(a) Small gaming operations. This part shall not apply to small gaming operations provided that:

1. (1) The Tribal gaming regulatory authority permits the operation to be exempt from this part;
2. (2) The annual gross gaming revenue of the operation does not exceed $1 million; and

3. (3) The Tribal gaming regulatory authority develops and the operation complies with alternate procedures that:

   1. (i) Protect the integrity of games offered; and
   2. (ii) Safeguard the assets used in connection with the operation.

(b) Charitable gaming operations. This part shall not apply to charitable gaming operations provided that:

1. (1) All proceeds are for the benefit of a charitable organization;
2. (2) The Tribal gaming regulatory authority permits the charitable organization to be exempt from this part;
3. (3) The charitable gaming operation is operated wholly by the charitable organization's employees or volunteers;

4. (4) The annual gross gaming revenue of the charitable gaming operation does not exceed $100,000;

   1. (i) Where the annual gross gaming revenues of the charitable gaming operation exceed $100,000, but are less than $1 million, paragraph (a) of this section shall also apply; and
   2. (ii) [Reserved]

5. (5) The Tribal gaming regulatory authority develops and the charitable gaming operation complies with alternate procedures that:

   1. (i) Protect the integrity of the games offered; and
   2. (ii) Safeguard the assets used in connection with the gaming operation.