3141-0001 Supporting Statement (Enforcement)

SUPPORTING STATEMENT FOR RECORDKEEPING
AND REPORTING REQUIREMENTS
25 CFR § 571, 573, 575, and 577
A. Justification
1. Explain the circumstances that make the collection of information necessary. Identify
any legal or administrative requirements that necessitate the collection. Attach a copy of
the appropriate section of each statute and regulation mandating or authorizing the
collection of information.
The Indian Gaming Regulatory Act (25 U.S.C. 2701 et seq., 102 Stat. 2467, Pub. L. 100497) (IGRA) governs the regulation of gaming on Indian lands. The Act establishes the National
Indian Gaming Commission (NIGC or the Commission) with authority to oversee Indian
gaming. IGRA sets standards for the regulation of gaming, including requirements for
recordkeeping and reporting. Section 2710(b)(2) requires the NIGC Chairman to approve gaming
ordinances that contain adequate accounting procedures. Further, the Chairman shall monitor and
enforce the regulations and statutory provisions of IGRA. 25 U.S.C. § 2713. Enforcement actions
can lead to appeals before the full commission.
25 CFR § 571.7
25 CFR § 571.7 requires Indian gaming operations to keep permanent books of account
or records sufficient to establish the amount of gross and net income, deductions and expenses,
receipts and disbursements, and other relevant information.
The number of tribal gaming operations has grown throughout the country. Along with
the development of a large variety of gaming properties across a wide geographical area,
substantial support or secondary service industries have been created to meet the needs of the
operations.
However, dynamic growth creates risks. And the industry’s continued growth and
success is dependent upon strict regulatory oversight, which is a tasked shared by the tribes and
the NIGC.
The NIGC has the regulatory obligation to ensure structured financial reporting systems
are in place to provide reliable and timely information to the stakeholders. Only through
accountability can we safeguard against internal and external risks. This regulation codifies a set
of rules that would satisfy this obligation.
25 CFR § 571.12 and § 571.13
IGRA’s section 2710(b)(2)(C) requires the tribes to provide annual outside audits of
gaming to the NIGC and requires the Chairman to disapprove any gaming ordinance that does
not require tribe to provide these audits.

25 CFR § 571.12 and § 571.13 implement this statutory provision. Tribes must prepare
financial statements in accordance with generally accepted accounting principles (GAAP).
GAAP is a technical accounting term that encompasses the conventions, rules, and procedures
necessary to define accepted accounting practice. It includes not only broad guidelines of
general application but also detailed practices and procedures.
The NIGC receives and analyzes the required filings for a variety of purposes. Data
provides information about the industry to the general public and identifies trends and industry
norms. From these analyses, the NIGC seeks to identify gaming operations that are
noncompliant. The financial data is often the first indicator that an organization is victimized by
corrupting influences. The receipt of audited financial statements is vital to the NIGC efficiently
and effectively fulfilling its statutory responsibilities.
25 CFR § 571.14
IGRA’s section 2710(b)(2)(C) requires the tribes to provide annual outside audits of
gaming to the NIGC and requires the Chairman to disapprove any gaming ordinance that does
not require tribe to provide these audits.
Section 2717 requires NIGC to establish a schedule of fees that the tribes must pay to the
NIGC to fund the agency. 25 CFR § 571.14 implements this requirement. Fees are computed
based on quarterly fee reports submitted under 25 CFR Part 514. This regulation requires tribes
to reconcile quarterly fee reports with audited financial statements and make this information
available to the NIGC.
Because fee payments are based on “assessable gross revenues,” which represents a
formula developed by the NIGC and not readily reflected in the financial statements, a
reconciliation is necessary to provide proof of payment. Although the reconciliation step is
necessary for the gaming operator to calculate the fee payment, it is important to the NIGC that
the record be maintained and made available to facilitate the performance of compliance audits.
25 CFR § 575.5
The Chairman must protect Indian gaming from organized crime and otherwise assist
tribal regulators in ensuring the integrity of gaming and safeguarding of assets. To do this,
IGRA’s section 2713(a) authorizes the Chairman to assess civil fines, not to exceed $25,000 per
violation, against the owner or operator of a gaming operation for a violation of any provision of
the IGRA. 25 CFR § 575.5 permits the respondent, within 15 days after service of a notice of
violation to submit written information about the violation in order that the Chairman may
properly determine all of the facts surrounding a violation and the appropriate amount of any
civil fine. This is part of the due process the agency provides to the respondent and ensures that
the Chairman complies with his statutory duties.

