[Federal Register Volume 64, Number 217 (Wednesday, November 10, 1999)]
[Proposed Rules]
[Pages 61234-61236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29103]


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NATIONAL INDIAN GAMING COMMISSION

25 CFR Part 504

RIN 3141-AA04


Classification of Games

AGENCY: National Indian Gaming Commission.

ACTION: Proposed rule.

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SUMMARY: The National Indian Gaming Commission (Commission) proposes 
regulations which will establish a formal process for the 
classification of games played on Indian lands under the Indian Gaming 
Regulatory Act (Act). These regulations would require that the 
Commission decide that a game is a Class II game before it authorizes 
the play of such game in a Class II gaming operation. It also allows 
for a transition period to implement this process.

DATES: Comments may be submitted on or before January 10, 2000.

ADDRESSES: Comments may be mailed to: Game Classification Comments, 
National Indian Gaming Commission, 1441 L Street, NW, Suite 9100, 
Washington, DC 20005, delivered to that address between 8:30 a.m. and 
5:30 p.m., Monday through Friday, or faxed to 202/632-7066 (this is not 
a toll-free number). Comments received may be inspected between 9 a.m. 
and noon, and between 2 p.m. and 5 p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Penny J. Coleman at 202/632-7003; fax 
202/632-7066 (these are not toll-free numbers).

SUPPLEMENTARY INFORMATION: The Indian Gaming Regulatory Act (IGRA, or 
the Act), enacted on October 17, 1988, established the National Indian 
Gaming Commission (Commission). Under the Act, the Commission is 
charged with regulating class II gaming and certain aspects of class 
III gaming on Indian lands. The regulations proposed today would 
establish a formal, administrative process for deciding whether a game 
is a Class II or III game and allow the Commission to discontinue the 
current advisory classification opinion process.

Regulatory Flexibility Act

    This proposed rule will not have a significant economic impact on a 
substantial number of small entities under the Regulatory Flexibility 
Act, 5 U.S.C. 601 et seq. Because this rule is procedural in nature, it 
will not impose substantive requirements that could be deemed impacts 
within the scope of the Act.

Paperwork Reduction Act

    The Commission is in the process of obtaining clearance from the 
Office of Management and Budget (OMB) for the information collection 
requirements contained in this proposed rule, as required by 44 U.S.C. 
3501 et seq. The information required to be submitted is identified in 
sections 504.6, 504.7 and 504.8. The information will be used to 
determine whether a game can be classified as a Class II or III game or 
a nongambling game and whether the continued play of the games remains 
consistent with the classification decisions issued by the Commission.
    The public reporting burden for this collection of information is 
estimated to average 10 hours per game classification request, 
including the time for reviewing instructions, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. The Commission estimates that, during the 
first two years of the implementation of this regulatory process, 
approximately 50 requests for classification decisions will be filed 
each year, for an annual burden of 500 hours. After the first two 
years, the Commission estimates that approximately 20 requests for 
classification decisions will be filed each year, for an annual burden 
of 200 hours.
    Send comments regarding this collection of information, including 
suggestions for reducing the burden to both, Penny Coleman, National 
Indian Gaming Commission, 1441 L Street NW, Suite 9100, Washington, DC 
20005; and to the Office of Information and Regulatory Affairs, Office 
of Management and Budget, Washington, DC 20503. The Office of 
Management and Budget (OMB) has up to 60 days to approve or disapprove 
the information collection, but may respond after 30 days; therefore 
public comments should be submitted to OMB within 30 days in order to 
assure their maximum consideration.
    The Commission solicits public comment as to:
    a. Whether the collection of information is necessary for the 
proper performance of the functions of the Commission, and whether the 
information will have practical utility;
    b. The accuracy of the Commission's estimate of the burden of the 
collection of information, including the validity of the methodology 
and assumptions used;
    c. The quality, utility, and clarity of the information to be 
collected; and
    d. How to minimize the burden of the collection of information on 
those who are to respond, including the use of appropriate automated 
electronic, mechanical, or other forms of information technology.
    An agency may not conduct, and a person is not required to, respond 
to a collection of information unless it displays a currently valid OMB 
control number.

National Environmental Policy Act

    The Commission has determined that this proposed rule does not 
constitute a major Federal action significantly affecting the quality 
of the human environment and that no detailed statement is required 
pursuant to the National Environmental Policy Act of 1969.
Montie R. Deer,
Chairman, National Indian Gaming Commission.

