WSR 13-19-056
PERMANENT RULES
GAMBLING COMMISSION
[Order 692—Filed September 16, 2013, 1:24 p.m., effective October 17, 2013]
Effective Date of Rule: Thirty-one days after filing.
Purpose: The commissioners adopted rules to implement ESSB 5723, which was passed during the 2013 legislative session to allow bona fide charitable or nonprofit organizations whose primary purpose is serving individuals with intellectual disabilities to conduct "enhanced" raffles under certain conditions if the raffle is approved by the five-person gambling commission. The new law gives the commission rule-making authority to: Set fees for bona fide charitable or nonprofit organizations, call center vendors, and consultants conducting enhanced raffles; to adopt rules governing the licensing and operation of enhanced raffles; and to define independent audits that will be conducted on enhanced raffles and associated smaller raffles. The new law authorizes up to four raffles per year with a grand prize worth up to $5 million and allows raffle tickets to be sold for up to $250 per ticket (the current ticket limit is $100). The new law allows associated entries and drawings, including "refer a friend," "early bird" and "multiple ticket" drawings. The organizations would be allowed to use call centers and/or hire consultants, if licensed by the commission; currently call centers and consultants are not allowed. The new law expires June 30, 2017.
Citation of Existing Rules Affected by this Order: Amending WAC 230-03-060, 230-03-320, 230-03-325, 230-03-335, 230-05-020, 230-05-030, 230-05-035, 230-07-155, 230-11-012, 230-11-014, 230-11-020, 230-11-030, 230-11-040, 230-11-050, 230-11-055, 230-11-065, and 230-11-070.
Statutory Authority for Adoption: RCW 9.46.070, 9.46.0209.
Adopted under notice filed as WSR 13-15-175 on July 24, 2013.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 6, Amended 17, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 6, Amended 17, Repealed 0.
Date Adopted: September 16, 2013.
Susan Newer
Rules Coordinator
AMENDATORY SECTION (Amending WSR 13-17-018, filed 8/9/13, effective 9/9/13)
WAC 230-03-060 Fingerprinting.
(1) The following persons must submit fingerprints and undergo a national criminal history background check:
(a) Substantial interest holders of commercial businesses and charitable or nonprofit organizations who live or have lived out of the state in the last ten years; and
(b) Card room employees, commercial and nonprofit gambling managers, and manufacturer, distributor, service supplier, call centers for enhanced raffles, and linked bingo prize provider representatives; and
(c) Any other substantial interest holder when we have information they may not be qualified for licensure or to participate in a gambling activity; and
(2) Applicants or licensees for the following activities do not need to submit fingerprints: Recreational gaming activities, agricultural fair permits, and Class A commercial amusement games.
AMENDATORY SECTION (Amending WSR 06-07-157, filed 3/22/06, effective 1/1/08)
WAC 230-03-320 Substantial interest holders not required to be licensed as representatives.
If you are a substantial interest holder in a business licensed to operate a manufacturer, distributor, gambling service supplier, call centers for enhanced raffles, or linked bingo prize provider or a spouse of the same, you do not have to have an additional license to perform representative duties connected with that licensed business.
AMENDATORY SECTION (Amending WSR 06-07-157, filed 3/22/06, effective 1/1/08)
WAC 230-03-325 Office, clerical, or warehouse workers not required to be licensed as representatives.
Except for enhanced raffle call center representatives, if you are an office, clerical, or warehouse worker and have contact with customers or potential customers only by telephone at your employer's business premises and work under the immediate and direct supervision of a substantial interest holder or a licensed manager or supervisor, you do not have to have a representative license.
AMENDATORY SECTION (Amending WSR 06-07-157, filed 3/22/06, effective 1/1/08)
WAC 230-03-335 Representatives must not work before receiving a license.
If you are applying for a license as a representative for a manufacturer, distributor, gambling services supplier, call centers for enhanced raffles, or linked bingo prize provider, you must not work until you receive a license from us.
NEW SECTION
WAC 230-03-152 Additional requirements for enhanced raffles.
