WSR 99-08-093

PROPOSED RULES

GAMBLING COMMISSION


[ Filed April 6, 1999, 4:17 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 98-24-088 with a published date of December 16, 1998.

Title of Rule: Card room rules.

Purpose: To implement legislation that passed in 1996 and 1997 enabling card rooms to offer the following: Increased number of tables, alternative collection of fees, jackpot schemes and house-banked card games. These rules set forth the regulatory and licensing requirements for card rooms to offer these activities.

At the March meeting, the commissioners voted to file alternative versions to five of the rules in this package and depending on testimony at upcoming hearings, one version for each rule will be selected for adoption.

WAC 230-40-030:

Version #1 15 tables in a card room; 7 players and 9 betting spots allowed at house-banked card tables.

Version #2 15 tables in a card room; 7 players and/or betting spots allowed at house-banked card tables.

Version #3 10 tables in a card room; 7 players and 9 betting spots allowed at house-banked card tables.

WAC 230-40-120:

Version #1 Phase II wagering limits set at $100.

Version #2 Phase II wagering limits set at $50, furthermore, for nonhouse-banked card games, a cap of $250 would be placed on a player's hand.

WAC 230-40-400:

Version #1 Owners of multiple card rooms located within one mile of each other must utilize the same operating hours.

Version #2 Local law enforcement must agree with an operator's proposed change of hours.

Version #3 Owners of multiple card rooms adjacent to each other must utilize the same operating hours.

Version #4 All card rooms will close between 2:00 a.m. and 4:00 a.m.

Version #5 All card rooms will close between 4:00 a.m. and 8:00 a.m.

WAC 230-40-820: Alternative version would require that for reviews contracted out, the contractor must be a licensed certified public accountant and knowledgeable of gaming in Washington state.

WAC 230-40-845: Alternative version clarifies no third party checks can be accepted at card rooms.

Statutory Authority for Adoption: RCW 9.46.070.

Summary: See Purpose above.

Reasons Supporting Proposal: See Purpose above.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Lacey, (360) 438-7654, ext. 374; Implementation: Ben Bishop, Lacey, (360) 438-7640; and Enforcement: Sherri Winslow, Lacey, (360) 438-7654, ext. 301.

Name of Proponent: Staff, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose above.

Proposal Changes the Following Existing Rules: See Purpose above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Proposal is exempt under RCW 19.85.025(2), therefore, a small business economic impact statement is not required.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. This agency does not choose to make section 201, chapter 403, Laws of 1995, apply to this rule adoption.

Hearing Location: Heathman Lodge, 7801 N.E. Greenwood Drive, Vancouver, WA 98662, (360) 254-6100, on May 14, 1999, at 1:30 p.m.

Assistance for Persons with Disabilities: Contact Susan Yeager by May 3, 1999, TDD (360) 438-7638, or (360) 438-7654, ext. 302.

Submit Written Comments to: Susan Arland Mailstop 42400, Olympia, WA 98504-2400, fax (360) 438-8652, by May 3, 1999.

Date of Intended Adoption: May 14, 1999.

April 6, 1999

Susan Arland

Rules Coordinator

OTS-2826.1


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 230-40-060Persons shall not share in winnings or charge additional fee for playing cards.
WAC 230-40-150Side bets prohibited.
WAC 230-40-160Wagers by other than participants prohibited.
WAC 230-40-900Public card room enhancement program--Pilot study.

OTS-2825.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-02-400Card game.

OTS-2899.2


AMENDATORY SECTION(Amending WSR 96-11-073, filed 5/13/96, effective 7/1/96)

WAC 230-40-010
Types of card games authorized.

Only card games that have been specifically authorized are allowed to be played in public or social card rooms licensed by the commission.  The commission hereby authorizes the following card games:

(1) Poker - Any poker game described in Hoyle's Modern Encyclopedia of Card Games, by Walter B. Gibson, published by Doubleday and Company, Inc., April 1974, 1st edition, pages 219 through 277((: Provided, That only a maximum of five betting rounds per hand are permitted)).

(2) Hearts.

(3) Pinochle.

(4) Cribbage.

(5) Rummy.

(6) ((Mah-jongg (tiles).

