[Federal Register Volume 77, Number 106 (Friday, June 1, 2012)]
[Proposed Rules]
[Pages 32465-32481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-12992]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
National Indian Gaming Commission
25 CFR Part 547
RIN 3141-AA27
Technical Standards
AGENCY: National Indian Gaming Commission.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The National Indian Gaming Commission (NIGC) proposes to amend
its technical standards to change the order of the first five sections;
add definitions and amend existing definitions; amend the requirements
concerning minimum odds for Class II games; amend standards for test
labs; remove references to the Federal Communications Commission and
Underwriters Laboratory; require a player interface to display a serial
number and date of manufacture; amend requirements concerning approval
of downloads to a Class II gaming system; establish mandatory tests for
random number generators; amend the requirements for scaling algorithms
and scaled numbers; and clarify the term ``alternate standard.''
DATES: The agency must receive comments on or before July 31, 2012.
ADDRESSES: You may submit comments by any one of the following methods,
however, please note that comments sent by electronic mail are strongly
encouraged.
Email comments to: [email protected].
Mail comments to: National Indian Gaming Commission, 1441
L Street NW., Suite 9100, Washington, DC 20005.
Hand deliver comments to: 1441 L Street NW., Suite 9100,
Washington, DC 20005.
Fax comments to: National Indian Gaming Commission at 202-
632-0045.
FOR FURTHER INFORMATION CONTACT: National Indian Gaming Commission,
1441 L Street NW., Suite 9100, Washington, DC 20005. Telephone: 202-
632-7009; email: [email protected].
SUPPLEMENTARY INFORMATION:
I. Comments Invited
Interested parties are invited to participate in this proposed
rulemaking by submitting such written data, views, or arguments as they
may desire. Comments that provide the factual basis supporting the
views and suggestions presented are particularly helpful in developing
reasoned regulatory decisions on the proposal.
II. Background
The Indian Gaming Regulatory Act (IGRA or Act), Public Law 100-497,
25 U.S.C. 2701 et seq., was signed into law on October 17, 1988. The
Act establishes the NIGC and sets out a comprehensive framework for the
regulation of gaming on Indian lands. On October 8, 2008, the NIGC
published a final rule in the Federal Register called Technical
Standards for Electronic, Computer, or Other Technologic Aids Used in
the Play of Class II Games. 73 FR 60508. The rule added a new part to
the Commission's regulations establishing a process for ensuring the
integrity of electronic Class II games and aids. The standards were
[[Page 32466]]
designed to assist tribal gaming regulatory authorities and operators
with ensuring the integrity and security of Class II gaming, the
accountability of Class II gaming revenue, and provide guidance to
equipment manufacturers and distributors of Class II gaming systems.
The standards do not classify which games are class II and which games
are class III.
On November 18, 2010, the NIGC issued a Notice of Inquiry and
Notice of Consultation advising the public that the NIGC has endeavored
to conduct a comprehensive review of its regulations and requesting
public comment on which were most in need of revision, in what order
the Commission should review its regulations, and the process NIGC
should utilize to make revisions. 75 FR 70680. On April 4, 2011, after
consulting with tribes and reviewing all comments, the NIGC published a
Notice of Regulatory Review Schedule (NRR) setting out a consultation
schedule and process for review. 76 FR 18457. Part 547 was included in
the third regulatory group reviewed pursuant to the NRR.
III. Development of the Proposed Rule
On July 8, 2011, the Commission began a series of tribal
consultations on part 547. Based in part on the recommendations to the
Commission during consultations, on August 10, 2011, the Commission
requested tribes to nominate tribal representatives to serve on a
Tribal Advisory Committee (TAC) to assist the Commission in drafting
changes to parts 543 and these technical standards. The Commission then
selected fifteen tribal representatives. The members of the TAC include
a diverse group of regulators, tribal leaders, and subject matter
experts.
Beginning on October 20, 2011, the TAC held four meetings in which
the Commission participated. All of the meetings were open to the
public and three of the four were transcribed. Those transcripts can be
viewed on the NIGC's Web site. During the meetings, the TAC and NIGC
discussed all aspects of the technical standards, with the NIGC
participating and providing assistance. As a result of those meetings
the TAC submitted a proposed part 547 regulation to the Commission.
The Commission appreciates the TAC's deliberation and work product,
which consisted of the TAC's proposed part 547. Upon reviewing the
TAC's recommendation, and taking into consideration comments received
through tribal consultations, the Commission published a discussion
draft of the amended technical standards on its Web site. The
discussion draft adopted a number of the TAC's recommendations, such as
moving requirements that more appropriately belong to the Minimum
Internal Control Standards found at 25 CFR part 543.
After publishing the discussion draft, the Commission conducted
consultations in Mayetta, KS and San Diego, CA. In addition to tribal
consultations, the Commission requested public comment on the
discussion draft. The consultations, combined with the written
comments, have proven invaluable to the Commission as it addresses the
NIGC's technical standards.
While the comments were generally supportive of the discussion
draft, comments indicated several specific areas of concern. After
considering the comments received, the Commission proposes the
following amendments to the part 547 technical standards.
A. General Comments
One commenter requested clarification of the NIGC's authority to
implement these standards and its authority to enforce the standards.
IGRA gives the Commission the authority to adopt these technical
standards. Congress was expressly concerned that gaming under IGRA be
``conducted fairly and honestly by both the operator and players'' and
``to ensure that the Indian tribe is the primary beneficiary of the
gaming operation.'' 25 U.S.C. 2702(2). The technical standards are
designed to ensure that these concerns are addressed. These standards
implement the authority granted the Commission to monitor, inspect, and
examine Class II gaming, 25 U.S.C. 2706(b)(1)-(4), and to promulgate
such regulations as it deems appropriate to implement the provisions of
IGRA. 25 U.S.C. 2706(b)(10).
Another commenter asked the Commission to make clear that tribal
facilities cannot engage in gambling activities that are illegal under
state law. The Commission declines to do so. A tribe may engage in
Class II gaming on Indian lands within its jurisdiction if the gaming
is located within a state that permits such gaming for any purpose, by
any person, organization or entity, and the tribe adopts a gaming
ordinance approved by the NIGC Chair. 25 U.S.C. 2710(b)(1). So long as
a state permits the game of bingo, regardless of the state's definition
of the game, an Indian tribe within that state may also play bingo as
defined in IGRA. Accordingly, tribes are not bound to state definitions
of the game of bingo. If, for example, a state permits paper bingo
only, a tribe within that state may play electronic bingo so long as it
otherwise meets IGRA's Class II gaming definition. The Commission
reiterates that this rule does not classify games for purposes of IGRA.
The rule assumes that the games played are Class II games. This rule
establishes a process for ensuring the integrity and security of Class
II games and an accounting of Class II revenue.
B. Regulation Organization
Sections 547.2 through 547.5 of the current regulation have been
reorganized for clarity. The Definitions section has been moved from
Sec. 547.3 to Sec. 547.2. Section 547.3 of the proposed rule has been
renamed, Who is responsible for implementing these standards?, and
incorporates provisions from Sec. Sec. 547.2 and 547.5 of the current
regulation. Section 547.4 of the proposed rule is titled What are the
rules of general application for this part?, and was moved from Sec.
547.5 of the current regulation. Finally, Sec. 547.5 of the proposed
rule, How does a tribal government or TGRA comply with this part?, was
moved from 547.4 of the current regulation. The NIGC included these
changes in the discussion draft and received no comments supporting or
opposing these changes.
One commenter, however, asserted that the order of later sections
is confusing and recommended that the Commission change the part to the
following order: Hardware, Software, System Components, Installation/
Downloading, and, finally, Grandfathering. The Commission declines to
adopt this suggestion. The Commission believes that the regulation is
clear as currently arranged.
A commenter also took issue with the use of the word wager,
suggesting that the term purchase or sale be used instead. The
Commission declines to adopt this recommendation. The terms sale and
purchase do not adequately address Class II games outside of bingo,
while wager encompasses all Class II gaming.
C. Definitions
This proposed rule adds definitions to Sec. 547.2 and proposes
amendments to a number of existing definitions. Some changes were first
proposed in the discussion draft, while others are proposed based on
comments received on the discussion draft. The discussion draft
suggested adding definitions for Patron and Proprietary Class II System
Component. The Commission received no comments on the definition of
Patron, which was carried over to this proposed rule. Several
commenters, however, urged the Commission to remove the definition of
Proprietary
[[Page 32467]]
Class II System Component on the grounds that the term is not used
elsewhere in part 547.
The Commission agrees with the commenters and has removed the
definition of Proprietary Class II System Component. The intended
purpose of the definition was to distinguish the common back of the
house component systems that communicate with all of the Class II
gaming systems, regardless of the manufacturer, from those components
that work exclusively with one manufacturer's Class II system. On
review of the standards, the Commission has concluded that this
definition is not necessary and has led to confusion. Therefore, it is
not included in the proposed rule. For the same reasons, the Commission
has not included the word proprietary in the definitions of Cashless
system and Voucher system.
Several commenters also suggested that the Commission revise the
definition of Reflexive software to clarify that the harm with such
software is the denial of a prize to which the player is otherwise
entitled based on the random outcome of the game. The Commission
declines to revise the definition in this way. Although the denial of a
prize is one harm associated with reflexive software, the definition of
Reflexive software is also concerned with the potential manipulation of
the outcome of a game to award a prize.
Commenters also recommended that the Commission amend the
definition of Agent to permit the use of computer applications to
perform the function(s) of an agent. The proposed rule does not include
this proposed amendment. The term ``computer applications'' is
undefined and potentially broad. Any hardware that is under the control
of an agent is exempt from the testing requirements of this part, and
thus amending the definition of Agent in this manner potentially would
exempt hardware that is subject to testing requirements such as
financial instrument acceptors, financial instrument dispensers, etc.
In response to other comments, the Commission has added definitions
for Advertised top prize, Audit mode, Enroll, and Unenroll. The
Commission has also reinserted the definition of Electrostatic
discharge and, at the suggestion of one commenter, amended the
definition of Electromagnetic interference.
D. Who is responsible for implementing these standards?
As with the discussion draft, Sec. 547.3 of the proposed rule has
been renamed and incorporates provisions that were previously located
in other sections.
Several commenters advocate changing Sec. 547.3(a) to reflect that
TGRAs are the primary regulators of Indian Gaming. The comments stated
that the current language recognizing that TGRAs ``also regulate Class
II gaming'' is inconsistent with IGRA and NIGC statements. As support,
the commenters point to 25 U.S.C. 2701(5), which states that ``Indian
tribes have the exclusive right to regulate gaming activity on Indian
lands * * *.'' The commenters also note that the NIGC has repeatedly
recognized that tribes are the primary regulators of Indian gaming in
the preamble to the current regulation.
