[Federal Register Volume 77, Number 184 (Friday, September 21, 2012)]
[Rules and Regulations]
[Pages 58473-58488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-23161]


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DEPARTMENT OF THE INTERIOR

National Indian Gaming Commission

25 CFR Part 547

RIN 3141-AA27


Minimum Technical Standards for Class II Gaming Systems and 
Equipment

AGENCY: National Indian Gaming Commission, Interior.

ACTION: Final rule.

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SUMMARY: The National Indian Gaming Commission (NIGC) is amending its 
technical standards to change the order of the first five sections; add 
definitions and amend existing definitions; amend requirements and time 
restrictions for grandfathered Class II gaming systems; 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; and clarify the term ``alternate standard.''

DATES: Effective Date: October 22, 2012.

FOR FURTHER INFORMATION CONTACT: Michael Hoenig, National Indian Gaming 
Commission, 1441 L Street NW., Suite 9100, Washington, DC 20005. 
Telephone: 202-632-7003; email: [email protected].

SUPPLEMENTARY INFORMATION:

I. 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 
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 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.

II. Previous Rulemaking Activity

    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 nominate tribal representatives to serve on a Tribal 
Advisory Committee (TAC) to assist the Commission in drafting changes 
to part 543 and these technical standards. 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. On January 12, 2011, as a result of those meetings, the 
TAC submitted a proposed part 547 regulation to the Commission.
    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. Considering the comments received in response to the 
discussion draft, the Commission published a Notice of Proposed 
Rulemaking (``NPRM'') on June 1, 2012. 77 FR 32465. The NPRM invited 
interested parties to participate in the rulemaking process by 
submitting comments and any supporting data to the NIGC by July 31, 
2012. After receiving several requests to extend the comment period, 
the Commission published notification in the Federal Register that it 
would do so by two weeks, establishing a new comment deadline of August 
15, 2012. 77 FR 43196.
    In addition to soliciting public comment in the Federal Register, 
the Commission also conducted an additional five tribal consultations 
to discuss the proposed rule with interested tribes and industry 
representatives. As with the discussion draft, the consultations and 
written comments have proven invaluable to the Commission in making 
needed amendments to the Class II technical standards.

[[Page 58474]]

III. Review of Public Comments

    In response to our Notice of Proposed Rulemaking, published June 1, 
2012, 77 FR 32465, we received the following comments.

General Comments

    Comment: A number of commenters made miscellaneous editorial 
suggestions not intended to change the substance of the technical 
standards but to improve sentence structure, correct grammar, and 
preserve consistency of usage throughout the document.
    Response: The Commission accepted all such changes where they 
improve clarity and editorial consistency, and these are reflected 
throughout the final rule. Substantive changes are addressed in the 
responses to comments below.
    Comment: A number of commenters recommended the Commission accept, 
without alteration, the draft of the Technical Standards provided to it 
by its tribal advisory committee. Other commenters recommended the 
Commission adopt a draft of the regulation prepared and submitted by 
the Tribal Gaming Working Group (``TGWG'').
    Response: The Commission greatly appreciates the assistance and 
advice of the TAC in developing these amendments to the technical 
standards. The Commission is also aware of the hours the TGWG put into 
its recommended part 547 and appreciates its participation in the 
process. After carefully reviewing those recommendations, and in 
several cases incorporating them into the NPRM and this final rule, the 
Commission declines to adopt either proposal whole-cloth.
    Comment: A few commenters suggested that the NIGC lacks authority 
to implement or enforce these standards.
    Response: The Commission, pursuant to IGRA, possesses the authority 
to adopt these technical standards. Congress expressed the concern 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 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).

Regulation Title

    Comment: One commenter suggested simplifying the title of part 547 
from Minimum Technical Standards for Gaming Equipment Used With the 
Play of Class II Games to the simpler title of Minimum Technical 
Standards for the Play of Class II Gaming Systems.
    Response: The Commission agrees the title for this part should be 
simplified. It declines to adopt the recommended title, though, because 
this part applies not only to Class II gaming systems, but to all 
equipment, including computer, electronic, or other technologic aids 
used with Class II games. The Commission instead has amended the part's 
title to Minimum Technical Standards for Class II gaming systems and 
equipment.