(7))) Pan.

(((8))) (7) Pitch.

(((9))) (8) Washington blackjack - as set forth in WAC 230-40-125.

(((10) Pai-Gow poker.

(11))) (9) Pan-9.

(((12))) (10) Bid Whist.

(((13) Dominos.

(14))) (11) House-banked card games in which each participant is dealt cards and competes against the house. The following house-banked card games are authorized:

(a) Blackjack.

(b) Let It Ride.

(c) Caribbean Stud.

(d) Progressive Blackjack.

(e) Spanish 21.

(f) Match The Dealer Blackjack.

(g) Casino War.

(h) Paulson's Draw Poker.

(i) Pai-Gow Poker.

(12) Those games the director approves on a temporary, case-by-case basis ((upon application by a licensee for approval of a particular game)).  An application for approval of a game ((not specifically authorized)) must be in writing, and include the rules of play and all wagering schemes.  Temporary approvals granted are valid for no more than six months or until adopted by the commission, whichever occurs first.

[Statutory Authority: RCW 9.46.0281, 9.46.070 (1), (2), (14) and (20).  96-11-073, 230-40-010, filed 5/13/96, effective 7/1/96.  Statutory Authority: RCW 9.46.070.  94-13-098 (Order 252), 230-40-010, filed 6/15/94, effective 7/16/94.  Statutory Authority: RCW 34.05.220(4), [34.05].230 and 9.46.070 (11) and (14).  90-05-032 (Order 205), 230-40-010, filed 2/14/90, effective 3/17/90.  Statutory Authority: RCW 9.46.070.  88-19-038 (Order 183), 230-40-010, filed 9/13/88.  Statutory Authority: Chapter 9.46 RCW.  86-19-056 (Order 161), 230-40-010, filed 9/15/86.  Statutory Authority: RCW 9.46.070(11).  82-23-050 (Order 125), 230-40-010, filed 11/15/82.  Statutory Authority: RCW 9.46.070(10) (see RCW 9.46.020(20)).  80-09-067 (Order 103), 230-40-010, filed 7/17/80; Order 78, 230-40-010, filed 11/17/77; Order 67, 230-40-010, filed 3/11/77; Order 40, 230-40-010, filed 6/26/75; Order 23, 230-40-010, filed 9/23/74.]

OTS-2900.1


AMENDATORY SECTION(Amending Order 125, filed 11/15/82)

WAC 230-40-015
Rules by which the authorized card games shall be played.

(1) Card games authorized by the commission shall be played only in the manner set out for that game in Hoyle's Modern Encyclopedia of Card Games, by Walter B. Gibson, published by Doubleday and Company, Inc., April 1974 1st Edition: Provided, That each licensee may make immaterial modifications to the rules of each authorized game set out in that publication: Provided Further, That approved card games not referenced in Hoyle's Modern Encyclopedia of Card Games shall be played in a manner as approved by the commission.

Each such immaterial modification, or rule of conduct, shall be ((conspicuously)) posted in plain view on the premises where it can be clearly seen by the players in the card game.

(2) Each licensee may establish rules of conduct for the card players on its premises.

(3) Where other of the commission's rules are inconsistent in any respect with the above-referenced publication, or with any modification or rule of conduct of the licensee, the commission's rule shall prevail over such inconsistent requirement.

[Statutory Authority: RCW 9.46.070(11).  82-23-050 (Order 125), 230-40-015, filed 11/15/82.  Statutory Authority: RCW 9.46.070(10) (see RCW 9.46.020(20)).  80-09-067 (Order 103), 230-40-015, filed 7/17/80; Order 67, 230-40-015, filed 3/11/77; Order 40, 230-40-015, filed 6/26/75; Order 29, 230-40-015, filed 1/23/75.]

OTS-2901.1


AMENDATORY SECTION(Amending Order 184, filed 10/24/88)

WAC 230-40-030
Number of tables and players limited.

(((1))) No licensee ((to allow)) with a public card room on its premises shall allow more than ((five)) fifteen separate tables at which card games are played((, nor)). No licensee shall allow more than ten players for nonhouse-banked card games and seven players for house-banked card games to participate at any one table at any given time((.)):  Provided((: When poker is played, additional players are authorized to participate at the card table(s) as follows;

(a)Class E-12 players

(b)Class E-2 thru E-5

and Class D4 players

Provided further, that no table shall have more then twelve players.