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25 CFR § 575.6
To further protect Indian gaming from organized crime, and further ensure the integrity
of gaming and safeguarding of assets, IGRA’s section 2713(a) authorizes the Chairman to assess
civil fines, not to exceed $25,000 per violation, against the owner or operator of a gaming
operation for violations of the IGRA and the Commission’s regulations. 25 CFR § 575.6
provides that, upon written request by a respondent, the Chairman may reduce or waive a penalty
if it is determined that the fine is demonstrably unjust. This is part of the respondent’s due
process and ensures that the Chairman complies with his statutory duties.
25 CFR § 577.3
To further protect Indian gaming, IGRA provides respondents a right of appeal to the
Commission, through a full evidentiary hearing before a neutral official, from certain actions of
the Chairman, including, among other things: (1) the Chairman’s order of temporary closure of a
gaming activity under section 2713; (2) the Chairman’s assessment of civil fines under section
2713; and (3) the Chairman’s decision to void or modify a management contract subsequent to
initial approval under section 2711 of IGRA. 25 CFR § 577.3 provides that a respondent may
appeal any of these adverse actions by filing a notice of appeal to the Commission within 30
days after notice of the Chairman's action. Part 577 generally, provides a full administrative
appeal which is mandated by IGRA. 25 U.S.C. § 2713(a)(2).
25 CFR § 577.8
25 CFR § 577.8 provides that any person submitting a document in an administrative
proceeding may request that some or all of the information contained in the document be exempt
from disclosure to the parties to the proceeding. This allows the Commission to fully exercise its
statutory duties and protect Indian gaming while maintaining full compliance with the Privacy
Act and the independent obligation IGRA imposes on the Commission to keep confidential
information it obtains. 25 U.S.C. § 2716.
25 CFR § 577.12
25 CFR § 577.12 allows persons other than the respondents to request to intervene and
participate as a party in an appeal under Part 577. This allows interested parties other than the
respondent to fully participate and ensure that the Commission makes its appellate decisions with
the full and informed participation of all parties concerned
25 CFR § 577.14(b)
Again, 25 CFR § 577.3 allows a full evidentiary hearing before a neutral official who will
issue a recommended decision. 25 CFR § 577.14 (b) provides that, within 10 days after the
presiding official renders a recommended decision, the parties may file any objections to the
recommended decision. This allows respondents full due process while ensuring that the
Commission makes fully informed decisions.

