[Title 25 CFR 542.2]
[Code of Federal Regulations (annual edition) - April 1, 2002 Edition]
[Title 25 - INDIANS]
[Chapter III - NATIONAL INDIAN GAMING COMMISSION, DEPARTMENT OF THE]
[Subchapter D - HUMAN SERVICES]
[Part 542 - MINIMUM INTERNAL CONTROL STANDARDS]
[Sec. 542.2 - What are the definitions for this part?]
[From the U.S. Government Printing Office]


25INDIANS12002-04-012002-04-01false542.2Sec. 542.2INDIANSNATIONAL INDIAN GAMING COMMISSION, DEPARTMENT OF THEHUMAN SERVICESMINIMUM INTERNAL CONTROL STANDARDS
Sec. 542.2  What are the definitions for this part?

    (a) The definitions in this section shall apply to all sections of 
this part unless otherwise noted.
    (b) Definitions.
    Accountability means all items of currency, chips, coins, tokens, 
receivables, and customer deposits constituting the total amount for 
which the bankroll custodian is responsible at a given time.
    Accumulated credit payout means credit earned in a gaming machine 
that is paid to a customer manually in lieu of a machine payout.
    Actual hold percentage means the percentage calculated by dividing 
the win by the drop or coin-in. Can be calculated for individual tables 
or slot machines, type of table games or slot machines on a per day or 
cumulative basis.
    Adjustment form means a document used to describe and identify any 
change to player's account balance not generated directly by player 
gaming activity.
    AICPA means the American Institute of Certified Public Accountants.
    Bank or bankroll means the inventory of currency, coins, chips, 
checks, tokens, receivables, and customer deposits in the cage, pit 
area, gaming booths, and on the playing tables and cash in bank which is 
used to make change, pay winnings, bets, and pay gaming machine 
jackpots.
    Bank number means a unique number assigned to identify a network of 
player terminals.
    Betting station means the area designated in a race book that 
accepts and pays winning bets.
    Betting ticket means a printed, serially numbered form used to 
record the event upon which a wager is made, the amount and date of the 
wager, and sometimes the line or spread (odds).
    Bill validator (or currency acceptor) means a device that accepts 
and reads currency by denomination in order to accurately register 
customer credits at a gaming machine.
    Boxman means the first-level supervisor who is responsible for 
directly participating in and supervising the operation and conduct of 
the craps game.
    Breakage means the difference between actual bet amounts paid out by 
a race track to bettors and amounts won due to bet payments being 
rounded

[[Page 814]]

up or down. For example a winning bet that should pay $4.25 may be 
actually paid at $4.20 due to rounding.
    Cage means a secure work area within the gaming operation for 
cashiers and a storage area for the gaming operation bankroll.
    Cage accountability form means an itemized list of the components 
that make up the cage accountability.
    Cage credit means advances in the form of cash or gaming chips made 
to customers at the cage. Documented by the players signing an IOU or a 
marker similar to a counter check.
    Cage marker forms means a document, usually signed by the customer 
evidencing an extension of credit at the cage to the customer by the 
gaming operation.
    Calibration module means the section of a weigh scale used to set 
the scale to a specific amount or number of coins to be counted.
    Call bets means a wager made without money or chips, reserved for a 
known patron and includes marked bets (which are supplemental bets made 
during a hand of play). For the purpose of settling a call bet, a hand 
of play in craps is defined as a natural winner (e.g., seven or eleven 
on the come-out roll), a natural loser (e.g., a two, three or twelve on 
the come-out roll), a seven-out, or the player making his point, 
whichever comes first.
    Card games means a game in which the gaming operation is not party 
to wagers and from which the gaming operation receives compensation in 
the form of a rake-off, a time buy-in, or other fee or payment from a 
player for the privilege of playing.
    Card room bank means the operating fund assigned to the card room or 
main card room bank.
    Cash-out ticket means an instrument of value generated by a gaming 
machine representing a monetary amount owed to a customer at a specific 
gaming machine. This investment may be wagered at other machines by 
depositing the cash-out ticket in the machine document acceptor.
    Change ticket means an instrument of value automatically generated 
when a cash-out ticket includes change that cannot be wagered on a $1.00 
and higher denomination machine. This instrument may be wagered at a 
lower denomination machine by depositing it in the machine document 
acceptor.
    Chip tray means container located on gaming tables where chips are 
stored that are used in the game.
    Chips mean money substitutes, in various denominations, issued by a 
gaming establishment and used for wagering.
    Coin in meter means the meter that displays the total amount wagered 
in a gaming machine which includes coins-in and credits played.
    Coin room inventory means coins and tokens stored in the coin room 
that are generally used for gaming machine department operation.
    Coin room vault means an area where coins and tokens used in the 
gaming machine department operation are stored.
    Complementaries or comps means promotional allowances to customers.
    Count means the total funds counted for a particular game, coin-
operated gaming device, shift, or other period.
    Count room means a room where the coin and cash drop from gaming 
machines, table games or other games are transported to and counted.
    Counter check means a form provided by the gaming operation for the 
customer to use in lieu of a personal check.
    Credit means the right granted by a gaming operation to a patron to 
defer payment of debt or to incur debt and defer its payment.
    Credit limit means the maximum dollar amount of credit assigned to a 
customer by the gaming operation.
    Credit slip means a form used to record either:
    (1) The return of chips from a gaming table to the cage; or
    (2) The transfer of IOUs, markers, or negotiable checks from a 
gaming table to a cage or bankroll.
    Currency acceptor (also known as a bill validator or bill changer), 
means the device that accepts and reads currency by denomination in 
order to accurately register customer credits at a gaming machine.
    Currency acceptor drop means cash contained in currency acceptor 
drop boxes.

