WSR 17-23-198 PROPOSED RULES GAMBLING COMMISSION [Filed November 22, 2017, 11:43 a.m.] Original Notice. Preproposal statement of inquiry was filed as WSR 17-20-085. Title of Rule and Other Identifying Information: Various rules in chapter 230-06 WAC, Rules for all licensees; chapter 230-07 WAC, Charitable and nonprofit rules; chapter 230-09 WAC, Fund-raising event rules; chapter 230-10 WAC, Bingo rules; chapter 230-11 WAC, Raffles; chapter 230-13 WAC, Amusement game rules; chapter 230-14 WAC, Punchboard and pull tab; chapter 230-15 WAC, Card game rules; chapter 230-16 WAC, Manufacturer, distributor, and gambling service supplier rules; chapter 230-17 WAC, Brief adjudicative proceedings; WAC 230-03-085 Denying, suspending, or revoking an application, license or permit; and 230-05-102 All licensed organizations report activity quarterly beginning with the July 1, 2018, through September 30, 2018, quarter. Hearing Location(s): On January 11, 2018, at 1:00 p.m., at the Hampton Inn & Suites, 4301 Martin Way East, Olympia, WA 98516. Hearing will take place at the January commission meeting. The meeting dates and times are tentative. Visit our web site at www.wsgc.wa.gov about seven days before the meeting, select "January commission meeting" to confirm the hearing date, location, and start time. Date of Intended Adoption: January 11, 2018. Submit Written Comments to: Rule[s] Coordinator, P.O. Box 42400, Olympia, WA 98504-2400, email rules.coordinator@wsgc.wa.gov, fax 360-486-3624, by January 2, 2018. Assistance for Persons with Disabilities: Contact Julie Anderson, phone 360-486-3453, TTY 360-486-3637, email Julie.anderson@wsgc.wa.gov, by January 2, 2018. Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The key rules in this second package:
Reasons Supporting Proposal: The current fee structure was created over forty years ago. It began with twenty-five fees. Today the gambling commission has approximately one hundred ninety-four different fees for commercial and nonprofit organizations and individuals. This fee schedule is typically based on a "class" system, which can be cumbersome for licensees and agency staff. The gambling commission is looking to simplify this current system to allow it to be easier to navigate and have a licensing fee schedule that is more predictable for both the agency and its licensees. Statutory Authority for Adoption: RCW 9.46.070. Statute Being Implemented: RCW 9.46.070. Rule is not necessitated by federal law, federal or state court decision. Name of Proponent: Washington state gambling commission, governmental. Name of Agency Personnel Responsible for Drafting and Enforcement: Tina Griffin, Assistant Director, 4565 7th Avenue S.E., Lacey, WA 98503, 360-486-3546; and Implementation: David Trujillo, Director, 4565 7th Avenue S.E., Lacey, WA 98503, 360-486-3512. A school district fiscal impact statement is not required under RCW 28A.305.135. A cost-benefit analysis is not required under RCW 34.05.328. The Washington state gambling commission is not an agency that is statutorily required to prepare a cost-benefit analysis under RCW 34.05.328 This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW 19.85.025(3) as the rules only correct typographical errors, make address or name changes, or clarify language of a rule without changing its effect; rules set or adjust fees under the authority of RCW 19.02.075 or that set or adjust fees or rates pursuant to legislative standards, including fees set or adjusted under the authority of RCW 19.80.045; and rules adopt, amend, or repeal a procedure, practice, or requirement relating to agency hearings; or a filing or related process requirement for applying to an agency for a license or permit. November 22, 2017 Michelle Rancour Acting Rules Coordinator
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-03-085 Denying, suspending, or revoking an application, license or permit.
We may deny, suspend, or revoke any application, license or permit, when the applicant, licensee, or anyone holding a substantial interest in the applicant's or licensee's business or organization:
(1) Commits any act that constitutes grounds for denying, suspending, or revoking licenses or permits under RCW 9.46.075; or
(2) Has been convicted of, or forfeited bond on a charge of, or pleaded guilty to a misdemeanor or felony crime involving physical harm to individuals. "Physical harm to individuals" includes any form of criminal assault, any crime involving a threat of physical harm against another person, or any crime involving an intention to inflict physical harm on another person; or
(3) Has demonstrated willful disregard for complying with ordinances, statutes, administrative rules, or court orders, whether at the local, state, or federal level; or
(4) Has failed to pay gambling taxes to local taxing authorities and the local taxing authority has petitioned us to take action; or
(5) Has failed to pay a quarterly license fee or submit a quarterly license report; or
(6) Is serving a period of probation or community supervision imposed as a sentence for any juvenile, misdemeanor, or felony criminal offense, whether or not the offense is covered under RCW 9.46.075(4); or
(((6))) (7) Is the subject of an outstanding gross misdemeanor or felony arrest warrant; or
(((7))) (8) Fails to provide us with any information required under commission rules within the time required, or, if the rule establishes no time limit, within thirty days after receiving a written request from us; or
(((8))) (9) Poses a threat to the effective regulation of gambling, or creates or increases the likelihood of unfair or illegal practices, methods, and activities in the conduct of gambling activities, as demonstrated by:
(a) Prior activities; or
(b) Criminal record; or
(c) Reputation; or
(d) Habits; or
(e) Associations; or
(((9))) (10) Knowingly provides or provided goods or services to an entity that illegally operates gambling activities.
NEW SECTION
WAC 230-05-102 All licensed organizations report activity quarterly beginning with the July 1, 2018, through September 30, 2018, quarter.
(1) Beginning July 1, 2018, all licensed organizations must submit activity reports quarterly, regardless of whether they previously submitted reports annually, quarterly, or semi-annually and regardless of when their permit or license year ends.
(2) This includes gambling service suppliers and any other licensed organizations that did not previously submit activity reports.
(3) Licensed organizations that report annually on or before June 30, 2018, must submit an activity report from the beginning of their license year through June 30, 2018. Beginning July 1, 2018, licensed organizations that report annually will report quarterly as set forth in this section.
(4) The activity reports must be in the format we require and must:
(5) All licensed organizations must submit quarterly license fees to us for each licensed gambling activity after the first quarter of their license year that begins on or after July 1, 2018, as set forth in WAC 230-05-124.
AMENDATORY SECTION (Amending WSR 10-07-102, filed 3/19/10, effective 7/1/10)
WAC 230-06-046 Additional requirements for licensed business premises of nonhouse-banked, Class ((E,)) F, and house-banked card rooms.
(1) The licensed business premises of nonhouse-banked, Class ((E,)) F, and house-banked card rooms may not be adjacent to each other if each licensed business premises:
(a) Shares inside public access between the two licensed business premises; or
(b) Has employee access between the two licensed business premises visible to the public; or
(c) Shares windows or similar structures that allow customers to see into the other licensed business premises.
(2) Subsection (1) of this section does not apply to nonhouse-banked, Class ((E,)) F, and house-banked card room physical locations that have any of the features listed in subsection (1) of this section and were licensed on the effective date of this rule.
(3) Adjacent card rooms must post signs at each entrance that is accessible by the public to clearly notify customers of the licensed business premises' identity.
NEW SECTION
WAC 230-06-081 Submitting gambling service supplier contracts for review.
Prior to executing financing, consulting, or management contracts, gambling service suppliers must submit these agreements to us for review for compliance with Title 230 WAC and chapter 9.46 RCW.
NEW SECTION
WAC 230-06-082 Manufacturers, distributors, gambling service suppliers, linked bingo prize providers, and call centers for enhanced raffles reporting changes in licensed employees.
Manufacturers, distributors, gambling service suppliers, linked bingo prize providers and call centers for enhanced raffles licensees must:
(1) Submit an application and the required fees before allowing licensed employees to begin working.
(2) Notify us in the format we require when a licensed employee no longer works for them. We must receive the notice at our Lacey office within ten days of the licensed employee's last day.
AMENDATORY SECTION (Amending WSR 08-21-087, filed 10/14/08, effective 1/1/09)
WAC 230-06-083 Card game licensees reporting changes in licensed employees.