547.2 Definitions

    Comment: Several commenters recommended amending the definition of 
Agent to permit the use of computer applications to perform the 
function(s) of an agent.
    Response: The Commission declines to accept this recommendation. 
The term ``computer applications'' is undefined and potentially broad. 
Any hardware 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.
    Comment: One commenter asked the Commission to clarify that the 
definition of Reflexive software means that the Class II gaming system 
can never look at the historical activity or status of the game or 
player to deprive a player of an award or to declare a player a winner. 
The commenter distinguishes the awarding of a prize as a result of a 
reflexive decision by software from ``good neighbor'' awards that are 
not part of the pay-table which, according to the commenter, are 
``promotions.''
    Response: The commenter is correct that the definition of Reflexive 
software is not intended to encompass ``promotional awards'' made based 
on the player's accumulated ``player points'' or the player's 
membership in a casino player's club. Such awards are not based on the 
outcome of the game, but another set of factors separate and apart from 
the game results. Rather, the definition of Reflexive software is 
intended to encompass any decisions made by software that would change 
the outcome of the game. For example, a random ball draw produces a 
sequence of numbers that would entitle a player to the top advertised 
prize; then the system discards this sequence and replaces it with a 
new ball draw sequence whereby the patron wins a lower prize.
    Comment: Several commenters supported the removal of the definition 
of Proprietary Class II gaming component and the word ``proprietary'' 
from the definitions of Cashless system and Voucher system. The changes 
were first made in the discussion draft of part 547 published by the 
Commission, but removed from the NPRM. Commenters recommend, however, 
that the Commission reiterate and further clarify the reasons for 
including the new and changed definitions in the discussion draft in 
the first place, as well as the reason for removing it from the NPRM.
    Response: The Commission appreciates the comments in support of the 
change. The intended purpose of the new and amended definitions was to 
distinguish the common back of the house component systems that 
communicate with all Class II gaming systems, regardless of the 
manufacturer, from those components that work exclusively with one 
manufacturer's Class II system. An example of such a system is a Class 
II gaming system with a voucher functionality that only allows a patron 
to use a dispensed voucher on other electronic player interfaces on the 
same Class II gaming system, and not on electronic player interfaces 
from a different Class II gaming system at the same tribal gaming 
facility. Conversely, voucher systems that are part of a common back of 
the house system allow a dispensed voucher to be used on any electronic 
player interface at the same tribal gaming facility.
    Upon review of the standards, the Commission concluded that this 
definition is not necessary and has led to confusion. Therefore, it was 
removed from the proposed rule and not reinserted into this final rule.

547.3 Who is responsible for implementing these standards?

    Comment: Several commenters supported the NPRM's removal of 
language asserting that ``TGRAs also regulate Class II gaming,'' but 
advocate changing Sec.  547.3(a) to reflect that TGRAs are the primary 
regulators of Indian Gaming. Other commenters suggested that the 
Commission use this preamble to reiterate its position that tribes are 
the primary regulators of tribal gaming.
    Response: The Commission declines to insert the requested language 
into the regulation. The Commission agrees that tribes are the primary 
regulators of Indian gaming, but has never understood that to mean that 
the regulatory authority of a TGRA is superior to that of the NIGC. 
Rather, the

[[Page 58475]]

Commission recognizes 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.

547.4 What are the rules of general application for this part?

    Comment: Rather than require a game to meet a minimum odds 
requirement, these technical standards require that a player be 
informed if the odds of winning a top prize exceed 100 million to one. 
This change was made at the discussion draft stage, and comments were 
overwhelmingly supportive. One commenter, however, submitted comments 
in opposition to the change. The comment asserts that the NPRM's 
removal of a minimum odds requirement is not fair to the public. 
According to the comment, players have the right to expect that an 
advertised jackpot is winnable and the regulatory community has an 
obligation to protect that player's rights of expectation by 
establishing some minimum, guaranteed threshold. The commenter 
recommends reinserting a minimum odds requirement.
    Response: The Commission respectfully disagrees and declines to 
accept the commenter's suggestion. This amendment allows operations to 
increase advertised top prizes, but also gives the player the ability 
to make an informed decision regarding whether to play a game that may 
have a higher pay-out, but decreased odds of winning.