(1) The commissioners may vote to approve a bona fide charitable or nonprofit organization, whose primary purpose is serving individuals with intellectual disabilities, to conduct enhanced raffles when they meet the requirements of section 1, chapter 310, Laws of 2013 and submit a plan as designated below.
(2) The bona fide charitable or nonprofit organization must submit a plan to us for each enhanced raffle that includes at least the following information:
(a) The organization's primary purpose for conducting the enhanced raffle; and
(b) A brief overview of the licensee's mission and vision including the type of programs supported by the licensee and clients served; and
(c) Specific details of the raffle rules including:
(i) Date and location of the grand prize drawing and associated smaller raffles; and
(ii) A description of additional related entries and drawings such as early bird, refer a friend, and multiple ticket drawings; and
(iii) Cost of raffle tickets; and
(iv) Prizes available; and
(v) Security of prizes; and
(vi) Plans for selling raffle tickets; and
(vii) Description of how the licensee protects the integrity of the raffle; and
(d) An explanation of how the proceeds from the raffle will be used; and
(e) A plan to protect the licensee in the event of low ticket sales and other risks; and
(f) An explanation of how the licensee will purchase the prize(s) for the raffle; and
(g) A projected budget including:
(i) Estimated gross gambling receipts, expenses, and net income for the raffle; and
(ii) Minimum number of projected ticket sales to break even; and
(iii) Corresponding sales and prize levels with projected revenues and expenses for each level; and
(iv) Minimum and maximum prizes available; and
(h) Name of the dedicated employee of the organization who will be responsible for oversight of the enhanced raffle operations; and
(i) Name of any licensed service supplier managing the enhanced raffle; and
(j) Name of any licensed call centers contracted to receive enhanced raffle tickets sales; and
(k) Any other information that we request.
LICENSING CALL CENTERS
NEW SECTION
WAC 230-03-232 Applying for an enhanced raffle call center license.
(1) You must apply for an enhanced raffle call center license if you receive authorized enhanced raffle ticket sales.
(2) The licensing process may include an on-site review of your call center process to ensure compliance with applicable gambling laws and rules, and your qualifications for licensure.
NEW SECTION
WAC 230-03-317 Applying for an enhanced raffle call center representative license.
You must apply for an enhanced raffle call center representative license if you are employed by a licensed enhanced raffle call center to receive enhanced raffle ticket sales or to supervise those who do.
AMENDATORY SECTION (Amending WSR 07-23-083, filed 11/20/07, effective 1/1/08)
WAC 230-05-020 Charitable or nonprofit organization fees.
Bona fide charitable and nonprofit organizations must pay the following fees to us when applying for gambling licenses, permits, miscellaneous changes, or inspection services:
1. Amusement games
License
Annual Gross Gambling
Receipts
Fee
Class A
Premises only
$58
Class B
Up to $10,000
$58
Class C
Up to $25,000
$319
Class D
Up to $50,000
$513
Class E
Over $50,000
$894
2. Bingo
License
Annual Gross Gambling
Receipts
Fee
One Time Variance*
Class A
Up to $25,000
$58
$1,000
Class B
Up to $75,000
$185
$1,000
Class C
Up to $150,000
$380
$2,000
Class D
Up to $350,000
$1,026
$4,000
Class E
Up to $650,000
$1,732
$8,000
Class F
Up to $1,500,000
$3,486
$15,000
Class G
Up to $2,000,000
$5,028
$23,000
Class H
Up to $3,000,000
$6,722
$30,000
Class I
Up to $4,000,000
$8,400
$38,000
Class J
Up to $5,000,000
$10,078
$45,000
Class K
Up to $6,000,000
$11,306
$53,000
Class L
Up to $7,000,000
$12,922
$60,000
Class M
Up to $8,000,000
$14,542
$65,000
Class N
Up to $9,000,000
$15,818
$70,000
Class O
Up to $10,000,000
$17,454
$75,000
Class P
Up to $11,000,000
$19,090
$80,000
Class Q
Up to $12,000,000
$22,908
$85,000
Class R
Up to $13,000,000
$26,180
$90,000
Class S
Up to $14,000,000
$29,454
$95,000
*See chapter 230-06 WAC, Exceeding license class.
3. Card games
License
Description
Fee
Class A
Nonhouse-banked - fee to play
$641
Class B
Limited card games - hearts, rummy, pitch, pinochle, and cribbage - fee to play
$185
Class C
Tournament only - no more than thirty consecutive days per tournament
$58
Class D
Nonhouse-banked - no fee to play
$58
4. Fund-raising event
License
Description
Fee
Class A
One event - not more than 24 consecutive hours
 