[[Page 815]]

    Currency acceptor drop box, also known as a cash storage box, means 
box attached to currency acceptors used to contain currency received by 
currency acceptors.
    Currency acceptor drop box release key means the key used to release 
currency acceptor drop box from currency acceptor device.
    Currency acceptor drop storage rack key means the key used to 
release currency acceptor drop boxes from the storage rack.
    Customer deposits means the amounts placed with a cage cashier by 
customers for the customers' use at a future time.
    Deal-in pull tabs games means the numerical sequence of all pull 
tabs in a specific pull tab game that are sold or available for sale to 
patrons.
    Dealer/boxman means an employee who operates a game, individually or 
as a part of a crew, administering house rules and making payoffs.
    Deskman means a person who authorizes payment of winning tickets and 
verifies pay-outs for keno games.
    Document acceptor is the device integrated into each gaming machine 
that reads bar codes on coupons and cash-out tickets.
    Draw ticket means a blank keno ticket whose numbers are punched out 
when balls are drawn for the game. Used to verify winning tickets.
    Drop box means a locked container affixed to the gaming table into 
which the drop is placed. The game type, table number, and shift are 
indicated on the box.
    Drop box contents keys means the key used to open drop boxes.
    Drop box release keys means the key used to release drop boxes from 
tables.
    Drop box storage rack keys means the key used to release drop boxes 
from the storage rack.
    Drop bucket means a container located in the drop cabinet (or in a 
secured portion of the gaming machine in coinless/cashless 
configurations) for the purpose of collecting coins, tokens, cash-out 
tickets and coupons from the gaming machine.
    Drop cabinet is the wooden or metal base of the gaming machine which 
contains the gaming machine drop bucket.
    Drop (for table games) means the total amount of cash and chips 
contained in the drop box, plus the amount of credit issued at the 
table; drop (for gaming machines) means the total amount of money, cash-
out tickets or coupons removed from the drop bucket or currency 
acceptor.
    Earned and unearned take means race bets taken on present and future 
race events. Earned take means bets received on current or present 
events. Unearned take means bets taken on future race events.
    EPROM means erasable programmable read-only memory.
    Fill means a transaction whereby a supply of chips or coins and 
tokens is transferred from a bankroll to a table game, coin-operated 
gaming device, bingo or keno department.
    Fill slip means a document evidencing a fill.
    Flare means the information sheet provided by the manufacturer that 
sets forth the rules at a particular game of breakopen tickets and that 
is associated with a specific deal of breakopen tickets. The flare shall 
contain the following information:
    (1) Name of the game;
    (2) Manufacturer name or manufacturer's logo;
    (3) Ticket count; and
    (4) Prize structure, which shall include the number of winning 
breakopen tickets by denomination, with their respective winning 
symbols, numbers or both.
    Floor pars means the sum of the theoretical hold percentages of all 
machines within a gaming machine denomination weighted by the coin-in 
contribution.
    Future wagers means bets on races to be run in the future (e.g., 
Kentucky Derby).
    Game openers and closers means the form used by gaming operation 
supervisory personnel to document the inventory of chips, coins and 
tokens on a table at the beginning and ending of a shift.
    Game server means an electronic selection device, utilizing a random 
number generator.
    Gaming machine means an electronic or electromechanical machine 
which contains a microprocessor with random