The commenters are correct that tribes are the primary regulators
of Indian gaming. The Commission has never understood that to mean,
however, that the regulatory authority of a TGRA is superior to that of
the NIGC. Rather, the Commission recognizes that TGRAs are the day-to-
day regulators of Indian gaming and the first line of oversight at
every facility. Although the findings section of IGRA states that
tribes have the exclusive right to regulate gaming activity on Indian
lands, IGRA also establishes a regulatory scheme that includes the NIGC
as well as tribes.
Another commenter suggested adding a provision that ``nothing in
this part is intended to diminish TGRA authority.'' The Commission did
not adopt this recommendation. The Commission believes that the
standards clearly state that a TGRA is free to implement stricter
standards than those found in this part. It may not, however, implement
standards that are less stringent than those found here.
Many commenters expressed confusion over Sec. 547.3(c). This
section makes clear that, if a provision of part 547 is applicable to a
facility's Class II gaming system, the Class II gaming system must
comply with that provision. Inversely, a Class II gaming system does
not need to meet standards that do not apply to the system. The first
sentence of the sub-section states that ``gaming equipment and software
used with Class II gaming systems must meet all applicable requirements
of this part.'' As an example, the second sentence clarifies that if a
Class II gaming system lacks the ability to print or accept vouchers,
any standards governing vouchers do not apply. Commenters noted that
this provision is clear when the two sentences are read together, but
confusing when read separately.
The Commission believes that the provision is understandable as
written and informs the public that this provision, as well as the rest
of the regulation, must be read as a whole, rather than piecemeal. As
the comments mentioned, when read in context, the provision is
understandable. The proposed rule, therefore, does not include this
recommended change.
Another commenter asked that the Commission amend the regulation to
clarify that these standards do or do not apply to various specific
types of games. The Commission declines to do so, as it believes that
Sec. 547.3(c) makes clear that the regulated community need only
adhere to those standards that apply to a Class II gaming system.
E. Minimum Odds
The discussion draft amended the minimum odds requirement found in
Sec. 547.5(c) of the current regulation. Instead of requiring minimum
odds, the discussion draft, at Sec. 547.16, required the system
display a disclaimer notifying the patron if the odds of winning a game
exceed 100 million to one.
Several commenters supported the discussion draft's approach of
removing the minimum odds requirement, but were unanimous in
recommending against requiring the odds notification added to Sec.
547.16. Some commenters stated that the provision is unnecessary, as
the standards already require the facility to display game rules and
prize schedules. Others objected to the requirement on the grounds that
it will create an unfair market advantage for games that do not need to
display the notice. Another commenter suggested that the odds
notification requirement will make all existing Class II gaming systems
non-compliant because no existing player interface conforms to this
requirement. One commenter submitted that the notice serves no purpose
because it does not actually inform the patron of anything. Another
commenter, though in opposition to the requirement generally,
recommended that the disclaimer be moved to the help screen.
The proposed rule includes a modified version of the notification
requirement. The notification need not be continually displayed and
may, for example, be included on the help screen or with the rules and
prize schedule for the game. The Commission included the requirement
primarily out of fairness to the player. Although one commenter
suggested that the notification does not actually tell the player
anything, the Commission disagrees. The notification informs the player
that the odds of winning a top prize exceed 100 million to one. The
Commission rejects the argument that requiring the odds notification
will render all Class II
[[Page 32468]]
gaming systems non-compliant. Currently, no Class II game is permitted
to have odds greater than 100 million to 1. Therefore, that provision
should not apply to any Class II games in the marketplace currently.
Finally, Sec. 547.4 of the proposed rule requires the test lab
certifying the game to calculate and/or verify mathematical
expectations and report its calculations to the TGRA. At the request of
the TGRA, the manufacturer must also submit mathematical expectations
to TGRA. This requirement was part of the discussion draft, and the
comments received support its inclusion.
F. Approval and Game Function
Section 547.4(b) of the proposed rule requires that all gaming
equipment and software operated at a facility be identical to that
tested by a test lab and approved by the TGRA. Some commenters
recommended removing the requirement that ``unapproved software must
not be loaded onto or stored on any program storage medium used in a
class II gaming system * * *.'' The commenters suggested that this
provision is a control standard better located in the Class II Minimum
Internal Control Standards found at 25 CFR part 543. The Commission
agrees and has moved the requirement from the proposed technical
standards, and has included it in proposed amendments to part 543.
Commenters also suggested the Commission review Sec. 547.4(c). The
section requires that all Class II gaming systems perform according to
the manufacturer's design and operating specifications. The commenter
noted that the provision is odd, as there is no requirement that a
manufacturer submit this information to the TGRA or test lab.
The Commission declines to remove the requirement. The Commission
realizes that no other section of these standards requires a
manufacturer to submit the operating and design specifications.
However, the purpose of the section is to affirm the TGRA's authority
to ensure that the Class II gaming system operates as the manufacturer
represents. This provision provides an additional basis for a TGRA to
require this information.
G. Grandfathered Games
When implemented in 2008, the part 547 technical standards
introduced several new requirements for Class II gaming systems
designed to protect the security and integrity of Class II gaming
systems and tribal operations. The Commission understood, however, that
some existing Class II gaming systems might not meet all of the
requirements of the technical standards. Therefore, to avoid any
potentially significant economic and practical consequences of
requiring immediate compliance, the Commission implemented a five-year
``grandfather period'' for eligible gaming systems. The Commission
believed that a five year period was sufficient for market forces to
move equipment toward compliance with the standards.
To qualify as a grandfathered game pursuant to the current
regulations, a gaming system must have been submitted to a testing
laboratory within 120 days of November 10, 2008. The testing laboratory
must have then reviewed the gaming system for compliance with a
specific, minimum set of requirements, and have issued a report to the
applicable TGRA, which must have then approved the gaming system for
grandfather status. At the end of the five year period--November 10,
2013--the grandfathered systems must be brought in to compliance with
the requirements of Part 547 or removed from play.
The Commission received several comments on the grandfathering
provisions, the majority of which focused on the five year duration.
Many comments suggested that the Commission remove the five year
clause, effectively creating a permanent class of grandfathered games.
Comments reasoned that making no amendments to the current regulation
would cause economic hardship to some tribes, although the Commission
received no specific information indicating what, if any, economic
hardship tribes would incur.
This proposed rule does not include any substantive changes to the
grandfathering provisions because the comments received by the
Commission on the preliminary draft did not provide facts to support
any change to this section. The Commission invites comment that
provides data and the factual basis supporting the views and
suggestions regarding the grandfathering provisions. For example, the
Commission requests specific information on what provisions in part
547, if any, prevent compliance for current grandfathered Class II
gaming systems, and why? Such information is particularly helpful in
developing reasoned regulatory decisions.
Although the proposed rule does not include any substantive changes
to the grandfathering provisions, the Commission is considering whether
substantive amendments are appropriate. Based on information received
during this comment period, the Commission may issue a final rule that
amends all or parts of the grandfathering provisions as described
below. Therefore, the Commission requests the public to provide
specific facts and information relating to the following potential
changes to the provision, views on which approach will best maintain
the integrity of Indian gaming, and, specifically, answers to the
questions below:
Duration of the ``sunset clause.'' The Commission is considering
amending the duration of the grandfather provision in Sec. 547.4(b)(1)
by extending the period for an additional three to five years or
removing the period. In order to make a well-informed, considered
decision, the Commission requests the public to provide responses to
the following questions:
1. How many Class II gaming systems will be affected if the current
date of November 10, 2013 is extended or eliminated?
2. What would be the regulatory and other impacts of extending the
period by three to five years past November 10, 2013?
The 120-day deadline to submit to a testing lab. The Commission is
considering amending the 120-day submission period in Sec. 547.4(a)(1)
by allowing a limited submission period for those systems that did not
meet the original 120-day deadline for submission of the gaming system
to the lab.
1. How many Class II gaming systems could be potentially submitted
to labs if the 120-day period is modified?
2. What would be the regulatory and other impacts of allowing a
limited submission period for those systems that did not meet the
original deadline?
Modifications. The Commission is considering amending the section
by eliminating the five year period in Sec. 547.4(b)(1) and instead
requiring that all future repairs, replacements, and modifications to
current grandfathered Class II gaming systems be fully compliant with
the standards established in part 547.
1. If part 547 were amended in this fashion to apply only to all
modifications, what specific impacts would the amendment have on tribal
gaming operations?
2. If part 547 were amended in this fashion to apply to all
repairs, replacements and modifications to grandfathered Class II
gaming systems, what specific impacts would the amendment have on
tribal gaming operations?
Comments also suggested that placing a sunset period on
grandfathered systems would invalidate federal court decisions
sanctioning the games. The commenters have not cited to any
[[Page 32469]]
particular cases in support of this comment and, as a result, the
Commission cannot directly address any decisions or arguments alluded
to in the comments. However, the Commission notes that this provision
does not bear on the classification of a game as Class II or Class III.
The provision requires only that, for any Class II game to be available
for play, the game must have been certified as a grandfathered Class II
gaming system or comply with the standards in part 547, and that
systems must comply with all standards in Part 547 by November 10,
2013.
In addition, comments stated that protection of grandfathered
systems is necessary as part of compact negotiations. The Commission
understands that Class II games are an important component of Indian
gaming. However, part 547 is designed to protect the security and
integrity of Class II gaming.
Commenters also expressed concern over the discussion draft's
inclusion of the phrase, ``available for use at any tribal gaming
facility'' in Sec. 547.5(a). Commenters read the provision to require
that a grandfathered system must have been available for use on or
before November 10, 2008. This interpretation was not intended by the
Commission. The section was meant to convey that before any Class II
gaming system manufactured prior to November 10, 2008, may be made
available for use, it must meet the grandfathering requirements. The
Commission has amended the provision accordingly.
In response to this comment, the Commission also revisited the
section's requirement that the Class II gaming system must have been
manufactured or placed in a tribal gaming facility before November 10,
2008. The Commission realizes that the application of the requirement
to systems that were manufactured prior to November 10, 2008 will
necessarily include those games that were placed in a tribal facility,
and has thus changed the section.
Other comments noted that the discussion draft's grandfathering
provision creates a catch-22 by requiring software systems to have been
submitted for certification based on new standards contained in this
draft. The Commission recognizes that the discussion draft's
requirement that grandfathered systems have the ability to enable or
disable remote access created a new standard and, as a result, may
disqualify a previously properly certified grandfathered system. The
provision has, accordingly, not been included in the proposed rule.
Under this proposed rule, any game that was certified as grandfathered
based on the requirements in the current 547 remains certified.
This change also resolves comments recommending that the Commission
insert language clarifying that nothing in the rule is intended to
prohibit the continued use of any Class II gaming component that was
previously certified against the grandfather provisions or judicial
ruling. If a component was grandfathered, it may be used pursuant to
the grandfathering provisions found in this proposed rule. The
Commission, therefore, declines to include the recommended language.