Card game licensees((, except Class B or Class D)) must:
(1) Submit an ((add/transfer)) application and the required fees before allowing a licensed card room employee to begin working.
(2) Notify us in ((writing)) the format we require when a licensed card room employee no longer works for them. We must receive the notice at our Lacey office within ten days of the card room ((employee terminating employment)) employee's last day.
AMENDATORY SECTION (Amending WSR 06-17-132, filed 8/22/06, effective 1/1/08)
WAC 230-06-100 Changing business locations.
(((1))) Licensees must apply to us and pay a fee to change the location of their licensed business premises. Licensees must receive our approval before changing the business location.
(((2) Commercial amusement game licensees may add or delete from the list of locations for which we issued their license without paying a fee.))
AMENDATORY SECTION (Amending WSR 16-19-015, filed 9/8/16, effective 10/9/16)
WAC 230-06-110 Buying, selling, or transferring gambling equipment.
(1) All licensees and persons authorized to possess gambling equipment must closely control the gambling equipment in their possession.
(2) Before selling gambling equipment, licensees must ensure that the buyer possesses a valid gambling license or can legally possess the equipment without a license.
(3) Before purchasing gambling equipment, licensees must ensure that the seller possesses a valid gambling license.
(4) Applicants for Class F or house-banked card room licenses may purchase and possess gambling equipment during the prelicensing process, but only after receiving written approval from us.
(5) Charitable and nonprofit organizations conducting unlicensed bingo games, as allowed by RCW 9.46.0321, may possess bingo equipment without a license.
(6) Group 12 amusement games can only be sold or leased to ((Class B and above)) amusement game licensees by a licensed manufacturer or distributor. ((Class B and above)) Amusement game licensees can lease or rent group 12 amusement games ((to Class A)) for operation at approved amusement game ((licensees. Lease agreements entered into prior to the effective date of this rule may continue until the manufacturer is licensed or December 31, 2016, whichever occurs first)) locations.
(7) Licensees may transfer gambling equipment as a part of a sale of a business as long as a condition of the sale is that the buyer receives a gambling license before the sale is complete. Licensees must make a complete record of all gambling equipment transferred in this manner, including I.D. stamps. Licensees must report these transfers, including a copy of the inventory record, to us.
AMENDATORY SECTION (Amending WSR 16-19-015, filed 9/8/16, effective 10/9/16)
WAC 230-06-112 Buying, selling, renting and leasing amusement games.
(1) ((Class A)) Amusement game licensees can rent or lease amusement games from ((Class B and above)) other amusement game licensees.
(2) ((Class B and above)) Amusement game licensees can:
(a) Own and operate group 1 through 12 amusement games at their licensed premises;
(b) Buy or lease group 12 amusement games from a licensed manufacturer or distributor and lease or rent them ((to Class A)) for operation at other approved amusement game ((licensees)) locations; and
(c) Rent or lease group 1 through 11 amusement games to ((Class A)) approved amusement game ((licensees)) locations.
AMENDATORY SECTION (Amending WSR 15-08-017, filed 3/24/15, effective 7/1/15)
WAC 230-06-124 Online filing ((and payments)) required with waivers available upon request for good cause.
(1) All licensees must submit ((the following)) activity reports online((:
(a) Renewal application and fees, as referenced in Title 230 WAC; and
(b) Activity reports, as referenced in Title 230 WAC)).
(2) We may waive these requirements if a licensed organization can show good cause. The reasons for good cause include:
(a) You do not have access to the internet using your own computer or similar equipment; or
(b) You do not have a bank account; or
(c) Your bank is unable to send electronic fund transactions; or
(d) Some other circumstance or condition exists that, in our judgment, prevents you from submitting online.
(3) ((We may waive these requirements if a licensed individual can show good cause. The reasons for good cause include:
(a) You do not have access to the internet using your own computer or similar equipment; or
(b) You do not have a bank account or credit card; or
(c) Your bank is unable to send electronic fund transactions; or
(d) Some other circumstance or condition exists that, in our judgment, prevents you from submitting online.
(4))) You must request a waiver, in writing, no later than sixty days before your activity report due date or license expiration date. ((A waiver will cover subsection (1)(a) and (b) of this section.))
(4) This section will be in effect until October 31, 2019.
AMENDATORY SECTION (Amending WSR 08-20-007, filed 9/18/08, effective 1/1/09)
WAC 230-06-150 Defining "gross gambling receipts."
(1) "Gross gambling receipts" for activity reports means the amount due to any operator of a gambling activity for:
(a) Purchasing chances to play a punch board or pull-tab series; and
(b) Purchasing chances to enter a raffle; and
(c) Fees or purchase of cards to participate in bingo games; and
(d) Fees to participate in an amusement game, including rent or lease payments paid to licensees or franchisers for allowing operation of an amusement game on their premises; and
(e) "Net win" from a house-banked card game; and
(f) Tournament entry fees; and
(g) Administrative fees from player-supported jackpots; and
(h) Fees to participate in a nonhouse-banked card game (for example, time, rake, or per hand fee).
(2) The amount must be stated in U.S. currency.
(3) The value must be before any deductions for prizes or other expenses.
(4) "Gross gambling receipts" does not include fees from players to enter player-supported jackpots. However, any portion of wagers deducted for any purpose other than increasing current prizes or repayment of amounts used to seed prizes are "gross gambling receipts."
AMENDATORY SECTION (Amending WSR 08-20-007, filed 9/18/08, effective 1/1/09)
WAC 230-06-170 Defining "net win."
"Net win" for activity reports means gross wagers received from gambling activities or fund-raising events minus the:
(1) Amount paid to players for winning wagers; and
(2) Accrual of prizes for progressive jackpot contests; and
(3) Repayment of amounts used to seed guaranteed progressive jackpot prizes.
SURRENDERING SUSPENDED OR REVOKED LICENSES
NEW SECTION
WAC 230-06-176 Surrendering suspended or revoked licenses.
If we suspend or revoke your license, you must, on demand, surrender the license and return it to us.
AMENDATORY SECTION (Amending WSR 07-10-032, filed 4/24/07, effective 1/1/08)
WAC 230-07-090 Keeping and depositing all gambling funds separate from other funds.
Charitable or nonprofit licensees must protect all funds generated from gambling activities and keep these funds separate from their general funds.
(1) Licensees must:
(a) Keep a separate gambling receipts account(s) in a recognized Washington state bank, mutual savings bank, or credit union; and
(b) Deposit only gambling receipts into that account. Licensees may deposit receipts from nongambling activities operated in conjunction with bingo games into the gambling receipts account if the licensee keeps detailed receipting records of the nongambling receipts; and
(c) Deposit all gambling receipts first into the account before spending or transferring them into other accounts, except for prize pay outs; and
(d) Deposit funds received from commercial amusement game operators operating amusement games on their premises in the licensee's gambling receipts account no later than the second banking day after they receive the receipts; and
(e) Make all deposits of net gambling receipts from each activity separately from all other deposits, and keep the validated deposit receipt as a part of their records. Deposit receipts are a part of the applicable daily or monthly records and licensees must make them available for our inspection; and
(f) Deposit all net gambling receipts which they are holding, pending pay out:
(i) From bingo, no later than the second banking day after they receive them. Licensees may withhold bingo receipts from deposits for "jar," "pig," or other special game prizes if the total of all such prize funds does not exceed two hundred dollars, enter the amount withheld each session in the bingo daily record, and record the reconciliation of the special game fund on the bingo daily record. "Reconcile" means the licensee must compare the two balances, resolve any differences, and document the comparison and the differences in writing. Licensees must keep the reconciliation as part of their records; and
(ii) From raffles (((Class E and above))) and amusement games (((Class D and above))) with gross gambling receipts over fifty thousand dollars in their previous license year, at least once each week; and
(iii) From punch board and pull-tabs, including cost recovery for merchandise prizes awarded, no later than two banking days after they remove the board or series from play; and
(g) Record the Washington state identification number assigned to the punch board or pull-tab series and the amount of net gambling receipts on the deposit slip/receipt. Licensees may record the number and the receipts on a separate record if they record the bank validation number and maintain the record with the deposit slip/receipt; and
(2) These requirements do not apply to organizations who:
(a) Conduct only one or more of the following activities:
(i) Raffles under the provisions of RCW 9.46.0315;
(ii) Bingo, raffles, or amusement games under the provisions of RCW 9.46.0321;
(iii) ((Class A, B, or C bingo game;
(iv) Class A, B, C, or D raffle; or
(v) Class A, B, or C amusement game)) Bingo, raffle, and amusement game licensees with gross gambling receipts of fifty thousand dollars or less in their previous license year; and
(b) Do not have any other license(s) from us.