[[Page 816]]

number generator capability which allows a player to play games of 
chance, some of which may be affected by skill, which machine is 
activated by the insertion of a coin, token or currency, or by the use 
of a credit, and which awards game credits, cash, tokens, or replays, or 
a written statement of the player's accumulated credits, which written 
statements are redeemable for cash.
    Gaming machine analysis report means a report prepared that compares 
theoretical to actual hold by a gaming machine on a monthly or other 
periodic basis.
    Gaming machine bill-in meter means a meter included on a gaming 
machine that accepts currency that tracks the number of bills put in the 
machine.
    Gaming machine booths and change banks means a booth or small cage 
in the gaming machine area used to provide change to players, store 
change aprons and extra coin, and account for jackpot and other payouts.
    Gaming machine count means the total amount of coins and tokens 
removed from a gaming machine drop bucket or bag. The amount counted is 
entered on the Gaming Machine Count Sheet and is considered the drop. 
Also, the procedure of counting the coins and tokens or the process of 
verifying gaming machine coin and token inventory.
    Gaming machine count team means personnel that perform count of the 
gaming machine drop.
    Gaming machine credit-in meter means a meter that records the amount 
wagered as a result of credits played.
    Gaming machine drop cabinet means the stand that contains the drop 
bucket.
    Gaming machine fill means the coins or tokens placed in a hopper.
    Gaming machine fill and payout sheet means a list of the gaming 
machine fills and gaming machine payouts.
    Gaming machine game mix means the type and number of games in a 
multiple game machine.
    Gaming machine hopper loads means coins or tokens stored within a 
gaming machine used to make payments.
    Gaming machine monitoring system means a system used by a gaming 
operation to monitor gaming machine meter reading activity on an online 
basis.
    Gaming machine pay table means the reel strip combinations 
illustrated on the face of the gaming machine that can identify payouts 
of designated coin amounts.
    Gaming machine weigh/count and wrap means the comparison of the 
weighed gaming machine drop to counted and wrapped coin.
    Gaming operation accounts receivable (for gaming operation credit) 
means credit extended to gaming operation patrons in the form of 
markers, returned checks or other credit instruments that have not been 
repaid.
    Gross gaming revenue means annual total amount of money wagered on 
Class II and Class III games and admission fees (including table or card 
fees), less any amounts paid out as prizes or paid for prizes awarded.
    Hold means the relationship of win to coin-in for gaming machines 
and win to drop for table games.
    Hub means the person or entity that is licensed to provide the 
operator of a race book information related to horse racing which is 
used to determine winners of races or payoffs on wagers accepted by the 
race book.
    Inside ticket means a keno ticket retained by the house, showing the 
customers' selection of numbers, amount wagered, and number of games 
wagered.
    Internal audit means individuals who perform an audit function of a 
gaming operation that are independent of the department subject to 
audit. Independence is obtained through the organizational reporting 
relationship as the internal audit department shall not report to 
management of the gaming operation. Internal audit activities should be 
conducted in a manner that permits objective evaluation of areas 
examined. Results of audits are generally communicated to management. 
Audit exceptions generally require follow-up. Internal audit personnel 
may provide audit coverage to more than one operation within a tribe's 
gaming operation holdings.
    Issue slip means a copy of a credit instrument that is retained for 
numerical sequence control purposes.