Further, comments have suggested that a requirement that a test lab
certify compliance with ``any applicable federal laws and regulations''
is too inclusive. According to the commenters, it would not be feasible
for a testing laboratory to review all federal laws and regulations to
determine which ones are applicable.
The Commission agrees with the comment, and believes that a TGRA is
in the best position to ensure compliance with federal regulations that
apply to its gaming systems. As a result, the proposed rule includes a
provision to require a test lab to note compliance with any standard
established by the TGRA. The Commission encourages TGRAs to use this
provision to ensure compliance with federal standards that apply to
their Class II game systems, but fall outside of the NIGC's purview.
Other commenters have expressed concern that a rule incorporating
the discussion draft's provisions will require re-certification of
otherwise compliant systems. Because the proposed rule does not make
any substantive changes to the grandfather provisions, any system
compliant with the existing part 547 will also meet the standards
outlined in this proposed rule.
H. Testing Laboratories
Section 547.5(f) of the discussion draft permitted a testing
laboratory to provide the testing and certification required by the
standards even if owned by, or affiliated with, a tribe, so long as it
is independent from the manufacturer and gaming operator for whom it is
providing testing. Comments on this change were overwhelmingly
supportive. One commenter, though, suggested that this change creates
the perceived risk of a conflict of interest and recommended no
amendment to this section.
The proposed rule includes the amendment. The Commission believes
that any perceived risk is mitigated by the section's requirement that
the tribally-owned or affiliated test laboratory be independent from
the manufacturer and gaming operator for whom it is providing testing.
The discussion draft also amended Sec. 547.7 of the current
regulation requiring certifications from Underwriter's Laboratory (UL)
or its equivalent regarding liquid spills, electromagnetic
interference, etc. The discussion draft added a provision at Sec.
547.5(c)(4) requiring a testing laboratory's report to certify that the
operation of each interface will not be affected by electrostatic
discharge, liquid spills, electromagnetic interference, radio frequency
interference, or any other risk identified by the TGRA.
Comments regarding this change were generally positive. In
expressing support for the removal of the UL reference, a few
commenters noted that the establishment and enforcement of electrical
product safety standards falls within the authority of tribal
governments. Another comment claimed that the NIGC is not authorized to
establish or enforce electrical safety standards and questioned the
propriety of an agency specifying a particular laboratory to conduct
such testing.
The Commission appreciates support for the removal of the reference
to UL and has kept the new language, with few changes, in this proposed
rule. The Commission notes, however, that the provision still requires
player interfaces to be tested to ensure that they will not be
compromised or affected by listed events and conditions. Rather than
requiring that the test lab itself perform the test and certify the
Class II gaming system, the proposed rule instead requires the test lab
to confirm that the system has been certified.
Another commenter submitted that it is not clear that a testing
laboratory can ``certify'' that the player interface will not be
compromised by ``any other risk identified by the TGRA.'' The NIGC
agrees and the amendment proposes that the test laboratory must confirm
that each player interface was certified pursuant to any other tests
required by the TGRA.
I. Player Interface
Section 547.7(d) of the discussion draft added a requirement that
the player interface display the serial number and date of manufacture.
Several commenters suggested that use of the word ``display'' is
confusing and the provision should be changed to require the player
interface to ``bear'' the serial number and date of manufacture. The
Commission agrees that, when used in the context of a Class II gaming
[[Page 32470]]
system, the word ``display'' could be understood to require the game
screen to show the information, rather than merely to require the
information to be located somewhere on the player interface. Therefore,
the Commission has changed Sec. 547.7(d) to require that the player
interface ``must be labeled with the serial number and date of
manufacture * * * .'' The Commission also notes that this change will
be consistent with Sec. 547.5(b)(6) of this proposed rule.
Another commenter urged the Commission to add a provision to Sec.
547.7(k) specifying that ``nothing herein must prohibit or limit the
technology utilized to run Class II gaming systems.'' The Commission
believes that Sec. 547.3(b) already makes this intent clear and, as
such, declines to incorporate this comment.
J. Game Initiation and Play
Section 547.8(b) of the discussion draft requires a Class II gaming
system follow and not deviate from a constant set of rules for each
game. The provision also prohibits any automatic or undisclosed rule
changes. Several commenters recommended eliminating the words
``automatic or.'' The Commission respectfully disagrees. Any rule
should be disclosed to the patron prior to initiation of game play, and
any rule change to the game must be disclosed to the patron. This
section, combined with Sec. 547.16(a), ensures that the constancy of
game rules for all game features, including any bonus features.
Comments suggested that the requirement in Sec. 547.8(b) that a
player ``choose to participate in the play of a game,'' is vague, not a
technical standard, and cannot be tested. The Commission agrees that
this provision is not clear. The intent is to require that the player
initiates game play. To clarify, the Commission changed the provision
to read, ``[n]o game play may commence unless initiated by a player.''
K. Entertaining Display
Section 547.8 of the current technical standards contains certain
requirements regarding the entertaining displays. Section
547.8(a)(2)(ii) requires that, between plays of any game, or until a
new game option is selected, the player interface must display the
final results for the last game, including the entertaining display.
Section 547.8(d)(2), meanwhile, requires entertaining display be
included in the last game recall.
The discussion draft removed references to entertaining displays
from both of these sections. Nearly all of the comments expressed
support for the change. Comments focused on the fact that the
entertaining display has no significance to the outcome of the game. A
few commenters, however, opposed this change.
One commenter suggested that the revision to 547.8(a)(2)(ii) would
require the game display to ``go blank'' in between games. The
Commission respectfully disagrees. The standard, as proposed, does not
require a blank screen. It still requires the player interface to
display the wager amount and all prizes and total credits won during
the last game played, the final results of the last game played, and
any default purchase or wager amount for the next play.
Some commenters also objected to the discussion draft no longer
requiring last game recall to include the entertaining display. The
commenter noted that when a pay-table on a player interface indicates
that certain combinations of symbols will result in certain prizes, a
player has a reasonable right to expect a prize if that combination of
symbols appears on the pay line of the ``entertainment only'' display.
The commenter asserts that if a game posts a prize schedule
corresponding to the entertaining display instead of, or in addition
to, the bingo card, and a prize paying combination of symbols appears
in the entertaining display but no prizes are awarded, the integrity of
the gaming system and reputation of the tribe may be called into
question.
The Commission agrees that the reputation of an operation is of
utmost importance and can reach beyond a particular facility to bolster
or harm the reputation of Indian gaming. However, the Commission
respectfully disagrees. The game of bingo is dictated by the ball draw
and the bingo card, not the entertaining display. This is made clear by
the disclaimer required by Sec. 547.16 clarifying that actual prizes
are determined by bingo play not the entertaining display. For the
technical standards to require last game recall to include the
entertaining display would incorrectly emphasize an aspect of the game
that has no bearing on its outcome.
The Commission also disagrees with the commenter's assessment that
if the entertaining display indicates a win, the patron should be paid
regardless of the bingo results. Prizes should only be awarded on Class
II electronic bingo games if the patron has won according to the bingo
card.
L. Game Interruption and Resumption
The current technical standards and the discussion draft require
that if a Class II gaming system is interrupted, it can, upon
resumption, return to a known state; check for any fault condition;
verify the integrity of data stored in critical memory; return the
purchase or wager amount to the player in accordance with the rules of
the game; and detect any change or corruption in the Class II gaming
system software.
One commenter stated that many of the requirements cannot be
accomplished by Class II gaming systems. The Commission disagrees.
Class II gaming systems can meet this standard. Further, the Commission
notes that this has been a requirement since the current regulation
went into effect in 2008 and all Class II gaming systems, with the
exception of grandfathered systems, should already meet this
requirement.
M. Accounting Functions
Section 547.9 of the discussion draft requires the Class II gaming
system be capable of tracking minimum accounting data. As part of this
requirement, each type of financial instrument accepted and paid by the
Class II gaming system must be tracked according to applicable
Commission and TGRA regulations governing minimum internal control
standards. Some commenters pointed out that the TGRA requirements will
necessarily include the Commission's minimum internal control standards
and, as such, the references to the Commission should be deleted. The
Commission agrees and has changed the section accordingly.
N. Critical Events
Section 547.10 of the current regulation and the discussion draft
lists several types of fault events that must be recorded by the Class
II gaming system. One commenter suggests that ``financial storage
component full'' notification cannot be reported unless an operation is
using ``smart cans'' with the Class II gaming system. The commenter
recommends the standard be deleted, as requiring compliance would be
costly and there is no risk associated with a can being full.
The Commission declines to adopt this recommendation. The
Commission notes that this has been a requirement since the current
technical standards went into effect in 2008, and all Class II gaming
systems, with the exception of grandfathered systems, should already
meet this standard.
O. Download Approval
This proposed rule removes the requirement from Sec. 547.12 that
the TGRA authorize all downloads by a
[[Page 32471]]
Class II gaming system. This change was first made in the discussion
draft and many commenters requested clarification that nothing
prohibits the TGRA from maintaining the download approval requirement.
As stated in 547.3(a), the Commission recognizes that the TGRA
regulates technical standards and, accordingly, may implement stricter
standards. Nothing in this section prohibits the TGRA from requiring
its approval of downloads.
P. Scaling Algorithm
Section 547.14 of the current regulation requires that a random
number generator (RNG) that provides output scaled to given ranges must
use an unbiased algorithm. According to the regulation, a scaling
algorithm is unbiased if the measured bias is no greater than 1 in 100
million. The discussion draft changed this requirement to require the
RNG to use an unbiased algorithm and report any bias to the TGRA. The
proposed rule includes this amendment. A few commenters propose re-
inserting a range for measured bias on the grounds that requiring any
bias to be reported could be an unworkable standard, but do not explain
why the proposed standard is unworkable.
The Commission also notes that the measured bias of 1 in 100
million proved unworkable and required the Commission to issue bulletin
number 2008-4 clarifying that the threshold for reporting a bias should
instead be 1 in 50 million. The Commission, therefore, declines to
implement the suggested comment in this proposed rule and asks
commenters to be more specific as to why the requirement to report any
bias is unworkable. The Commission further asks for comments on what
would be a workable threshold.
Q. Disclaimers
Section 547.16(b) of the current regulation requires the Class II
gaming system to continuously display two disclaimers--first, that
malfunctions void all prizes and plays and the prizes are determined by
bingo play and second, that any other display is for entertainment
purposes only. Although the discussion draft maintained this
requirement, the proposed rule now requires the ``player interface,''
rather than the ``Class II gaming system'' to display the disclaimers.
A few commenters suggested that the Commission should clarify that
this change is not intended to require that the disclaimers be
displayed on the video screen. The Commission agrees. The standard
requires only that the player interface, which is defined by this part,
display the disclaimer, not any specific part of the interface. So long
as the disclaimer is located in a place that can be clearly seen by the
public, as this standard clearly intends, it can be located anywhere
the interface that the TGRA allows.