AMENDATORY SECTION (Amending WSR 16-22-049, filed 10/28/16, effective 11/28/16)
WAC 230-07-125 Recordkeeping requirements for lower volume charitable or nonprofit organizations.
(1) Organizations operating without a license under RCW 9.46.0315 or 9.46.0321 and lower volume charitable or nonprofit licensees must keep a set of permanent monthly records of the gambling activities. Lower volume licensees include:
(a) Fund-raising events;
(b) Bingo (((Classes A, B, and C))) with gross gambling receipts of one hundred fifty thousand dollars or less in their previous license year;
(c) Raffles (((Classes A, B, C, and D))) with gross gambling receipts of fifty thousand dollars or less in their previous license year;
(d) Amusement games (((Classes A, B, C, and D))) with gross gambling receipts of fifty thousand dollars or less in their previous license year; and
(e) Nonhouse-banked card games (((Classes A, B, and C))).
(2) The monthly records must include, at least:
(a) The gross gambling receipts from each activity;
(b) The gross gambling receipts from group 12 amusement games;
(c) The total amount of cash prizes actually paid out;
(d) The total of the cost to the licensee of all merchandise prizes actually paid out for each activity;
(e) A summary of all expenses related to each of the activities; and
(f) The net income received from the activity, the purpose(s) for which the net income was raised, and the amount paid to each recipient.
(3) Licensees must keep these records for three years from the end of the license year for which the record was created.
AMENDATORY SECTION (Amending WSR 08-03-062, filed 1/14/08, effective 2/14/08)
WAC 230-07-140 Minimum accounting records for ((Class D and above)) bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year and licensees with combined activities over five hundred thousand dollars in their previous license year.
((Class D and above)) Bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year and licensees ((who are authorized for more than)) with over five hundred thousand dollars in gross gambling receipts from combined gambling activities ((during any fiscal)) in their previous license year must keep accounting records necessary to document all receipts, costs, and disbursements, including, at least, those related to gambling activities.
Requirements for accounting records
For these accounting records, licensees must:
(1) Conform to generally accepted accounting principles (GAAP) except as modified by other commission rules; and
(2) Include, at least:
(a) A cash disbursements journal and/or check register;
(b) A cash receipts and/or sales journal;
(c) A list of all assets the licensee paid for;
(d) A listing of all liabilities;
(e) A complete general ledger system; and
(f) A list of all donated items valued at more than two hundred fifty dollars; and
(g) Bank statements, related deposit slips, and canceled checks or facsimiles of canceled checks; and
Donated items
(3) Document donated items. Licensees must:
(a) Use the fair market value at the time of donation;
(b) Add items to the list no later than thirty days after receiving them;
(c) Remove items when they no longer have legal ownership; and
(d) Not remove an item from the list, even if it has become obsolete or completely depreciated, until management has completed and documented appropriate review. A depreciation schedule for all capitalized items is sufficient; and
(e) Add items to the list when they convert items from gambling merchandise prize inventory to licensee use. This list must include, at least:
(i) A description of the item;
(ii) The date purchased, acquired by donation, or converted from the gambling prize pool;
(iii) The cost at the time of purchase or, if donated, the fair market value at the time received; and
(iv) The date and method of disposition of the item; and
Method of accounting
(4) Use the accrual method of accounting; and
(5) The cash, modified cash, or tax basis accounting methods may be used only if that method accurately represents the licensee's financial position, the results of operations, and the licensee does not have substantial liabilities or expenses, such as depreciation or amortization expenses, which require a current outlay of cash; and
Expenditures for nongambling activities
(6) Sufficiently document all expenditures relating to nongambling activities in order to provide a satisfactory audit trail and to allow us to verify that the funds were used for the licensee's stated purpose(s); and
Expenditures for gambling activities
(7) Sufficiently document all of the licensee's expenditures relating to gambling activities. Canceled checks or facsimiles of canceled checks, and bank statements are not sufficient documentation for expenditures without additional support. Licensees must provide additional support for expenditures, including:
(a) Invoices or other supporting documents from commercial vendors or service agencies with at least:
(i) The name of the person or entity selling the goods or providing the services;
(ii) A complete description of goods or services purchased;
(iii) The amount of each product sold or services provided;
(iv) The price of each unit;
(v) The total dollar amount billed; and
(vi) The date of the transaction.
(b) Documentation, in the form of checks and other written records of disbursements in excess of twenty-five dollars made directly to individuals who do not furnish normal, business type, invoices or statements. The written records must indicate at least:
(i) The name of the person receiving the payment;
(ii) The amount;
(iii) The date; and
(iv) The purpose; and
(8) Document allocated expenditures that relate to more than one function to the various functions. Licensees must document their methods of allocation and make them available for our review; and
Capitalizing assets
(9) Include a capitalization policy based on materiality and expected life of operating assets. To determine a minimum level for capitalizing assets, licensees must:
(a) Capitalize and depreciate, or amortize over the useful life of the asset, any assets of more than two thousand dollars that have a useful life of more than one year; and
(b) Capitalize and depreciate, or amortize over sixty months, beginning with the first month that bingo games are conducted, preoperating start up costs related to bingo games of more than six thousand dollars; and
(c) Amortize, over a period not longer than the life of the lease, any leasehold improvements related to gambling activities that are more than six thousand dollars. Licensees may extend the amortization period to include any lease option periods if the licensee's management states a reasonable expectation that they will use the lease option; and
(d) Charge all unamortized leasehold improvements as an expense of the gambling activities in the year that the lease expires.
AMENDATORY SECTION (Amending WSR 13-19-056, filed 9/16/13, effective 10/17/13)
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). Licensed organizations that report annually on or before June 30, 2018, must submit an activity report from the beginning of their license year through June 30, 2018, by July 30, 2018. Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102.
(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.
AMENDATORY SECTION (Amending WSR 07-10-032, filed 4/24/07, effective 1/1/08)
WAC 230-07-160 Reporting annual activity for agricultural fairs.
(1) Charitable or nonprofit licensees who operate bingo, raffles, and/or amusement games only at agricultural fairs and other special properties and permittees as defined in WAC 230-03-015 who operate bingo under another's license at agricultural fairs and other special properties 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 the license year. Licensed organizations that report annually on or before June 30, 2018, must submit an activity report from the beginning of their license year through June 30, 2018, by July 30, 2018. Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102.
(3) Permittees operating under another's license must provide the licensee with all information about the permitted operation that is needed by the licensee to complete the annual activity report not less than ten days before the time that we require the licensee to file his or her report.
(4) The highest ranking officer or his or her designee must sign the report. If the licensee has someone else prepare the report, then the preparer must include his or her name and phone number on the report.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-09-056 Activity reports for fund-raising events.
Fund-raising event licensees must submit an activity report to the commission concerning the operation of the licensed activities of each event. Licensees must complete the report in the format we require and the report must be:
(1) Received at our administrative office or postmarked no later than thirty days after the end of the authorized operating day or days((; and)). Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102.
(2) Signed by the licensee's highest ranking executive officer or designee. If someone other than the licensee or an employee prepares the report, the preparer must print his or her name and phone number on the report.
AMENDATORY SECTION (Amending WSR 06-22-051, filed 10/27/06, effective 1/1/08)
WAC 230-09-115 Bingo authorized.
Licensees must operate bingo solely under their FRE license, not under a separate bingo license. If licensees operate bingo, they must:
(1) Count income from bingo against the maximum net receipts authorized for FREs; and
(2) Comply with all of our rules for ((Class A, B, and C)) bingo licensees with gross gambling receipts of one hundred fifty thousand dollars or less in their previous license year.
