Procedures and Requirements for Approval By

MODEL REGULATIONS ESTABLISHING

PROCEDURES AND REQUIREMENTS FOR APPROVAL BY

TRIBAL GAMING REGULATORY AGENCIES OF

CLASS II GAMES PLAYED WITH ELECTRONIC EQUIPMENT

PART A – PURPOSE AND SCOPE

§ 1 – What do these regulations cover?

These regulations establish a process for the Tribal Gaming Regulatory Agency (hereinafter "TGRA") of the [______Tribe/Nation] to determine whether a game played with electronic equipment may be played as a class II game as defined by the Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq.), hereafter "IGRA."

§ 2 – Why must the TGRA issue game classification determinations?

Game classification determinations are necessary to determine whether a particular game played with electronic equipment may be operated as a class II game under the provisions of the IGRA. Games played with electronic equipment that do not meet the standards set forth by these Regulations may be lawfully played only as class III games, subject to the terms of a Tribal/State Compact or Secretarial Procedures.

The TGRA must therefore be certain of the class of a game proposed to be played with electronic equipment to determine lawfulness of play and to ensure proper regulation.

PART B – Definitions

§ 3 – What are the definitions for these regulations?

The definitions in this section shall apply to all sections of this regulation unless otherwise noted.

(a) Bingo – The game of chance set forth in the IGRA at 25 U.S.C. § 2703(7)(A)(i), (whether or not electronic, computer, or other technologic aids are used in connection therewith):

(1) Which is played for prizes, including monetary prizes, with cards bearing numbers or other designations;

(2) In which the holder of the card covers such numbers or designations when objects, similarly numbered or designated, are drawn or electronically determined; and

(3) In which the game is won by the first person covering a previously designated arrangement of numbers or designations on such cards.

(b) Bingo Ball– A typical (but not required) form for the numbered or designated objects that are drawn or determined.

(c) Bonanza – A bingo game in which a draw of a fixed number of numbers or other designations may occur before cards are distributed to players, and in which subsequent draws may occur to assure that a game winning pattern is achieved by a player.

(d) Card– An array of numbers or other designations, presented on paper orinelectronic form, that is used by a player as a basis to match or cover such numbers or other designations drawn in a Bingo game.

(e) Claim –Aplayer's declaration of theright to a prize under the rules of a game.

(f) Consideration– The player's payment or credit to participate or to continue participating in a game.

(g) Daubing– The process of matching or covering the numbersor other designations on a card that correspond to numbers or other designations from a Draw.

(h) Deal– A finite set of Pull-Tabs that contains a predetermined number of winning and losing Outcomes, but in which the specific Outcome of any Pull-Tab that has not been uncovered is still unknown to the players.

(i) Deck – A set number of cards bearing an array or layout of numbers or other designations available for play in a particular game of Bingo.

(j) Draw – The physical or electronic selection of numbers or other designations from the set of numbers or other designations used to determine winners in a Bingo game.

(k) Electronic or Technologic Aid– A device, such as a player terminal or station, used to aid in the play of a class II game that satisfies the criteria set forth in §12. Possible uses of such a device include, but are not limited to: (1)assisting players to play increased numbers of Cards in a game,or to play such Cards more rapidly, (2)linking players and/or facilities for participation in common games, (3)tracking the Draw, (4)Daubing Cards, (5)identifying Game Winning Patterns, (6) Claiming prizes, (7)dispensing and/or reading Pull-Tabs and (8)presenting the Cards, Pull-Tabs, game play, and game results and Outcome through entertaining graphical displaysand enhancements.

(l) Game Winning Card– A Card on which a Game Winning Pattern has been achieved. There may be more than one Gaming Winning Card in any Bingo game.

(m) Game Winning Pattern– A specific array of numbers or other designations on a Card that, when Daubed on one or moreplayers' Cards and Claimed, entitles the player to receive the game winning Prize.

(n) House Banked or House Banking– A game of chance that is played with the house as a participant in the game, where the house takes on all players, collects from all losers, and pays all winners, and the house can win.

(o)Outcome– The predetermined result (i.e., whether the player has won or lost), of each Pull-Tab, which may be displayed on the Pull-Tab as numbers or other designations.