3

2. Indicate how, by whom, and for what purposes the information is to be used. Except for
a new collection, indicate the actual use the agency has made of the information received
from the current collection.
25 CFR § 571.13
NIGC funding is derived from the assessment of fees on the gaming tribes and the
amount of the fee is based on a determination of gross gaming revenue, which is defined as the
amount wagered plus admission fees pertaining to gambling games less amounts paid out as
prizes or paid for prizes awarded. Gross gaming revenue is forecast and then a fee rate is
identified necessary to generate sufficient funding for the agency’s budget. Consequently,
obtaining reliable and timely financial information in the form of audited financial statements is
necessary to accurately predict future gross gaming revenue of tribal gaming industry. As part of
the analysis, the NIGC collects data on the gaming operations, aggregates it, and disseminates
the information to the general public. Further, the receipt and review of the audited financial
statements, inclusive of management letters, is essential to effectively evaluating the risk posed
to the industry by others. Violations may originate from internal and external sources. To the
trained analyst, the data provided by the financial statements can reveal operations that possess
dysfunctional internal control systems. Consequently, the agency uses the filings to be more
efficient and effective in the allocation of its scarce resources.
25 CFR § 571.14
The reconciliation of the quarterly fee reports under 25 CFR Part 514 is necessary for the
NIGC to verify the accuracy of the fee payments. Without the reconciliation, it would be difficult
for the agency to verify compliance with the regulation.
At Part 514, the regulation identifies a formula that calculates an amount defined as
“Assessable Gaming Revenues” (AGR). AGR is equal to gross gaming revenues for the
preceding calendar year less an amortization of expenditures for structures, which may be
applicable to multiple prior periods. Lacking the reconciling schedule, the NIGC cannot confirm
that the proper fee amounts are paid.
25 CFR § 575.5
The regulation allows each respondent the opportunity to submit relevant information
regarding a proposed fine assessment. The Chairman reviews the collected information to
determine the facts surrounding the violation. This allows the Chairman to consider the amount
of the proposed penalty. Without this information, the Chairman would risk making decisions
that were not fully informed and failing to protect the integrity of Indian gaming.
25 CFR § 575.6
The Chairman reviews the collected information to determine whether, taking into
account exceptional factors present in a particular case, the proposed penalty is demonstrably
unjust. This allows the Chairman to consider all available evidence to ensure the right

4

determination under IGRA. Failing to do this, the Chairman could not adequately protect the
integrity of Indian gaming and complete his statutory duties.
25 CFR § 577.3
The Commission reviews the respondent’s statement on appeal when reviewing a
decision of the Chairman. The statement is equivalent to a legal brief. The Commission must
review this information as part of its statutory duties and to ensure that the Chairman properly
complies with IGRA.
25 CFR § 577.8
The Commission, or a presiding official, will review the request to limit disclosure to
determine if the identified information requires protection under the Privacy Act 25 U.S.C. §
2716. The Commission must review the information and protect it accordingly as part of its
statutory duties under federal law.
25 CFR § 577.12
The Commission, or a presiding official, will review the request to intervene to
determine whether a petitioner should be permitted to participate in an appeal. This kind of
intervention allows the Commission to make decisions based upon the fully informed
participation of all interested parties.
25 C.P.R. § 577.14(b)
The Commission reviews objections to recommended decisions of the presiding official in order
to make fully informed decisions on appeal.

3. Describe whether, and to what extent, the collection of information involves the use of
automated, electronic, mechanical, or other technological collection, techniques or other
forms of information technology, e.g. permitting electronic submission of responses, and
the basis for the decision for adopting this means of collections. Also describe any
consideration of using information technology to reduce burden.
The information collection does not specifically involve the use of technological
collection techniques; however, it should be noted that, except for the most elementary of
gaming operations, computerized systems are to varying degrees directly involved in the
authorization, recognition, recordation and summarization of transactions and events. However,
under the regulations of the NIGC, information may be submitted by compatible automated,
electronic, and/or mechanical means.
4. Describe efforts to identify duplication. Show specifically why any similar information
already available cannot be used or modified for use for the purposes described in item 2
above.

5

The required information is unique to each Indian tribe, each gaming operation, or to any
particular NOV or appeal. No similar information pertaining to gaming on Indian lands is
collected by the Commission or by other federal agencies.
5. If the collection of information impacts small business or other small entities (Item 5 of
OMB Form 83-I), describe any methods used to minimize the burden.
Not applicable.
Nonetheless, the provisions of the regulation require operations to submit the minimum
information that the NIGC requires to fulfill its statutory responsibilities. The audit requirements
must apply to all Indian gaming operations, regardless of size. The burden is directly
proportional to the economic activity conducted, and those organizations whose resources are
more limited feel less impact.
6. Describe the consequence to Federal program or policy activities if the collection is not
conducted or is conducted less frequently, as well as any technical or legal obstacles to
reducing burden.
25 CFR § 571.7
Congress established the NIGC to protect this revenue source of tribal governments and
to ensure:
•
•
•

That the industry is shielded from organized crime and other corrupting influences;
That the tribe is the primary beneficiary of its gaming; and
That fairness and honesty are the hallmarks of Indian gaming.