(2) No licensee to allow a social card room on its premises shall allow more than ten players to participate at any one table at any given time.  Provided, when poker is played, they may have two tables with 12 players at each table.

(3) The commission may permit a licensee to exceed the player limits on specific occasions for good cause shown.  Requests to exceed the limit shall be submitted to the commission in writing not less than 30 days preceding the date upon which the licensee wishes to exceed the limit.  The request shall indicate the date(s) involved, the reasons why the request is made, and the number of games and players in the games which the licensee desires to allow on that occasion)), That the number of spots for wagers at house-banked card tables shall not exceed nine. Each table shall be permanently numbered and readily identifiable by the licensee's surveillance system.

[Statutory Authority: RCW 9.46.0281 and 9.46.070 (11), (12) and (14).  88-22-019 (Order 184), 230-40-030, filed 10/24/88.  Statutory Authority: RCW 9.46.010 and 9.46.070 (8) and (14).  85-03-025 (Order 143), 230-40-030, filed 1/9/85; Order 23, 230-40-030, filed 9/23/74.]

OTS-3022.1


AMENDATORY SECTION(Amending Order 184, filed 10/24/88)

WAC 230-40-030
Number of tables and players limited.

(((1))) No licensee ((to allow)) with a public card room on its premises shall allow more than ((five)) fifteen separate tables at which card games are played((, nor)). No licensee shall allow more than ten players for nonhouse-banked card games and seven players and/or spots for wagering at house-banked card games to participate at any one table at any given time.  ((Provided: When poker is played, additional players are authorized to participate at the card table(s) as follows;

(a)Class E-12 players

(b)Class E-2 thru E-5

and Class D4 players

Provided further, that no table shall have more then twelve players.

(2) No licensee to allow a social card room on its premises shall allow more than ten players to participate at any one table at any given time.  Provided, when poker is played, they may have two tables with 12 players at each table.

(3) The commission may permit a licensee to exceed the player limits on specific occasions for good cause shown.  Requests to exceed the limit shall be submitted to the commission in writing not less than 30 days preceding the date upon which the licensee wishes to exceed the limit.  The request shall indicate the date(s) involved, the reasons why the request is made, and the number of games and players in the games which the licensee desires to allow on that occasion.))

[Statutory Authority: RCW 9.46.0281 and 9.46.070 (11), (12) and (14).  88-22-019 (Order 184), 230-40-030, filed 10/24/88.  Statutory Authority: RCW 9.46.010 and 9.46.070 (8) and (14).  85-03-025 (Order 143), 230-40-030, filed 1/9/85; Order 23, 230-40-030, filed 9/23/74.]

OTS-3023.1


AMENDATORY SECTION(Amending Order 184, filed 10/24/88)

WAC 230-40-030
Number of tables and players limited.

(((1))) No licensee ((to allow)) with a public card room on its premises shall allow more than ((five)) ten separate tables at which card games are played((, nor)). No licensee shall allow more than ten players for nonhouse-banked card games and seven players for house-banked card games to participate at any one table at any given time((.)):  Provided((: When poker is played, additional players are authorized to participate at the card table(s) as follows;

(a)Class E-12 players

(b)Class E-2 thru E-5

and Class D4 players

Provided further, that no table shall have more then twelve players.

(2) No licensee to allow a social card room on its premises shall allow more than ten players to participate at any one table at any given time.  Provided, when poker is played, they may have two tables with 12 players at each table.

(3) The commission may permit a licensee to exceed the player limits on specific occasions for good cause shown.  Requests to exceed the limit shall be submitted to the commission in writing not less than 30 days preceding the date upon which the licensee wishes to exceed the limit.  The request shall indicate the date(s) involved, the reasons why the request is made, and the number of games and players in the games which the licensee desires to allow on that occasion)), That the number of spots for wagers at house-banked card tables shall not exceed nine. Each table shall be permanently numbered and readily identifiable by the licensee's surveillance system.