Another commenter suggests that the ``continually display''
requirement presents a hardship, as it takes up space on smaller
devices such as bingo minders. The commenter also notes that the
requirement will become wholly unworkable as technology advances to the
point where participants are able to use their own technology, such as
a cell phone, in the play of the game.
The Commission declines to incorporate this suggestion into the
proposed rule. As recognized by recommended drafts submitted to the
NIGC, including that presented by the TAC, the disclaimers are of
critical importance, and, therefore, the Commission believes that it is
necessary that they be displayed somewhere on the player interface at
all times.
R. Alternate Standards
Finally, the discussion draft made minor changes to Sec. 547.17.
Although the overall purpose of the section is the same, the discussion
draft uses the term ``alternate standard'' rather than ``variance.''
The Commission believes that ``alternate standard'' more accurately
reflects the activity covered by the standard. The change is also
consistent with the proposed part 543 minimum internal control
standards, which also uses ``alternate standard'' rather than
``variance.''
Although commenters were unanimously supportive of the change, a
few asked that the standard be changed to clarify that the TGRA can
implement the alternate standard as soon as it is approved by the TGRA.
Section 547.17(b)(4) of the discussion draft and this proposed rule
prohibit an alternate standard from being implemented until ``it has
been approved by the TGRA * * * or the Chair * * *.'' The Commission
believes that this language makes clear that an alternate standard may
be implemented upon TGRA approval and declines to change the section
further.
Another commenter suggested clarifying the Sec. 547.17(a)(2)(ii)
requirement that a TGRA submit to the Chair, ``the alternate standard
as granted and the record on which it is based.'' The Commission
intended this section to require the record upon which the approval is
based and has changed the language accordingly.
One commenter also suggested finding a compromise between a
standard that allows a TGRA to submit an approved standard for NIGC
comment, and the discussion draft standard, which required the
alternate standard be submitted for NIGC approval.
Although TGRAs have the authority to implement stricter standards,
these are NIGC's minimum standards. Any alternate standard, therefore,
must be approved by the NIGC. A TGRA may still approve a standard in
its TICS that is, at a minimum, as strict as these standards.
Regulatory Matters
Regulatory Flexibility Act
The proposed rule will not have a significant impact on a
substantial number of small entities as defined under the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq. Moreover, Indian Tribes are not
considered to be small entities for the purposes of the Regulatory
Flexibility Act.
Small Business Regulatory Enforcement Fairness Act
The proposed rule is not a major rule under 5 U.S.C. 804(2), the
Small Business Regulatory Enforcement Fairness Act. The rule does not
have an effect on the economy of $100 million or more. The rule will
not cause a major increase in costs or prices for consumers, individual
industries, Federal, State, local government agencies or geographic
regions. Nor will the proposed rule have a significant adverse effect
on competition, employment, investment, productivity, innovation, or
the ability of the enterprises, to compete with foreign based
enterprises.
Unfunded Mandate Reform Act
The Commission, as an independent regulatory agency, is exempt from
compliance with the Unfunded Mandates Reform Act, 2 U.S.C. 1502(1); 2
U.S.C. 658(1).
Takings
In accordance with Executive Order 12630, the Commission has
determined that the proposed rule does not have significant takings
implications. A takings implication assessment is not required.
Civil Justice Reform
In accordance with Executive Order 12988, the Commission has
determined that the proposed rule does not unduly burden the judicial
system and meets the requirements of Sec. 3(a) and 3(b)(2) of the
Order.
[[Page 32472]]
National Environmental Policy Act
The Commission has determined that the 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, 42 U.S.C.
4321, et seq.
Paperwork Reduction Act
The information collection requirements contained in this rule were
previously approved by the Office of Management and Budget (OMB) as
required by 44 U.S.C. 3501 et seq. and assigned OMB Control Number
3141-0007, which expired in August of 2011. The NIGC is in the process
of reinstating that Control Number.
Authority: 25 U.S.C. 2706(b).
Text of the Proposed Rule
PART 547--MINIMUM TECHNICAL STANDARDS FOR GAMING EQUIPMENT USED
WITH THE PLAY OF CLASS II GAMES
Sec.
547.1 What is the purpose of this part?
547.2 What are the definitions for this part?
547.3 Who is responsible for implementing these standards?
547.4 What are the rules of general application for this part?
547.5 How does a tribal government, TGRA, or tribal gaming operation
comply with this part?
547.6 What are the minimum technical standards for enrolling and
enabling Class II gaming system components?
547.7 What are the minimum technical hardware standards applicable
to Class II gaming systems?
547.8 What are the minimum technical software standards applicable
to Class II gaming systems?
547.9 What are the minimum technical standards for Class II gaming
system accounting functions?
547.10 What are the minimum standards for Class II gaming system
critical events?
547.11 What are the minimum technical standards for money and credit
handling?
547.12 What are the minimum technical standards for downloading on a
Class II gaming system?
547.13 What are the minimum technical standards for program storage
media?
547.14 What are the minimum technical standards for electronic
random number generation?
547.15 What are the minimum technical standards for electronic data
communications between system components?
547.16 What are the minimum standards for game artwork, glass, and
rules?
547.17 How does a TGRA apply to implement an alternate standard to
those required by this part?
Authority: 25 U.S.C. 2706(b).
Sec. 547.1 What is the purpose of this part?
The Indian Gaming Regulatory Act, 25 U.S.C. 2703(7)(A)(i), permits
the use of electronic, computer, or other technologic aids in
connection with the play of Class II games. This part establishes the
minimum technical standards governing the use of such aids.
Sec. 547.2 What are the definitions for this part?
For the purposes of this part, the following definitions apply:
Account access component. A component within a Class II gaming
system that reads or recognizes account access media and gives a patron
the ability to interact with an account.
Account access medium. A magnetic stripe card or any other medium
inserted into, or otherwise made to interact with, an account access
component in order to give a patron the ability to interact with an
account.
Advertised top prize. The highest single prize available based on
information contained in the prize schedule.
Agent. A person authorized by the gaming operation, as approved by
the TGRA, to make decisions or perform tasks or actions on the behalf
of the gaming operation.
Audit mode. The mode where it is possible to view Class II gaming
system accounting functions, statistics, etc. and perform non-player-
related functions.
Cancel credit. An action initiated by the Class II gaming system
where some or all of a player's credits are removed by an attendant and
paid to the player.
Cashless system. A system that performs cashless transactions and
maintains records of those cashless transactions.
Cashless transaction. A movement of funds electronically from one
component to another. CD-ROM. Compact Disc--Read Only Memory. Chair.
The Chair of the National Indian Gaming Commission.
Class II gaming. Class II gaming has the same meaning as defined in
25 U.S.C. 2703(7)(A).
Class II gaming system. All components, whether or not technologic
aids in electronic, computer, mechanical, or other technologic form,
that function together to aid the play of one or more Class II games,
including accounting functions mandated by these regulations.
Commission. The National Indian Gaming Commission established by
the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.
Coupon. A financial instrument of fixed wagering value, usually
paper, that can only be used to acquire non-cashable credits through
interaction with a voucher system. This does not include instruments
such as printed advertising material that cannot be validated directly
by a voucher system.
Critical memory. Memory locations storing data essential to the
functionality of the Class II gaming system.
DLL. A Dynamic-Link Library file.
Download package. Approved data sent to a component of a Class II
gaming system for such purposes as changing the component software.
DVD. Digital Video Disk or Digital Versatile Disk.
Enroll. The process by which a class II gaming system identifies
and establishes communications with an additional system component to
allow for live gaming activity to take place on that component.
EPROM. Erasable Programmable Read Only Memory--a non-volatile
storage chip or device that may be filled with data and information,
that once written is not modifiable, and that is retained even if there
is no power applied to the system.
Electromagnetic interference. The disruption of operation of an
electronic device when it is in the vicinity of an electromagnetic
field in the radio frequency spectrum that is caused by another
electronic device.
Electrostatic discharge. A single event, rapid transfer of
electrostatic charge between two objects, usually resulting when two
objects at different potentials come into direct contact with each
other.
Fault. An event that when detected by a Class II gaming system
causes a discontinuance of game play or other component functions.
Financial instrument. Any tangible item of value tendered in Class
II game play, including, but not limited to, bills, coins, vouchers and
coupons.
Financial instrument acceptor. Any component that accepts financial
instruments, such as a bill validator.
Financial instrument dispenser. Any component that dispenses
financial instruments, such as a ticket printer.
Financial instrument storage component. Any component that stores
financial instruments, such as a drop box.
Flash memory. Non-volatile memory that retains its data when the
power is turned off and that can be electronically erased and
reprogrammed without being removed from the circuit board.
Game software. The operational program or programs that govern the
[[Page 32473]]
play, display of results, and/or awarding of prizes or credits for
Class II games.
Gaming equipment. All electronic, electro-mechanical, mechanical,
or other physical components utilized in the play of Class II games.
Hardware. Gaming equipment.
Interruption. Any form of mis-operation, component failure, or
interference to the Class II gaming equipment.
Modification. A revision to any hardware or software used in a
Class II gaming system.
Non-cashable credit. Credits given by an operator to a patron;
placed on a Class II gaming system through a coupon, cashless
transaction or other approved means; and capable of activating play but
not being converted to cash.
Patron. A person who is a customer or guest of the gaming operation
and may interact with a Class II game. Also may be referred to as a
``player''.
Patron deposit account. An account maintained on behalf of a
patron, for the purpose of depositing and withdrawing cashable funds
for the primary purpose of interacting with a gaming activity.
Player interface. Any component or components of a Class II gaming
system, including an electronic or technologic aid (not limited to
terminals, player stations, handhelds, fixed units, etc.), that
directly enables player interaction in a Class II game.
Prize schedule. The set of prizes available to players for
achieving pre-designated patterns in the Class II game.
Program storage media. An electronic data storage component, such
as a CD-ROM, EPROM, hard disk, or flash memory on which software is
stored and from which software is read.
Progressive prize. A prize that increases by a selectable or
predefined amount based on play of a Class II game.
Random number generator (RNG). A software module, hardware
component or combination of these designed to produce outputs that are
effectively random.
Reflexive software. Any software that has the ability to manipulate
and/or replace a randomly generated outcome for the purpose of changing
the results of a Class II game.
Removable/rewritable storage media. Program or data storage
components that can be removed from gaming equipment and be written to,
or rewritten by, the gaming equipment or by other equipment designed
for that purpose.
Server. A computer that controls one or more applications or
environments within a Class II gaming system.
Test/diagnostics mode. A mode on a component that allows various
tests to be performed on the Class II gaming system hardware and
software.
Testing laboratory. An organization recognized by a TGRA pursuant
to Sec. 547.5(f).