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    Jackpot payout means the portion of a jackpot paid by gaming machine 
personnel. The amount is usually determined as the difference between 
the total posted jackpot amount and the coins paid out by the machine. 
May also be the total amount of the jackpot.
    Jackpot payout slip means a form on which the amount of a jackpot 
paid by gaming machine personnel is recorded.
    Keno locked box copy or restricted copy means copies of Keno tickets 
that are created for written tickets that cannot be accessed by Keno 
personnel.
    Keno multi race or game ticket means a keno ticket that is played in 
multiple games.
    Keno outstations means areas other than the main keno area where 
bets may be placed and tickets paid.
    Lammer button means a type of chip that is placed on a gaming table 
to indicate that the amount of chips designated thereon has been given 
to the customer for wagering on credit prior to completion of the credit 
instrument. Lammer button may also mean a type of chip used to evidence 
transfers between table banks and card room banks.
    Machine payout form means a document used to log all progressive 
jackpots and amounts won greater than $1,200.
    Main card room bank means a fund of currency, coin, and chips used 
primarily for poker and pan card game areas. Used to make even money 
transfers between various games as needed. May be used similarly in 
other areas of the gaming operation.
    Marker means a document, usually signed by the customer, evidencing 
an extension of credit to him by the gaming operation.
    Marker credit play means that players are allowed to purchase chips 
using credit in the form of a marker.
    Marker inventory form means a form maintained at table games or in 
the gaming operation pit that are used to track marker inventories at 
the individual table or pit.
    Marker issue slip means the copy of an original marker that is 
inserted in the table drop box at the time credit is extended.
    Marker payment slip means the copy of the original marker used to 
document customer marker payment transactions. The payment slip is 
inserted in the table drop box if the marker is paid in the pit or 
attached to the original marker until the marker is paid.
    Marker transfer form means a form used to document transfers of 
markers from the pit to the cage.
    Master credit record means a form to record the date, time, shift, 
game, table, amount of credit given, and the signatures or initials of 
the individuals extending the credit.
    Master game program number means the game program number listed on a 
gaming machine EPROM.
    Master game report sheet means a form used to record, by shift and 
day, each table game's winnings and losses. This form reflects the 
opening and closing table inventories, the fills and credits, and the 
drop and win.
    Mechanical coin counter means a device used to count coins that may 
be used in addition to or in lieu of a coin weigh scale.
    Meter means an electronic (soft) or mechanical (hard) apparatus in a 
gaming machine. May record the number of coins wagered, the number of 
coins dropped, the number of times the handle was pulled, or the number 
of coins paid out to winning players.
    Metered count machine means a device used in a coin room to count 
coin.
    MICS means minimum internal control standards.
    Multi-game machines means a gaming machine that includes more than 
one type of game option.
    Name credit instruments means personal checks, payroll checks, 
counter checks, hold checks, travelers checks or other similar 
instruments that are accepted in the pit as a form of credit issuance to 
a player.
    Order for credit means a form that is used to request the transfer 
of chips or markers from a table to the cage. The order precedes the 
actual transfer transaction which is documented on a credit slip.
    Outs means winning race book tickets that have not been paid at the 
end of a shift.
    Outside ticket means a keno ticket given to a customer as a receipt, 
with

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the customer's selection of numbers, number of games wagered, game 
numbers, and the amount wagered marked on the ticket.
    Par percentage means the percentage of each dollar wagered that the 
house wins (i.e., gaming operation advantage).
    Par sheet means a specification sheet for a gaming machine that 
provides machine hold percentage, model number, hit frequency, reel 
combination, number of reels, number of coins that can be accepted and 
reel strip listing.
    Pari-mutuel book means a race book that accepts pari-mutual wagers 
on horse races, jai-alai, greyhound and harness racing.
    Pari-mutuel wagering means a system of wagering on horse races, jai-
alai, greyhound and harness racing, where the winners divide the total 
amount wagered, net of commissions and operating expenses, proportionate 
to the individual amount wagered.
    Payment slip means that part of a marker form on which customer 
payments are recorded.
    PIN means personal identification number selected by player and used 
to access player's account.
    Pit podium means stand located in the middle of the tables used as a 
work space and record storage area for gaming operation supervisory 
personnel.
    Pit repayment means a customer's repayment of credit at a table.
    Pit supervisor means the employee who supervises all games in a pit.
    Player tracking system means a system typically used in gaming 
machine departments that can record the gaming machine play of 
individual patrons.
    Post time in pari-mutuel wagering means the time when the track 
stops accepting bets in accordance with rules and regulations of the 
applicable jurisdiction.
    Primary and secondary jackpots means promotional pools offered at 
certain card games that can be won in addition to the primary pot.
    Progressive gaming machine means a gaming machine, with a payoff 
indicator, in which the payoff increases as it is played (i.e., deferred 
payout). The payoff amount is accumulated, displayed on a machine and 
will remain until a player lines up the jackpot symbols that result in 
the progressive amount being paid.
    Progressive jackpots means deferred payout from a progressive gaming 
machine.
    Progressive table game means table games that offer progressive 
jackpots.
    Promotional payouts are generally personal property or awards given 
to players by the gaming operation as an inducement to play. Promotions 
vary but a promotion example might be a program developed where a player 
receives a form of personal property based on the number of games or 
sessions played.
    Promotional progressive pots/pools means funds contributed to a 
table game by and for the benefit of players. Funds are distributed to 
players based on a predetermined event.
    Proposition players means a person paid a fixed sum by the gaming 
operation for the specific purpose of playing in a card game. A 
proposition player makes wages with his own funds, retains his winnings, 
and absorbs his losses.
    Rabbit ears means a device, generally V-shaped, that holds the 
numbered balls selected during a keno or bingo game so that the numbers 
are visible to players and employees.
    Rake means a commission charged by the house for maintaining or 
dealing a game such as poker.
    Rake circle means the area of a table where rake is placed.
    Random number generator means a device that generates numbers in the 
absence of a pattern. May be used to determine numbers selected in 
various games such as keno and bingo. Also commonly used in gaming 
machines to generate game outcome.
    Reel symbols means symbols listed on reel strips of gaming machines.
    Rim credit means extensions of credit that are not evidenced by the 
immediate preparation of a marker and does not include call bets.
    Runner means a gaming employee who transports chips/cash to and from 
a gaming table to a cashier.
    Screen Automated Machine or SAM means an automated terminal used in 
some race books to accept wagers. SAM's also pay winning tickets in the

