors 

over $250.00. 

6. Each licensee shall prepare and maintain in a manner 

suitable to the Commission, complete and accurate accounting records, information 

and data which shall be generated by an approved computer system and which 

reflects the following on a daily basis for each event upon which pari-mutuel betting 

was held: 

(a) Gross amount wagered on each event; 

(b) Gross and net amounts of each pool; 

(c) Percentages deducted; 

(d) Tax and breakage on each pool; 

(e) Number and value of tickets sold on each pool; 

(f) Final odds; 

(g) Payoff prices; and 

(h) The amount paid on all winning pari-mutuel betting 

tickets. 

These records shall be made available to the Commission @ upon request. 

7. A daily reconciliation of all cash received and paid on each 

pool of each event shall be recorded along with the cash count of the money room 

and be made available to the Commission upon request. 

8. Pari-mutuel betting cage accountability shall be reconciled 

to the general ledger at least monthly and be made available to the Commission 

upon request. 

9. The gaming operation shall prepare Currency Transaction 

Reports, Multiple Transaction Logs, and check cashing logs to adequately address 

the Internal Revenue Service's Title 31 requirements. 
26.350 Codification. These Regulations can be renumbered as 

appropriate to facilitate incorporation into existing Rules and Regulations.