25 C.F.R. § 542.7 What are the minimum internal control standards for bingo?
Title 25 - Indians
(a) Computer applications. For any computer applications utilized, alternate documentation and/or procedures that provide at least the level of control described by the standards in this section, as approved by the Tribal gaming regulatory authority, will be acceptable. (b) Game play standards. (1) The functions of seller and payout verifier shall be segregated. Employees who sell cards on the floor shall not verify payouts with cards in their possession. Floor clerks who sell cards on the floor are permitted to announce the serial numbers of winning cards. (2) All sales of bingo cards shall be documented by recording at least the following: (i) Date; (ii) Shift (if applicable); (iii) Session (if applicable); (iv) Dollar amount; (v) Signature, initials, or identification number of at least one seller (if manually documented); and (vi) Signature, initials, or identification number of a person independent of the seller who has randomly verified the card sales (this requirement is not applicable to locations with $1 million or less in annual write). (3) The total win and write shall be computed and recorded by shift (or session, if applicable). (4) The Tribal gaming regulatory authority, or the gaming operation as approved by the Tribal gaming regulatory authority, shall establish and the gaming operation shall comply with procedures that ensure the correct calling of numbers selected in the bingo game. (5) Each ball shall be shown to a camera immediately before it is called so that it is individually displayed to all customers. For speed bingo games not verified by camera equipment, each ball drawn shall be verified by a person independent of the bingo caller responsible for calling the speed bingo game. (6) For all coverall games and other games offering a payout of $1,200 or more, as the balls are called the numbers shall be immediately recorded by the caller and maintained for a minimum of twenty-four (24) hours. (7) Controls shall be present to assure that the numbered balls are placed back into the selection device prior to calling the next game. (8) The authenticity of each payout shall be verified by at least two persons. A computerized card verifying system may function as the second person verifying the payout if the card with the winning numbers is displayed on a reader board. (9) Payouts in excess of $1,200 shall require written approval, by personnel independent of the transaction, that the bingo card has been examined and verified with the bingo card record to ensure that the ticket has not been altered. (10) Total payout shall be computed and recorded by shift or session, if applicable. (c) Promotional payouts or awards. (1) If the gaming operation offers promotional payouts or awards, the payout form/documentation shall include the following information: (i) Date and time; (ii) Dollar amount of payout or description of personal property (e.g., jacket, toaster, car, etc.), including fair market value; (iii) Type of promotion; and (iv) Signature of at least one employee authorizing and completing the transaction. (2) [Reserved] (d) Accountability form. (1) All funds used to operate the bingo department shall be recorded on an accountability form. (2) All funds used to operate the bingo department shall be counted independently by at least two persons and reconciled to the recorded amounts at the end of each shift or session. Unverified transfers of cash and/or cash equivalents are prohibited. (e) Bingo equipment. (1) Access to controlled bingo equipment (e.g., blower, balls in play, and back-up balls) shall be restricted to authorized persons. (2) The procedures established by the Tribal gaming regulatory authority, or the gaming operation as approved by the Tribal gaming regulatory authority, shall include standards relating to the inspection of new bingo balls put into play as well as for those in use. (3) Bingo equipment shall be maintained and checked for accuracy on a periodic basis. (4) The bingo card inventory shall be controlled so as to assure the integrity of the cards being used as follows: (i) Purchased paper shall be inventoried and secured by a person or persons independent of the bingo sales; (ii) The issue of paper to the cashiers shall be documented and signed for by the person responsible for inventory control and a cashier. The document log shall include the series number of the bingo paper; (iii) A copy of the bingo paper control log shall be given to the bingo ball caller for purposes of determining if the winner purchased the paper that was issued for sale that day (electronic verification satisfies this standard); (iv) At the end of each month, a person or persons independent of bingo sales and inventory control shall verify the accuracy of the ending balance in the bingo paper control by reconciling the paper on-hand; (v) A monthly comparison for reasonableness shall be made of the amount of paper sold from the bingo paper control log to the amount of revenue recognized. (f) Standards for statistical reports. (1) Records shall be maintained, which include win, write (card sales), and a win-to-write hold percentage, for: (i) Each shift or each session; (ii) Each day; (iii) Month-to-date; and (iv) Year-to-date or fiscal year-to-date. (2) A manager independent of the bingo department shall review bingo statistical information on at least a monthly basis and investigate any large or unusual statistical fluctuations. (3) Investigations shall be documented, maintained