AMENDATORY SECTION (Amending WSR 06-22-051, filed 10/27/06, effective 1/1/08)
WAC 230-09-125 Raffles authorized.
(1) Licensees may operate raffles at FREs in one of two ways:
(a) Solely under their fund-raising event license. Licensees must conduct all aspects of the raffle during the FRE. Income from this raffle counts toward the FRE limits; or
(b) Under a separate raffle license. Licensees must sell all tickets for the raffle and deposit all tickets in the drawing receptacle before the FRE and hold the raffle drawing at the FRE. ((Income from this raffle counts toward the limits of the licensee's raffle class.))
(2) For raffles conducted under an FRE license, licensees must:
(a) Not sell single FRE raffle tickets for more than twenty-five dollars per ticket; and
(b) Not require a person to buy more than one ticket; and
(c) Use consecutively numbered tickets; and
(d) Ensure that each ticket has a separate and equal chance to win; and
(e) Randomly draw the winning ticket; and
(f) Operate and account for raffles as independent gambling stations at the FRE; and
(g) Maintain records to verify gross sales of tickets; and
(h) Report all FRE raffle income, prizes awarded, and other expenses and these amounts count toward the maximum net receipts authorized for FREs.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-045 Disposable bingo card inventory control.
Bingo licensees must control and account for all disposable bingo cards they purchase or otherwise obtain.
(1) All licensees must keep:
(a) All purchase invoices, or photocopies of the invoices, for received disposable bingo cards on the bingo premises; and
(b) All manufacturer packing records as part of the inventory control record.
(2) ((Class D and above)) Bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year must prepare an inventory control record in the format we require immediately after purchase of disposable bingo cards or before the next bingo session. We may approve alternative formats, such as electronically generated forms, if the licensee requests it in writing.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-055 Bingo cards required for ((Class F and above bingo games)) licensees with gross gambling receipts over six hundred fifty thousand dollars in their previous license year.
((Class F and above)) Bingo licensees with gross gambling receipts over six hundred fifty thousand dollars in their previous license year must use disposable bingo cards, electronically generated bingo cards, player selection bingo cards, or three number speed bingo cards.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-065 Bingo ball mixer required ((for Class D and above bingo games)).
((Class D and above)) Bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year must use a machine that mixes balls and selects balls using air flow (a blower). The blower must:
(1) Allow players full view of the mixing action of the balls; and
(2) Not allow changes to the random placement of the balls in the exit tube of the blower except when it is shut off.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-070 Bingo flashboard ((requirements for Class D and above bingo games)) required.
(1) ((Class D and above)) Bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year must use flashboards to display numbers. The flashboards must be visible to all players and clearly indicate all numbers that have been called; and
(2) If a flashboard malfunctions, licensees must repair it before using it in any other bingo occasion.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-075 Licensed bingo manager required.
A licensed bingo manager must be on the premises and supervising bingo operation during all hours bingo games are conducted, except bingo games conducted:
(1) Under RCW 9.46.0321; or
(2) At a qualified agricultural fair; or
(3) ((Under a Class A, B, or C bingo license)) By licensees with gross gambling receipts of one hundred fifty thousand dollars or less in their previous license year; or
(4) At a special bingo property we authorize.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-085 Members or employees only to work bingo.
(1) Bingo licensees must not allow anyone except full and regular members or employees of the organization to take part in managing or operating bingo games.
(2) Licensees may allow:
(a) Persons other than the primary bingo manager to participate in bingo games for another bingo licensee. We do not consider a licensed assistant gambling manager to be a manager for this section; or
(b) Primary managers to manage or operate bingo for more than one ((Class A, B, or C)) licensee with gross gambling receipts of one hundred fifty thousand dollars or less in their previous license year as long as the managers do not receive payment for services from more than one licensee; or
(c) A person to manage or take part in operating a shared bingo operation according to WAC 230-10-470.
(3) Qualified agricultural fairs licensed to operate bingo are not required to meet these management or operation restrictions.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-090 Workers not playing in ((Class D and above)) bingo games.
(1) ((Class D and above)) Bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year must not allow persons who participate in operating or managing their bingo games to play in any of their bingo games.
(2) Persons who work without compensation for ((Class D and above)) bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year may play bingo, but they must not play during bingo sessions they are operating or managing.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-120 Duplicate bingo cards not sold for ((Class D or above)) bingo games.
(1) ((Class D or above)) Bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year must not sell duplicate cards in bingo games. Licensees using cards from multiple manufacturers may result in duplicate cards because the majority of cards in the "1 to 9000 series" are duplicate, regardless of the manufacturer.
(2) Licensees must:
(a) Inform players of limits on prizes if duplicate cards win because Braille cards are in play; and
(b) Not be held responsible for duplicate cards caused by Braille cards in play.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-125 Duplicate bingo cards pay out and documentation for ((Class D or above)) bingo games.
(1) If ((Class D or above)) bingo licensees with gross receipts over one hundred fifty thousand dollars in their previous license year inadvertently sell duplicate bingo cards, they must:
(a) Pay all winners with duplicate cards the entire prize amount that would be due if there were no duplicate cards; or
(b) Compute and pay all winners with duplicate cards using the following guidelines:
(i) If the game provides a bonus for a single winner and all winners have duplicate cards, then the licensee must pay all winners the bonus; or
(ii) If the game results in multiple winners and some of the players have duplicate cards, then the licensee must calculate the split of the prize pool by counting all duplicate card winners as one. All winners will be paid according to the calculated prize split; or
(iii) If the prize pool contains noncash or merchandise prizes, then the licensee may use the cost or retail value of the merchandise, whichever is posted in the game schedule, to calculate the amount added to the prize pool to make the split. Manufacturers are not responsible for reimbursement to this noncash or merchandise prize pool; or
(iv) If the prize is more than one thousand dollars, then the licensee must increase the total prize pool by no more than fifty percent or five thousand dollars, whichever is less. We authorize this limitation only once within a twelve-month period; and
(2) Licensees may deduct increases to prize pools caused by card manufacturers from prize pay outs when calculating cash flow.
(3) Licensees must document details of circumstances that resulted in duplicate cards being sold and maintain that documentation as a part of the daily bingo record for the session.
(4) Licensees must notify us within forty-eight hours after discovery of a duplicate card sale if:
(a) Manufacturer printing, packaging, or collation errors caused the duplication. Licensees must request reimbursement from the manufacturer responsible for duplicate card errors; or
(b) The licensee did not pay any winning player with a duplicate card the entire prize amount.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-275 Exceptions to other bingo rules for three number speed bingo.
The following rules do not apply to three number speed bingo:
(1) Prize disclosure before players pay to play. Licensees must still disclose the per card cost to play and the amount required to wager on a single card; and
(2) Number of balls used to conduct the game; and
(3) Number of spaces required on each bingo card; and
(4) Requirements that ((Class F and above)) licensees with gross gambling receipts over six hundred fifty thousand dollars in their previous license year use disposable bingo cards; and
(5) Requirements to account for all income at the time it is received; and
(6) Requirements of WAC 230-10-145 about drawing and physically displaying bingo numbers. However, licensees offering three number speed bingo must display the number on a flashboard and use the audio system to announce the number; and
(7) Recordkeeping for prizes awarded.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-10-330 ((Activity reports for Class A, B, and C)) Recordkeeping requirements for bingo licensees with gross gambling receipts less than one hundred fifty thousand dollars in their previous license year, agricultural fairs, and other organizations.
Licensees must immediately account for all income from bingo games. ((Class A, B, and C)) Bingo licensees with gross gambling receipts less than one hundred fifty thousand dollars in their previous license year, organizations conducting bingo under the provisions of RCW 9.46.0321, and bingo activities conducted at a qualified agricultural fair must follow the recordkeeping requirements in WAC 230-07-125 or any of the receipting methods for bingo income required for Class D or above licensees.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-10-331 Activity reports for Class D and above bingo licensees.