547.5 How does a tribal government, TGRA, or tribal gaming operation 
comply with this part?

    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 into compliance with 
the requirements of part 547 or removed from play.
    Comment: The Commission received several comments on the 
grandfathering provisions, the majority of which focused on the five 
year duration. Commenters unanimously opposed maintaining the sunset 
provision in the grandfather clause, citing serious negative financial 
impact of requiring the grandfathered systems to be brought into full 
compliance or removed from play. In response to questions posed by the 
NIGC in the NPRM, commenters submitted that withdrawing and replacing 
grandfathered systems could cost in the range of $46 million to $65.5 
million. One commenter asserts that twenty Oklahoma gaming tribes 
estimate that they will lose in excess of $82 million. One commenter 
also pointed out that, not only will a sunset provision have a 
significant economic impact in the future, many tribes have already 
spent millions of dollars developing and defending the legal status of 
the grandfathered games.
    Other commenters noted that grandfathered games are valid, legal 
games, which have never presented, nor do they now present a risk of 
any kind to either the tribes or patrons. Commenters stated that they 
do not understand how a game can be safe and reliable one day, but not 
the very next. According to these commenters, no evidence has been 
provided that grandfathered games present some hidden danger. If there 
is something wrong with a particular game, though, the TGRA will act to 
correct it.
    Other commenters point out that tribes obtained court decisions 
determining that certain grandfathered games are lawful Class II games. 
Some commenters request the NIGC include a provision explicitly stating 
that nothing in this part is intended to prohibit the continued use of 
any gaming system or component ruled to be Class II by any judicial 
rulings.
    In lieu of mandating grandfathered systems by removed by a specific 
date, other commenters suggested that a more reasoned regulatory 
approach would be one in which grandfathered Class II gaming systems 
are eliminated from operation through attrition and/or market forces. 
One commenter noted the Commission's calculation that such removal 
through attrition or market forces would have occurred within the five 
year sunset provision was clearly wrong.
    Response: The Commission appreciates all of the articulate, well 
reasoned comments it received on this issue. This, more than any other 
topic, has been the subject of long deliberation and analysis within 
the Commission. The Commission acknowledges that grandfathered machines 
have, for the most part, continued to operate with relatively few 
problems to the patron or the gaming operations. Nevertheless, lack of 
a major incident in the past does not mean that the grandfathered Class 
II gaming systems pose no risk to patrons and the gaming operation. For 
example, Sec.  547.15 of this Rule sets minimum requirements for 
security of sensitive data and wireless and wired communications. 
Because a grandfathered system does not need to meet this standard, 
there may be a risk of data being intercepted or tampered with, when 
that data is constantly being transmitted to/from equipment on the 
floor.
    The Commission agrees with commenters, however, that the prior 
Commission's analysis regarding the continued economic viability of the 
grandfathered systems has proven to be mistaken. The Commission 
established the five year sunset provision in the midst of a much 
stronger economy. In the time that has followed the economic downturn, 
though, many tribal gaming operations have set new priorities that may 
require keeping a grandfathered system on the gaming floor for a longer 
period of time.
    Balancing those economic needs against a risk that increases as 
technology advances and grandfathered machines remain static, the 
Commission extended the grandfathered system by an additional five 
years. Under this final rule, a grandfathered system may continue in 
operation until November 10, 2018.
    The Commission declines, however, to insert language conveying that 
nothing in this part is intended to prohibit the continued use of any 
gaming system or component ruled to be Class II by any judicial 
rulings. Including such a provision may lead to the false impression 
that this part is intended to address classification. It is not. 
Nothing in part 547 bears 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

[[Page 58476]]