[Statutory Authority: RCW 9.46.0281 and 9.46.070 (11), (12) and (14).  88-22-019 (Order 184), 230-40-030, filed 10/24/88.  Statutory Authority: RCW 9.46.010 and 9.46.070 (8) and (14).  85-03-025 (Order 143), 230-40-030, filed 1/9/85; Order 23, 230-40-030, filed 9/23/74.]

OTS-2902.3


AMENDATORY SECTION(Amending Order 300, filed 9/18/96, effective 10/19/96)

WAC 230-40-050
Fees for card playing--Method of assessment and collection--Maximum fees.

((Except as provided in WAC 230-40-055 for card tournaments, no time based or per hand fee shall be charged a person, directly or indirectly, to play in a card game except as set forth in this section.  Each type of fee shall be maintained and recorded separately from all other fees as set forth in WAC 230-08-090, and be available for audit by the commission and local law enforcement and taxing authorities.

(1) For all card games, the following procedures apply to collection of such fees:

(a) Fees shall be collected in advance by the licensee in cash, or in wagering chips, directly from the player;

(b))) No person shall be charged a fee directly or indirectly, to play in a card game in excess of those fees set forth in this section. Each type of fee shall be maintained and recorded separately from all other fees as set forth in WAC 230-08-090, and be available for audit by commission staff, local law enforcement, and taxing authorities.

(1) The following are authorized methods of assessing fees for playing social card games. Only one method of assessing fees may be used at a table at any given time:

(a) Fees based on a period of time - A specific fee of not more than ten dollars per hour, per player, may be charged to play social card games: Provided, That a licensee may collect the hourly fee in thirty-minute increments;

(b) Fees for each hand played - A specific fee of not more than one dollar per hand, per player, may be charged to play social card games: Provided, That WAC 230-40-825 requirements for surveillance shall apply for licensees utilizing this fee assessment method;

(c) Fees based on the amounts wagered during a hand (rake) - A portion of the total amount wagered by a player, not to exceed five dollars per hand or ten percent of total wagers for a hand, whichever is less, may be collected for playing social card games: Provided, That WAC 230-40-825 requirements for surveillance shall apply for licensees utilizing this fee assessment method and the surveillance system shall be approved prior to operation;

(d) An administrative fee not to exceed ten percent of the amount collected for player-supported progressive prize contests may be imposed by the card room operator;

(e) Fees to enter tournaments shall be as set forth in WAC 230-40-055; or

(f) A commission on the winning hand for a pai-gow poker game not to exceed five percent.

(2) Fees shall be collected by a licensed card room employee in the following manner:

(a) Fees assessed on a period of time shall be collected directly from each player by the dealer or floor supervisor responsible for that particular section of the card room. The "direct collection," "chip rack," or "drop box" methods set forth in this section may be used for collection of fees assessed on a period of time;

(b) Fees assessed on a per-hand basis shall be placed in a designated area of the table by the player and collected by the dealer before the first round of cards has been dealt. After collection, the dealer shall deposit all chips or coins in the chip rack or drop box, as applicable;

(c) Fees assessed on the amounts wagered during a game, or for progressive jackpots shall be collected by the dealer during play of the hand and placed in a designated area of the table. Once the maximum fee for a hand or jackpot is accumulated, the dealer shall spread the chips or coins to allow players and the surveillance system the ability to verify the amount collected. After verification, chips shall be deposited in the dealer's chip rack or drop box, as applicable;

(d) All fees to enter tournaments shall be collected in advance of the start of play in accordance with WAC 230-40-055; or

(e) Licensees may apply to the director for approval of alternate fee collection methods. If approved, the method of collection shall be set forth in the letter granting approval.

(3) All fees collected from players shall be controlled and recorded in a method prescribed by the commission as set forth in WAC 230-08-090. All collections shall be in wagering chips and kept separate from all other chips and cash in the card room until recorded in the daily card room records and deposited in the cashier's cage. All chips and cash in the cashier's cage shall be kept separate from all other chips and cash located on the licensed premises at all times card games are conducted. The following methods may be used for control of fees collected for card games and player-supported progressive prize contests:

(a) Direct collection method - Fees are collected directly from each player by a licensed card room employee responsible for that particular section of the card room and deposited in the card room cage serving the area of the card room from which collections are made. Collections shall be made at least once per hour, at times designated by the licensee. All fees shall be recorded immediately upon collection, per WAC 230-08-090. This collection method may only be used when assessing fees based on a period of time.