(p) Pattern – An array of two or more numbersor other designations on a Card.

(q) Player Terminals – Electronic computer terminals housed in cabinets with input devices and video screens through which players may participate in class II games.

(r) Prize – Anything of materialvalue, including money, which is awarded to a player under the rules of a game.

(s)Prize Winning Card – A Card on which a Prize Winning Pattern has been achieved,

entitling a player to Claima primary, interim, or consolation Prize under the rules of a Bingo game. There may be more than one Prize Winning Card in any Bingo game.

(t)Prize Winning Pattern – A specific array of numbers or other designations that, when

daubed on one or more players' Cards and Claimed, entitles the player to receive a primary, interim or consolation Prize.

(u) Pull-Tabs – A game of chance that consists of a finite Deal of two-ply cards or their equivalent (in paper or electronic form) with a pre-determined number of winning and losing Outcomes that must be Uncovered by the player in order to win.

(v) Random Number Generator (“RNG”) – An electronic or mechanicalmethod for determining numbers or other designations in a game of chance that must meet the applicable standards for randomness established by the TGRA.

(w) Rules of Play – The specific rules controlling the play of the subject game.

(x) Tribal Gaming Facility (“TGF”) – Any gaming facility on the Indian lands of the [______Tribe/Nation] operated pursuant to the Tribal gaming ordinance.

(y) Tribal Gaming Facility Operator (“TGFO”) – The personor entity that operates a Tribal Gaming Facility.

(z) Uncover – The revealing of the Outcome of a Pull-Tab after it has been purchased in a concealed form.

(aa) Verification– Confirmation that a Game Winning or Prize Winning Card or Pull-Tab ticket has been identified under the rules of a game.

PART C – Game Classification Procedure

§ 4 – Who may apply for a game classification determination under these regulations?

Only a duly authorized representative of the Tribal Gaming Facility Operator (hereinafter “TGFO”) may apply for a game classification determination under these regulations.

§ 5 – When should the TGFO apply for a gameclassification determination?

The TGFO may apply for a game classification determination at any time, but must do so before offering a new class II game for play under the following circumstances:

(a) If the TGFO wishes to continue play of a game played with electronic equipment if that game, as of the effective date of these regulations, is not the subject of an existing game classification determination and is not otherwise permitted as a class III game; and

(b) If the TGFO wishes to introduce a game played with electronic equipment if that game is not the subject of an existing game classification determination and is not otherwise permitted as a class III game.

§ 6 – How does the TGFO apply for a game classification determination?

(a) The TGFO must submit the following information:

(1)Request for a game classification determination;

(2)Certification by the vendor of the proposed game that, to the best of the vendor's knowledge and belief, the player terminals and other gaming equipment to be placed in the Tribal Gaming Facility:

(i) Are within the criteria for a class II game under IGRA and these regulations;

(ii) Complies in all respects with the specifications and standards set forth in the application; and

(iii) Complies with any applicable regulations concerning such game.

(3) Applicant’s statement that, to the best of applicant's knowledge and belief, the subject game meets the standards in these regulations.

(4) Designation of a point of contact authorized to provide additional information if required;

(5) Designation of whether and where the game is already in play;

(6) Complete description of the game, including the operational characteristics and Rules of Play;

(7) Complete description of the method used for accepting Consideration from players, paying or distributing Prizes to winners, determining, retaining or paying any amounts to the operator or vendor from the Consideration or any other source, and the awarding orfunding of jackpots;

(8) Copy of any sales or promotional literature;

(9) For games already in play at the Tribe’s facility, a complete list of the serial numbers or other identifiers of each machine or device used in the play of the game(s);

(10) Videotape depicting the play of the entire game;

(11) Report of laboratory test(s) which were conducted that validate that the game meets the requirements of sub-sections (a)(2), (a)(6), (a)(7), and (a)(12) of this section;

(12) An example of all chips (for example EPROMs) or other electronic storage or control devices used in connectionwith the game, the source code of the program contained on each chip or device, and sufficient programmer’s notes to facilitate rapid analysis of the code. At the request of the TGRA, the applicant shall provide these materials through its vendor to an independent testing laboratory designated by the TGRA; that laboratory shall be bound to maintain the confidentiality of such information;

(13) Copies of any legal opinions, court decisions or other materials in support of or otherwise relevant to the proposed classification; and

(14) Payment of a regulatory fee of $______for the processing of each proposed new game.