TGRA. Tribal gaming regulatory authority, which is the entity
authorized by tribal law to regulate gaming conducted pursuant to the
Indian Gaming Regulatory Act.
Unenroll. The process by which a class II gaming system disconnects
an enrolled system component, disallowing any live gaming activity to
take place on that component.
Voucher. A financial instrument of fixed wagering value, usually
paper, that can only be used to acquire an equivalent value of cashable
credits or cash through interaction with a voucher system.
Voucher system. A component of the Class II gaming system that
securely maintains records of vouchers and coupons; validates payment
of vouchers; records successful or failed payments of vouchers and
coupons; and controls the purging of expired vouchers and coupons.
Sec. 547.3 Who is responsible for implementing these standards?
(a) Minimum Standards. These are minimum standards and a TGRA may
establish and implement additional technical standards that do not
conflict with the standards set out in this part.
(b) No Limitation of Technology. This part should not be
interpreted to limit the use of technology or to preclude the use of
technology not specifically referenced.
(c) Only applicable standards apply. Class II gaming system
equipment and software must meet all applicable requirements of this
part. For example, if a Class II gaming system lacks the ability to
print or accept vouchers, then any standards that govern vouchers do
not apply. These standards do not apply to associated equipment such as
voucher and kiosk systems.
(d) State Jurisdiction. Nothing in this part shall be construed to
grant to a state jurisdiction over Class II gaming or to extend a
state's jurisdiction over Class III gaming.
Sec. 547.4 What are the rules of general application for this part?
(a) Fairness. No Class II gaming system may cheat or mislead users.
All prizes advertised must be available to win during the game. Test
laboratory must calculate and/or verify the mathematical expectations
of game play, where applicable, in accordance with the manufacturer
stated submission. The results must be included in the test
laboratory's report to the TGRA. At the request of the TGRA, the
manufacturer must also submit the mathematical expectations of the game
play to the TGRA.
(b) Approved equipment and software only. All gaming equipment and
software used with Class II gaming systems must be identical in all
respects to a prototype reviewed and tested by a testing laboratory and
approved for use by the TGRA pursuant to Sec. 547.5(a) through (c).
(c) Proper functioning. All gaming equipment and software used with
Class II gaming systems must perform according to the manufacturer's
design and operating specifications.
Sec. 547.5 How does a tribal government, TGRA, or tribal gaming
operation comply with this part?
(a) Limited immediate compliance. A tribal gaming regulatory
authority shall:
(1) Require that all Class II gaming system software that affects
the play of the Class II game be submitted, together with the signature
verification required by Sec. 547.8(f), to a testing laboratory
recognized pursuant to paragraph (f) of this section within 120 days
after November 10, 2008;
(2) Require that the testing laboratory test the submission to the
standards established by Sec. 547.8(b), Sec. 547.8(f), Sec. 547.14,
and to any additional technical standards adopted by the TGRA;
(3) Require that the testing laboratory provide the TGRA with a
formal written report setting forth and certifying to the findings and
conclusions of the test;
(4) Make a finding, in the form of a certificate provided to the
supplier or manufacturer of the Class II gaming system, that the Class
II gaming system qualifies for grandfather status under the provisions
of this section, but only upon receipt of a testing laboratory's report
that the Class II gaming system is compliant with Sec. 547.8(b), Sec.
547.8(f), Sec. 547.14, and any other technical standards adopted by
the TGRA. If the TGRA does not issue the certificate, or if the testing
laboratory finds that the Class II gaming system is not compliant with
Sec. 547.8(b), Sec. 547.8(f), Sec. 547.14, or any other technical
standards adopted by the TGRA, then the gaming system shall immediately
be removed from play and not be utilized.
(5) Retain a copy of any testing laboratory's report so long as the
Class II gaming system that is the subject of the report remains
available to the public for play;
(6) Retain a copy of any certificate of grandfather status so long
as the Class II gaming system that is the subject of
[[Page 32474]]
the certificate remains available to the public for play; and
(7) Require the supplier of any player interface to designate with
a permanently affixed label each player interface with an identifying
number and the date of manufacture or a statement that the date of
manufacture was on or before November 10, 2008. The tribal gaming
regulatory authority shall also require the supplier to provide a
written declaration or affidavit affirming that the date of manufacture
was on or before November 10, 2008.
(b) Grandfather provisions. All Class II gaming systems
manufactured before November 10, 2008, and certified pursuant to
paragraph (a) of this section are grandfathered Class II gaming systems
for which the following provisions apply:
(1) Grandfathered Class II gaming systems may continue in operation
for a period of five years from November 10, 2008.
(2) Grandfathered Class II gaming system shall be available for use
at any tribal gaming facility subject to approval by the TGRA, which
shall transmit its notice of that approval, identifying the
grandfathered Class II gaming system and its components, to the
Commission.
(3) As permitted by the TGRA, individual hardware or software
components of a grandfathered Class II gaming system may be repaired or
replaced to ensure proper functioning, security, or integrity of the
grandfathered Class II gaming system.
(4) All modifications that affect the play of a grandfathered Class
II gaming system must be approved pursuant to paragraph (c) of this
section, except for the following:
(i) Any software modifications that the TGRA finds will maintain or
advance the Class II gaming system's overall compliance with this part
or any applicable provisions of part 543 of this chapter, after
receiving a new testing laboratory report that the modifications are
compliant with the standards established by Sec. 547.8(b), Sec.
547.14, and any other standards adopted by the TGRA;
(ii) Any hardware modifications that the TGRA finds will maintain
or advance the system's overall compliance with this part or any
applicable provisions of part 543 of this chapter; and
(iii) Any other modification to the software of a grandfathered
Class II gaming system that the TGRA finds will not detract from,
compromise or prejudice:
(A) The proper functioning, security, or integrity of the Class II
gaming system, and
(B) The gaming system's overall compliance with the requirements of
this part or any applicable provisions of part 543 of this chapter.
(iv) No such modification may be implemented without the approval
of the TGRA. The TGRA shall maintain a record of the modification so
long as the Class II gaming system that is the subject of the
modification remains available to the public for play and shall make
the record available to the Commission upon request. The Commission
will only make available for public review records or portions of
records subject to release under the Freedom of Information Act, 5
U.S.C. 552; the Privacy Act of 1974, 5 U.S.C. 552a; or the Indian
Gaming Regulatory Act, 25 U.S.C. 2716(a).
(c) Submission, testing, and approval--generally. Except as
provided in paragraphs (b) and (d) of this section, a TGRA may not
permit the use of any Class II gaming system, or any associated
cashless system or voucher system or any modification thereto, in a
tribal gaming operation unless:
(1) The Class II gaming system, cashless system, voucher payment
system, or modification thereto has been submitted to a testing
laboratory;
(2) The testing laboratory tests the submission to the standards
established by:
(i) This part;
(ii) Any applicable provisions of part 543 of this chapter that are
testable by the testing laboratory; and
(iii) The TGRA;
(3) The testing laboratory provides a formal written report to the
party making the submission, setting forth and certifying to its
findings and conclusions, and noting compliance with any standard
established by the TGRA pursuant to (c)(2)(iii) of this section;
(4) The testing laboratory's written report confirms that the
operation of each player interface has been certified that it will not
be compromised or affected by electrostatic discharge, liquid spills,
electromagnetic interference, radio frequency interference, or any
other tests required by the TGRA;
(5) Following receipt of the testing laboratory's report, the TGRA
makes a finding that the Class II gaming system, cashless system, or
voucher system conforms to the standards established by:
(A) This part;
(B) Any applicable provisions of part 543 of this chapter that are
testable by the testing laboratory; and
(C) The TGRA.
(6) The TGRA must retain a copy of the testing laboratory's report
required by paragraph (c) of this section so long as the Class II
gaming system, cashless system, voucher system, or modification thereto
that is the subject of the report remains available to the public for
play in its gaming operation.
(d) Emergency hardware and software modifications.
(1) A TGRA, in its discretion, may permit the modification of
previously approved hardware or software to be made available for play
without prior laboratory testing or review if the modified hardware or
software is:
(i) Necessary to correct a problem affecting the fairness,
security, or integrity of a game or accounting system or any cashless
system, or voucher system; or
(ii) Unrelated to game play, an accounting system, a cashless
system, or a voucher system.
(2) If a TGRA authorizes modified software or hardware to be made
available for play or use without prior testing laboratory review, the
TGRA must thereafter require the hardware or software manufacturer to:
(i) Immediately advise other users of the same hardware or software
of the importance and availability of the update;
(ii) Immediately submit the new or modified hardware or software to
a testing laboratory for testing and verification of compliance with
this part and any applicable provisions of part 543 of this chapter
that are testable by the testing laboratory; and
(iii) Immediately provide the TGRA with a software signature
verification tool meeting the requirements of Sec. 547.8(f) for any
new or modified software.
(3) If a TGRA authorizes a software or hardware modification under
this paragraph, it must maintain a record of the modification and a
copy of the testing laboratory report so long as the Class II gaming
system that is the subject of the modification remains available to the
public for play and must make the record available to the Commission
upon request. The Commission will only make available for public review
records or portions of records subject to release under the Freedom of
Information Act, 5 U.S.C. 552; the Privacy Act of 1974, 5 U.S.C. 552a;
or the Indian Gaming Regulatory Act, 25 U.S.C. 2716(a).
(e) Compliance by charitable gaming operations. This part does not
apply to
[[Page 32475]]
charitable gaming operations, provided that:
(1) The tribal government determines that the organization
sponsoring the gaming operation is a charitable organization;
(2) All proceeds of the charitable gaming operation are for the
benefit of the charitable organization;
(3) The TGRA permits the charitable organization to be exempt from
this part;
(4) The charitable gaming operation is operated wholly by the
charitable organization's employees or volunteers; and
(5) The annual gross gaming revenue of the charitable gaming
operation does not exceed $1,000,000.
(f) Testing laboratories.
(1) A testing laboratory may provide the examination, testing,
evaluating and reporting functions required by this section provided
that:
(i) It demonstrates its integrity, independence and financial
stability to the TGRA.
(ii) It demonstrates its technical skill and capability to the
TGRA.
(iii) If the testing laboratory is owned or operated by, or
affiliated with, a tribe, it must be independent from the manufacturer
and gaming operator for whom it is providing the testing, evaluating,
and reporting functions required by this section.
(iv) The TGRA:
(A) Makes a suitability determination of the testing laboratory
based upon standards no less stringent than those set out in Sec. Sec.
533.6(b)(1)(ii) through (v) of this chapter and based upon no less
information than that required by Sec. 537.1 of this chapter, or
(B) Accepts, in its discretion, a determination of suitability for
the testing laboratory made by any other gaming regulatory authority in
the United States.