(b) Chip rack method - This method is allowed for Class E-1 through E-3 licensees only. It requires a licensed center dealer, a designated area for player fees, and a chip rack separated into sections for each type of fee collected. Fees are temporarily stored in the chip rack and controlled by a licensed dealer until collected by the floor supervisor. All chips collected as fees shall be removed from the dealer's chip rack at least every four hours by the licensed card room employee responsible for that particular section of the card room. The collection process shall include the counting of chips and coins in the presence of players and immediately recording the totals on a count slip. The dealer and the supervisor making the collection shall each initial the count slip verifying its accuracy.

(c) Drop box method - Fees are temporarily stored in a numbered, locked drop box. The drop box method requires a center dealer, a table with a designated area for each type of player fee and/or fees removed from the pot, and a separate drop box for each type of fee. Drop box movement, storage, and counting shall be conducted as prescribed in WAC 230-40-840. The drop box shall be located in a position that is isolated from the pot area and in plain view of all players and the surveillance system.

(4) No player shall be required to pay for or purchase any other goods or services as a condition of playing cards except as authorized by this section;

(((c))) (5) A schedule setting forth all fees to participate in card games shall be posted in plain view where it can be seen by the players in the card games((.));

(((2))) (6) A person requesting a new deck of cards beyond those regularly furnished by the operator, as required by WAC 230-40-070(2), may be charged a fee not to exceed the actual cost to the licensee of the deck.  Further, Class D licensees may charge a fee not to exceed actual cost to the licensee per deck for each deck of playing cards furnished to a table as required by these rules, or as requested by any player at the table.  The fee shall be collected in cash directly from the players, or the player requesting the deck, at the time the deck is introduced into the game((.));

(((3) This rule shall not prevent a bona fide nonprofit or charitable organization which has been established and operated for purposes other than card playing from charging its usual membership fee to belong to the organization.

(4))) (7) The licensee shall collect the same fee from all players at a table ((except licensed card room employees or the licensed owner)).  If the licensee elects to allow free play, then all players at a table must be allowed to play for free((.

(5) The amount collected shall be recorded by the licensee each half hour on forms supplied by the commission.

(6) All records required by this rule shall be maintained for a period of three years from the end of the licensee's fiscal year for which the record is kept.

(7))): Provided, That a licensee may allow licensed card room employees and owners to play without a fee if fees are based on time, as authorized by subsection (1)(a) of this section;

(8) This rule shall not prevent a licensee from collecting an admission fee for entry into that portion of the licensed premises conducting entertainment, provided that the same fee is charged to all patrons.

[Statutory Authority: RCW 9.46.0281, 9.46.070 (1), (2), (4)-(8), (11), (12), (14) and (20).  96-19-082 (Order 300) 230-40-050, filed 9/18/96, effective 10/19/96.  Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4).  95-23-109, 230-40-050, filed 11/22/95, effective 1/1/96.  Statutory Authority: RCW 9.46.070.  94-17-091 (Order 256), 230-40-050, filed 8/16/94, effective 9/16/94.  Statutory Authority: RCW 9.46.070 (1), (2), (4), (5), (6), (9), (11), (14) and (17) and 9.46.020 (19) and (23).  85-17-015 (Order 153), 230-40-050, filed 8/12/85.  Statutory Authority: RCW 9.46.020 (20)(d), 9.46.050(3) and 9.46.070 (1), (2), (5), (8), (9), (11) and (12).  85-03-026 (Order 144), 230-40-050, filed 1/9/85.  Statutory Authority: RCW 9.46.070 (8) and (17).  83-23-055 (Order 138), 230-40-050, filed 11/15/83.  Statutory Authority: RCW 9.46.070(11).  82-11-028 (Order 120), 230-40-050, filed 5/11/82; 80-09-067 (Order 103), 230-40-050, filed 7/17/80; Order 72, 230-40-050, filed 7/26/77; Order 42, 230-40-050, filed 9/18/75; Order 38, 230-40-050, filed 5/9/75; Emergency Order 37, 230-40-050, filed 5/9/75; Order 35, 230-40-050, filed 3/14/75; Order 29, 230-40-050, filed 1/23/75; Order 23, 230-40-050, filed 9/23/74.]