List of Subjects in 25 CFR Part 504

    Gambling, Indians-lands, Reporting and recordkeeping requirement.

    For the reasons stated in the preamble, the National Indian Gaming 
Commission proposes to amend 25 CFR by adding a new Part 504 as 
follows:

PART 504--CLASSIFICATION OF GAMES

Sec.
504.1  What does this part cover?
504.2  What is a classification decision and who may apply for it?
504.3  Why must a tribe apply for or sponsor the application for a 
classification decision?
504.4  Can a tribe rely on a decision issued to another tribe?

[[Page 61235]]

504.5  When must a tribe apply for or sponsor the application for a 
classification decision?
504.6  Will a tribe be required to discontinue all of its existing 
games which are not subject to a tribal-state compact or Class III 
gaming procedures issued by the Secretary of the Interior until the 
Commission issues a classification decision?
504.7  How does a tribe or person apply for a classification 
decision?
504.8  Will any additional information be required?
504.9  Are there any additional requirements for games which employ 
machines?
504.10  Will games be field tested?
504.11  What is required of a tribe or person who merely seeks a 
modification of a game which is already the subject of a 
classification decision?
504.12  Must a tribe or person seek a classification decision on a 
game which it alleges is a game of skill?
504.13  Is there an opportunity for public comment on a request for 
a gaming classification before a decision is made by the Chairman?
504.14  How does a tribe or person appeal a classification decision 
with which it does not agree?
504.15  Will the tribe or person have an opportunity to demonstrate 
its game to the Commission?

    Authority: 25 U.S.C. 2701-2721.


Sec. 504.1  What does this part cover?

    This part establishes the process for determining whether a game 
played under the Indian Gaming Regulatory Act constitutes a Class II or 
III game as defined in part 502 of this chapter. It is intended to 
identify which games are class II and therefore subject to tribal and 
Commission jurisdiction and to assure that gaming operations do not 
play Class III games except under a tribal-state compact or Class III 
gaming procedures issued by the Secretary of the Interior.


Sec. 504.2  What is a classification decision and who may apply for it?

    A classification decision is a determination that a game falls 
within Class II or III or is a game that is not subject to the Indian 
Gaming Regulatory Act. Tribes or their designated representatives may 
apply for a classification decision. Persons who own or provide 
individual games to tribes may also apply for a classification decision 
so long as the persons are sponsored by a tribe.


Sec. 504.3  Why must a tribe apply for or sponsor the application for a 
classification decision?

    Tribes shall not offer games on Indian lands without a 
classification decision which concludes that the game is a Class II 
game unless the game is offered pursuant to a tribal-state compact or 
Class III gaming procedures issued by the Secretary of the Interior. 
Tribes are subject to enforcement action by the Chairman if they offer 
games as Class II without a classification decision.


Sec. 504.4  Can a tribe rely on a classification decision issued to 
another?

    Classification decisions which are issued to a tribe or person but 
applicable to others can be relied on by other tribes unless:
    (a) The games are not exactly the same;
    (b) It is a card game in a state different from where the applying 
or sponsoring tribe is located; or
    (c) The game otherwise violates federal law.


Sec. 504.5  When must a tribe apply for or sponsor the application for 
a classification decision?

    A tribe shall apply for a classification decision:
    (a) If a tribe wishes to continue playing a Class II game it was 
playing as of [the effective date of the final rule], or
    (b) When a tribe wants to introduce a new game into its Class II 
gaming operation.


Sec. 504.6  Will a tribe be required to discontinue all of its existing 
games which are not subject to a tribal-state compact or Class III 
gaming procedures issued by the Secretary of the Interior until the 
Chairman issues a classification decision?

    A tribe will be required to discontinue existing games if:
    (a) It fails to submit a completed application for a classification 
decision within six months of [the effective date of the final rule], 
and it fails to pursue diligently a decision by providing all required 
information, or
    (b) The tribe is otherwise notified that the game is not a class II 
game.


Sec. 504.7  How does a tribe or person apply for a classification 
decision?