Class D and above bingo game licensees must submit activity reports to the commission. The activity reports must be in the format we require and must:
(1) Cover the periods:
(a) January 1 through March 31; and
(b) April 1 through June 30; and
(c) July 1 through September 30; and
(d) October 1 through December 31 of each year; and
(2) Be received at our administrative office or postmarked no later than thirty days following the end of the reporting period. Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102; and
(3) Be signed by the licensee's highest ranking executive officer or a designee. If someone other than the licensee or an employee prepares the report, the preparer must print his or her name and business telephone number on the report; and
(4) Submit a report for any period of time their license was valid, even if they had no activity or did not renew.
AMENDATORY SECTION (Amending WSR 08-03-062, filed 1/14/08, effective 2/14/08)
WAC 230-10-350 Recording bingo winners.
Organizations conducting bingo under the provisions of RCW 9.46.0321, and bingo activities conducted at a qualified agricultural fair, and ((Class A and B)) bingo licensees with gross receipts of seventy-five thousand dollars or less in their license year do not have to follow this rule if they meet the requirements for lower volume charitable or nonprofit organizations in WAC 230-07-125. All other bingo licensees must report all prize payments for bingo games and drawings for prizes, good neighbor prizes, and second element of chance prizes at bingo games and record payment on a prize receipt.
(1) Licensees must use prize receipts printed by a commercial printer. The receipts must:
(a) Be two-part, self-duplicating paper that provides for an original and a duplicate copy; and
(b) If the licensee ((is Class F or above)) has gross gambling receipts of over six hundred fifty thousand dollars in their previous license year, be imprinted with the name of the licensee and a consecutive ascending number that does not repeat in at least 100,000 occurrences; and
(c) If the licensee ((is Class E or below)) has gross gambling receipts of six hundred fifty thousand dollars or less in their previous license year, the receipt is not required to be imprinted with the licensee's name and the consecutive ascending number may repeat in 1,000 occurrences; and
(d) Provide space for the licensee to record the information we require.
Prize receipt
(2) Operators must complete the prize receipt including, at least:
(a) Date; and
(b) Game number; and
(c) Complete name of the winner; and
(d) Complete address of the winner, if the prize is over twenty dollars; and
(e) Dollar amount of the prize or the operator's cost, if noncash prize; and
(f) Full description of all noncash prizes; and
(g) Check number, if any portion of the prize is paid by check; and
(h) Initials of the bingo worker making the payout; and
(i) Initials of the cashier making the payment.
Prize log
(3) Licensees may receipt prizes of twenty dollars or less on a single prize log. Licensees must:
(a) Maintain a separate prize log for each session; and
(b) Record the same information required on prize receipts; and
(c) Retain the prize log as a part of the bingo daily records.
Linked bingo prizes
(4) Except for linked bingo prizes, licensees may omit an address for the winner if:
(a) The licensee pays all prizes greater than $300 by check or a combination of cash and check; and
(b) Checks are drawn on the licensee's gambling bank account; and
(c) Checks used are of a type that provides a duplicate copy. The copies must be kept as a part of the daily bingo records; and
(d) Checks are made payable only to the winner. Licensees may make checks for prizes won by players under age eighteen payable to the guardian or immediate family member accompanying the player; and
(e) Licensees note the game number and prize receipt number on the check; and
(f) The bank returns all original checks to the licensee. Licensees must have the original checks available for our inspection on demand; and
(g) The licensee does not cash or otherwise redeem prize checks.
(5) Licensees must record the complete name and address of the winner of linked bingo prizes.
(6) Licensees must:
(a) Issue prize receipts consecutively in an ascending order; and
(b) Void and retain with the daily records any prize receipts bearing a lower number than the highest number issued during a session; and
(c) Give the original of each prize receipt to the winner; and
(d) Keep a duplicate copy as a part of their records for not less than three years; and
(e) Account for and document all prize receipts purchased or otherwise obtained on a vendor's invoice; and
(f) Keep the vendor's invoice, or a photocopy of it, on the premises and have it available for our inspection. The purchase invoice must document, at least:
(i) Name of the vendor;
(ii) Name of the purchasing organization;
(iii) Date of purchase;
(iv) Number of receipts purchased; and
(v) The beginning and ending receipt number.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-385 Receipting of bingo income required.
Bingo licensees must account for all income from bingo games at the time they receive the income. Licensees must issue each player a receipt for the amount paid to play in each game or set of games at the time of payment. Players must keep this receipt to prove that they have properly purchased the number of cards they are playing.
(1) ((Class A, B, and C)) Licensees with gross gambling receipts of one hundred fifty thousand dollars or less in their previous license year, organizations conducting bingo under the provisions of RCW 9.46.0321, and bingo activities conducted at a qualified agricultural fair may use the receipting method for bingo income in WAC 230-07-125 or any of the methods for receipting bingo income required for ((Class D or above)) licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year; and
(2) ((Class D and above)) Licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year must use the receipting method for bingo income required for the bingo games they are offering:
(a) The disposable bingo card receipting method; or
(b) The cash register receipting method; or
(c) The electronically generated receipting method; or
(d) The ticket receipting method; or
(e) The combination receipting method.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-395 Cash register method of receipting for bingo income.
Bingo licensees may use a cash register to record bingo income if the cash registers:
(1) Have separate keys to record each type of sale; and
(2) Store and compute a total for each type of sale recorded and is capable of providing the total on request; and
(3) Retain in the memory unit all transactions recorded during a session, regardless of whether or not the cash register power source is interrupted; and
(4) Record all transactions, customer receipt numbers, and control totals on the internal tape retained in the cash register. The licensee must keep the internal tape, showing these transactions, as part of the daily bingo records; and
(5) Assign and imprint on the customer receipt and internal tape a minimum four-digit consecutive number for every sales transaction processed. Only cash register service personnel may reset this numbering system and the numbering system must not return to zero at the conclusion of any period of use or power interruption. If licensees receive written approval from us before use, they may use cash registers that do not meet these requirements but have adequate alternative control features; and
(6) ((For Class D and above)) Licensees((,)) with gross gambling receipts over one hundred fifty thousand dollars in their previous license year, must imprint a minimum three-digit consecutive number on the customer receipt and internal tape to note each time transactions are totaled or when a set of transactions are totaled and closed. If licensees receive written approval from us before use, they may use cash registers that do not meet these requirements but have adequate alternative control features.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-10-420 Ticket method of receipting bingo income.
Bingo licensees may use tickets to document receipts of bingo income. Tickets must be:
(1) Manufactured by a commercial printer and imprinted with:
(a) At least four digit numbers in a consecutive series. ((Class F and above)) Licensees with gross gambling receipts over six hundred fifty thousand dollars in their previous license year must use tickets with numbers that do not repeat in at least 99,999 occurrences; and
(b) Each ticket on a roll must represent the same dollar value or amount of money; and
(c) ((Include)) The name of the licensee operating ((Class F and above)) bingo ((game)) with gross gambling receipts over six hundred fifty thousand dollars in their previous license year; and
(2) If used by ((Class F or above)) licensees with gross gambling receipts over six hundred fifty thousand dollars in their previous license year, purchased from a licensed distributor or manufacturer; and
(3) Issued consecutively from each roll, starting with the lowest numbered ticket; and
(4) Accounted for by the licensee. If purchased from a commercial business or licensed distributor, documentation must be on the sales invoice. This invoice, or a photocopy, shall be maintained on the premises and available for inspection. Document the following information on the sales invoice for each roll of tickets purchased:
(a) Name of distributor; and
(b) Name of purchasing licensee; and
(c) Date of purchase; and
(d) Number of rolls of tickets purchased; and
(e) The color, dollar value, total number of tickets, and beginning ticket number for each roll; and
(5) Recorded in the daily records in the format we require; and
(6) Retained by the licensee as a part of the bingo daily records for those not issued as receipts and that bears a number falling below the highest numbered ticket issued during that session and not be used to receipt for any type of income; and
(7) Not be the same color and imprinted with the same ticket number as any other ticket on the premises.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-425 Ticket method of bingo receipting for bingo income restrictions.
(1) All bingo licensees may use the ticket method of receipting bingo income for drawings and good neighbor prizes offered at their bingo games.