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form of a voucher which is redeemable for cash at the race book.
    Shift means any time period designated by management up to 24 hours.
    Shill or game starter means an employee financed by the house and 
acting as a player for the purpose of starting or maintaining a 
sufficient number of players in a game.
    Short pay means a payoff from a coin-operated gaming device that is 
less than the listed amount.
    Sleeper means a winning keno ticket not presented for payment or a 
winning bet left on the table through a player's forgetfulness.
    Soft count means the count of the contents in a drop box or currency 
acceptor.
    Table bank par means the chip imprest amount at which a table bank 
is maintained.
    Table chip tray means a container used to hold tokens, coins and 
chips at a gaming table.
    Table games means games that are banked by the house or a pool 
whereby the house or the pool pays all winning bets and collects from 
all losing bets.
    Table inventory means the total coins, chips, and markers at a 
table.
    Table opener and closer means the document where chips and funds 
held at a table are recorded when a table inventory is taken. Also known 
as table inventory form.
    Take and total take means the amount of a bet or bets taken in by a 
pari mutual race book.
    Terminal number means a unique number assigned to identify a single 
player terminal in the gaming operation.
    Theoretical hold means the intended hold percentage or win of an 
individual coin-operated gaming machine as computed by reference to its 
payout schedule and reel strip settings or EPROM.
    Theoretical hold worksheet means a worksheet provided by the 
manufacturer for all gaming machines which indicate the theoretical 
percentages that the gaming machine should hold based on adequate levels 
of coin-in. The worksheet also indicates the reel strip settings, number 
of coins that may be played, the payout schedule, the number of reels 
and other information descriptive of the particular type of gaming 
machine.
    Tier A means gaming operations with annual gross gaming revenues of 
no more than $3 million.
    Tier B means gaming operations with annual gross gaming revenues of 
more than $3 million but not more than $10 million.
    Tier C means gaming operations with annual gross gaming revenues of 
more than $10 million.
    Tokens means a coinlike money substitute, in various denominations, 
used for gambling transactions.
    Total take means the total amount of funds bet by a customer on a 
specific race book ticket.
    Vault means a secure area within the gaming operation where tokens, 
checks, currency, coins, and chips are stored.
    Weigh count means the value of coins and currency counted by a weigh 
machine.
    Weigh scale calibration module means the device used to adjust a 
coin weigh scale.
    Weigh scale interface means a communication device between the weigh 
scale used to calculate the amount of funds included in drop buckets and 
the computer system used to record the weigh data.
    Weigh tape means the tape where weighed coin is recorded.
    Wide area progressive gaming machine means a progressive gaming 
machine that makes deferred payouts where individual machines are linked 
to machines in other operations and all the machines affect the 
progressive amount. As a coin is inserted into a single machine, the 
progressive meter on all of the linked machines increases.
    Win means the net win resulting from all gaming activities. Net win 
results from deducting all gaming losses from all wins prior to 
considering associated operating expenses.
    Win to write hold percentage means bingo or Keno win divided by 
write to determine hold percentage.
    Wrap means the procedure of wrapping coins. May also refer to the 
total amount or value of the wrapped coins.
    Write means the total amount wagered in keno, and race and sports 
book operations.

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    Writer means an employee who writes keno or race and sports book 
tickets. A keno writer usually also makes payouts.
    Writer machine means a locked device used to prepare keno or race 
and sports book tickets.