(v) After reviewing the suitability determination and the
information provided by the testing laboratory, the TGRA determines
that the testing laboratory is qualified to test and evaluate Class II
gaming systems.
(2) The TGRA must:
(i) Maintain a record of all determinations made pursuant to
paragraphs (f)(1)(iii) and (f)(1)(iv) of this section for a minimum of
three years and must make the records available to the Commission upon
request. The Commission will only make available for public review
records or portions of records subject to release under the Freedom of
Information Act, 5 U.S.C. 552; the Privacy Act of 1974, 5 U.S.C. 552a;
or the Indian Gaming Regulatory Act, 25 U.S.C. 2716(a).
(ii) Place the testing laboratory under a continuing obligation to
notify it of any adverse regulatory action in any jurisdiction where
the testing laboratory conducts business.
(iii) Require the testing laboratory to provide notice of any
material changes to the information provided to the TGRA.
Sec. 547.6 What are the minimum technical standards for enrolling and
enabling Class II gaming system components?
(a) General requirements. Class II gaming systems must provide a
method to:
(1) Enroll and unenroll Class II gaming system components;
(2) Enable and disable specific Class II gaming system components.
(b) Specific requirements. Class II gaming systems must:
(1) Ensure that only enrolled and enabled Class II gaming system
components participate in gaming; and
(2) Ensure that the default condition for components must be
unenrolled and disabled.
Sec. 547.7 What are the minimum technical hardware standards
applicable to Class II gaming systems?
(a) Printed circuit boards.
(1) Printed circuit boards that have the potential to affect the
outcome or integrity of the game, and are specially manufactured or
proprietary and not off-the-shelf, must display a unique identifier
such as a part number and/or revision number, which must be updated to
reflect new revisions or modifications of the board.
(2) Switches or jumpers on all circuit boards that have the
potential to affect the outcome or integrity of any game, progressive
award, financial instrument, cashless transaction, voucher transaction,
or accounting records must be capable of being sealed.
(b) Electrostatic discharge. Class II gaming system components
accessible to the public must be constructed so that they exhibit
immunity to human body electrostatic discharges on areas exposed to
contact. Static discharges of 15 kV for air discharges and
7.5 kV for contact discharges must not cause damage or
inhibit operation or integrity of the Class II gaming system.
(c) Physical enclosures. Physical enclosures must be of a robust
construction designed to resist determined illegal entry. All
protuberances and attachments such as buttons, identification plates,
and labels must be sufficiently robust to avoid unauthorized removal.
(d) Player interface. The player interface must be labeled with the
serial number and date of manufacture and include a method or means to:
(1) Display information to a player; and
(2) Allow the player to interact with the Class II gaming system.
(e) Account access components. A Class II gaming system component
that reads account access media must be located within a secure and
locked area, cabinet, or housing that is of a robust construction
designed to resist determined illegal entry and to protect internal
components. In addition, the account access component:
(1) Must be constructed so that physical tampering leaves evidence
of such tampering; and
(2) Must provide a method to enable the Class II gaming system to
interpret and act upon valid or invalid input or error condition.
(f) Financial instrument storage components. Any Class II gaming
system components that store financial instruments and that are not
operated under the direct control of a gaming operation employee or
agent must be located within a secure and locked area, cabinet, or
housing that is of a robust construction designed to resist determined
illegal entry and to protect internal components.
(g) Financial instrument acceptors.
(1) Any Class II gaming system components that handle financial
instruments and that are not operated under the direct control of an
agent must:
(i) Be located within a secure and locked area, cabinet, or housing
that is of a robust construction designed to resist determined illegal
entry and to protect internal components;
(ii) Be able to detect the entry of valid or invalid financial
instruments and to provide a method to enable the Class II gaming
system to interpret and act upon valid or invalid input or error
condition; and
(iii) Be constructed to permit communication with the Class II
gaming system of the accounting information required by Sec. 547.9(a)
and by applicable provisions of any Commission and TGRA regulations
governing minimum internal control standards.
(2) Prior to completion of a valid financial instrument transaction
by the Class II gaming system, no monetary amount related to that
instrument may be available for play. For example, credits may not be
available for play until currency or coupon inserted into an acceptor
is secured in the storage component.
(3) The monetary amount related to all valid financial instrument
transactions by the Class II gaming
[[Page 32476]]
system must be recorded as required by Sec. 547.9(a) and the
applicable provisions of any Commission and TGRA regulations governing
minimum internal control standards.
(h) Financial instrument dispensers.
(1) Any Class II gaming system components that dispense financial
instruments and that are not operated under the direct control of a
gaming operation employee or agent must:
(i) Be located within a secure, locked and tamper-evident area or
in a locked cabinet or housing that is of a robust construction
designed to resist determined illegal entry and to protect internal
components;
(ii) Provide a method to enable the Class II gaming system to
interpret and act upon valid or invalid input or error condition; and
(iii) Be constructed to permit communication with the Class II
gaming system of the accounting information required by Sec. 547.9(a)
and by applicable provisions of any Commission and TGRA regulations
governing minimum internal control standards.
(2) The monetary amount related to all valid financial instrument
transactions by the Class II gaming system must be recorded as required
by Sec. 547.9(a), the applicable provisions of part 543 of this
chapter, and any TGRA regulations governing minimum internal control
standards.
(i) Game Outcome Determination Components. Any Class II gaming
system logic components that affect the game outcome and that are not
operated under the direct control of a gaming operation employee or
agent must be located within a secure, locked and tamper-evident area
or in a locked cabinet or housing that is of a robust construction
designed to resist determined illegal entry and to protect internal
components. DIP switches or jumpers that can affect the integrity of
the Class II gaming system must be capable of being sealed by the TGRA.
(j) Door access detection. All components of the Class II gaming
system that are locked in order to meet the requirements of this part
must include a sensor or other methods to monitor an open door. A door
open sensor, and its components or cables, must be secure against
attempts to disable them or interfere with their normal mode of
operation.
(k) Separation of functions/no limitations on technology. Nothing
herein prohibits the account access component, financial instrument
storage component, financial instrument acceptor, and financial
instrument dispenser from being included within the same component or
being separated into individual components.
Sec. 547.8 What are the minimum technical software standards
applicable to Class II gaming systems?
(a) Player interface displays.
(1) If not otherwise provided to the player, the player interface
must display the following:
(i) The purchase or wager amount;
(ii) Game results; and
(iii) Any player credit balance.
(2) Between plays of any game and until the start of the next play,
or until the player selects a new game option such as purchase or wager
amount or card selection, whichever is earlier, if not otherwise
provided to the player, the player interface must display:
(i) The total purchase or wager amount and all prizes and total
credits won for the last game played;
(ii) The final results for the last game played; and
(iii) Any default purchase or wager amount for the next play.
(b) Game initiation and play.
(1) Each game played on the Class II gaming system must follow and
not deviate from a constant set of rules for each game provided to
players pursuant to Sec. 547.16. There must be no automatic or
undisclosed changes of rules.
(2) The Class II gaming system may not alter or allow to be altered
the card permutations used for play of a Class II game unless
specifically chosen by the player prior to commitment to participate in
the game. No duplicate cards may be sold for any common draw.
(3) No game play may commence and, no financial instrument or
credit may be accepted on the affected player interface, in the
presence of any fault condition that affects the outcome of the game,
open door, or while in test, audit, or lock-up mode.
(4) No game play may commence unless initiated by a player.
(c) Audit Mode.
(1) If an audit mode is provided, the Class II gaming system must
provide, for those components actively involved in the audit:
(i) All accounting functions required by Sec. 547.9, by applicable
provisions of any Commission regulations governing minimum internal
control standards, and by any internal controls adopted by the tribe or
TGRA;
(ii) Display player interface identification; and
(iii) Display software version or game identification;
(2) Audit mode must be accessible by a secure method such as an
agent PIN, key, or other auditable access control.
(3) Accounting function data must be accessible by an agent at any
time, except during a payout, during a handpay, or during play.
(4) The Class II gaming system must disable financial instrument
acceptance on the affected player interface while in audit mode, except
during financial instrument acceptance testing.
(d) Last game recall. The last game recall function must:
(1) Be retrievable at all times, other than when the recall
component is involved in the play of a game, upon the operation of an
external key-switch, entry of an audit card, or a similar method;
(2) Display the results of recalled games as originally displayed
or in text representation so as to enable the TGRA or operator to
clearly identify the sequences and results that occurred;
(3) Allow the Class II gaming system component providing game
recall, upon return to normal game play mode, to restore any affected
display to the positions, forms and values displayed before access to
the game recall information; and
(4) Provide the following information for the current and previous
four games played and must display:
(i) Play start time, end time, and date;
(ii) The total number of credits at the start of play;
(iii) The purchase or wager amount;
(iv) The total number of credits at the end of play;
(v) The total number of credits won as a result of the game
recalled, and the value in dollars and cents for progressive prizes, if
different;
(vi) For bingo games and games similar to bingo, also display:
(A) The card(s) used by the player;
(B) The identifier of the bingo game played;
(C) The numbers or other designations drawn, in the order that they
were drawn;
(D) The numbers or other designations and prize patterns covered on
each card;
(E) All prizes won by the player, including winning patterns, if
any; and
(F) The unique identifier of the card on which prizes were won;
(vii) For pull-tab games only, also display:
(A) The result(s) of each pull-tab, displayed in the same pattern
as on the tangible pull-tab;
(B) All prizes won by the player;
(C) The unique identifier of each pull tab; and
(D) Any other information necessary to fully reconstruct the
current and four previous plays.
(e) Voucher and credit transfer recall. Notwithstanding the
requirements of
[[Page 32477]]
any other section in this part, a Class II gaming system must have the
capacity to:
(1) Display the information specified in Sec. 547.11(b)(5)(ii)
through (vi) for the last five vouchers or coupons printed and the last
five vouchers or coupons accepted; and
(2) Display a complete transaction history for the last five
cashless transactions made and the last five cashless transactions
accepted.
(f) Software signature verification. The manufacturer or developer
of the Class II gaming system must provide to the testing laboratory
and to the TGRA an industry-standard methodology, acceptable to the
TGRA, for verifying the Class II gaming system game software. By way of
illustration, for game software stored on rewritable media, such
methodologies include signature algorithms and hashing formulas such as
SHA-1.
(g) Test, diagnostic, and demonstration modes. If test, diagnostic,
and/or demonstration modes are provided, the Class II gaming system
must, for those components actively involved in the test, diagnostic,
or demonstration mode:
(1) Clearly indicate when that component is in the test,
diagnostic, or demonstration mode;
(2) Not alter financial data on that component other than temporary
data;
(3) Only be available after entering a specific mode;
(4) Disable credit acceptance and payment unless credit acceptance
or payment is being tested; and
(5) Terminate all mode-specific functions upon exiting a mode.