(b) All information submitted by the TGFO is subject to verification by the TGRA.

§ 7 – May the TGRA require submission of any additional information?

Upon request of the TGRA, the applicant may be required to provide:

(a) A live demonstration of the game;

(b) A prototype of the game;

(c) Descriptions of any new models or variations of an approved game;

(d) A record of any determinations that have been made by any other Tribal or non-Tribal gaming jurisdictions or authorities, including but not limited to any court orders, judgments or decisions,on the classification of the game;

(e) Any further information or clarification the TGRA determines it requires.

§ 8 – Can the gaming facility continue to operate a game that utilizes electronic equipment that is not the subject of an existing game classification determination?

The TGFO will be required to discontinue play of a game that utilizes electronic equipment, lacking a TGRA classification determination that the game is class II and not otherwise authorized as a class III game, if:

(a) Within 60 days of the effective date of these regulations, the TGFO fails to submit or cause to be submitted a list of the type(s) of games that utilize electronics and, where applicable, the number of such games in play at the gaming facility;

(b) Within six months of the effective date of these regulations, the TGFO fails to submit or cause to be submitted a completed application for a game classification determination;

(c) The TGFO fails to diligently pursue a gameclassification determination by providing all required information; or

(d) The TGRA determines that a game previously reported by the TGFO as being subject to an existing game classification determination is, in fact, not subject to such a determination.

§ 9 –May the TGFO operate a game that utilizes electronic equipment on a trial basis before requesting and obtaining a game classification determination?

(a) The TGRA may authorize temporary operation of a new game that utilizes electronic equipment within a gaming facility under the following circumstances:

(1) No more than ___ machines may be operated at any given time; and

(2) Such game that utilizes electronic equipment may be operated for no more than __ days under such terms and conditions as the TGRA may approve or require.

Comment: The number of machines and days should be a reasonable amount for the TGFO to determine whether the game is worthy of seeking a game classification determination. Keep in mind that the longer the period of time and the greater the number of machines, the more it appears as if this provision is intended to circumvent the game classification process.

(b) Before operating any game that utilizes electronic equipment on a trial basis, the TGFO must submit to the TGRA the following information:

(1) A written request to operate the game on a trial basis, including the reason(s) for wanting to do so;

(2) A description of the game, including operational characteristics and Rules of Play; and

(3) A description of the method used for accepting Consideration from players, paying or distributing Prizes to winners, determining, retaining or paying any amounts to the operator or vendor from the consideration or any other source, and the awarding or funding of jackpots.

(c) The TGFO must receive written authorization by the TGRA before it may operate a new game that utilizes electronic equipment if such game is not subject to the provisions of an existing game classification determination by this TGRA.

§ 10 – What is required if the TGFO merely seeks a modification of a game that utilizes electronic equipment that is already the subject of a game classification determination?

(a) The TGFO shall submit a request for a review of a game that is to be modified by providing a detailed description of the modification and how the modification affects the game.

(b) A request for a new game classificationdetermination shall not be required if the modification does not result in a material change to the operation of the game. Such non-material changes include, but are not limited to:

(1) Changes to the external appearance of furniture or equipment used in connection with the game (such as a game terminal cabinet);

(2) Changes to the type of bill and/or coin acceptor used;

(3) Changes to any smart card or PIN system(s) used with the game; and

(4)Cosmetic changes, such as substitution of new game icons, sound, signage, graphics or lighting.

PART D – CLASSIFICATION CRITERIA

§ 11 – What test will the TGRA apply in determining whether a game that utilizes electronic equipment is class II?

(a) The critical factors in determining whether a game that utilizes electronic equipment is class II or class III are:

(1) Whether the underlying game is class II; and

(2) Whether the electronic equipment utilized in connection with the game:

(i) Is an electronic, computer or other technologic aid, which is permitted within class II; or

(ii) Causes the game to be an electromechanical facsimile of a game of chance, and therefore within class III.