(2) ((Class E and below)) Licensees with gross gambling receipts of six hundred fifty thousand dollars or less in their previous license year may use the ticket method for games operated with hard cards and for bonus games.
(3) ((Class F and above)) Licensees with gross gambling receipts over six hundred fifty thousand dollars in their previous license year may use the ticket method for bonus games as a part of the combination receipting method.
AMENDATORY SECTION (Amending WSR 07-10-033, filed 4/24/07, effective 1/1/08)
WAC 230-10-435 Combination receipting method of receipting bingo income.
(1) Bingo licensees may use a receipting method that combines cash register receipting with another approved method of receipting bingo income.
(2) ((Class F and above)) Licensees with gross gambling receipts over six hundred fifty thousand dollars in their previous license year must use combination receipting for income from sales of:
(a) Disposable bingo card packets; and
(b) Disposable bingo card sheets from a set of bingo cards divided into subgroups; and
(c) Electronically generated bingo cards, if sales transactions and issuing of cards are not completed and documented at the same time; and
(d) Bonus games.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-10-451 Recordkeeping for linked bingo prize games.
(1) ((Class A, B, or C)) All linked bingo licensees ((participating in linked bingo games)) must maintain all records required for ((Class D)) bingo licensees with gross gambling receipts over one hundred fifty thousand dollars in their previous license year for all their bingo operations; and
(2) For funds contributed to accrued linked bingo prizes, licensees must modify each bingo game daily record to include, at least:
(a) The amount of the contribution; and
(b) The amount of any consolation prize the licensee paid for a linked bingo prize game; and
(c) The name of the linked bingo prize provider to whom the contribution is made.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-10-457 Activity reports for linked bingo prize providers.
Linked bingo prize providers must submit activity reports to us twice a year for their sales and services. The activity reports must be in the format we require and must:
(1) Cover the periods:
(a) January 1 through June 30; and
(b) July 1 through December 31; and
(2) Be received at our administrative office or postmarked no later than thirty days following the end of the reporting period. Licensed organizations that report annually on or before June 30, 2018, must submit an activity report from the beginning of their license year through June 30, 2018, by July 30, 2018. Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102; and
(3) Be signed by the licensee's highest ranking executive officer or a designee. If someone other than the licensee or an employee prepares the report, the preparer must print his or her name and business telephone number on the report; and
(4) Submit a report for any period of time their license was valid, even if they had no activity or did not renew.
AMENDATORY SECTION (Amending WSR 06-20-040, filed 9/26/06, effective 1/1/08)
WAC 230-11-095 Recordkeeping requirements for ((Class A through D)) licensees with gross gambling receipts of fifty thousand dollars or less in their previous license year and unlicensed raffles.
((Class A through D licensed raffles and)) Licenses with gross gambling receipts of fifty thousand dollars or less in their previous license year and organizations conducting unlicensed raffles under the authority of RCW 9.46.0315 or 9.46.0321 must keep a record by month of the following:
(1) Gross receipts; and
(2) Prizes paid; and
(3) Net income; and
(4) Documentation of expenses; and
(5) Documentation of how the proceeds were used.
AMENDATORY SECTION (Amending WSR 06-20-040, filed 9/26/06, effective 1/1/08)
WAC 230-11-100 Recordkeeping requirements for ((Class E and F)) licensees with gross gambling receipts over fifty thousand dollars in their previous license year and raffles using alternative drawing formats.
Licensees conducting ((Class E or Class F)) raffles with gross gambling receipts over fifty thousand dollars in their previous license year or conducting raffles using alternative drawing formats must prepare a detailed record for each raffle they conduct. Licensees must:
(1) Record all data required in the standard format we provide; 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 ticket stubs for raffles that participants are not required to be present at the drawing; and
(e) All unsold tickets for individual raffles for which gross gambling receipts exceed five thousand dollars; 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.
AMENDATORY SECTION (Amending WSR 16-22-049, filed 10/28/16, effective 11/28/16)
WAC 230-13-075 ((Assigning and)) Reporting ((group numbers of)) authorized amusement games.
(((1) Amusement game licensees must determine the authorized group number of each game and prepare a list of all games they plan to operate during each license year. They must submit this list to us with their activity report. The list must contain, at least, the name and group number of each game.
(2))) Amusement game licensees must notify us within thirty days of putting into play and removing from play a group 12 amusement game. Reporting must be in the format we require.
NEW SECTION
WAC 230-13-152 Applying for an approved location to operate amusement games.
(1) Operators must apply, pay a fee, and receive a license for each location they will operate approved amusement games.
(2) Operators must notify us in the format we require within thirty days of removing all amusement games from an approved location.
AMENDATORY SECTION (Amending WSR 07-15-064, filed 7/16/07, effective 1/1/08)
WAC 230-13-155 Contracts for commercial amusement games.
(1) Operators must ensure that all contracts are written and specific in terms, setting out the term of the contract, amount of rent or consideration, rent due dates, and all expenses each party must pay.
(2) All contracts become part of the operator's license file. If commercial amusement game operators violate any terms of a contract, it may be grounds for suspension or revocation of their license.
(3) ((Class B or above licensees)) Operators may enter into contracts with business owners of any of the following approved locations to operate amusement games on their premises:
(a) Amusement parks; or
(b) Regional shopping centers; or
(c) Any location that possesses a valid license from the Washington state liquor control board and prohibits minors on their premises; or
(d) Movie theaters; or
(e) Bowling alleys; or
(f) Miniature golf course facilities; or
(g) Skating facilities; or
(h) Amusement centers; or
(i) Department or grocery stores having more than ten thousand square feet of retail and support space, not including the parking areas; or
(j) Charitable or nonprofit organizations ((with a premises licensed for Class A amusement games)); or
(k) Any commercial business that provides food service for on premises consumption as its primary activity.
(4) Operators must ((not)) only place amusement games at a location ((which does not have a valid license)) after a license has been issued under WAC 230-13-152.
AMENDATORY SECTION (Amending WSR 16-08-033, filed 3/30/16, effective 4/30/16)
WAC 230-13-160 Basing rent on a percentage of gross receipts.
((Class B or above)) Amusement game operators:
(1) May base the rent or consideration ((paid to a Class A commercial amusement game location or charitable or nonprofit amusement game location for group 12 amusement games)) on a percentage of revenue the activity generates if the method of distribution is specific. This applies to the following locations:
(a) All commercial businesses; and
(b) Charitable and nonprofit organizations renting group 12 amusement games.
(2) May not base the rent or consideration paid to a charitable or nonprofit organization on a percentage of revenue the activity generates unless the amount returned to the organization is equal to or exceeds twenty-two percent of the gross gambling receipts.
(3) Operators must pay the organization at least once a month.
(4) If located at regional shopping centers, may use a percentage of receipts to pay rental leases. They are also exempt from the profits restrictions of RCW 9.46.120(2).
AMENDATORY SECTION (Amending WSR 08-20-007, filed 9/18/08, effective 1/1/09)
WAC 230-13-169 Annual activity reports for commercial amusement game licensees.
Commercial amusement game licensees must submit an annual activity report to us in the format we require and must:
(1) Cover the license year of one calendar year or less; and
(2) Be received at our administrative office or postmarked no later than thirty days following the end of the reporting period. Licensed organizations that report annually on or before June 30, 2018, must submit an activity report from the beginning of their license year through June 30, 2018, by July 30, 2018. Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102; and
(3) Be signed by the licensee's highest ranking executive officer or a designee. If someone other than the commercial amusement game licensee or its employee prepares the report, then it must provide the preparer's name and business telephone number; and
(4) Submit a report for any period of time their license was valid, even if they had no activity or did not renew their license; and
(5) Complete the report according to the instructions furnished with the report.
AMENDATORY SECTION (Amending WSR 07-17-058, filed 8/10/07, effective 1/1/08)
WAC 230-14-250 Recording carry-over jackpots on a cash basis.
(1) Operators must record carry-over jackpots on a cash basis. "Cash basis" means operators do not record carry-over jackpot contributions until the prize is awarded.