Accordingly, the NIGC determined it necessary that basic accounting recordkeeping be
employed by the gaming operators to provide for a methodology that would produce reliable
financial data in a timely manner. The specific requirements of 25 CFR § 571.7 represent longestablished norms of conducting business and are essential to the NIGC being able to fulfill its
statutory obligations.
25 CFR § 571.12 and § 571.13
For NIGC to effectively monitor the individual gaming operations, independent financial
audits are necessary. Furthermore, the regulation codifies the accepted practice that accounting
records are maintained in accordance with GAAP and that the audits are performed in
accordance with GAAS. The organization’s fiscal year is the common and logical reporting
period for such data. Without the information provided by the submissions, the NIGC would be
hampered in its fulfillment of its mission.

6

25 CFR § 571.14
The reconciliation of the audited financial statements to the NIGC fee payment represents
a task that the tribes would perform, regardless of the subject rule, to ensure the calculation is
accurate. Performed annually, the task is one of a nominal nature. The regulation merely
requests that the reconciliation be maintained for agency review. The review is necessary to
ensure timely and accurate payment of fees.
25 CFR § 575.6
The Chairman already imposes NOVs and their attendant paperwork burdens as
infrequently as possible. Failure to accept requests for waivers of fines would render the
Chairman incapable of completing his statutory duties and protecting the integrity of Indian
gaming. The Chairman or the Commission would not be making decisions based upon all
available evidence, and respondents would lose the opportunity for meaningful redress.
25 CFR § 577.3
See supporting statement for 25 CFR § 575.6.
25 CFR § 577.8
See supporting statement for 25 CFR § 575.6.
25 CFR § 577.12
See supporting statement for 25 CFR § 575.6.
25 CFR § 577.14(b)
See supporting statement for 25 CFR § 575.6.
7. Explain any special circumstances that would cause an information collection to be
conducted in a manner:
• requiring respondents to report information to the agency more often than
quarterly;
• requiring respondents to prepare a written response to a collection of information in
fewer than 30 days after receipt of it;
• requiring respondents to submit more than an original and two copies of any
documents;
• requiring respondents to retain records, other than health, medical, government
contract, grant-in-aid, or tax records for more than three years;
• in connection with a statistical survey, that is not designed to produce valid and
reliable results that can be generalized to the universe of study;
• requiring the use of a statistical data classification that has not been reviewed and
approved by OMB;

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•

•

that includes a pledge of confidentiality that is not supported by authority
established in statute or regulation, that is not supported by disclosure and data
security policies that are consistent with the pledge, or which unnecessarily impedes
sharing of data with other agencies for compatible confidential use; or
requiring respondents to submit proprietary trade secrets, or other confidential
information unless the agency can demonstrate that it has instituted procedures to
protect the information's confidentiality to the extent permitted by law.

IGRA, 25 U.S.C. § 2716, requires the Commission to keep confidential trade secrets,
privileged or confidential, commercial or financial information, or information related to
ongoing law enforcement investigations. 25 U.S.C. § 2716 removes from the Commission any
discretion it otherwise would have to disclose information that falls within FOIA exemptions 4
and 7 and requires the Commission to disclose such information only to other law enforcement
agencies for law enforcement purposes.
25 CFR § 571.7
Under 25 CFR § 571.7 gaming operations are required to maintain financial books and
records sufficient to establish the information required under the IGRA and regulation for no less
than 5 years. This requirement corresponds to record retention mandated by other federal
statutes and regulations, such as Title 31, the Bank Secrecy Act.
25 CFR § 571.12 and § 571.13
See general supporting statement. No other exemptions apply.
25 CFR § 571.14
See general supporting statement. No other exemptions apply.
25 CFR § 575.5
With regard to confidential information, the Commission must ensure that Indian gaming
is kept free from criminal influence. To that end, the Commission must require the maintenance
and reporting of certain confidential information. The Commission has established a system of
records for maintaining and protecting confidential information. However, the Commission will
not reveal any personal information of individuals received in connection with a background
investigation under the Privacy Act. 5 U.S.C. § 552(a). Further, the Commission will not reveal
information that constitutes a trade secret or information connected to an ongoing law
enforcement investigation. 25 U.S.C. § 2716 removes from the Commission any discretion it
would otherwise have to disclose information that falls within FOIA exemptions 4 and 7 and
requires the Commission to disclose such information only to other law enforcement agencies for
law enforcement purposes. Information in these categories can become issues during an appeal
of the Chairman’s decisions or during the reporting of a background investigation. Thus, steps
will be taken to protect the information and ensure continual integrity in gaming.