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, 2018.
    Comment: Several commenters recommended removing the limitation in 
part 547 that only those systems manufactured before November 10, 2008 
may be submitted for certification for grandfathering. The commenters 
recommend that, instead, the Commission amend Sec.  547.5(b) to include 
as grandfathered games, all Class II gaming systems certified as 
grandfathered prior to the effective date of this final rule.
    Response: The Commission declines to adopt the commenters' 
suggestion to allow Class II gaming systems manufactured after November 
10, 2008 to be certified as grandfathered systems. When the current 
regulation was published in 2008, it was clear that any Class II gaming 
system manufactured from that date forward had to meet the minimum 
technical standards contained in part 547. As a result, there should 
not be any Class II gaming systems manufactured after November 10, 2008 
that do not meet those standards.
    The Commission understands, however, there are several Class II 
gaming systems manufactured before November 10, 2008 that may not have 
been submitted for grandfathering certification within 120 days of 
November 10, 2008, as the current rule requires. The Commission heard 
myriad reasons as to why a manufacturer or gaming operation may not 
have submitted systems for grandfathering certification. For example, 
Class II systems that, at the time, seemed unmarketable have once again 
become in demand for economic reasons. The Commission agrees that games 
that would otherwise be usable as grandfathered Class II system should 
be eligible for certification. For this reason, the Commission is 
reopening the time period to certify a Class II gaming system 
manufactured before November 10, 2008, as a grandfathered system.
    Comment: Several commenters raised a concern that, as written, 
Sec.  547.7(a) may require any Class II game system manufactured before 
November 10, 2008, regardless of whether the game is otherwise fully 
compliant with part 547, to be submitted for grandfather certification.
    Response: The Commission amended the language found in the NPRM to 
make clear that, if a game is fully compliant, it does not need to be 
submitted for certification pursuant to Sec.  547.5(a). The section now 
states, ``[a]ny Class II gaming system manufactured before November 10, 
2008, that is not already certified pursuant to this sub-section or 
compliant with paragraph (c) of this section may be made available for 
use at any tribal gaming operation if * * *''
    The Commission also amended the language of Sec.  547.5(b) to 
clarify that, if a grandfather system is brought into full compliance 
with this part, it is no longer considered a grandfathered system and 
the strictures of Sec. Sec.  547.5(a) and (b) no longer apply.
    Comment: Commenters requested adding a provision that ``nothing in 
this section is intended to prevent a TGRA from approving a 
grandfathered component to be added to a fully compliant Class II 
gaming system, or affect the certification of a fully compliant Class 
II gaming system.''
    Response: The Commission declines to adopt this suggestion. In the 
NPRM, the Commission asked for comments regarding repairs and 
modifications to Class II game systems. Specifically, the Commission 
wanted feedback on the effect of requiring all repairs, replacements, 
and modifications of grandfathered Class II gaming systems to be fully 
compliant with the regulations. Responses unanimously opposed any 
requirement that repairs or modifications be fully compliant. Upon 
considering those comments and deliberating, the Commission has left 
the repair, replacement, and modification sections as they are in the 
current rule. However, the goal of this part is to bring all Class II 
gaming systems further into compliance. Even the current regulation 
requires a modification, at a minimum, to maintain or advance the 
system's compliance with this part. To allow a grandfathered component 
to be added to a fully compliant system would work against that goal by 
allowing a system to be regressively modified, bringing it further out 
of, rather than into, compliance with these regulations. If a 
grandfathered component is added to an otherwise fully compliant Class 
II gaming system, that system ceases to be fully compliant.
    Comment: Section 547.5(a)(7) of the NPRM requires a supplier of any 
player interface to designate each player interface with a permanently 
affixed label containing an identifying number and the date of 
manufacture. Commenters assert that this language may limit technology 
by eliminating the potential use of a consumer handheld device that is 
not distributed by the Class II game manufacturer or supplier. 
Commenters recommend that the proposed rule be modified to clarify that 
such a label is not required in the case of consumer devices such as 
mobile devices and tablets.
    Response: The Commission appreciates the commenters' concern, but 
stresses the importance of the requirement that every player interface 
contain this information. Ensuring that this information is displayed 
somewhere on the player interface protects both the player and the 
gaming operation. This is especially true when the player interface is 
as easily interchangeable as a handheld device or tablet. However, to 
lessen the potential burden on these devices, the Commission has 
changed the provision, now found in Sec.  547.5(b), to require that the 
player interface ``exhibit information consistent with Sec.  547.7(d) 
of this part and any other information required by the TGRA.'' The 
provision no longer requires a ``permanently affixed label'' thereby 
giving the manufacturer or supplier additional options for ensuring 
that the information is displayed.
    Comment: Section 547.5(c)(4) of the NPRM requires the test lab to 
confirm that ``the operation of each player interface has been 
certified that it will not be compromised or affected by'' certain 
events. Commenters point out, however, that testing labs do not test 
each player interface that is added to the gaming floor, but rather 
models of the player interface. Commenters request that the Commission 
amend this section to clarify that it does not require every player 
interface to undergo testing.
    Response: The Commission agrees with the commenters and has changed 
the section to specify that the testing laboratory's written report 
confirms that ``the operation of a player interface prototype has been 
certified.''