First time applicant
$380
 
Previously licensed applicant
$223
Class B
One event - not more than 72 consecutive hours
 
First time applicant
$641
 
Previously licensed applicant
$393
Class C
Additional participant in joint event - not lead organization
$185
Class D
Limited fund-raising event - one event - not more than six consecutive hours
 
First time applicant
$167
 
Previously licensed applicant
$111
Class E
Fund-raising event equipment distributor - rents or leases equipment no more than ten times per year
$253
Class F
Fund-raising event equipment distributor - rents or leases equipment more than ten times per year
$641
5. Punch boards/pull-tabs
License
Annual Gross Gambling
Receipts
Fee
One Time Variance*
Class A
Up to $50,000
$611
$5,000
Class B
Up to $100,000
$1,090
$5,000
Class C
Up to $200,000
$2,062
$10,000
Class D
Up to $300,000
$2,998
$10,000
Class E
Up to $400,000
$3,874
$10,000
Class F
Up to $500,000
$4,676
$10,000
Class G
Up to $600,000
$5,420
$10,000
Class H
Up to $700,000
$6,100
$10,000
Class I
Up to $800,000
$6,722
$10,000
Class J
Up to $1,000,000
$7,620
$20,000
Class K
Up to $1,250,000
$8,460
$25,000
Class L
Up to $1,500,000
$9,240
$25,000
Class M
Up to $1,750,000
$9,880
$25,000
Class N
Up to $2,000,000
$10,466
$25,000
Class O
Up to $2,500,000
$11,500
$30,000
Class P
Up to $3,000,000
$12,218
$35,000
Class Q
Up to $4,000,000
$14,400
$40,000
Class R
Up to $5,000,000
$16,362
$50,000
Class S
Up to $6,000,000
$18,544
$60,000
Class T
Up to $7,000,000
$20,728
$70,000
Class U
Up to $8,000,000
$22,908
$80,000
Class V
Over $8,000,000
$25,090
$80,000
*See chapter 230-06 WAC, Exceeding license class.
6. Raffles
License
Annual Gross Gambling Receipts
Fee
Class A
Up to $5,000
$58
Class B
Up to $10,000
$185
Class C
Up to $25,000
$380
Class D
Up to $50,000
$641
Class E
Up to $75,000
$1,026
Class F
Over $75,000
$1,540
7. Enhanced raffles
License
Fee
Annual
$6,000
Additional fee per enhanced raffle
$7,800
((7.)) 8. Combination license
License
Description
Fee
Class A
Allows gross gambling receipts of up to $25,000 from bingo, $7,500 from raffles, and $7,500 from amusement games, not to exceed $30,000 combined gross gambling receipts from all such activities. Allows Class D card games.
$115
Class B
Allows gross gambling receipts of up to $60,000 from bingo, $15,000 from raffles, and $15,000 from amusement games, not to exceed $75,000 combined gross gambling receipts from all such activities. Allows Class D card games.
$300
Class C
Allows gross gambling receipts of up to $125,000 from bingo, $30,000 from raffles, and $30,000 from amusement games, not to exceed $150,000 combined gross gambling receipts from all such activities. Allows Class D card games.
$696
((8.)) 9. Special property bingo
Once annually
$27
((9.)) 10. Permits
Recreational gaming activity
$58
((10.)) 11. Changes
Type
Fee
Name
$27
Location
$27
Fund-raising event date or time
$27
License class
$27
Duplicate license
$27
((11.)) 12. Other fees
Type
Fee
Replacement identification stamps
$27
Failing to apply for license class upgrade
Up to fifty percent of the difference between our fees for the licensee's present license class and the new license class or one thousand dollars, whichever is less, plus $26
Review, inspection and/or evaluation of equipment, paraphernalia, services, or schemes
Deposit and fees as required
((12.)) 13. Two-part payment plan participation
Annual participation
$27
AMENDATORY SECTION (Amending WSR 09-17-077, filed 8/14/09, effective 1/1/10)
WAC 230-05-030 Fees for other businesses.
All other business license applicants must pay the following fees to us when applying for gambling licenses, miscellaneous changes, or inspection services:
1. Commercial amusement games
License
Annual Gross Gambling Receipts
Fee
Class A
Premises only
*$327/$150
Class B
Up to $50,000
$460
Class C
Up to $100,000
$1,184
Class D
Up to $250,000
$2,644
Class E
Up to $500,000
$4,640
Class F
Up to $1,000,000
$7,968
Class G
Over $1,000,000
$9,970
*
We reduce the license fee by $177 when you apply for additional licenses at the same business premises, apply for multiple licenses at the same business premises, or a licensee is renewing an annual license.
2. Distributor
License
Annual Gross Sales
Fee
Class A
Nonpunch board/pull-tab only
$659
Class B
Up to $250,000
$1,318
Class C
Up to $500,000
$1,980
Class D
Up to $1,000,000
$2,644
Class E
Up to $2,500,000
$3,446
Class F
Over $2,500,000
$4,242
3. Fund-raising event equipment distributor
License
Description
Fee
Class A
Rents or leases equipment for fund-raising event or recreational gaming activity up to 10 times per year.
$260
Class B
Rents or leases equipment for fund-raising event or recreational gaming activity more than 10 times per year.
$659
4. Gambling service supplier
License
Fee
Annual
$687
Financing, consulting, and management contract review
$143
5. Linked bingo prize provider
License
Fee
Annual
$4,414
6. Call centers for enhanced raffles
License
Fee
Annual
$4,500
((6.)) 7. Manufacturer
License
Annual Gross Sales
Fee
Class A
Pull-tab dispensing devices only
$659
Class B
Up to $250,000
$1,318
Class C
Up to $500,000
$1,980
Class D
Up to $1,000,000
$2,644
Class E
Up to $2,500,000
$3,446
Class F
Over $2,500,000
$4,242
((7.)) 8. Permits
Type
Description
Fee
Agricultural fair
One location and event only
$27
Agricultural fair annual permit
Annual permit for specified different events and locations
$189
Recreational gaming activity
$59
Manufacturer's special sales permit
$211
Punch board and pull-tab service business permit
Initial application fee
$236
Punch board and pull-tab service business permit
Renewal
$56
((8.)) 9. Changes
Application
Description
Fee
Name
 