(h) Multigame. If multiple games are offered for player selection
at the player interface, the player interface must:
(1) Provide a display of available games;
(2) Provide the means of selecting among them;
(3) Display the full amount of the player's credit balance;
(4) Identify the game selected or being played; and
(5) Not force the play of a game after its selection.
(i) Program interruption and resumption. The Class II gaming system
software must be designed so that upon resumption following any
interruption, the system:
(1) Is able to return to a known state;
(2) Must check for any fault condition;
(3) Must verify the integrity of data stored in critical memory;
(4) Must return the purchase or wager amount to the player in
accordance with the rules of the game; and
(5) Must detect any change or corruption in the Class II gaming
system software.
(j) Class II gaming system components acting as progressive
controllers. This paragraph applies to progressive controllers and
components acting as progressive controllers in Class II gaming
systems.
(1) Modification of progressive parameters must be conducted in a
secure manner approved by the TGRA. Such parameters may include:
(i) Increment value;
(ii) Secondary pool increment(s);
(iii) Reset amount(s);
(iv) Maximum value(s); and
(v) Identity of participating player interfaces.
(2) The Class II gaming system component or other progressive
controller must provide a means of creating a progressive balancing
report for each progressive link it controls. At a minimum, that report
must provide balancing of the changes of the progressive amount,
including progressive prizes won, for all participating player
interfaces versus current progressive amount(s), plus progressive
prizes. In addition, the report must account for, and not be made
inaccurate by, unusual events such as:
(i) Class II gaming system critical memory clears;
(ii) Modification, alteration, or deletion of progressive prizes;
(iii) Offline equipment; or
(iv) Multiple site progressive prizes.
(k) Critical memory.
(1) Critical memory may be located anywhere within the Class II
gaming system. Critical memory is any memory that maintains any of the
following data:
(i) Accounting data;
(ii) Current credits;
(iii) Configuration data;
(iv) Last game play recall information required by Sec. 547.8(d);
(v) Game play recall information for the current game play, if
incomplete;
(vi) Software state (the last normal state software was in before
interruption);
(vii) RNG seed(s), if necessary for maintaining integrity;
(viii) Encryption keys, if necessary for maintaining integrity;
(ix) Progressive prize parameters and current values;
(x) The five most recent financial instruments accepted by type,
excluding coins and tokens;
(xi) The five most recent financial instruments dispensed by type,
excluding coins and tokens; and
(xii) The five most recent cashless transactions paid and the five
most recent cashless transactions accepted.
(2) Critical memory must be maintained using a methodology that
enables errors to be identified and acted upon. All accounting and
recall functions must be verified as necessary to ensure their ongoing
integrity.
(3) The validity of affected data stored in critical memory must be
checked after each of the following events:
(i) Every restart;
(ii) Each attendant paid win;
(iii) Each sensored door closure; and
(iv) Every reconfiguration, download, or change of prize schedule
or denomination requiring operator intervention or action.
(l) Secured access. Class II gaming systems that use a logon or
other means of secured access must include a user account lockout after
a predetermined number of consecutive failed attempts to access the
Class II gaming system.
Sec. 547.9 What are the minimum technical standards for Class II
gaming system accounting functions?
(a) Required accounting data. The following minimum accounting
data, however named, must be maintained by the Class II gaming system:
(1) Amount In: The total value of all financial instruments and
cashless transactions accepted by the Class II gaming system. Each type
of financial instrument accepted by the Class II gaming system must be
tracked independently per financial instrument acceptor, and as
required by applicable requirements of TGRA regulations that meet or
exceed the minimum internal control standards at 25 CFR part 543.
(2) Amount Out: The total value of all financial instruments and
cashless transactions paid by the Class II gaming system, plus the
total value of attendant pay. Each type of financial instrument paid by
the Class II Gaming System must be tracked independently per financial
instrument dispenser, and as required by applicable requirements of
TGRA regulations that meet or exceed the minimum internal control
standards at 25 CFR part 543.
(b) Accounting data storage. If the Class II gaming system
electronically maintains accounting data:
(1) Accounting data must be stored with at least eight decimal
digits.
(2) Credit balances must have sufficient digits to accommodate the
design of the game.
(3) Accounting data displayed to the player may be incremented or
decremented using visual effects, but the internal storage of this data
must be immediately updated in full.
(4) Accounting data must be updated upon the occurrence of the
relevant accounting event.
[[Page 32478]]
(5) Modifications to accounting data must be recorded, including
the identity of the person(s) making the modifications, and be
reportable by the Class II gaming system.
(c) Rollover. Accounting data that rolls over to zero must not
corrupt data.
(d) Credit balance display and function.
(1) Any credit balance maintained at the player interface must be
prominently displayed at all times except:
(i) In audit, configuration, recall and test modes; or
(ii) Temporarily, during entertaining displays of game results.
(2) Progressive prizes may be added to the player's credit balance
provided:
(i) The player credit balance is maintained in dollars and cents;
(ii) The progressive accounting data is incremented in number of
credits; or
(iii) The prize in dollars and cents is converted to player credits
or transferred to the player's credit balance in a manner that does not
mislead the player or cause accounting imbalances.
(3) If the player credit balance displays in credits, but the
actual balance includes fractional credits, the Class II gaming system
must display the fractional credit when the player credit balance drops
below one credit.
Sec. 547.10 What are the minimum standards for Class II gaming system
critical events?
(a) Fault events.
(1) The following are fault events that must be capable of being
recorded by the Class II gaming system:
------------------------------------------------------------------------
Event Definition and action to be taken
------------------------------------------------------------------------
(i) Component fault............... Reported when a fault on a component
is detected. When possible, this
event message should indicate what
the nature of the fault is.
(ii) Financial storage component Reported when a financial instrument
full. acceptor or dispenser includes
storage, and it becomes full. This
event message must indicate what
financial storage component is
full.
(iii) Financial output component Reported when a financial instrument
empty. dispenser is empty. The event
message must indicate which
financial output component is
affected, and whether it is empty.
(iv) Financial component fault.... Reported when an occurrence on a
financial component results in a
known fault state.
(v) Critical memory error......... Some critical memory error has
occurred. When a non-correctable
critical memory error has occurred,
the data on the Class II gaming
system component can no longer be
considered reliable. Accordingly,
any game play on the affected
component must cease immediately,
and an appropriate message must be
displayed, if possible.
(vi) Progressive communication If applicable; when communications
fault. with a progressive controller
component is in a known fault
state.
(vii) Program storage medium fault The software has failed its own
internal security check or the
medium itself has some fault. Any
game play on the affected component
must cease immediately, and an
appropriate message must be
displayed, if possible.
------------------------------------------------------------------------
(2) The occurrence of any event identified in paragraph (a)(1) of
this section must be recorded.
(3) Upon clearing any event identified in paragraph (a)(1) of this
section, the Class II gaming system must:
(i) Record that the fault condition has been cleared;
(ii) Ensure the integrity of all related accounting data; and
(iii) In the case of a malfunction, return a player's purchase or
wager according to the rules of the game.
(b) Door open/close events.
(1) In addition to the requirements of paragraph (a)(1) of this
section, the Class II gaming system must perform the following for any
component affected by any sensored door open event:
(i) Indicate that the state of a sensored door changes from closed
to open or opened to closed;
(ii) Disable all financial instrument acceptance, unless a test
mode is entered;
(iii) Disable game play on the affected player interface;
(iv) Disable player inputs on the affected player interface, unless
test mode is entered; and
(v) Disable all financial instrument disbursement, unless a test
mode is entered.
(2) The Class II gaming system may return the component to a ready
to play state when all sensored doors are closed.
(c) Non-fault events. (1) The following non-fault events are to be
acted upon as described below, if applicable:
------------------------------------------------------------------------
Event Definition
------------------------------------------------------------------------
(i) Player interface off during Indicates power has been lost during
play. game play. This condition must be
reported by the affected
component(s).
(ii) Player interface power on.... Indicates the player interface has
been turned on. This condition must
be reported by the affected
component(s).
(iii) Financial instrument storage Indicates that a financial
component container/stacker instrument storage container has
removed. been removed. The event message
must indicate which storage
container was removed.
------------------------------------------------------------------------
Sec. 547.11 What are the minimum technical standards for money and
credit handling?
(a) Credit acceptance, generally.
(1) Upon any credit acceptance, the Class II gaming system must
register the correct number of credits on the player's credit balance.
(2) The Class II gaming system must reject financial instruments
deemed invalid.
(b) Credit redemption, generally.
(1) For cashable credits on a player interface, players must be
allowed to cash out and/or redeem those credits at the player interface
except when that player interface is:
(i) Involved in the play of a game;
(ii) In audit mode, recall mode or any test mode;
(iii) Detecting any sensored door open condition;
(iv) Updating the player credit balance or total win accounting
data; or
(v) Displaying a fault condition that would prevent cash-out or
credit
[[Page 32479]]
redemption. In this case a fault indication must be displayed.
(2) For cashable credits not on a player interface, the player must
be allowed to cash out and/or redeem those credits at any time.
(3) A Class II gaming system must not automatically pay an award
subject to mandatory tax reporting or withholding.
(4) Credit redemption by voucher or coupon must conform to the
following:
(i) A Class II gaming system may redeem credits by issuing a
voucher or coupon when it communicates with a voucher system that
validates the voucher or coupon.
(ii) A Class II gaming system that redeems credits by issuing
vouchers and coupons must either:
(A) Maintain an electronic record of all information required by
paragraphs (b)(5)(ii) through (vi) of this section; or
(B) Generate two identical copies of each voucher or coupon issued,
one to be provided to the player and the other to be retained within
the electronic player interface for audit purposes.
(5) Valid vouchers and coupons from a voucher system must contain
the following:
(i) Gaming operation name and location;
(ii) The identification number of the Class II gaming system
component or the player interface number, as applicable;
(iii) Date and time of issuance;
(iv) Alpha and numeric dollar amount;
(v) A sequence number;
(vi) A validation number that:
(A) Is produced by a means specifically designed to prevent
repetition of validation numbers; and
(B) Has some form of checkcode or other form of information
redundancy to prevent prediction of subsequent validation numbers
without knowledge of the checkcode algorithm and parameters;
(vii) For machine-readable vouchers and coupons, a bar code or
other form of machine readable representation of the validation number,
which must have enough redundancy and error checking to ensure that
99.9% of all misreads are flagged as errors;
(viii) Transaction type or other method of differentiating voucher
and coupon types; and
(ix) Expiration period or date.
(6) Transfers from an account may not exceed the balance of that
account.
(7) For Class II gaming systems not using dollars and cents
accounting and not having odd cents accounting, the Class II gaming
system must reject any transfers from voucher payment systems or
cashless systems that are not even multiples of the Class II gaming
system denomination.
(8) Voucher redemption systems must include the ability to report
redemptions per redemption location or user.
Sec. 547.12 What are the minimum technical standards for downloading
on a Class II gaming system?