547.7 What are the minimum technical hardware standards applicable to 
Class II gaming systems?

    Comment: One commenter suggested that the words ``designed to be'' 
should be inserted into the beginning of Sec.  547.7(f) of the NPRM so 
that the section reads as follows: ``Any class II gaming system 
components that store financial instruments and that are not designed 
to be operated * * *.''
    Response: The Commission declines to adopt this recommendation, but 
acknowledges that the section is confusing as drafted in the NPRM. To 
clarify that this is a technical standard capable of being tested, 
rather than a control standard that belongs in part 543, the Commission 
has changed the section to read:
    ``Any financial instrument storage components managed by Class II 
gaming system software must be located within

[[Page 58477]]

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.''

547.8 What are the minimum technical software standards applicable to 
Class II gaming systems?

    Comment: Several commenters expressed concern that the section's 
prohibition of any automatic changes to game rules may operate to limit 
the use of certain technologies that may otherwise provide for full and 
clear disclosure of all rules and any changes thereof.
    Response: The Commission changed Sec.  547.8(b)(1) of the NPRM to 
state: ``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 undisclosed changes 
of rules.'' Although the Commission still believes that there should be 
no automatic rule changes, it believes that the first sentence of the 
section adequately addresses its concern. By requiring each game to 
``follow and not deviate from a constant set of rules for each game,'' 
it clearly prohibits the game from changing the rules given to the 
player pursuant to Sec.  547.16.
    Comment: When the Commission published the discussion draft of 
these standards, it carried over the current regulation's requirement 
found in Sec.  547.8(k)(3) that the validity of affected data stored in 
critical memory must be checked after certain events. The current 
regulation and discussion draft included both ``each attendant paid 
win'' and ``each attendant paid progressive win'' in that list of 
events. In response to the discussion draft, the Commission received a 
comment suggesting that it delete the reference to attendant paid 
progressive wins, as each attendant paid progressive win is just a 
subset of ``each attendant paid win,'' which is already noted in 
subparagraph (ii). The Commission initially agreed with the commenter, 
striking the requirement from the NPRM as redundant. Upon further 
review, however, and as the result of internal discussions, the 
Commission is reinstating the requirement.
    ``Attendant paid win'' does not encompass ``attendant paid 
progressive wins.'' They are industry terms that have separate and 
distinct meanings. For example, Arizona Class III gaming compacts 
require that an attendant paid jackpot meter ``shall not accumulate 
progressive amounts,'' because attendant paid progressive payouts are 
recorded separately. As a result, if the Commission leaves ``each 
attendant paid progressive win'' off of the list of events that trigger 
a check of the affected data, it would be leaving a gap in the testing 
standards for critical memory. Therefore, the Commission has reinserted 
the requirement in this final rule.
    Comment: Section 547.8 of the current technical standards contains 
certain requirements regarding 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 that the entertaining display 
be included in the last game recall.
    The NPRM 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. One commenter, however, 
opposed this change. The commenter suggested that the revision to Sec.  
547.8(a)(2)(ii) would require the game display to ``go blank'' between 
games.
    The commenter 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.
    Response: The Commission respectfully disagrees. The standard, as 
proposed, does not require a blank screen. It 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.
    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 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.

547.12 What are the minimum technical standards for downloading on a 
Class II gaming system?

    Comment: The proposed rule removed the requirement from Sec.  
547.12 that the TGRA authorize all downloads by a 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. In the NPRM, the 
Commission reiterated that, as stated in Sec.  547.3(a), the Commission 
recognizes that the TGRA regulates technical standards and, 
accordingly, may implement stricter standards. One commenter to the 
NPRM, however, stated that although they understand that the TGRA has 
the authority to require restrictions to control software downloads, 
the purpose of including this requirement in the technical standard is 
to ensure that manufacturers implement processes in the design of their 
products. According to the commenter, these standards should 
incorporate controls over digital content as part of the design of 
Class II systems rather than implement awkward or ineffective controls 
after the fact. According to the commenter, the original intent of the 
standard was to ensure control over downloadable content until the TGRA 
has performed an independent software authentication.
    Response: The Commission agrees with the commenter that controls 
must be incorporated to ensure control over downloadable content until 
the TGRA has performed an independent software authentication. But the 
Commission also believes that Sec.  547.12, as included in the NPRM, 
establishes those controls. The NPRM removed the requirement that 
downloads be conducted only as authorized by the TGRA. The Commission 
continues to believe that the download authorization requirement is an 
internal control that belongs in

[[Page 58478]]

part 543, where it has been relocated. The remaining requirements in 
Sec.  547.12 ensure control over the downloaded information in multiple 
ways. The standard requires each system to use secure methodologies in 
delivering the downloaded data, and provide information that the TGRA 
will need when making its decision to approve or disapprove use of 
downloaded information. The standard also requires that any downloaded 
game software be capable of being verified by the Class II gaming 
system. All of these requirements provide the TGRA with the information 
necessary to exercise its authority, as required by the part 543 
Minimum Internal Control Standards, to approve downloads.