$27
Location
 
$27
Business classification
Same owners
$59
Exceeding license class
New class fee, less previous fee paid, plus
$27
Duplicate license
 
$27
Corporate stock/limited liability company shares/units
 
$59
License transfers
 
$59
((9.)) 10. Other fees
Type
Fee
Defective punch board/pull-tab cost recovery fees
Up to $100
Failing to apply for license class upgrade
Up to fifty percent of the difference between our fees for the licensee's present license class and the new license class or one thousand dollars, whichever is less, plus $27
Review of gambling equipment, supplies, services, or games
Cost reimbursement
((10.)) 11. Identification stamps
Type
Fee
(a) Punch boards and pull-tabs
(i) Standard
Wagers fifty cents and below
$.28
 
Wagers over fifty cents
$1.11
(ii) Progressive jackpot pull-tab series
Per series
$11.19
(iii) Pull-tab series with carry-over jackpots and cumulative prize pool pull-tab series
Per series
$1.11
(b) Pull-tab dispensing devices
(i) Mechanical and electro-mechanical
 
$.28
(ii) Electronic
Dispensing devices that require initial and ongoing evaluation of electronic components or functions, such as reading encoded data on pull-tabs, accounting for income or prizes
$112.04
annually
Replacement of identification stamps
 
$26
(c) Disposable bingo cards
(i) Single game sets of individual cards or sheets of cards
 
