WOV -7 

National Indian Gaming Commission 

NOTICE OF FINAL DECISION AND ORDER RESCINDING 

DECLINATION OF CONCURRENCE WITH VARIANCE 

In the 

Prairie Island Indian Community Gaming Commission Appeal to NIGC 

for Concurrence with Tribal Gaming Commission Variance 

INTRODUCTION 

The issue in this matter is whether the Acting Director of Audits for the National 

Indian Gaming Commission (NIGC) correctly declined to concur with a Minimum 

Internal Controls Standards (MICS) variance approved by the Prairie Island Gaming 

Commission (PIGC). The variance approved by the PIGC permits use of a digital video 

recording system for surveillance and added language to the definition of "sufficient 

clarity" in the Tribal Internal Control Standards (TICS) of the PIGC to reflect the use of 

digital in addition to analog technology. Following an evaluation of the record in this 

matter and a review of the requirements relevant to MICS variances, the Commission 

finds that a variance is not required. Therefore, the declination of concurrence with the 

variance is rescinded. 

BACKGROUND 

In November of 2002, the NIGC Regional Director of the St. Paul office observed 

the Prairie Island gaming facility's new digital surveillance system. Record at Tab 4.' 

I The Record consists of the exhibits to the PIGC's appeal. 
The Director advised the Surveillance Director to apply for a variance and said he would 

support the variance. a. On December 4,2002, the Surveillance Director submitted a 

request for a variance to the PIGC. Record at Tab 1B. The request included supporting 

documentation. Record at Tabs 1 C and ID. On February 12,2003, the PIGC approved 

the variance and a recommended change in the PIGC TICS definition of "sufficient 

clarity" to reflect the use of digital video recorders that achieve clarity equal to or better 

than analog video recording at twenty frames per second. Record at Tab 1B. Through its 

attorney, the PIGC submitted its request for NIGC concurrence with the variance on 

February 28,2003. Record at Tab 1 with four exhibits. 

On April 7,2003, the NIGC7s Acting Director of Audits declined to concur with 

the PIGC's approval of the variance. On July 2,2003, counsel for the PIGC resubmitted 

its request for concurrence with the variance and responded to the objections described 

by the Acting Director of Audits in his April 7,2003, letter. Record at Tab 11. In a 

September 9,2003, letter (mistakenly dated August 9,2003), the Acting Director of 

Audits sustained his initial decision to decline concurrence with the variance that the 

PIGC approved. Record at Tab 16. The appeal was received at NIGC on October 9, 

2003. 

APPLICABLE LAW AND REGULATIONS 

Tribal gaming operations are required to establish TICS that provide "a level of 

control that equals or exceeds" the NIGC MICS. 25 C.F.R. $9 542.3(~)(1). Therefore, 

the TICS must require a surveillance system that meets the NIGC MICS described in the 

NIGC regulations at 25 C.F.R. $ 543.43. Subsections 543.43 (k) - (u) concern 

surveillance observations of bingo, card games, progressive card games, keno, pari- 
mutuel, table games, progressive table games, gaming machines, cage and vault, and 

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currency and coin. The standard for surveillance of all of these operations is "sufficient 

clarity." 

The NIGC MICS definition of "sufficient clarity" is "use of monitoring and 

recording at a minimum of twenty (20) fiames per second. Multiplexer tape recordings 

are insufficient to satisfy the requirement of sufficient clarity." 25 C.F.R. 5 542.2. A 

variance is required when a gaming operation desires to replace this or any other 

standard. 25 C.F.R. 5 542.1 8(a). Furthermore, if the gaming operation wishes to vary 

from the NIGC MICS standard, the tribal gaming regulatory authority must approve a 

variance if it determines thatthe variance will achieve a level of control sufficient to 

accomplish the purpose of the standard it is to replace. 25 C.F.R. fj 542.18(a)(l). This 

variance and supporting documentation must be submitted to the NIGC who must concur 

'v in the variance or object to its approval. 25 C.F.R. 5 542.1 8(b). 

ANALYSIS 

A variance is a substitution in the TICS for an NIGC MICS standard. The 

standard at issue is "sufficient clarity," defined in section 542.2 of the NIGC MICS as the 

"use of monitoring and recording at a minimum of twenty (20) frames per second. 

Multiplexer tape recordings are insufficient to satisfy the requirement of sufficient 

clarity." The language adopted by the PIGC TICS is "use of monitoring and recording at 

a minimum of twenty (20) fiames per second, or the use of digital video recorders which 

record and display images with a minimum resolution of 2CIF (640pixels x 240pixels) 

and operated at a speed that records and represents activity with clarity equal to or 

better than analog recording at 20 frames per second. Multiplexer tape recordings are 

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insufficient to satisj, the requirement of sufficient clarity." (Emphasis added.) Thc 

PIGC retained the NIGC MICS standard and added the emphasized language to reflect 

the use of digital video recording. The supplementary language in the PIGC TICS 

establishes additional requirements while providing a level of control that equals or 

exceeds the NlGC control. Consequently, no variance is required. 

In reaching this decision, we have not considered or determined whether the 

digital video recording surveillance system meets or exceeds the NIGC MICS. It remains 

the primarq, regulatory responsibility of the Prairie Island Indian Community and the 

PIGC to monitor the system and determine rhat it actually meets or exceeds the standard 

of "sufficient clarity" established in the NIGC MICS 

CONCLUSION 

Since the language added by the PlGC to the TICS meets or exceeds the 

protection required by the NIGC MICS, no variance is necessary. Therefore, it is 

U ORDERED that the declination of concunence wrth the vanance is RESCINDED. 

INDIAN CAMlNG COMMISSION: 

Chairman Commissioner Commissioner