8

25 CFR § 575.6
See statement for 25 CFR §575.5. No other exceptions apply.
25 CFR § 577.3
See statement for 25 CFR § 575.5. No other exceptions apply.
25 CFR § 577.8
See statement for 25 CFR § 575.5. No other exceptions apply.
25 CFR § 577.12
See statement for 25 CFR § 575.5. No other exceptions apply.
25 CFR § 577.14(b)
See statement for 25 CFR § 575.5. No other exceptions apply.
8. If applicable, provide a copy and identify the date and page number of publication in
the Federal Register of the agency's notice, required by 5 CFR § 1320.8(d), soliciting
comments on the information collection prior to submission to OMB.
Summarize public comment received in response to that notice and describe actions
taken by the agency in response to these comments. Specifically address comments
received on cost and hour burden. Describe efforts to consult with persons outside
the agency to obtain their views on the availability of data, frequency of collection,
the clarity of instructions and recordkeeping, disclosure, or reporting format, (if
any), and on the data elements to be recorded, disclosed, or reported.
Consultation with representatives of those from whom information is to be obtained
or those who must compile records should occur at least once every three years -even if the collection of information activity is the same as prior periods. There may
be circumstances that may preclude consultation in a specific situation. These
circumstances should be explained.
On February 16, 2012, a notice containing the information collections requirement was
published in the Federal Register allowing the public an opportunity to comment on the
requirements. The public comment period closed on April 16, 2012. No public comments were
received. The NIGC contacted auditing firms specializing in Indian gaming facilities to gather
rates and hour requirements for the collection. The firms included Egghart and Associates.
Joseph Eve and Associates, and Moss Adams.

9

25 CFR § 571.7
The consensus of those surveyed is that the compilation, maintenance and retention of
financial books and records are standard practice carried out in the normal course of business.
As such, little or no hour and cost burden was associated with this requirement.
25 CFR § 571.12 and § 571.13
IGRA’s section 2710(b)(2)(C) requires tribes to provide annual outside audits to the
NIGC. NIGC received no comments on this section.
25 CFR § 571.14
Cost and hour estimates were considered reasonable by those gaming tribes contacted.
25 CFR § 575.5
Respondents agreed that this requirement parallels administrative law and federal
practices and is necessary to ensure due process. This reporting requirement applies only to those
violating IGRA.
25 CFR § 575.6
See supporting statement for 25 CFR § 575.5.
25 CFR § 577.3
See supporting statement for 25 CFR § 575.5.
25 CFR § 577.8
See supporting statement for 25 CFR § 575.5.
25 CFR § 577.12
See supporting statement for 25 CFR § 575.5.
25 CFR § 577.14(b)
See supporting statement for 25 CFR § 575.5.
9. Explain any decision to provide any payment or gift to respondents, other than
remuneration of contractors or grantees.
Not applicable. The NIGC does not provide any payment or gift to respondents.