547.14 What are the minimum technical standards for electronic random 
number generation?

    Comment: Several commenters noted that changes made to Sec.  
547.14(b)(2) regarding random number generation (``RNG'') could 
negatively impact Class II gaming. According to the commenters, the 
current rule permits the use of various discretionary RNG tests. The 
proposed rule, however, mandated three specific tests. Although in many 
instances a Class II gaming system that has already been certified as 
compliant may have performed these now mandatory tests, other systems 
may not have been certified because the tests were not previously 
required. Thus, this new requirement may necessitate recertification of 
a fully compliant system at a substantial cost and inconvenience to 
tribal gaming operations. The commenters recommended either restoring 
the wording of the current rule or including language to clarify that 
these new requirements are not applicable to previously certified Class 
II gaming systems.
    Response: The Commission agrees with the commenters and has 
restored the wording of Sec.  547.14(b)(2) to that of the current rule. 
The change to three mandatory RNG tests was made after discussions with 
the TAC, and was based on the fact that the Commission was informed 
that these three tests were nearly always performed as a matter of 
course and should be made mandatory. However, the Commission 
acknowledges that this change would create an additional testing 
requirement and run the risk of decertifying several machines. Rather 
than making the mandatory testing requirement prospective, thereby 
creating a third category of certified games (those certified as 
grandfathered, those certified as fully compliant prior to the 
effective date without the mandatory RNG tests, and those certified as 
fully compliant after the effective date with the mandatory RNG test), 
the Commission restored the language of the current rule, and all tests 
are discretionary. The Commission reminds TGRAs, however, that these 
are minimum standards--a TGRA may require that any of the tests be 
performed as part of the certification process.
    Comment: Several commenters expressed concern about Sec.  547.14(f) 
of the NPRM, which requires an RNG that provides output scaled to given 
ranges to use an unbiased algorithm. The current regulation specifies 
that a scaling algorithm is considered to be unbiased if the measured 
bias is no greater than 1 in 100 million. This ratio was later updated 
by NIGC bulletin to 1 in 50 million. The NPRM, however, changed the 
standard to require that the RNG use an unbiased algorithm and any bias 
be reported to the TGRA. Commenters assert that this is an unrealistic 
or untestable standard. In support, commenters point out that requiring 
any bias is a maximum standard, not minimum. Commenters also note that, 
because there will always be some--often insignificant--measure of 
bias, the standard will require near constant reporting to the TGRA.
    Response: The Commission agrees with the commenters and has 
restored the current regulation's standard. The rule still requires the 
RNG to use an unbiased algorithm, but specifies that a scaling 
algorithm is unbiased if the measured bias is no greater than 1 in 50 
million. As the Commission previously explained in Bulletin 2008-4, 
this bias standard adequately protects the statistical randomness of 
the number generator.
    Comment: Commenters suggest that the Sec.  547.16(b) requirement 
that player interfaces continually display disclaimers is burdensome 
and unfeasible in smaller devices such as hand held devices. A 
suggested option is to include alternate language requiring the 
disclaimer to be displayed only until acknowledged by the player.
    Response: The Commission declines to adopt this recommendation. 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.