$.28
(ii) Multigame card packets
 
$1.22
(iii) Cards used to play for linked bingo prizes
Fee per 250 cards
$.44
(iv) Cards used to play for linked bingo prizes
Fee per 5,000 cards
$8.96
(d) Coin or token-activated amusement games
Annually - operated at any Class A amusement game license location
$28.00
(e) Electronic bingo card daubers
Annual
$11.19
(f) Electronic card facsimile table
Annual
$381.50
((11.)) 12. Two-part payment plan participation
Annual participation
$27
AMENDATORY SECTION (Amending WSR 07-23-083, filed 11/20/07, effective 1/1/08)
WAC 230-05-035 Individuals license fees.
Individuals must pay the following fees to us when they apply for gambling licenses, permits, miscellaneous changes:
1. Charitable or nonprofit gambling manager
License
Fee
Original
$185
Renewal
$88
Change of employer
$88
2. Linked bingo prize provider representative
License
Fee
Original
$260
Renewal
$158
3. Commercial gambling manager
License
Fee
Original
$189
Renewal
$90
Change of employer
$90
4. Distributor's or gambling services supplier's representative
License
Fee
Original
$260
Renewal
$158
5. ((Manufacturer's representative)) Representatives for manufacturers or call centers for enhanced raffles
License
Fee
Original
$260
Renewal
$158
6. Public card room employee
License
Fee
Class A - Performs card room employee duties in a Class E card room
Original
$189
Renewal
$90
Class B - Performs card room employee duties in enhanced and house-banked card rooms
Original, in-state
$258
Original, out-of-state
$320
Renewal
$158
Transfer/additional employee/conversion/emergency waiver request
$61
7. Other fees
Change of name
$27
Duplicate license
$27
8. Military personnel returning from service
If a license expires while an individual is on active military service, the individual may apply to have their license reissued at the renewal fee. The application must be received within six months after completing their active military service. The applicant must provide evidence of the completion date of active military service.
AMENDATORY SECTION (Amending WSR 07-10-032, filed 4/24/07, effective 1/1/08)
WAC 230-07-155 Reporting annual activity for raffles, enhanced raffles, amusement games, Class A, B, or C bingo, or combination licenses.
(1) Raffle, enhanced raffle, amusement game, Class A, B, or C bingo, or combination licensees must submit an annual report of all their activities in the format we require.
(2) We must receive the completed report in our office postmarked no later than thirty days following the expiration of their license(s).
(3) The highest ranking officer or his/her designee must sign the report.
(4) If the licensee has someone else prepare the report, then the preparer must include his/her name and phone number on the report.
(5) Licensees that operate retail sales activities in conjunction with bingo games must report the net income from those retail sales activities.
NEW SECTION
WAC 230-11-002 The definition of raffle as used in this chapter.
"Raffle" as used in this chapter means raffle as defined in RCW 9.46.0277 and enhanced raffle as defined in section 1, chapter 310, Laws of 2013.
NEW SECTION
WAC 230-11-102 Recordkeeping requirements for enhanced raffles.
Licensees conducting enhanced raffles must prepare a detailed record for each raffle they conduct. Licensees must:
(1) Prepare detailed records in the format we require; and
(2) Maintain the following:
(a) Validated deposit receipts for each deposit of raffle proceeds; and
(b) All winning tickets; and
(c) Name, address, and telephone number of all winners of a prize with a fair market value of more than fifty dollars; and
(d) All enhanced raffle tickets placed in the receptacle; and
(e) All unsold tickets; and
(f) Invoices and other documentation recording the purchase or receipt of prizes; and
(g) Invoices and other documentation recording the purchase of tickets and other expenses of the raffle; and
(3) Complete all records no later than thirty days following the drawing.
NEW SECTION
WAC 230-11-103 Independent audit required for enhanced raffles.
(1) Charitable or nonprofit licensees conducting enhanced raffles must have an independent audit conducted on each enhanced raffle and the associated smaller raffles.
(2) Licensees must hire an independent, certified public accountant or firm licensed by the Washington state board of accountancy to conduct the audit.
(3) The licensee must submit the auditor's report no later than sixty days following the date of the enhanced raffle grand prize drawing.
(4) We may grant an organization additional time to submit the information required if a written request is received before the due date. The president of the organization must sign any request for additional time and include a statement explaining the hardship causing the delay, and the expected date the required report(s) will be submitted.
(5) The independent auditor's report must include:
(a) For the enhanced raffle grand prize drawing and each associated smaller raffles:
(i) Date of the drawing;
(ii) Location of the drawing;
(iii) Gross receipts; and
