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

1. (1) The TGRA permits the operation to be exempt from this part;
2. (2) The annual gross gaming revenue of the operation does not exceed $3 million; and

3. (3) The TGRA develops, and the operation complies with, alternate procedures that:

   1. (i) Protect the integrity of games offered;
   2. (ii) Safeguard the assets used in connection with the operation; and
   3. (iii) Create, prepare and maintain records in accordance with Generally Accepted Accounting Principles.

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

1. (1) All proceeds are for the benefit of a charitable organization;
2. (2) The TGRA permits the charitable organization to be exempt from this part;
3. (3) The charitable gaming operation is operated wholly by the charitable organization's agents;
4. (4) The annual gross gaming revenue of the charitable operation does not exceed $3 million; and

5. (5) The TGRA develops, and the charitable gaming operation complies with, alternate procedures that:

   1. (i) Protect the integrity of the games offered;
   2. (ii) Safeguard the assets used in connection with the gaming operation; and
   3. (iii) Create, prepare and maintain records in accordance with Generally Accepted Accounting Principles.