(a) Downloads.
(1) Downloads are an acceptable means of transporting approved
content, including but not limited to software, files, data, and prize
schedules.
(2) Downloads must use secure methodologies that will deliver the
download data without alteration or modification, in accordance with
Sec. 547.15(a).
(3) Downloads conducted during operational periods must be
performed in a manner that will not affect game play.
(4) Downloads must not affect the integrity of accounting data.
(5) The Class II gaming system must be capable of providing:
(i) The time and date of the initiation of the download;
(ii) The time and date of the completion of the download;
(iii) The Class II gaming system components to which software was
downloaded;
(iv) The version(s) of download package and any software
downloaded. Logging of the unique software signature will satisfy this
requirement;
(v) The outcome of any software verification following the download
(success or failure); and
(vi) The name and identification number, or other unique
identifier, of any individual(s) conducting or scheduling a download.
(b) Verifying downloads. Downloaded software on a Class II gaming
system must be capable of being verified by the Class II gaming system
using a software signature verification method that meets the
requirements of Sec. 547.8(f).
Sec. 547.13 What are the minimum technical standards for program
storage media?
(a) Removable program storage media. All removable program storage
media must maintain an internal checksum or signature of its contents.
Verification of this checksum or signature is to be performed after
every restart. If the verification fails, the affected Class II gaming
system component(s) must lock up and enter a fault state.
(b) Nonrewritable program storage media.
(1) All EPROMs and Programmable Logic Devices that have erasure
windows must be fitted with covers over their erasure windows.
(2) All unused areas of EPROMs must be written with the inverse of
the erased state (zero bits (00 hex) for most EPROMs), random data, or
repeats of the program data.
(3) Flash memory storage components intended to have the same
logical function as ROM, must be write-protected or otherwise protected
from unauthorized modification.
(4) The write cycle must be closed or finished for all CD-ROMs such
that it is not possible to write any further data to the CD.
(5) Write protected hard disks are permitted if the hardware means
of enabling the write protect is easily viewable and can be sealed in
place. Write protected hard disks are permitted using software write
protection verifiable by a testing laboratory.
(c) Writable and rewritable program storage media.
(1) Writable and rewritable program storage, such as hard disk
drives, Flash memory, writable CD-ROMs, and writable DVDs, may be used
provided that the software stored thereon may be verified using the
mechanism provided pursuant to Sec. 547.8(f).
(2) Program storage must be structured so there is a verifiable
separation of fixed data (such as program, fixed parameters, DLLs) and
variable data.
(d) Identification of program storage media. All program storage
media that is not rewritable in circuit, (EPROM, CD-ROM) must be
uniquely identified, displaying:
(1) Manufacturer;
(2) Program identifier;
(3) Program version number(s); and
(4) Location information, if critical (socket position 3 on the
printed circuit board).
Sec. 547.14 What are the minimum technical standards for electronic
random number generation?
(a) Properties. All RNGs must produce output having the following
properties:
(1) Statistical randomness;
(2) Unpredictability; and
(3) Non-repeatability.
(b) Statistical Randomness.
(1) Numbers or other designations produced by an RNG must be
statistically random individually and in the permutations and
combinations used in the application under the rules of the game. For
example, if a bingo game with 75 objects with numbers or other
designations has a progressive winning pattern of the five numbers or
other designations on the bottom of the card, and the winning of this
prize is defined to be the five numbers or other designations that are
matched in the
[[Page 32480]]
first five objects drawn, the likelihood of each of the 75C5
combinations are to be verified to be statistically equal.
(2) Numbers or other designations produced by an RNG must pass the
statistical tests for randomness to a 99% confidence level.
(i) Mandatory statistical tests for randomness include:
(A) Chi-square test;
(B) Runs test (patterns of occurrences must not be recurrent); and
(C) Serial correlation test potency and degree of serial
correlation (outcomes must be independent from the previous game).
(ii) Where applicable statistical tests for randomness may include:
(A) Equi-distribution (frequency) test;
(B) Gap test;
(C) Poker test;
(D) Coupon collector's test;
(E) Permutation test;
(F) Spectral test; or
(G) Test on subsequences.
(c) Unpredictability.
(1) It must not be feasible to predict future outputs of an RNG,
even if the algorithm and the past sequence of outputs are known.
(2) Unpredictability must be ensured by reseeding or by
continuously cycling the RNG, and by providing a sufficient number of
RNG states for the applications supported.
(3) Re-seeding may be used where the re-seeding input is at least
as statistically random as, and independent of, the output of the RNG
being re-seeded.
(d) Non-repeatability. The RNG may not be initialized to reproduce
the same output stream that it has produced before, nor may any two
instances of an RNG produce the same stream as each other. This
property must be ensured by initial seeding that comes from:
(1) A source of ``true'' randomness, such as a hardware random
noise generator; or
(2) A combination of timestamps, parameters unique to a Class II
gaming system, previous RNG outputs, or other, similar method.
(e) General requirements.
(1) Software that calls an RNG to derive game outcome events must
immediately use the output returned in accordance with the game rules.
(2) The use of multiple RNGs is permitted as long as they operate
in accordance with this section.
(3) RNG outputs must not be arbitrarily discarded or selected.
(4) Where a sequence of outputs is required, the whole of the
sequence in the order generated must be used in accordance with the
game rules.
(5) The Class II gaming system must neither adjust the RNG process
or game outcomes based on the history of prizes obtained in previous
games nor use any reflexive software or secondary decision that affects
the results shown to the player or game outcome.
(f) Scaling algorithms and scaled numbers. An RNG that provides
output scaled to given ranges must:
(1) Be independent and uniform over the range;
(2) Provide numbers scaled to the ranges required by game rules,
and notwithstanding the requirements of paragraph (e)(3) of this
section, may discard numbers that do not map uniformly onto the
required range but must use the first number in sequence that does map
correctly to the range;
(3) Be capable of producing every possible outcome of a game
according to its rules; and
(4) Use an unbiased algorithm and any bias must be reported to the
TGRA.
Sec. 547.15 What are the minimum technical standards for electronic
data communications between system components?
(a) Sensitive data. Communication of sensitive data must be secure
from eavesdropping, access, tampering, intrusion or alteration
unauthorized by the TGRA. Sensitive data includes, but is not limited
to:
(1) RNG seeds and outcomes;
(2) Encryption keys, where the implementation chosen requires
transmission of keys;
(3) PINs;
(4) Passwords;
(5) Financial instrument transactions;
(6) Transfers of funds;
(7) Player tracking information;
(8) Download Packages; and
(9) Any information that affects game outcome.
(b) Wireless communications.
(1) Wireless access points must not be accessible to the general
public.
(2) Open or unsecured wireless communications are prohibited.
(3) Wireless communications must be secured using a methodology
that makes eavesdropping, access, tampering, intrusion or alteration
impractical. By way of illustration, such methodologies include
encryption, frequency hopping, and code division multiplex access (as
in cell phone technology).
(c) Methodologies must be used that will ensure the reliable
transfer of data and provide a reasonable ability to detect and act
upon any corruption of the data.
(d) Class II gaming systems must record detectable, unauthorized
access or intrusion attempts.
(e) Remote communications must only be allowed if authorized by the
TGRA. Class II gaming systems must have the ability to enable or
disable remote access, and the default state must be set to disabled.
(f) Failure of data communications must not affect the integrity of
critical memory.
(g) The Class II gaming system must log the establishment, loss,
and re-establishment of data communications between sensitive Class II
gaming system components.
Sec. 547.16 What are the minimum standards for game artwork, glass,
and rules?
(a) Rules, instructions, and prize schedules, generally. The
following must at all times be displayed or made readily available to
the player upon request:
(1) Game name, rules, and options such as the purchase or wager
amount stated clearly and unambiguously;
(2) Denomination;
(3) Instructions for play on, and use of, the player interface,
including the functions of all buttons; and
(4) A prize schedule or other explanation, sufficient to allow a
player to determine the correctness of all prizes awarded, including;
(i) The range and values obtainable for any variable prize;
(ii) Whether the value of a prize depends on the purchase or wager
amount; and
(iii) The means of division of any pari-mutuel prizes; but
(iv) For Class II Gaming Systems, the prize schedule or other
explanation need not state that subsets of winning patterns are not
awarded as additional prizes (for example, five in a row does not also
pay three in a row or four in a row), unless there are exceptions,
which must be clearly stated.
(b) Disclaimers. The Player Interface must continually display:
(1) ``Malfunctions void all prizes and plays'' or equivalent; and
(2) ``Actual Prizes Determined by Bingo [or other applicable Class
II game] Play. Other Displays for Entertainment Only'' or equivalent.
(c) Odds notification. If the odds of winning any advertised top
prize exceeds 100 million to one, the Player Interface must display
``Odds of winning the advertised top prize exceeds 100 million to one''
or equivalent.
Sec. 547.17 How does a TGRA apply to implement an alternate standard
to those required by this part?
(a) TGRA approval.
(1) A TGRA may approve an alternate standard from those required by
this part if it has determined that the
[[Page 32481]]
alternate standard will achieve a level of security and integrity
sufficient to accomplish the purpose of the standard it is to replace.
(2) For each enumerated standard for which the TGRA approves an
alternate standard, it must submit to the Chair within 30 days, a
detailed report, which must include the following:
(i) An explanation of how the alternate standard achieves a level
of security and integrity sufficient to accomplish the purpose of the
standard it is to replace; and
(ii) The alternate standard as approved and the record on which the
approval is based.
(3) In the event that the TGRA or the tribe's government chooses to
submit an alternate standard request directly to the Chair for joint
government to government review, the TGRA or tribal government may do
so without the approval requirement set forth in paragraph (a)(1) of
this section.
(b) Chair Review.
(1) The Chair may approve or object to an alternate standard
granted by a TGRA.
(2) Any objection by the Chair must be in written form with an
explanation why the alternate standard as approved by the TGRA does not
provide a level of security or integrity sufficient to accomplish the
purpose of the standard it is to replace.
(3) If the Chair fails to approve or object in writing within 60
days after the date of receipt of a complete submission, the alternate
standard is considered approved by the Chair. The Chair may, upon
notification to the TGRA, extend this deadline an additional 60 days.
(4) No alternate standard may be implemented until it has been
approved by the TGRA pursuant to paragraph (a)(1) of this section or
the Chair has approved pursuant to paragraph (b)(1) of this section.
(c) Appeal of Chair decision. A Chair's decision may be appealed
pursuant to 25 CFR subchapter H.
Dated this 22nd of May 2012.
Tracie L. Stevens,
Chairwoman.
Steffani A. Cochran,
Vice-Chairwoman.
Daniel J. Little,
Commissioner.
[FR Doc. 2012-12992 Filed 5-31-12; 8:45 am]
BILLING CODE 7565-01-P