[Federal Register Volume 64, Number 217 (Wednesday, November 10, 1999)]
[Proposed Rules]
[Pages 61234-61236]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-29103]
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NATIONAL INDIAN GAMING COMMISSION
25 CFR Part 504
RIN 3141-AA04
Classification of Games
AGENCY: National Indian Gaming Commission.
ACTION: Proposed rule.
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SUMMARY: The National Indian Gaming Commission (Commission) proposes
regulations which will establish a formal process for the
classification of games played on Indian lands under the Indian Gaming
Regulatory Act (Act). These regulations would require that the
Commission decide that a game is a Class II game before it authorizes
the play of such game in a Class II gaming operation. It also allows
for a transition period to implement this process.
DATES: Comments may be submitted on or before January 10, 2000.
ADDRESSES: Comments may be mailed to: Game Classification Comments,
National Indian Gaming Commission, 1441 L Street, NW, Suite 9100,
Washington, DC 20005, delivered to that address between 8:30 a.m. and
5:30 p.m., Monday through Friday, or faxed to 202/632-7066 (this is not
a toll-free number). Comments received may be inspected between 9 a.m.
and noon, and between 2 p.m. and 5 p.m., Monday through Friday.
FOR FURTHER INFORMATION CONTACT: Penny J. Coleman at 202/632-7003; fax
202/632-7066 (these are not toll-free numbers).
SUPPLEMENTARY INFORMATION: The Indian Gaming Regulatory Act (IGRA, or
the Act), enacted on October 17, 1988, established the National Indian
Gaming Commission (Commission). Under the Act, the Commission is
charged with regulating class II gaming and certain aspects of class
III gaming on Indian lands. The regulations proposed today would
establish a formal, administrative process for deciding whether a game
is a Class II or III game and allow the Commission to discontinue the
current advisory classification opinion process.
Regulatory Flexibility Act
This proposed rule will not have a significant economic impact on a
substantial number of small entities under the Regulatory Flexibility
Act, 5 U.S.C. 601 et seq. Because this rule is procedural in nature, it
will not impose substantive requirements that could be deemed impacts
within the scope of the Act.
Paperwork Reduction Act
The Commission is in the process of obtaining clearance from the
Office of Management and Budget (OMB) for the information collection
requirements contained in this proposed rule, as required by 44 U.S.C.
3501 et seq. The information required to be submitted is identified in
sections 504.6, 504.7 and 504.8. The information will be used to
determine whether a game can be classified as a Class II or III game or
a nongambling game and whether the continued play of the games remains
consistent with the classification decisions issued by the Commission.
The public reporting burden for this collection of information is
estimated to average 10 hours per game classification request,
including the time for reviewing instructions, gathering and
maintaining the data needed, and completing and reviewing the
collection of information. The Commission estimates that, during the
first two years of the implementation of this regulatory process,
approximately 50 requests for classification decisions will be filed
each year, for an annual burden of 500 hours. After the first two
years, the Commission estimates that approximately 20 requests for
classification decisions will be filed each year, for an annual burden
of 200 hours.
Send comments regarding this collection of information, including
suggestions for reducing the burden to both, Penny Coleman, National
Indian Gaming Commission, 1441 L Street NW, Suite 9100, Washington, DC
20005; and to the Office of Information and Regulatory Affairs, Office
of Management and Budget, Washington, DC 20503. The Office of
Management and Budget (OMB) has up to 60 days to approve or disapprove
the information collection, but may respond after 30 days; therefore
public comments should be submitted to OMB within 30 days in order to
assure their maximum consideration.
The Commission solicits public comment as to:
a. Whether the collection of information is necessary for the
proper performance of the functions of the Commission, and whether the
information will have practical utility;
b. The accuracy of the Commission's estimate of the burden of the
collection of information, including the validity of the methodology
and assumptions used;
c. The quality, utility, and clarity of the information to be
collected; and
d. How to minimize the burden of the collection of information on
those who are to respond, including the use of appropriate automated
electronic, mechanical, or other forms of information technology.
An agency may not conduct, and a person is not required to, respond
to a collection of information unless it displays a currently valid OMB
control number.