547.17 How does a TGRA apply to implement an alternate minimum standard 
to those required by this part?

    Comment: Section 547.17 permits a TGRA to approve an alternate 
standard to those set out in this part. That alternate standard, 
however, is subject to the review and approval of the NIGC Chair. To 
facilitate that review, the TGRA must submit (1) a detailed report to 
the NIGC, which must include 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 (2) the 
alternate standard, as approved, and the record upon which it is based. 
Some commenters stated that these two requirements are redundant and 
the ``record upon which [the alternate standard] is based'' will 
necessarily include the detailed statement.
    Response: The Commission disagrees. The first requirement is a 
statement from the TGRA to the Commission about the standard as 
approved, while the second requirement is the standard itself and all 
of the documents and information the TGRA used in deciding whether to 
grant the alternate standard.
    Comment: A few commenters asked for the standard be changed to 
clarify that the TGRA can implement the alternate standard as soon as 
it is approved by the TGRA.
    Response: The Commission has amended Sec.  547.17(a) to include the 
statement that a gaming operation may implement an alternate standard 
upon TGRA approval subject to the Chair's decision pursuant to sub-
section (b). The Commission believes that this language makes clear 
that an alternate standard may be implemented upon TGRA approval. To 
further alleviate any potential confusion regarding the alternate 
standard process, the Commission has also added language specifying 
that, if the Chair approves an alternate standard, the gaming operation 
may continue to operate accordingly. The rule now also specifies, 
however, that, if the Chair objects to the alternate standard, the 
gaming operation must cease using the alternate standard and must 
follow the applicable minimum technical standard.
    Finally, this final rule clarifies that the TGRA may appeal the 
Chair's decision to approve or object to an alternate standard pursuant 
to 25 CFR subchapter H. The Commission believes that, because the rule 
requires the TGRA to approve and submit the alternate standard for NIGC 
review, the TGRA should be the entity to appeal a Chair decision it 
disagrees with.

IV. Regulatory Matters

Regulatory Flexibility Act

    The rule will not have a significant impact on a substantial number 
of small

[[Page 58479]]

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 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 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 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 rule does not unduly burden the judicial system and 
meets the requirements of sections 3(a) and 3(b)(2) of the Order.

National Environmental Policy Act

    The Commission has determined that the 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 
3141-0014 which expired. The NIGC is in the process of reinstating that 
Control Number. The final rule does not require any significant changes 
in information collection under the Paperwork Reduction Act of 1995, 44 
U.S.C. 3501 et seq.

List of Subjects in 25 CFR Part 547

    Gambling, Indian--Indian lands, Indian--tribal government.


0
For the reasons set forth in the preamble, the NIGC revises 25 CFR part 
547 as follows:

PART 547--MINIMUM TECHNICAL STANDARDS FOR CLASS II GAMING SYSTEMS 
AND EQUIPMENT

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 minimum 
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 and help screens.
    Agent. A person authorized by the tribal gaming operation, as 
approved by the TGRA, to make decisions or to perform tasks or actions 
on behalf of the tribal gaming operation.
    Audit mode. The mode in which it is possible to view Class II 
gaming system accounting functions and statistics and perform non-
player-related functions.
    Cancel credit. An action initiated by the Class II gaming system by 
which 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 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

[[Page 58480]]

system for such purposes as changing the component software.
    DVD. Digital Video Disk or Digital Versatile Disk.
    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.
    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.
    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 
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 tribal 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(s) 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 a 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 be used only 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. Gaming 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 should 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. A 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 gaming 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

[[Page 58481]]

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) Grandfathered gaming systems: Any Class II gaming system 
manufactured before November 10, 2008, that is not already certified 
pursuant to this sub-section or compliant with paragraph (c) of this 
section may be made available for use at any tribal gaming operation 
if:
    (1) The TGRA submits the Class II gaming system software that 
affects the play of the Class II game, 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 October 22, 2012;
    (2) The testing laboratory tests the submission to the standards 
established by Sec.  547.8(b), Sec.  547.8(f), Sec.  547.14, and any 
additional technical standards adopted by the TGRA;
    (3) The testing laboratory provides the TGRA with a formal written 
report setting forth and certifying to the findings and conclusions of 
the test;
    (4) The TGRA makes 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. A TGRA may make such a finding 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 must immediately be removed from play and 
not be utilized.
    (5) The TGRA retains 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; and
    (6) The TGRA retains a copy of any certificate of grandfather 
status so long as the Class II gaming system that is the subject of the 
certificate remains available to the public for play.
    (b) Grandfather provisions. All Class II gaming systems 
manufactured on or before November 10, 2008, that have been 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 ten years from November 10, 2008.
    (2) Grandfathered Class II gaming systems may only be used as 
approved by the TGRA. The TGRA must transmit its notice of that 
approval, identifying the grandfathered Class II gaming system and its 
components, to the Commission.
    (3) Remote communications may only be allowed if authorized by the 
TGRA.
    (4) 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.
    (5) 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.  547.4(a), 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 Class II gaming 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 must 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 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).
    (6) The player interface must exhibit information consistent with 
Sec.  547.7(d) and any other information required by the TGRA.
    (7) If a grandfathered Class II gaming system is approved pursuant 
to paragraph (c) of this section, it ceases to be a grandfathered 
system and the restrictions of paragraph (a) and (b) of this section no 
longer apply.
    (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 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 its findings 
and conclusions, and noting compliance with any standard established by 
the TGRA pursuant to paragraph (c)(2)(iii) of this section;
    (4) The testing laboratory's written report confirms that the 
operation of a player interface prototype 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:
    (i) This part;
    (ii) Any applicable provisions of part 543 of this chapter that are 
testable by the testing laboratory; and
    (iii) The TGRA.
    (6) The TGRA retains a copy of the testing laboratory's report 
required by paragraph (c) of this section for as 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 tribal gaming operation.
    (d) Emergency hardware and software modifications. (1) A TGRA, in 
its