10

10. Describe any assurance of confidentiality provided to respondents and the basis for the
assurance in statute, regulation, or agency policy.
With regard to confidential information, the Commission must ensure that Indian gaming
is kept free from criminal influence. To that end, the Commission must require the maintenance
and reporting of certain confidential information. The Commission has established a system of
records for maintaining and protecting confidential information. However, the Commission will
not reveal any personal information of individuals received in connection with a background
investigation under the Privacy Act. 5 U.S.C. § 552(a). Further, the Commission will not reveal
information that constitutes a trade secret or information connected to an ongoing law
enforcement investigation. 25 U.S.C. § 2716 removes from the Commission any discretion it
would otherwise have to disclose information that falls within FOIA exemptions 4 and 7 and
requires the Commission to disclose such information only to other law enforcement agencies for
law enforcement purposes. Information in these categories can become issues during an appeal
of the Chairman’s decisions or during the reporting of a background investigation. Thus, steps
will be taken to protect the information and ensure continual integrity in gaming.
11. Provide additional justification for any questions of a sensitive nature, such as sexual
behavior and attitudes, religious beliefs, and other matters that are commonly considered
private. This justification should include the reasons why the agency considers the
questions necessary, the specific uses to be made of the information, the explanation to be
given to persons from whom the information is requested, and any steps to be taken to
obtain their consent.
Not applicable. No sensitive questions are asked.
12. Provide estimates of the hour burden of the collection of information. The statement
should:
- Indicate the number of respondents, frequency of response, annual hour burden,
and an explanation of how the burden was estimated. Unless directed to do so,
agencies should not conduct special surveys to obtain information on which to
base hour burden estimates. Consultation with a sample (fewer than 10) of
potential respondents is desirable. If the hour burden on respondents is
expected to vary widely because of differences in activity, size, or complexity,
show the range of estimated hour burden, and explain the reasons for the
variance. Generally, estimates should not include burden hours for customary
and usual business practices.
- If this request for approval covers more than one form, provide separate hour
burden estimates for each form and aggregate the hour burdens on Item 13 of
OMB Form 83-I.
- Provide estimates of annualized costs to respondents for the hour burdens for
collections of information, identifying and using appropriate wage rate
categories. The cost of contracting out or paying outside parties for information

11

collection activities should not be included here. Instead, this cost should be
included in Item 14.
INFORMATION COLLECTION SUMMARY FOR 25 CFR SUBCHAPTER 5 - COMPLIANCE
AND ENFORCEMENT
CFR
SECTION

571.12,
571.13
571.14
575.5
575.6
577.3
577.8
577.12
577.14

RESPONDENTS

FREQUENCY

TOTAL ANNUAL
RESPONDENTS

HOURS PER
RESPONDENT

TOTAL
HOURS

HOURLY
RATE

TOTAL OPERATING
AND MAINTENANCE
COSTS

422

1

422

450

189,900

$100

$18,990,000.00

422
10
10
10
1
1
1

1
1
1
1
1
1
1

422
10
10
10
1
1
1

4
50
20
32
32
30
20

1688
500
200
320
32
30
20

$35
$100
$100
$100
$100
$100
$100

$59,080
$50,000.00
$20,000
$32,000
$3,200
$3,000
$2,000

ESTIMATED AGENCY ANNUAL BURDEN

CFR
SECTION

571.7
571.12,
571.13
571.14

FREQUENCY

TOTAL ANNUAL
RESPONSES

REVIEW PER
RESPONSE HOURS

422

N/A

N/A

0

0

$0

422
422

1
1

422
422

6
2

2532
844

$40
$40

RESPONDENTS

TOTAL
BURDEN
HOURS

HOURLY
RATE

TOTAL AGENCY
COST

$0
$101,280
$33,760

25 CFR § 571.7
The NIGC believes that gaming operators will compile and maintain financial books and
records in the ordinary course of business. Tribes have accounting processes that provide a
method for: (1) recording transactions, (2) keeping financial records, (3) performing internal
audits, (4) reporting and analyzing financial information, and (5) advising on compliance with
applicable laws and regulations. Thus, the burden is negligible.
25 CFR § 571.12 and § 571.13
See item 13.
25 CFR § 571.14
The NIGC expects to request 422 respondents to prepare reconciled quarterly fee reports.
The burden associated with this requirement is estimated to be 2 hours per respondent at a cost of
$40 per hour for a total of $40 per operation (2 hours X $40 = $80). Hourly rate is based upon
accountants’ average hourly rate.

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25 CFR § 575.5
See item 13.