    (a) A tribe must submit the following to the Chairman:
    (1) A designation of an agent who is authorized to provide 
additional information if required;
    (2) A request for a classification decision;
    (3) A designation of whether and where the game is already in play;
    (4) A complete description of the game including the operational 
characteristics and rules of the game;
    (5) A complete description of the method used for betting, paying 
winners, paying the house, banking or nonbanking of the game and 
funding jackpots;
    (6) A separate description of the game and method used for betting, 
paying winners, paying the house, banking or nonbanking of the game and 
funding jackpots, which description shall be provided to persons or 
entities seeking to comment on the classification of the game;
    (7) Copy of any sales or promotional literature,
    (8) For games that use machines;
    (i) (For games already in play) a complete list of the serial 
numbers or other identifiers of each machine;
    (ii) A videotape depicting the play of the entire game;
    (iii) A report of laboratory test(s) which were conducted to 
support the application; and
    (iv) An example of each of the memory storage chips (EPROM) or 
devices used to control the game play in the machine and a paper print 
out of the code contained in each chip or device with sufficient 
programmer's notes to facilitate rapid analysis of the code; and
    (9) For card games, a statement with supporting materials 
explaining how the game meets the standard described in 25 CFR 
502.3(c).
    (b) In addition to the information contained in paragraph (a) of 
this section, a person applying for a classification decision shall 
submit a letter, signed by an authorized tribal official, indicating 
that the tribe sponsors the person's application.


Sec. 504.8  Will any additional information be required?

    Upon request, the tribe or person may be required to provide:
    (a) A live demonstration of the game;
    (b) A prototype of any games which use machines; and
    (c) Any further information or clarification the Chairman 
determines he requires.


Sec. 504.9  Are there any additional requirements for games which 
employ machines?

    After a game has been classified, a tribe shall provide a serial 
number and description of each machine which is in use and shall 
certify that each such machine is identical in every respect to the 
game which was classified by the Chairman.


Sec. 504.10  Will games be field tested?

    (a) A preliminary, nonbinding classification decision may be made 
to allow for a field test. If such nonbinding decision is made, a tribe 
may be permitted to operate one or more of the games at a licensed 
gaming operation for no more than 180 days under such terms and 
conditions as the Chairman may approve or require.

[[Page 61236]]

    (b) The Chairman may order a termination of the test period, if he 
determines, in his sole and absolute discretion, that applicant tribe 
or person, the manufacturer or developer of the game or the licensed 
gaming operation has not complied with the terms and conditions of the 
testing period or if he determines that the game is not Class II.


Sec. 504.11  What is required of a tribe or person who merely seeks a 
modification of a game which is already the subject of a classification 
decision?

    A tribe or person shall submit a request for a classification 
decision on the game which is subject to the modifications by providing 
a detailed description of the modification and how the modification 
affects the game. A person shall also submit a letter, signed by an 
authorized tribal official, indicating that the tribe sponsors the 
person's application for a modification.


Sec. 504.12  Must a tribe or person seek a classification decision on a 
game which it alleges is a game of skill?

    A tribe or person shall follow the same process for receiving a 
classification decision as is used for other games in this part.


Sec. 504.13  Is there an opportunity for public comment on a request 
for a gaming classification before a decision is made by the Chairman?

    The Commission will include on its Internet site and its telephonic 
fax-on-demand documents a listing of games for which it is considering 
a classification. Games will appear on this listing for thirty (30) 
days whenever practicable. Any individual may request a description of 
a particular game from the Commission during this period and offer 
written comment which will then be considered by the Chairman before a 
classification decision is reached on that particular game.


Sec. 504.14  How does a tribe or person appeal a classification 
decision with which it does not agree?

    (a) Within 30 days of service of a classification decision, a tribe 
or person sponsored by a tribe may appeal a classification decision 
under this part by filing:
    (1) A notice of appeal with the Commission; and
    (2) A statement and any supporting materials specifying why the 
appellant believes the classification decision to be erroneous.
    (b) Failure to file an appeal within the time provided by this 
section shall result in a waiver of the opportunity for an appeal.
    (c) Within 60 days of receipt of the appeal when practicable, the 
Commission shall review the file used to make the initial 
classification decision and any material submitted in the appeal and 
issue a decision.


Sec. 504.15  Will the tribe or person have an opportunity to 
demonstrate its game to the Commission?

    In addition to any demonstration requested during the initial 
classification decision process, the Commission may request a 
demonstration of the game during its review of the record on appeal.

[FR Doc. 99-29103 Filed 11-9-99; 8:45 am]
BILLING CODE 7565-01-P