[[Page 58482]]

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 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.  
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 exhibit a 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

[[Page 58483]]

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 financial 
instrument storage components managed by Class II gaming system 
software 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 a financial instrument 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 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 tribal gaming operation 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 tribal gaming operation 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 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, 
or while in test, audit, or lock-up mode.
    (4) Each player must initiate his or her participation in the play 
of a game.
    (c) Audit mode. (1) If an audit mode is provided, the Class II 
gaming system must, for those components actively involved in the 
audit:
    (i) Provide 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;

[[Page 58484]]

    (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 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. For 
example, 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 paragraph (d) of 
this section;
    (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 attendant paid progressive win;
    (iv) Each sensored door closure; and
    (v) Every reconfiguration, download, or change of prize schedule or 
denomination requiring operator intervention or action.

[[Page 58485]]

    (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.
    (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 that:
    (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         Reported when a financial instrument
 component full.                acceptor or dispenser includes storage,
                                and it becomes full. This event message
                                must indicate what financial storage
                                component is full.
(iii) Financial output         Reported when a financial instrument
 component empty.               dispenser is empty. The event message
                                must indicate which financial output
                                component is affected, and whether it is
                                empty.
(iv) Financial component       Reported when an occurrence on a
 fault.                         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               If applicable; when communications with a
 communication fault.           progressive controller component is in a
                                known fault state.
(vii) Program storage medium   The software has failed its own internal
 fault.                         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. The following non-fault events are to be 
acted upon as described below, if applicable:

[[Page 58486]]



------------------------------------------------------------------------
            Event                              Definition
------------------------------------------------------------------------
(1) Player interface off       Indicates power has been lost during game
 during play.                   play. This condition must be reported by
                                the affected component(s).
(2) Player interface power on  Indicates the player interface has been
                                turned on. This condition must be
                                reported by the affected component(s).
(3) Financial instrument       Indicates that a financial instrument
 storage component container/   storage container has been removed. The
 stacker removed.               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 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) Tribal 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 systems or cashless 
systems that are not even multiples of the Class II gaming system 
denomination.
    (8) Voucher 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

[[Page 58487]]

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 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, which may 
include:
    (i) Chi-square test;
    (ii) Runs test (patterns of occurrences must not be recurrent); and
    (iii) Serial correlation test potency and degree of serial 
correlation (outcomes must be independent from the previous game).
    (iv) Equi-distribution (frequency) test;
    (v) Gap test;
    (vi) Poker test;
    (vii) Coupon collector's test;
    (viii) Permutation test;
    (ix) Spectral test; or
    (x) 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. A scaling algorithm is considered to 
be unbiased if the measured bias is no greater than 1 in 50 million.


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 may 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:

[[Page 58488]]

    (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 minimum 
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 
alternate standard will achieve a level of security and integrity 
sufficient to accomplish the purpose of the standard it is to replace. 
A gaming operation may implement an alternate standard upon TGRA 
approval subject to the Chair's decision pursuant to paragraph (b) of 
this section.
    (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 approved by a TGRA.
    (2) If the Chair approves the alternate standard, the Tribe may 
continue to use it as authorized by the TGRA.
    (3) If the Chair objects to the alternate standard, the operation 
may no longer use the alternate standard and must follow the relevant 
technical standard set forth in this part.
    (4) 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.
    (5) 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.
    (c) Appeal of Chair decision. A TGRA may appeal the Chair's 
decision pursuant to 25 CFR chapter III, subchapter H.

    Dated: September 14, 2012, Washington, DC.
Tracie L. Stevens,
Chairwoman.
Steffani A. Cochran,
Vice-Chairwoman.
Daniel J. Little,
Commissioner.
[FR Doc. 2012-23161 Filed 9-20-12; 8:45 am]
BILLING CODE 7565-01-P