OTS-2903.2


AMENDATORY SECTION(Amending Order 192, filed 5/16/89)

WAC 230-40-070
Licensee to furnish all cards, chips and other services.

Each public card room licensee shall furnish ((the following items and services)) all cards in connection with all card games conducted on its premises at no additional charge to the players((:

(1) Chips.  Chips for use in wagering shall be of generally conventional size and design)). All chips and cards shall be of generally conventional size and design, and include safeguards that maximize the integrity of the card games. The following standards and procedures apply to this section:

(1) For nonhouse-banked card games, the licensee shall furnish chips and cards that meet the following requirements:

(a) Chips furnished by a licensee shall be so designed that they are readily identifiable as having been furnished by that particular licensee.

(((2) Cards or mah-jongg tiles.)) (b) For poker, the deck, or decks of cards being used at a given table ((where any poker game is being played)) shall be changed at a minimum every half hour by the licensee.

((Playing cards or mah-jongg tiles furnished shall be of generally conventional size and design.  Playing cards or tiles that have been shaved, sanded, cut, carved, or otherwise marked in any manner which may make certain cards or tiles identifiable to players other than as allowed by the rules of the particular game are prohibited.)) (2) For house-banked card games, the licensee shall furnish chips and cards that meet the following requirements:

(a) Chips. Chips must include the house name, clearly denote the chip value, be produced by a licensed manufacturer, and purchased from a licensed manufacturer or distributor. All house-banked card rooms that conduct poker games which utilize the same cashier shall meet the house-banked requirements for all banked and nonbanked games.

(b) Cards. The deck or decks of cards must include the house name or logo, be produced by a licensed manufacturer, and be purchased from a licensed manufacturer or distributor.

(3) Bank services.  The licensee shall sell its chips to all players desiring to buy them not in excess of any limits set by the commission and redeem all chips at the value for which they were sold.  The value at which the various types of chips are sold and redeemed shall be conspicuously posted and visible to each person prior to that person purchasing chips.  ((Money taken in on chips sold and table fees collected shall be kept)) The licensee shall collect the money taken in on chips sold and fees collected and shall keep these funds separate and apart from all other money received by the licensee.

(4) Chips may be sold for cash only and an operator shall extend no credit of any nature ((shall be extended by an operator)) to a person purchasing chips: Provided, That an operator may accept a check in accordance with WAC 230-12-053 and 230-40-845.  Counter checks are prohibited.  Each receipt by a person of a quantity of chips from the operator shall be a separate transaction for the purpose of this rule.  Checks received for chips retained by the operator after close of business shall be deposited by the operator not later than the second day following receipt upon which the operator's bank is open for business.

(5) ((No licensee shall allow)) The licensee shall safeguard all chips and cards to assure integrity of games and banking services and no licensee shall allow:

(a) Playing cards that have been shaved, sanded, cut, carved, or otherwise marked in any manner which may make certain cards identifiable to players other than as allowed by the rules of the particular game.

(b) Any cards or chips not furnished by the licensee ((on that business day)) to be used in any card game conducted upon its premises.  ((No licensee shall allow))

(c) Any cards or chips furnished in connection with any card game to be used, unless they are furnished by the licensee that same business day.

(d) Any other person to buy or sell chips for use in card games upon its premises nor provide any other item or service for use in connection with the game.

[Statutory Authority: RCW 9.46.070 (8), (11) and (14).  89-11-048 (Order 192), 230-40-070, filed 5/16/89.  Statutory Authority: RCW 9.46.070 (11), (14) and 9.46.0218 [9.46.0281].  89-05-024 (Order 186), 230-40-070, filed 2/13/89.  Statutory Authority: RCW 9.46.070 (1), (2), (4), (5), (6), (11), (14) and (17).  86-13-055 (Order 158), 230-40-070, filed 6/13/86; Order 74, 230-40-070, filed 8/17/77; Order 40, 230-40-070, filed 6/26/75; Order 29, 230-40-070, filed 1/23/75; Order 23, 230-40-070, filed 9/23/74.]