National Environmental Policy Act
The Commission has determined that this proposed rule does not
constitute a major Federal action significantly affecting the quality
of the human environment and that no detailed statement is required
pursuant to the National Environmental Policy Act of 1969.
Montie R. Deer,
Chairman, National Indian Gaming Commission.
List of Subjects in 25 CFR Part 504
Gambling, Indians-lands, Reporting and recordkeeping requirement.
For the reasons stated in the preamble, the National Indian Gaming
Commission proposes to amend 25 CFR by adding a new Part 504 as
follows:
PART 504--CLASSIFICATION OF GAMES
Sec.
504.1 What does this part cover?
504.2 What is a classification decision and who may apply for it?
504.3 Why must a tribe apply for or sponsor the application for a
classification decision?
504.4 Can a tribe rely on a decision issued to another tribe?
[[Page 61235]]
504.5 When must a tribe apply for or sponsor the application for a
classification decision?
504.6 Will a tribe be required to discontinue all of its existing
games which are not subject to a tribal-state compact or Class III
gaming procedures issued by the Secretary of the Interior until the
Commission issues a classification decision?
504.7 How does a tribe or person apply for a classification
decision?
504.8 Will any additional information be required?
504.9 Are there any additional requirements for games which employ
machines?
504.10 Will games be field tested?
504.11 What is required of a tribe or person who merely seeks a
modification of a game which is already the subject of a
classification decision?
504.12 Must a tribe or person seek a classification decision on a
game which it alleges is a game of skill?
504.13 Is there an opportunity for public comment on a request for
a gaming classification before a decision is made by the Chairman?
504.14 How does a tribe or person appeal a classification decision
with which it does not agree?
504.15 Will the tribe or person have an opportunity to demonstrate
its game to the Commission?
Authority: 25 U.S.C. 2701-2721.
Sec. 504.1 What does this part cover?
This part establishes the process for determining whether a game
played under the Indian Gaming Regulatory Act constitutes a Class II or
III game as defined in part 502 of this chapter. It is intended to
identify which games are class II and therefore subject to tribal and
Commission jurisdiction and to assure that gaming operations do not
play Class III games except under a tribal-state compact or Class III
gaming procedures issued by the Secretary of the Interior.
Sec. 504.2 What is a classification decision and who may apply for it?
A classification decision is a determination that a game falls
within Class II or III or is a game that is not subject to the Indian
Gaming Regulatory Act. Tribes or their designated representatives may
apply for a classification decision. Persons who own or provide
individual games to tribes may also apply for a classification decision
so long as the persons are sponsored by a tribe.
Sec. 504.3 Why must a tribe apply for or sponsor the application for a
classification decision?
Tribes shall not offer games on Indian lands without a
classification decision which concludes that the game is a Class II
game unless the game is offered pursuant to a tribal-state compact or
Class III gaming procedures issued by the Secretary of the Interior.
Tribes are subject to enforcement action by the Chairman if they offer
games as Class II without a classification decision.
Sec. 504.4 Can a tribe rely on a classification decision issued to
another?
Classification decisions which are issued to a tribe or person but
applicable to others can be relied on by other tribes unless:
(a) The games are not exactly the same;
(b) It is a card game in a state different from where the applying
or sponsoring tribe is located; or
(c) The game otherwise violates federal law.
Sec. 504.5 When must a tribe apply for or sponsor the application for
a classification decision?
A tribe shall apply for a classification decision:
(a) If a tribe wishes to continue playing a Class II game it was
playing as of [the effective date of the final rule], or
(b) When a tribe wants to introduce a new game into its Class II
gaming operation.
Sec. 504.6 Will a tribe be required to discontinue all of its existing
games which are not subject to a tribal-state compact or Class III
gaming procedures issued by the Secretary of the Interior until the
Chairman issues a classification decision?
A tribe will be required to discontinue existing games if:
(a) It fails to submit a completed application for a classification
decision within six months of [the effective date of the final rule],
and it fails to pursue diligently a decision by providing all required
information, or
(b) The tribe is otherwise notified that the game is not a class II
game.
Sec. 504.7 How does a tribe or person apply for a classification
decision?