25 CFR § 575.6
See item 13.
25 CFR § 577.3
See item 13.
25 CFR § 577.8
See item 13.
25 CFR § 577.12
See item 13
25 CFR § 577.14(b)
See item 13
13. Provide an estimate of the total annual cost burden to respondents or record-keepers
resulting from the collection of information. (Do not include the cost of any hour burden
shown in Items 12 and 14).
- The cost estimate should be split into two components: (a) a total capital and startup cost component {annualized over its expected useful life}; and (b) a total
operation and maintenance and purchase of services component. The estimates
should take into account costs associated with generating, maintaining, and
disclosing or providing the information. Include description of methods used to
estimate major cost factors including system and technology acquisition, expected
useful life of capital equipment, the discount rate(s), and the time period over which
costs will be incurred. Capital and start-up costs include, among other items,
preparations for collecting information such as purchasing computers and software;
monitoring, sampling, drilling and testing equipment; and record storage facilities.
- If cost estimates are expected to vary widely, agencies should present ranges of cost
burdens and explain the reasons for the variance. The cost of purchasing or
contracting out information collection services should be a part of this cost burden
estimate. In developing cost burden estimates, agencies may consult with a sample
of respondents (fewer than 10), utilize the 60-day, pre-OMB submission public
comment process and use existing economics or regulatory impact analysis
associated with the rulemaking containing the information collection, as
appropriate.

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- Generally, estimates should not include purchases of equipment or services, or
portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory
compliance with requirements not associated with the information collection, (3) for
reasons other than to provide information or keep records for the government, or
(4) as part of customary and usual business or private practices.
25 CFR § 571.7
See item 12.
25 CFR § 571.12 and § 571.13
The NIGC estimates that it will cost a gaming operation $45,100 to contract out for an
independent audit. An hour burden was calculated but in most cases audits are usually ‘fixed
fee’ contracts plus travel expenses.
25 CFR § 571.14
See item 12.
25 CFR § 575.5
If NIGC initiates an enforcement action, the gaming operation's estimated hour burden
would be 50 hours and the average cost burden would be $100.00 per hour for a total of
$5,000.00 per respondent. Hourly rates take into consideration consultation with outside legal
counsel. The NIGC estimates that 10 enforcement actions will be initiated annually.
25 CFR § 575.6
If a respondent requests that an assessed civil fine be reduced, it is estimated that it would
require 20 burden hours at a cost burden of $100.00 per hour for a total cost of $2,000.00 per
respondent. Hourly rates take into consideration consultation with outside legal counsel. The
NIGC estimates that 10 enforcement actions will be initiated annually.
25 CFR § 577.3
If a gaming operation decides to appeal to an enforcement action to the Chairman, it is
estimated that such an appeal would require 32 hours at a cost burden of $100.00 per hour for a
total cost of $3,200.00 per respondent. Hourly rate takes into consideration consultation with
outside legal counsel. The NIGC estimates that 10 enforcement actions will be initiated
annually.
25 CFR § 577.8
If a gaming operation decides to appeal to an enforcement action to the full Commission,
it is estimated that such an appeal would require 32 hours at a cost of $100.00 per hour for a total