OTS-2904.1


AMENDATORY SECTION(Amending Order 252, filed 6/15/94, effective 7/16/94)

WAC 230-40-120
Limits on wagers in card games.

Social and public card room licensees shall not allow wagering limits set by the commission to be exceeded in any card game.  The number and value of wagers in card games are limited as follows:

(1) ((The maximum number of wagers in any betting round shall be three, comprised of an initial wager plus two raises.

(2) The maximum number of a wager in any betting round shall be as follows:

(a) Games with a single betting round - ten dollars per wager;

(b) Games with multiple betting rounds:

(i) Two betting round games - wagers for the first round shall not exceed five dollars, and the second round shall not exceed ten dollars;

(ii) Three betting round games - wagers for the first two betting rounds shall not exceed five dollars, and wagers for the third betting round shall not exceed ten dollars;

(iii) Four betting round games - the wagers for each round may be structured by house rule: Provided, That the total wagers for all four betting rounds shall not exceed twenty-five dollars, and any single wager shall not exceed ten dollars; and

(iv) Five betting round games - the wagers for each round may be structured by house rule: Provided, That the total wagers for all five betting rounds shall not exceed thirty dollars, and any single wager shall not exceed ten dollars.

(c) Games that do not allow raises - single wager not to exceed ten dollars for each betting round.

(3))) Nonhouse-banked card games:

(a) Poker:

(i) There shall be no more than five betting rounds in any one game;

(ii) The maximum number of wagers in any betting round shall be four, comprised of an initial wager plus three raises; and

(iii) The maximum amount of a single wager shall not exceed twenty-five dollars.

(b) Games based on achieving a specific number of points - each point shall not exceed five cents in value.

(((4))) (c) An ante, except for panguingue (pan), shall not be more than ten dollars.  The ante may, by house rule, be made by one or more players, but the total ante may not exceed ten dollars.  ((No one player can ante more than the maximum wager allowed in the first round.))  An ante, by house rule, may be used as part of a player's wager.

(((5))) (d) Panguingue (pan) - maximum value of a chip for payoff will not exceed four dollars.  Ante will not exceed one chip.  No doubling of conditions.  Players going out may collect not more than two chips from each participating player.

(((6) Provided,)) (e) Washington blackjack shall be subject to the rules and wagering limits set forth in WAC 230-40-125.

(2) House-banked card games:

(a) Operators authorized to conduct Phase I house-banked card games shall not allow a single wager to exceed twenty-five dollars;

(b) Operators authorized to conduct Phase II house-banked card games shall not allow a single wager to exceed one hundred dollars; and

(c) A single wager may be made on each separate element of chance. In addition, for blackjack, an additional wager may be placed for doubling down.

(3) The wager to enter a player-supported progressive prize contest shall not exceed one dollar per hand.

(4) House rules establishing wagering limits for the betting rounds of each type of game played shall be posted in plain view where it can be seen by the players in the card game.

(5) Side bets between and against players and against the house are prohibited. Only persons actually playing in the card game may wager upon the outcome of the game. Wagers by persons other than those playing which in any way involves the outcome of the game, or of any aspect of the game, are prohibited: Provided, That gratuity wagers made by a player for a dealer shall not be considered a side bet.

[Statutory Authority: RCW 9.46.070.  94-13-098 (Order 252), 230-40-120, filed 6/15/94, effective 7/16/94.  Statutory Authority: RCW 34.05.220(4), [34.05].230 and 9.46.070 (11) and (14).  90-05-032 (Order 205), 230-40-120, filed 2/14/90, effective 3/17/90.  Statutory Authority: RCW 9.46.070 (8), (11) and (14).  89-15-039 (Order 194), 230-40-120, filed 7/18/89, effective 8/18/89.  Statutory Authority: RCW 9.46.050(3) and 9.46.070 (1), (2) and (11).  86-15-025 (Order 159), 230-40-120, filed 7/14/86.  Statutory Authority: RCW 9.46.070 (1), (2) and (11) and 9.46.110.  85-21-046 (Order 154), 230-40-120, filed 10/14/85.  Statutory Authority: RCW 9.46.020 (20)(d) and 9.46.070(11).  82-23-050 (Order 125) and 83-01-045 (Order 125A), 230-40-120, filed 11/15/82 and 12/13/82.  Statutory Authority: RCW 9.46.070(11).  82-04-010 (Order 118), 230-40-120, filed 1/22/82; 81-19-073 (Order 112), 230-40-120, filed 9/15/81.  Statutory Authority: RCW 9.46.070(10).  80-03-059 (Order 98), 230-40-120, filed 2/25/80; Order 80, 230-40-120, filed 12/28/77; Order 51, 230-40-120, filed 4/30/76; Order 48, 230-40-120, filed 3/23/76; Order 23, 230-40-120, filed 9/23/74.]