(2) However, punch board and pull-tab licensees who also hold a ((Class F or above)) bingo license with gross gambling receipts over six hundred fifty thousand dollars in their previous license year may record carry-over jackpot contributions on their monthly records if they:
(a) Record contribution amounts, up to the jackpot maximum, as prizes paid on the monthly records; and
(b) When the jackpot is awarded, record only amounts not previously accrued as prizes paid; and
(c) Play no more than five carry-over jackpot series at once; and
(d) Maintain a proper audit trail and adequate security over the funds if the licensee does not deposit the contributions with the net receipts.
AMENDATORY SECTION (Amending WSR 07-17-058, filed 8/10/07, effective 1/1/08)
WAC 230-14-280 ((Records review of)) Unrecorded or inaccurate gross gambling receipts.
((To meet the gross gambling receipts and license class requirements, punch boards and pull-tab licensees must adjust gross gambling receipts from the operation to comply with commission records review findings.
Licensees must perform the following calculations:)) For licensees that have not recorded all of their punch board/pull-tabs gross gambling receipts or reported inaccurately, we will use the following calculations to determine their gross gambling receipts:
(1) For unrecorded punch boards and pull-tab series -
To account for any unrecorded punch boards and pull-tab series, licensees add the unrecorded punch board or pull-tab series to the unadjusted gross gambling receipts. To get the total of unrecorded punch boards or pull-tab series, licensees multiply the total number of chances available by the price of a single chance to determine the maximum amount that could be generated from the punch board or pull-tab series.
(a) The unadjusted gross gambling receipts is the amount reported for the period.
(b) The unrecorded punch board or pull-tab series is the total number of chances or games played multiplied by the price per game.
(c) Adjusted gross gambling receipts is the amount the licensee must record for the month in which they purchased the punch board or pull-tab series.
(2) For recording errors -
To adjust gross gambling receipts for the results of our records review, licensees divide the amount we determined for a randomly selected sample of punch boards or pull-tab series by the recorded amount for them.
(a) The unadjusted gross gambling receipts is the amount reported for the period.
(b) The adjustment factor is the amount of a randomly selected sample of punch board or pull-tab series divided by the amount the licensee recorded.
(c) We will apply the adjusted gross gambling receipts to the total recorded gross gambling receipts for the calendar quarter from which we took the sample and to the three quarters immediately before.
AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)
WAC 230-14-284 Activity reports for punch board and pull-tab licensees.
Punch boards and pull-tab licensees must submit an activity report to the commission. Licensees must complete the report in the format we require and must:
(1) Prior to July 1, 2018, cover the periods:
(a) January 1 through June 30; and
(b) July 1 through December 31; and
(2) Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102; and
(3) Be received at our administrative office or postmarked no later than thirty days following the end of the reporting period; and
(((3))) (4) Be signed by the licensee's highest ranking executive officer or a designee. If someone other than the punch board and pull-tab licensee or its employee prepares the report, then it must provide the preparer's name and business telephone number; and
(((4))) (5) Be filed even if they do not renew their license. They must file a report for the period between the previous report filed and the expiration date of the license; and
(((5))) (6) Unless they are also licensed for Class D or above bingo, charitable and nonprofit licensees must submit a semiannual activity report for punch boards and pull-tabs; and
(((6))) (7) Class D or above bingo licensees with a punch board and pull-tab license must report punch board and pull-tab activity, on the combined quarterly report provided by the commission as explained in WAC 230-10-331.
AMENDATORY SECTION (Amending WSR 07-09-033, filed 4/10/07, effective 1/1/08)
WAC 230-15-005 Requirements for public card games.
At any time public card game licensees are conducting card games, they must have:
(1) ((Have)) The food and/or drink business being commercially stimulated open to the public; and
(2) ((For Class E,)) A licensed card room employee on duty and in the public card room area if operating the following card games:
(a) Class F((,)); or
(b) House-banked ((card games, have a licensed card room employee on duty and in the public card room area)); or
(c) Commercial nonhouse-banked card games of poker or other nonhouse-banked card games specifically approved by the director or the director's designee and a fee is collected to play.
AMENDATORY SECTION (Amending WSR 16-23-153, filed 11/22/16, effective 12/23/16)
WAC 230-15-080 Authorized fees and authorized methods of collection.
Card game licensees must collect only one type of card game fee at a table at any given time. The following are authorized types of fees, the card game licensees who may use those fee types, and the methods of collection:
AMENDATORY SECTION (Amending WSR 07-09-033, filed 4/10/07, effective 1/1/08)
WAC 230-15-100 Providing cards and chips in card games.
(1) Card game licensees, except for ((Class D)) nonhouse-banked card game licensees that do not charge a fee to play, must supply all chips and cards and not allow any other chips or cards to be used on their premises.
(2) Card game licensees must not charge additional fees to players for chips and cards except as allowed under WAC 230-15-110.
AMENDATORY SECTION (Amending WSR 07-09-033, filed 4/10/07, effective 1/1/08)
WAC 230-15-110 Standards for chips.
(1) Chips must be of conventional size and design that maximize the integrity of the card games. Chips must be identifiable as belonging to the licensee and must:
(a) Include the house name or logo; and
(b) Denote the chip value; and
(c) Be made by a licensed manufacturer; and
(d) Be purchased from a licensed manufacturer or distributor.
(2) ((Class D)) Nonhouse-banked card game licensees that do not charge a fee to play are exempt from subsection (1) of this section.
(3) Card game licensees must:
(a) Safeguard all chips in their possession; and
(b) Not allow any other person to buy or sell chips for use in card games on their premises.
(4) ((Class A, B, C, and E)) Nonhouse-banked card game licensees ((with)) that charge a fee to play and have five or fewer tables may use chips without a house name or logo if the chips are identifiable as belonging to the licensee and they prominently post values of the chips in the card room.
AMENDATORY SECTION (Amending WSR 09-11-087, filed 5/18/09, effective 7/1/09)
WAC 230-15-115 Standards for cards.
(1) Card game licensees must:
(a) Supply cards of conventional size and design to maximize the integrity of the card games; and
(b) Safeguard all cards; and
(c) Not allow cards that have been modified or marked in any manner.
(2) For ((Class E,)) Class F, ((and)) house-banked ((games)), and nonhouse-banked card game licensees that play poker or other games approved by the director or the director's designee and collect a fee to play, the cards must:
(a) Be made by a licensed manufacturer; and
(b) Be purchased from a licensed manufacturer or distributor.
(3) Cards with the house name or logo must be used for house-banked card games.
AMENDATORY SECTION (Amending WSR 07-09-033, filed 4/10/07, effective 1/1/08)
WAC 230-15-120 Fees for decks of cards.
(1) Card game licensees may charge a fee to a player asking for a new deck of cards.
(2) In addition, ((Class D)) nonhouse-banked card game licensees who do not charge a fee to play may charge a fee for every deck supplied to a table.
(3) The fee must not be greater than the licensee's actual cost for the deck.
(4) At the time licensees introduce new decks, they must collect the fee in cash directly from the player requesting the deck or the players of the game.
AMENDATORY SECTION (Amending WSR 16-23-153, filed 11/22/16, effective 12/23/16)
WAC 230-15-135 Wagering limits for nonhouse-banked card games.
Card room licensees must not exceed these wagering limits:
(1) Poker -
(a) There must be no more than five betting rounds in any one game; and
(b) There must be no more than four wagers in any betting round, for example, the initial wager plus three raises; and
(c) The maximum amount of a single wager must not exceed forty dollars; however, Class F and house-banked card game licensees may offer a single wager not to exceed three hundred dollars;
(2) Games based on achieving a specific number of points - Each point must not exceed five cents in value;
(3) Ante - No more than the maximum wager allowed for the first betting round for any game, except for Panguingue (Pan). The ante may, by house rule:
(a) Be made by one or more players, but the total ante may not exceed the maximum wager allowed for the first betting round; and
(b) Be used as part of a player's wager;
(4) Panguingue (Pan) - The maximum value of a chip must not exceed ten dollars. An ante must not exceed one chip. We prohibit doubling of conditions. Players going out may collect no more than two additional chips for going out from each participating player.