for inspection, and provided to the Tribal gaming regulatory authority upon request. (g) Electronic equipment. (1) If the gaming operation utilizes electronic equipment in connection with the play of bingo, then the following standards shall also apply. (i) If the electronic equipment contains a bill acceptor, then §542.21(e) and (f), §542.31(e) and (f), or §542.41(e) and (f) (as applicable) shall apply. (ii) If the electronic equipment uses a bar code or microchip reader, the reader shall be tested periodically by a person or persons independent of the bingo department to determine that it is correctly reading the bar code or the microchip. (iii) If the electronic equipment returns a voucher or a payment slip to the player, then §542.13(n) (as applicable) shall apply. (iv) If the electronic equipment utilizes patron account access cards for activation of play, then §542.13(o) (as applicable) shall apply. (2) [Reserved] (h) Standards for linked electronic games. Management shall ensure that all agreements/contracts entered into after June 27, 2002 to provide linked electronic games shall contain language requiring the vendor to comply with the standards in this section applicable to the goods or services the vendor is providing. (i) Host requirements/game information (for linked electronic games). (1) Providers of any linked electronic game(s) shall maintain complete records of game data for a period of one (1) year from the date the games are played (or a time frame established by the Tribal gaming regulatory authority). This data may be kept in an archived manner, provided the information can be produced within twenty-four (24) hours upon request. In any event, game data for the preceding seventy-two (72) hours shall be immediately accessible. (2) Data required to be maintained for each game played includes: (i) Date and time game start and game end; (ii) Sales information by location; (iii) Cash distribution by location; (iv) Refund totals by location; (v) Cards-in-play count by location; (vi) Identification number of winning card(s); (vii) Ordered list of bingo balls drawn; and (viii) Prize amounts at start and end of game. (j) Host requirements/sales information (for linked electronic games). (1) Providers of any linked electronic game(s) shall maintain complete records of sales data for a period of one (1) year from the date the games are played (or a time frame established by the Tribal gaming regulatory authority). This data may be kept in an archived manner, provided the information can be produced within twenty-four (24) hours upon request. In any event, sales data for the preceding ten (10) days shall be immediately accessible. Summary information must be accessible for at least 120 days. (2) Sales information required shall include: (i) Daily sales totals by location; (ii) Commissions distribution summary by location; (iii) Game-by-game sales, prizes, refunds, by location; and (iv) Daily network summary, by game by location. (k) Remote host requirements (for linked electronic games). (1) Linked electronic game providers shall maintain on-line records at the remote host site for any game played. These records shall remain on-line until the conclusion of the session of which the game is a part. Following the conclusion of the session, records may be archived, but in any event, must be retrievable in a timely manner for at least seventy-two (72) hours following the close of the session. Records shall be accessible through some archived media for at least ninety (90) days from the date of the game. (2) Game information required includes date and time of game start and game end, sales totals, cash distribution (prizes) totals, and refund totals. (3) Sales information required includes cash register reconciliations, detail and summary records for purchases, prizes, refunds, credits, and game/sales balance for each session. (l) Standards for player accounts (for proxy play and linked electronic games). (1) Prior to participating in any game, players shall be issued a unique player account number. The player account number can be issued through the following means: (i) Through the use of a point-of-sale (cash register device); (ii) By assignment through an individual play station; or (iii) Through the incorporation of a “player tracking” media. (2) Printed receipts issued in conjunction with any player account should include a time/date stamp. (3) All player transactions shall be maintained, chronologically by account number, through electronic means on a data storage device. These transaction records shall be maintained on-line throughout the active game and for at least twenty-four (24) hours before they can be stored on an “off-line” data storage media. (4) The game software shall provide the ability to, upon request, produce a printed account history, including all transactions, and a printed game summary (total purchases, deposits, wins, debits, for any account that has been active in the game during the preceding twenty-four (24) hours). (5) The game software shall provide a “player account summary” at the end of every game. This summary shall list all accounts for which there were any transactions during that game day and include total purchases, total deposits, total credits (wins), total debits (cash-outs) and an ending balance. [67 FR 43400, June 27, 2002, as amended at 70 FR 23021, May 4, 2005; 70 FR 47106, Aug. 12, 2005; 71 FR 27392, May 11, 2006]
Title 25: Indians
PART 542—MINIMUM INTERNAL CONTROL STANDARDS
§ 542.7 What are the minimum internal control standards for bingo?