(iv) Prizes awarded;
(b) List of all expenses used to calculate net proceeds;
(c) Itemized list of all expenses and associated amounts for conducting the enhanced raffle;
(d) Source of funds for purchasing prizes and conducting the enhanced raffle;
(e) The amount of funds that the charitable or nonprofit licensee used or that will be used towards their stated purpose;
(f) Report any state or federal regulatory actions taken in relation to enhanced raffles in Washington; and
(g) Any other information we require to ensure completeness of the information reported.
AMENDATORY SECTION (Amending WSR 06-20-040, filed 9/26/06, effective 1/1/08)
WAC 230-11-012 Licensees may conduct a joint raffle.
Except for enhanced raffles, raffle licensees may jointly conduct a raffle if:
(1) Licensees maintain in writing the method by which the income, expenditures for prizes, and all other expenses, received and expended in connection with the raffle will be divided among them; and
(2) One licensee sets up a separate bank account into which all of the proceeds from the raffle are deposited and from which all of the expenses in connection with the raffle, including but not limited to, all payments for prizes, are made; and
(3) Participating licensees keep records which clearly disclose the amount of money received or each licensee expends in connection with the raffle and the purpose(s) for which the money was spent; and
(4) Licensees count all gross receipts that each participating licensee received toward their gross receipts limit.
AMENDATORY SECTION (Amending WSR 09-19-052, filed 9/11/09, effective 10/12/09)
WAC 230-11-014 Maximum raffle ticket price.
(1) Raffle tickets must not be sold for more than one hundred dollars each; and
(2) Enhanced raffle tickets must not be sold for more than two hundred fifty dollars each.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-11-020 Record information on ticket stub.
If an organization sells raffle tickets to the general public or conducts raffles that do not require the winner to be present at the drawing, the organization must include a stub or other detachable section bearing a number, letter, or symbol matching the number, letter, or symbol on the ticket or object representing the participant's ticket. The organization's portion must include the participant's name, complete address, telephone number, and other information necessary to notify the winner. Licensees operating an enhanced raffle may provide a receipt that includes ticket confirmation numbers in lieu of a ticket stub.
AMENDATORY SECTION (Amending WSR 09-09-065, filed 4/13/09, effective 7/1/09)
WAC 230-11-030 Restrictions on ticket sales.
(1) Only the following people, who are at least eighteen years old, may sell raffle tickets:
(a) Members of the organization, except as explained in subsection (2) of this section; and
(b) Volunteers under the supervision of a member; and
(c) Licensed enhanced raffle call center representatives.
(2) Organizations may allow members under the age of eighteen to sell tickets when the organization has:
(a) Development of youth as a primary purpose; and
(b) At least three members or advisors who are at least eighteen years old and who supervise the operation of the raffle; and
(c) An adult member or advisor designated as the manager of the raffle.
(3) Organizations must sell tickets for a particular raffle for the same price unless offering an authorized discount plan; and
(4) Organizations must not:
(a) Sell raffle tickets via the internet; or
(b) Require anyone to purchase more than one raffle ticket; or
(c) Give away raffle tickets; or
(d) Give an opportunity to participate in a raffle drawing to a person who has not purchased a ticket.
AMENDATORY SECTION (Amending WSR 06-20-040, filed 9/26/06, effective 1/1/08)
WAC 230-11-040 Place ticket stubs in receptacle for drawing.
Each person who sells a raffle ticket must give the organization all tickets, ticket stubs or other detachable sections of all tickets sold. The organization must place each ticket, ticket stub or other detachable section of each ticket sold into a receptacle from which the organization will draw the winning tickets unless they use one of the authorized alternative drawing formats.
AMENDATORY SECTION (Amending WSR 06-20-040, filed 9/26/06, effective 1/1/08)
WAC 230-11-050 Using alternative drawing formats.
Except for enhanced raffles, licensees may use alternative drawing formats that randomly determine winners if licensees:
(1) Fully disclose to each player the random selection process used in the alternative drawing format before selling tickets; and
(2) Maintain a copy of the disclosure with the permanent raffle records; and
(3) Use controls and accounting procedures that:
(a) Provide the ability to audit gross gambling receipts from ticket sales; and
(b) Have sufficient controls to prevent manipulation of the random selection process; and
(c) Document the random selection process.
AMENDATORY SECTION (Amending WSR 06-20-040, filed 9/26/06, effective 1/1/08)