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cost of $3,200. Hourly rate takes into consideration consultation with outside legal counsel. The
NIGC estimates that 10 enforcement actions will be initiated annually, but that only 1
enforcement action will result in appeal to the full commission.
25 CFR § 577.12
If a respondent exercises the right to intervene on behalf of another party, it is estimated
that the hour burden would be 30 hours at a cost burden of $100.00 per hour for a total of $3,000
per respondent. Hourly rates take into consideration consultation with outside legal counsel. The
NIGC estimates that 1 respondent(s) will exercise this right, annually.
25 CFR § 577.14(b)
If a respondent decides to file an objection to any aspect of the recommended decision,
the respondent's estimated hour burden would be 20 hours and the cost burden would be $100
per hour for a total of $2,000. Hourly rate takes into consideration consultation with outside
legal counsel. The NIGC estimates that 10 enforcement actions will be initiated annually, but
that only 1 action would require a respondent to file an objection to a presiding officials
recommended decision.
14. Provide estimate of annualized cost to the Federal Government. Also, provide a
description of the method used to estimate cost, which should include quantification of
hours, operational expenses (such as equipment, overhead, printing and support staff), and
any other expense that would not have been incurred without this collection of information.
Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table.
Based on the workflows of the NIGC, records and functions specific to the receipt,
recordation and analysis of submissions have been evaluated and costs and burden hours,
inclusive of operational expenses, have been determined.
See chart.
15. Explain the reasons for any program changes or adjustments reported in Items 13 or
14 of OMB Form 83-I.
Because risks to the industry are constantly evolving, the NIGC must be fluid in
response. Furthermore, changes in the law have affected the agency’s ability to accomplish its
mission. However, the Agency believes it can accurately estimate both the number of
respondents and the burden of the Agency information collection. The NIGC reviewed data
accumulated from internal and external sources to determine the extent of each collection
requirement and made the necessary adjustments.
Tribes often conduct gaming at more than one facility, and thus the figures in this report
change with the industry expansion.

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Fees collected from gaming operations are based on the budget of the Agency but may
not exceed .08% of total gross gaming revenue of all gaming operations. The entire focus of the
NIGC is on compliance with the requirements of the IGRA. The effort is to monitor and initiate
such action as necessary to protect the reputation of the industry and the gaming public.
The narrative paragraphs below show the adjustment for the number of respondents or
the respondent’s burden. The chart that follows this section shows a summary of the data and the
adjustments.
25 CFR § 571.7
The number of gaming operations has increased to 422 from the previous estimate of
387. However, the requirement to maintain books and records are administrative functions
common to the industry and commerce in general. No additional burden is imposed.
25 CFR § 571.12 and § 571.13
The estimated cost to produce the audit has increased to $45,000 from the previous
estimate of $43,000. Since the number of gaming operations has expanded (387 to 422) and the
estimated cost of performing an individual audit has been revised upward, the total cost to the
population of respondents increased from $16,641,000 to 18,990,000.
The estimated cost of processing the submissions has remained static at six hours per
response. The number of respondents has also increased from 387 to 422. Consequently, the
cost to the Agency reflects an increase from $69,660 to $75,960.
25 CFR § 571.14
Record keeping: The number of respondents has increased because of an increase in the
number of gaming operations (387 to 422). The hourly and cost burdens are unchanged.
Reporting: For the respondent, the requirement is to make the record available upon
request to an Agency representative. Thus, no other burden is imposed.
25 CFR § 575.5
The hours for a respondent to reply to the enforcement action, and the hourly rate
involved, remains the same based on agency experience. This produces no cost increase.
25 CFR § 575.6
The hours for a respondent to reply to the enforcement action, and the hourly rate
involved, remains the same based on agency experience. This produces no cost increase.

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25 CFR § 577.3
The hours for a respondent to reply to the enforcement action, and the hourly rate
involved, remains the same based on agency experience. This produces no cost increase.
25 CFR § 577.8
Based on experience, the number of respondents remains 1. The total hours remains at
32.
25 CFR § 577.12
The hours for a respondent to reply to the enforcement action, and the hourly rate
involved, remains the same based on agency experience. This produces no cost increase.
25 CFR § 577.14(b)
Based on experience, the number of respondents is remains at 1. The total hours remain
at 20.
16. For collections of information whose results will be published, outline plans for
tabulations and publication. Address any complex analytical techniques that will be used.
Provide the time schedule for the entire project, including beginning and ending dates of
the collection of information, completion of report, publication dates, and other actions.
This is an ongoing information collection with no ending date and no planes for
publication.
17. If seeking approval to not display the expiration date for OMB approval of
information collection, explain the reasons that display would be inappropriate.
Not applicable.
18. Explain each exception to the certification statement in Item 19, "Certification for
Paperwork Reduction Act Submission," of OMB Form 83-I.
Not applicable. The NIGC certifies compliance with 5 CFR § 1320.9.
B. Collection of Information Employing Statistical Methods.
This section is not applicable. Statistical methods are not employed.

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