(a) A tribe must submit the following to the Chairman:
(1) A designation of an agent who is authorized to provide
additional information if required;
(2) A request for a classification decision;
(3) A designation of whether and where the game is already in play;
(4) A complete description of the game including the operational
characteristics and rules of the game;
(5) A complete description of the method used for betting, paying
winners, paying the house, banking or nonbanking of the game and
funding jackpots;
(6) A separate description of the game and method used for betting,
paying winners, paying the house, banking or nonbanking of the game and
funding jackpots, which description shall be provided to persons or
entities seeking to comment on the classification of the game;
(7) Copy of any sales or promotional literature,
(8) For games that use machines;
(i) (For games already in play) a complete list of the serial
numbers or other identifiers of each machine;
(ii) A videotape depicting the play of the entire game;
(iii) A report of laboratory test(s) which were conducted to
support the application; and
(iv) An example of each of the memory storage chips (EPROM) or
devices used to control the game play in the machine and a paper print
out of the code contained in each chip or device with sufficient
programmer's notes to facilitate rapid analysis of the code; and
(9) For card games, a statement with supporting materials
explaining how the game meets the standard described in 25 CFR
502.3(c).
(b) In addition to the information contained in paragraph (a) of
this section, a person applying for a classification decision shall
submit a letter, signed by an authorized tribal official, indicating
that the tribe sponsors the person's application.
Sec. 504.8 Will any additional information be required?
Upon request, the tribe or person may be required to provide:
(a) A live demonstration of the game;
(b) A prototype of any games which use machines; and
(c) Any further information or clarification the Chairman
determines he requires.
Sec. 504.9 Are there any additional requirements for games which
employ machines?
After a game has been classified, a tribe shall provide a serial
number and description of each machine which is in use and shall
certify that each such machine is identical in every respect to the
game which was classified by the Chairman.
Sec. 504.10 Will games be field tested?
(a) A preliminary, nonbinding classification decision may be made
to allow for a field test. If such nonbinding decision is made, a tribe
may be permitted to operate one or more of the games at a licensed
gaming operation for no more than 180 days under such terms and
conditions as the Chairman may approve or require.
[[Page 61236]]
(b) The Chairman may order a termination of the test period, if he
determines, in his sole and absolute discretion, that applicant tribe
or person, the manufacturer or developer of the game or the licensed
gaming operation has not complied with the terms and conditions of the
testing period or if he determines that the game is not Class II.
Sec. 504.11 What is required of a tribe or person who merely seeks a
modification of a game which is already the subject of a classification
decision?
A tribe or person shall submit a request for a classification
decision on the game which is subject to the modifications by providing
a detailed description of the modification and how the modification
affects the game. A person shall also submit a letter, signed by an
authorized tribal official, indicating that the tribe sponsors the
person's application for a modification.
Sec. 504.12 Must a tribe or person seek a classification decision on a
game which it alleges is a game of skill?
A tribe or person shall follow the same process for receiving a
classification decision as is used for other games in this part.
Sec. 504.13 Is there an opportunity for public comment on a request
for a gaming classification before a decision is made by the Chairman?
The Commission will include on its Internet site and its telephonic
fax-on-demand documents a listing of games for which it is considering
a classification. Games will appear on this listing for thirty (30)
days whenever practicable. Any individual may request a description of
a particular game from the Commission during this period and offer
written comment which will then be considered by the Chairman before a
classification decision is reached on that particular game.
Sec. 504.14 How does a tribe or person appeal a classification
decision with which it does not agree?
(a) Within 30 days of service of a classification decision, a tribe
or person sponsored by a tribe may appeal a classification decision
under this part by filing:
(1) A notice of appeal with the Commission; and
(2) A statement and any supporting materials specifying why the
appellant believes the classification decision to be erroneous.
(b) Failure to file an appeal within the time provided by this
section shall result in a waiver of the opportunity for an appeal.
(c) Within 60 days of receipt of the appeal when practicable, the
Commission shall review the file used to make the initial
classification decision and any material submitted in the appeal and
issue a decision.
Sec. 504.15 Will the tribe or person have an opportunity to
demonstrate its game to the Commission?
In addition to any demonstration requested during the initial
classification decision process, the Commission may request a
demonstration of the game during its review of the record on appeal.
[FR Doc. 99-29103 Filed 11-9-99; 8:45 am]
BILLING CODE 7565-01-P