WAC 230-11-055 Authorized alternative drawing formats.
Except for enhanced raffles, licensees may use the following types of alternative drawing formats or similar random selection processes:
Mock races.
(1) The licensee sells participants consecutively numbered tickets that identify a specific corresponding numbered mock animal(s), ball(s), or other similar object(s) that can use natural elements to move the objects (water, gravity, wind) in a race. All objects must be identical in weight, size, and shape, to have an equal opportunity to win. The licensee must release all objects simultaneously at a start line. The first numbered object to cross the finish line wins.
Poker runs.
(2) The licensee sells participants consecutively numbered tickets or poker tally sheets to participants. Participants travel a predetermined course with predetermined drawing stations (typically five drawing stations). At each drawing station, participants draw one playing card for each ticket purchased. Station attendants must verify the card drawn and record the card value on the poker ticket tally sheet. After all participants have completed the course, the participant with the best recorded poker hand wins.
Ball drops.
(3) The licensee sells participants consecutively numbered tickets that identify a specific corresponding numbered ball. All balls must be equal in size, weight, and shape, to have an equal opportunity to win. The licensee suspends all purchased numbered balls in the air and simultaneously releases them over a target zone. The ball, closest or first, to hit the predetermined target wins.
Animal plops.
(4) The licensee sells participants consecutively numbered tickets that identify a specific corresponding square on a numbered grid. The licensee releases the animal into the grid area until the animal has completed its plop. The numbered square containing the plop wins.
Multiple stage drawings.
(5) The licensee sells participants consecutively numbered tickets. The licensee uses multiple drawing phases to eliminate participants until the licensee declares the remaining ticket holder(s) the winner(s). The licensee may use second element of chance plans as long as the plans meet the criteria set out in WAC 230-11-060.
Bucket raffles.
(6) The licensee sells participants consecutively numbered tickets. Participants place their tickets into any number of separate buckets or other receptacles for separate prizes. We consider the multiple drawings one single raffle. If licensees use different tickets for each receptacle, we consider each drawing an individual raffle.
Calendar raffles.
(7) The licensee sells participants consecutively numbered calendars with removable stubs. The licensee places all sold calendar stubs into the drawing receptacle. On predetermined dates identified on the calendar, the licensee conducts drawings. The licensee places all winning stubs back into the drawing receptacle for future drawings.
AMENDATORY SECTION (Amending WSR 12-05-067, filed 2/15/12, effective 3/17/12)
WAC 230-11-065 Raffle prizes.
(1) Organizations must own the prizes offered to winners before the date of the drawing. However, if the winner has an option to receive a cash prize instead of the merchandise, the organization may enter into a contract to purchase the merchandise prize after the winner chooses his or her option. The organization must have the funds to make the purchase on account before the date of the drawing.
(2) At the time and date of any raffle drawing, the organization must have on deposit an unencumbered amount of money that is equal to or greater than all cash prizes being offered in the raffle. The organization must have these funds deposited in the gambling receipts account, if required, or in a recognized Washington state depository authorized to receive funds. The organization must not reduce the balance of funds available from this account below the required amount before awarding the prize(s).
(3) Raffle prizes must:
(a) Be available at the time and place of the drawing; and
(b) If cash, be United States currency or an equivalent amount of negotiable instruments; and
(c) For licensees, not exceed forty thousand dollars per prize or three hundred thousand dollars in total raffle prizes in a license year, except as authorized in WAC 230-11-067.
(4) For enhanced raffles, a purchase contract is not necessary for smaller noncash prizes, but the bona fide charitable or nonprofit organization must be able to demonstrate that such a prize is available and sufficient funds are held in reserve in the event that the winner chooses a noncash prize.
AMENDATORY SECTION (Amending WSR 06-20-040, filed 9/26/06, effective 1/1/08)
WAC 230-11-070 Defining "members-only" raffles.
A "members-only raffle" means a raffle where the organization sells tickets only to full and regular members and a limited number of guests and does not include enhanced raffles. All aspects of the raffle must take place during the same event at the same location. Winners must be determined from among those members and guests that have purchased tickets.