governments have take advantage of it. We are concerned that the current regulations make it virtually impossible for tribal governments to achieve Self-regulation status. E. Small and Charitable Gaming (25 C.F.R. Part 571) 1. “[In 25 C.F.R. § 571.12] Eliminate the Commission waiver requirement for reviewed financial statements and allow all operations grossing less than $2 million in the previous fiscal year to submit reviewed financial statements provided that the tribe or tribal gaming regulatory authority permits the gaming operation to submit reviewed financials, and the gaming operation has no instance of non-compliance with 25 C.F.R. §§ 571.12 and 571.13 for the three previous years.” We question the proposed revision of 25 C.F.R. § 571.12 (c)(2). It appears that the NIGC has framed this proposal as the elimination of a “waiver requirement,” yet there does not appear to be any elimination of a “waiver requirement.” Instead, it appears that the proposed revision will eliminate the opportunity for tribal governments with small gaming operations to request and receive a waiver from the NIGC to submit reviewed (rather than audited) financial statements even if a tribe failed to strictly comply with § 571.13 for the three (3) previous years. We are concerned that the proposed regulatory change will not be beneficial to small gaming operations and strongly encourage the NIGC to keep this waiver opportunity in its regulations. If the NIGC nevertheless chooses to make this regulatory change to § 571.12 (c), we urge the NIGC to consider changing its view of requiring strict compliance with § 571.13 with a requirement to affirm that there has been no documented non-compliance with § 571.13 instead. Without the waiver opportunity coupled with the requirement for strict compliance with § 571.13, newer small gaming operations will be forced to use the more onerous reporting standards in § 571.12 (b) despite never having any issues of compliance with § 571.13. 2a. “[Option 1] Create a third tier of financial reporting for charitable gaming operations with annual gross revenues of $50,000 or less where, if permitted by the tribe, a charitable gaming operation may submit financial information on a monthly basis to the tribe or the tribal gaming regulatory authority and in turn, the tribe or TGRA provided an annual certification to the NIGC regarding the charitable gaming operation’s compliance with the financial reporting.” 2b. “[Option 2] Create a third tier of financial reporting for charitable gaming operations with annual gross revenues of $50,000 or less where, if permitted by the tribe, a charitable gaming operation may submit complied financial statements provided the charitable gaming operation has no instance of non-compliance with 25 C.F.R. §§ 571.12 and 571.13 for the three previous years.” Before getting to the specifics of each of the NIGC’s options concerning financial reporting by qualifying charitable gaming operations, we generally favor the creation of a third tier of financial reporting for charitable gaming operations. However, we urge the NIGC to consider raising its $50,000 gross revenues threshold in its proposal.
6
Made with FlippingBook - Online catalogs