Resources for Tribal gaming audit and compliance

NIGC Minimum Internal Control Standards

The Minimum Internal Control Standards (MICS) set the floor for the controls a Tribal gaming operation must have. Each Tribal gaming regulatory authority adopts Tribal Internal Control Standards (TICS) that are at least as stringent, and each operation writes a System of Internal Control Standards (SICS) that puts the TICS into practice and is approved by the regulatory authority.

Class II: 25 CFR Part 543

Part 543 applies to Class II gaming (bingo, pull tabs, non-banked card games and the electronic aids used to play them). The operation’s tier is set by annual gross gaming revenue in its audited financial statements:

An operation that moves into a new tier has nine months from the date of the CPA’s audit report to comply. The regulatory authority may grant six more months if it notifies the NIGC in writing at least two weeks before the nine months end (§543.3).

The standards are organized by area. The ones we test most often:

Class III: 25 CFR Part 542 and your TICS

Part 542 contains the original MICS for Class III gaming such as table games, gaming machines, keno and pari-mutuel wagering. In 2006 a federal appeals court held that the NIGC lacks authority to enforce Class III MICS (Colorado River Indian Tribes v. NIGC). Class III controls are now set by Tribal-State compacts and TICS, many of which adopt Part 542 as their baseline. Under Part 542, Tier A is $1 million to $5 million, Tier B is more than $5 million up to $15 million, and Tier C is more than $15 million.

Which parts apply depends on what you offer: a Class II-only operation is tested under Part 543, a Class III-only operation under its TICS (often built on Part 542), and an operation offering both under both.

Class II gaming equipment: 25 CFR Part 547

Part 547 sets minimum technical standards for electronic equipment used to play Class II games, such as bingo-based gaming machines and their systems. It works alongside the Part 543 controls for those games.

Internal audit and the annual agreed-upon procedures

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  Internal audit (§543.23(c)). Each department is audited at least annually against the MICS, TICS and SICS by auditors independent of the departments they audit. Exceptions are reported with management’s response, and corrective action is verified within six months.
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  Agreed-upon procedures (§543.23(d)). Each year a CPA performs agreed-upon procedures to assess compliance with the MICS, or with TICS or SICS that provide at least the same level of control. The report goes to the NIGC with the audited financial statements.

How we perform MICS and TICS compliance audits →

NIGC annual fees and fee worksheets

Every gaming operation under NIGC jurisdiction pays an annual fee based on its assessable gross revenue, and files a quarterly statement (the fee worksheet) with each payment, even when no fee is due.

Current fee rates

These rates took effect November 1, 2025 (NIGC Bulletin 2025-1; 90 FR 48955) and stay in effect until new rates are adopted. The Commission must adopt rates by November 1 each year, so check the NIGC bulletins for any fiscal year 2027 rates. The fingerprint processing fee is $44 per card.

How assessable gross revenue is calculated (§514.4)

1. Start with total amounts wagered on Class II and Class III games, plus entry fees (including table and card fees).
2. Subtract amounts paid out as prizes or paid for prizes awarded.
3. Subtract wagers made with promotional credits (free play).
4. Subtract the capital expenditure allowance: up to 10% of total depreciation for the year, or up to 5% of the cost of structures in use all year plus 2.5% of the cost of structures in use part of the year, as shown in the audited financial statements.

The fee is figured on the operation’s assessed fiscal year: the fiscal year ending before January 1 of the year the Commission adopted the rates. The NIGC’s sample fee worksheet and payment schedule show which year applies to each fiscal year-end.

Worked example

A Tribal casino offering gaming machines, table games, bingo and poker reports the following for its assessed fiscal year:

When fees are due

Payments and quarterly statements are due 3, 6, 9 and 12 months after the end of the operation’s fiscal year (§514.5). The full annual fee may be paid with the first quarter, but all four statements must still be filed.

Fee worksheet checklist

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  File a separate statement for each facility license; don’t combine operations.
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  Show revenue by game type, with the prize and capital allowance deductions, and a contact name, phone and email.
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  Put the operation’s NIGC ID number on every statement.
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  Reconcile the worksheet to the audited or reviewed financial statements; gross revenue under IGRA can differ from gaming revenue under GAAP. The NIGC publishes a sample fee reconciliation form.
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  Pay through Pay.gov; mailed payments can take up to two weeks to process.
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  File on time: late fees can reach 10% (1–30 days), 15% (31–60 days) or 20% (61–90 days) of the quarter’s fee, and more than 90 days late is a failure to pay that can lead to a temporary closure order.

Financial statement and AUP submissions

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  Annual audit. Each Class II and Class III gaming operation is audited every fiscal year by an independent, state-licensed CPA under generally accepted auditing standards.
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  Review alternative. An operation with gross gaming revenue under $2,000,000 in the prior fiscal year may submit a CPA review instead, if the Tribe or regulatory authority permits it.
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  Deadline. Audited financial statements, management letters and any agreed-upon procedures report are due to the NIGC within 120 days after fiscal year-end.
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  How to submit. One electronic copy to Financials_AUPfilings@nigc.gov, or two paper copies by mail.

Example: a December 31 fiscal year-end means the audit and AUP report are due by April 30 (120 days later).

About our financial statement audits →

Title 31 (Bank Secrecy Act)

Tribal gaming operations with more than $1 million in gross annual gaming revenue are casinos under the Bank Secrecy Act. Key requirements:

Example: aggregating a gaming day

During one gaming day a patron buys $6,000 in chips at a table, deposits $3,500 in front money at the cage, and later redeems $8,000 in chips for cash.

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  Cash in: $6,000 + $3,500 = $9,500. Not more than $10,000, so no CTR for cash in, though the transactions are still logged.
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  Cash out: $8,000. No CTR. Cash out is never netted against cash in.
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  If the patron then buys another $1,000 in chips, cash in reaches $10,500 and a CTR is required for that gaming day, filed within 15 days.

SARs are confidential: the casino may not disclose a SAR or anything that would reveal one exists, except as the rule allows.

How we test Title 31 compliance →

IRS reporting: Form W-2G thresholds for 2026

For payments made on or after January 1, 2026, the minimum W-2G reporting threshold is $2,000 (One Big Beautiful Bill Act, §70433; IRS Instructions for Forms W-2G and 5754, Rev. January 2026). The older amounts of $1,200 for slots and bingo and $1,500 for keno no longer apply. For years after 2026, the IRS adjusts the threshold for inflation each year.

Withholding

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  Regular gambling withholding: 24% when winnings minus the wager are more than $5,000 from sweepstakes, wagering pools, lotteries, or other wagers paying at least 300 times the wager. It does not apply to bingo, keno or slot machine winnings.
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  Backup withholding: 24% when the winner doesn’t provide a correct taxpayer identification number on reportable bingo, keno, slot or poker tournament winnings.

Examples for payments in 2026

Update your slot system and cage procedures, TICS and SICS references, and patron notices so they reflect the current threshold, and confirm the inflation-adjusted amount each January.

Official sources and checklists