WSR 98-19-133

PERMANENT RULES

GAMBLING COMMISSION

[Order 361--Filed September 23, 1998, 11:28 a.m., effective January 1, 1999]



Date of Adoption: August 14, 1998.

Purpose: Rule change defines a gambling service supplier for regulation and licensing purposes.

Citation of Existing Rules Affected by this Order: Amending WAC 230-02-205.

Statutory Authority for Adoption: RCW 9.46.070.

Adopted under notice filed as WSR 98-04-022 on January 28, 1998, with a publication date of February 18, 1998, CR-102 continuance filed under WSR 98-15-130 on July 21, 1998, with a publication date of August 5, 1998.

Changes Other than Editing from Proposed to Adopted Version: In the CR-102 version of this rule, businesses that provide storage, counting services, and/or specialized recordkeeping services for gambling activities (punchboard and pull-tab service businesses) which had a combined total gross billings that did not exceed $50,000, were specifically excluded from the definition of a gambling service supplier. In the final version of this rule, the combined total gross billings threshold was lowered from $50,000 to $20,000.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, amended 1, repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 0, repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, amended 1, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.

Effective Date of Rule: January 1, 1999.

September 22, 1998

Susan Arland

Public Information Officer

OTS-1994.5

AMENDATORY SECTION (Amending WSR 97-24-031, filed 11/25/97, effective 1/1/98)



WAC 230-02-205  Gambling service((s)) supplier defined. A "gambling services supplier" is any person who provides gambling related services for compensation, whether direct or indirect, to any licensed operator ((or Class III tribal gaming facility,)) and who is not an employee of the operator receiving such services.

(1) Gambling related services include at least the following:

(a) Providing consulting or advisory services regarding gambling activities;

(b) Providing gambling related management services;

(c) ((Providing storage, counting services, and/or specialized recordkeeping services for the gambling activity (except general recordkeeping services provided by a professional accountant);)) Providing financing for purchases or leases of gambling equipment or for providing infrastructure that supports gambling operations for more than one licensee. For purposes of this section, financing by any bank, mutual savings bank, or credit union regulated by the department of financial institutions or any federally regulated commercial lending institution shall not be deemed as providing gambling related services; or

(d) Providing any other service or activity where influence may be exerted over any gambling activity licensed by the commission.

(2) The term "gambling services supplier" does not include the following:

(a) Licensed manufacturers or distributors who service and repair pull tab dispensing devices, bingo equipment or any other authorized gambling equipment((.));

(((3) The term "gambling services supplier" does not include professional services, such as those provided by))

(b) Attorneys, accountants, and governmental affairs consultants((,)) whose primary business is providing professional services that are unrelated to the management or operation of gambling activities; and

(c) Persons that only provide nonmanagement related recordkeeping services for punch board and pull-tab operators, when the combined total gross billings from such services does not exceed twenty thousand dollars during any calendar year.



[Statutory Authority: RCW 9.46.070. 97-24-031, 230-02-205, filed 11/25/97, effective 1/1/98.]

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