(b) An electronic, computer or other technologic aid:

(1) Is defined as electronic, computer, or other technologic equipment used in connection with games described in IGRA §2703(7)(A) that:

(i) Assists a player or the playing of a game;

(ii) Is not an electromechanical facsimile; and

(iii) Is operated in accordance with applicable federal communications law.

(2) Includes, but is not limited to, electronic, computer, or other technologic equipment used in connection with games described in IGRA §2703(7)(A) that:

(i) Broadens participation in the game;

(ii) Facilitates communication between and among gaming sites; or

(iii) Allows a player to play a game with or against other players rather than with or against a machine.

(c) An electromechanical facsimile is a game played in an electronic or electromechanical format that replicates a game of chance by incorporating all of the characteristics of the game, but, as specified in IGRA at 25U.S.C. § 2703(7)(A), does not include games if the electronic or electromechanical format broadens participation by allowing multiple players to play with or against each other rather than with or against a machine.

§ 12 – Under what circumstances may Bingo played with electronic equipment be determined to be a class II game?

(a) The Indian Gaming Regulatory Act, 25U.S.C.§ 2703(7)(A), defines “bingo” as a game of chance:

(1)Which is played for prizes, including monetary prizes, with cards bearing numbers or other designations,

(2)In which the holder of the card covers such numbers or designations when objects, similarly numbered or designated, are drawn or electronically determined, and

(3)In which the game is won by the first person covering a previously designated arrangement of numbers or designations on such cards, …

(b) Bingo, as played with electronic equipment, will be determined to be a class II game so long as it continues to possess the attributes of Bingo as set forth in this definition.

(c) Bingo, as played with electronic equipment, will be considered to continue to possess the attributes of Bingo and remain a class II game so long as it is operated in the following manner:

(1) The game must consist of:

(i) A set quantity of Draw numbersor other designations (hereinafter referred to as “Symbols”);

(ii) A Deck;

(iii) Predetermined Game Winning Pattern(s); and

(iv) Prizes, including a Game Winning Prize and optional interim and consolation prizes, as defined under the game’s Rules of Play.

(2) The number of Symbols in a Draw is not fixed; it may be varied from game to game, in accordance with game’s Rules of Play. Symbols may be displayed, without limitation, as numbers, letters, icons, any other graphic or other enhancement, or any combination thereof.

(3) If random, the Draw must meet applicable standards for ensuring randomness as established by the TGRA. If not random, the Draw must ensure total confidentiality so that the method and determination of symbols to be drawn are not known or disclosed to the players until such time as the card sales are closed.

(4) A game may include any number of Cards. The Card may be multi-dimensional. Each Card must have an array or layout of symbols and contain at least two of the draw symbols. Game Winning Patterns and interim and consolation patterns can be any configuration of matched symbols on the play Card. Interim and consolation prizes also can be awarded for the absence of matched symbols.

(5) When playing a “Bonanza” type game, a Draw of a fixed number of Symbols may take place before Cards are distributed to players. Players then compete in a given game by purchasing Cards and then revealing the designations on purchased Cards, so that the pre-drawn Symbols may be Daubed. Subsequent Draws may take place to assure that a Game Winning Pattern is achieved.

(6) Actual Prize values must be defined before a Prize can be awarded, but need not be defined before the start of a game. Multiple prizes may be specified in a game based on, but not necessarily limited to, different patterns or the number of drawn Symbols required to achieve a specified pattern. There may be multiple winners, on multiple cards. Prize levels can also vary for the same pattern as a function of what the player pays for the Card and/or how far the Draw has progressed. Prizes may include bonus prizes where the prize is based on the specific order in which the numbers are selected. Jackpot prizes may also be awarded based on specified criteria reflecting sequence or specific characteristics of the Symbols daubed by the player.

(7) A game must be available to a minimum of two players. A player may play more than one Card.

(d) In determining whether Bingo, as played with electronic equipment, satisfies the definition in subsection (a) and therefore remains a class II game, the TGRA should not apply any requirements that would:

(i) Limit the use of electronic aids to play Bingo, display Cards, cover Symbols, identify Game or Prize Winning Patterns, or Claim Prizes;

(ii) Limit the speed of play, Card configuration, or number of Draws in a game;

(iii) Limit how or when Cards are distributed to players;

(iv) Limit the sequence of a Draw;