AMENDATORY SECTION (Amending WSR 07-09-033, filed 4/10/07, effective 1/1/08)
WAC 230-15-200 Reporting card game activity ((semiannually)).
Card game licensees, except for Class D, must submit an activity report for their card games to us.
(1) Licensees must complete the report in the format we require; and
(2) We must receive the completed report, or the report must be postmarked, no later than thirty days after the end of the reporting period; and
(3) The highest ranking executive officer or designee must sign the report. If someone other than the licensee or an employee prepares the report, the preparer must print his or her name and phone number on the report; and
(4) Prior to July 1, 2018, licensees must report activities for:
(a) January 1 through June 30; and
(b) July 1 through December 31; and
(5) Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102; and
(6) Licensees must submit a report for any period of time their license was valid. If licensees do not renew, they must submit a report for the period between the previous ((semiannual)) report they filed and the date their license expired.
AMENDATORY SECTION (Amending WSR 08-21-087, filed 10/14/08, effective 1/1/09)
WAC 230-15-205 Card tournament licenses.
(((1))) Class ((A, B, E, F, or)) F, house-banked, and nonhouse-banked card game licensees may conduct a card tournament where a fee or buy-in is charged without getting a card tournament license, but they must only operate those card games approved for their license ((class)) type.
(((2) Class D licensees must obtain a card tournament license to charge a fee for a card tournament.))
AMENDATORY SECTION (Amending WSR 07-19-069, filed 9/17/07, effective 1/1/08)
WAC 230-16-130 Disposable bingo card sales.
(1) Manufacturers of disposable bingo cards must sell each set or collation as a single unit.
(2) We allow distributors to open containers for ((Class E and below)) licensed operators and operators of authorized unlicensed activities:
(a) At an operator's request to change the "on," "up," and "cut." When a modification is made, the distributor must reseal the carton and note all changes on the packing label; or
(b) To provide cards to individuals for recreational activities; or
(c) To provide cards for "promotional contests of chance."
(3) Subsets must have at least one container, except distributors may open the container and sell cards in smaller quantities described in subsection (2) of this section.
AMENDATORY SECTION (Amending WSR 07-19-069, filed 9/17/07, effective 1/1/08)
WAC 230-16-220 Activity reports by manufacturers and distributors.
Manufacturers and distributors must submit activity reports to us twice a year for sales and services related to gambling activities. The activity reports must be in the format we require and must:
(1) Prior to July 1, 2018, cover the periods:
(a) January 1 through June 30; and
(b) July 1 through December 31; and
(2) Beginning July 1, 2018, reports required by this section must be submitted quarterly, as set forth in WAC 230-05-102; and
(3) Be received at our administrative office or postmarked no later than thirty days following the end of the reporting period; and
(((3))) (4) Be signed by the licensee's highest ranking executive officer or a designee. If someone other than the manufacturer or distributor or its employee prepares the report, then it must provide the preparer's name and business telephone number; and
(((4))) (5) Be submitted for any period of time their license was valid, even if they had no activity or did not renew.
AMENDATORY SECTION (Amending WSR 07-21-156, filed 10/24/07, effective 1/1/08)
WAC 230-17-150 ((Use of)) Brief adjudicative proceedings (((BAPs))).
(((1) Presiding officers must use)) The commission adopts the procedure for brief adjudicative proceedings (((BAPs) for)) provided in RCW 34.05.482 through 34.05.494. The commission finds brief adjudicative proceedings will be conducted where the matter involves one of the following:
(((a))) (1) Stays of summary suspension; and
(((b))) (2) Denying or revoking extended operating hours for:
(((i))) (a) Card games; and
(((ii))) (b) Bingo; and
(((c))) (3) Charitable or nonprofit licensee appealing a denial of a request for waiver of significant progress requirements; and
(((d))) (4) Failure to pay required gambling taxes, where that is the only alleged violation in the administrative charges; and
(((e))) (5) Failure to pay a quarterly license fee or submit a quarterly license report; and
(6) When the penalty we are requesting is a suspension of seven days or less; and
(((f))) (7) When the parties stipulate to using a ((BAP.
(2) If we conduct a BAP, we may conduct them telephonically and, therefore, the notice of hearing will not set a place of the hearing.
(3) Any party to the BAP may request to appear in person and, in those cases, a place will be set and all parties notified)) brief adjudicative proceeding.
AMENDATORY SECTION (Amending WSR 07-21-156, filed 10/24/07, effective 1/1/08)
WAC 230-17-155 Brief adjudicative proceedings—Discovery limitations ((in brief adjudicative proceedings)).
(1) In all brief adjudicative proceedings, discovery must be limited to requests for written reports and supporting documents relevant to the charges.
(2) Interrogatories and depositions are not allowed.
NEW SECTION
WAC 230-17-151 Brief adjudicative proceedings—Procedure.
(1) The following procedures apply to the commission's brief adjudicative proceedings for matters identified in WAC 230-17-150, unless the matter is converted to a formal adjudicative proceeding as provided in subsection (2) of this section.
(a) We will set the date and time of the hearing.
(b) Written notice shall be served upon the licensee at least seven days before the date of the hearing. Service is to be made pursuant to WAC 230-17-035.
(c) A brief adjudicative proceeding may be conducted telephonically with the concurrence of the presiding officer and all persons involved in the proceeding.
(d) WAC 230-17-045 controls who can appear in a brief adjudicative proceeding.
(e) The presiding officer must be the director, deputy director, or administrative law judge.
(f) Parties or their representatives may present written documentation or oral testimony at a brief adjudicative proceeding. However, no nonparty witnesses may appear to testify.
(g) The presiding officer may, in her or his discretion, allow oral argument from parties or their representatives during a brief adjudicative proceeding.
(h) The presiding officer will enter an initial order within ten business days of the end of a brief adjudicative proceeding. The initial order shall briefly state the basis and legal authority for the decision.
(i) An initial order will become the final order if no review of the initial order is received by us within twenty-one days of service of the initial order.
(2) Any party, including the agency, may file a written objection to resolution of a matter by a brief adjudicative proceeding and may request that it be converted to a formal adjudicative proceeding.
(a) The objection must be received by the presiding officer at least three days before the scheduled brief adjudicative proceeding.
(b) Upon receiving a timely written objection, the presiding officer shall determine whether the matter should be converted.
(c) A presiding officer may convert any brief adjudicative proceeding to a formal adjudicative proceeding whenever it appears that a brief adjudicative proceeding is insufficient to determine the issues pending before the commission.
(d) In determining whether to convert a proceeding, the presiding officer may consider the following factors:
(i) Whether witness testimony will aid the presiding or reviewing officer in resolving contested issues of fact;
(ii) Whether the legal or factual issues are sufficiently complex to warrant a formal adjudicative proceeding, including whether there are multiple issues of fact or law;
(iii) Whether a brief adjudicative proceeding will establish an adequate record for further agency or judicial review;
(iv) Whether the legal issues involved in the proceeding present questions of legal significance or are being raised for the first time before the commission;
(v) Whether conversion of the proceeding will cause unnecessary delay in resolving the issues; and
(vi) Any other factors that the presiding or reviewing officer deems relevant in reaching a determination.
NEW SECTION
WAC 230-17-152 Brief adjudicative proceedings—Appeal rights.
(1) Any party to a brief adjudicative proceeding may request review of the initial order by filing a written petition for review to us.
(2) We must receive your petition for review within twenty-one days after service of the initial order.
(3) Your petition for review must contain any evidence or written material relevant to the matter that the party wishes the reviewing officer to consider.
(4) Parties must serve copies of the petition to all other parties or their representatives at the time the petition for review is filed.
(5) The chair of the commission or the commissioners shall be the reviewing officer(s).
(6) The reviewing officer(s) consider your appeal and either uphold, modify or overturn the brief adjudicative proceeding order. The decision of the reviewing officer(s), also called an order, is the final agency decision. The order will be provided to you at the last address you furnished to the commission.
(7) The order on review must be in writing, must include a brief statement of the reasons for the decision, and must be entered within ten business days after the petition for review is considered. The order shall include a description of any further available administrative review or, if none is available, a notice that judicial review may be available.
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