OTS-3024.1


AMENDATORY SECTION(Amending Order 252, filed 6/15/94, effective 7/16/94)

WAC 230-40-120
Limits on wagers in card games.

Social and public card room licensees shall not allow wagering limits set by the commission to be exceeded in any card game.  The number and value of wagers in card games are limited as follows:

(1) ((The maximum number of wagers in any betting round shall be three, comprised of an initial wager plus two raises.

(2) The maximum number of a wager in any betting round shall be as follows:

(a) Games with a single betting round - ten dollars per wager;

(b) Games with multiple betting rounds:

(i) Two betting round games - wagers for the first round shall not exceed five dollars, and the second round shall not exceed ten dollars;

(ii) Three betting round games - wagers for the first two betting rounds shall not exceed five dollars, and wagers for the third betting round shall not exceed ten dollars;

(iii) Four betting round games - the wagers for each round may be structured by house rule: Provided, That the total wagers for all four betting rounds shall not exceed twenty-five dollars, and any single wager shall not exceed ten dollars; and

(iv) Five betting round games - the wagers for each round may be structured by house rule: Provided, That the total wagers for all five betting rounds shall not exceed thirty dollars, and any single wager shall not exceed ten dollars.

(c) Games that do not allow raises - single wager not to exceed ten dollars for each betting round.

(3))) Nonhouse-banked card games:

(a) Poker:

(i) There shall be no more than five betting rounds in any one hand;

(ii) The maximum number of wagers in any betting round shall be four, comprised of an initial wager plus three raises; and

(iii) The maximum amount of a single wager shall not exceed twenty-five dollars and the amount wagered per player shall not exceed two hundred fifty dollars per hand. For purposes of this subsection, the hand shall mean a complete set of betting rounds.

(b) Games based on achieving a specific number of points - each point shall not exceed five cents in value.

(((4))) (c) An ante, except for panguingue (pan), shall not be more than ten dollars.  The ante may, by house rule, be made by one or more players, but the total ante may not exceed ten dollars.  ((No one player can ante more than the maximum wager allowed in the first round.))  An ante, by house rule, may be used as part of a player's wager.

(((5))) (d) Panguingue (pan) - maximum value of a chip for payoff will not exceed four dollars.  Ante will not exceed one chip.  No doubling of conditions.  Players going out may collect not more than two chips from each participating player.

(((6) Provided,)) (e) Washington blackjack shall be subject to the rules and wagering limits set forth in WAC 230-40-125.

(2) House-banked card games:

(a) Operators authorized to conduct Phase I house-banked card games shall not allow a single wager to exceed twenty-five dollars;

(b) Operators authorized to conduct Phase II house-banked card games shall not allow a single wager to exceed fifty dollars; and

(c) A single wager may be made on each separate element of chance. In addition, for blackjack, an additional wager may be placed for doubling down.

(3) The wager to enter a player-supported progressive prize contest shall not exceed one dollar per hand.

(4) House rules establishing wagering limits for the betting rounds of each type of game played shall be posted in plain view where it can be seen by the players in the card game.

(5) Side bets between and against players and against the house are prohibited. Only persons actually playing in the card game may wager upon the outcome of the game. Wagers by persons other than those playing which in any way involves the outcome of the game, or of any aspect of the game, are prohibited: Provided, That gratuity wagers made by a player for a dealer shall not be considered a side bet.

[Statutory Authority: RCW 9.46.070.  94-13-098 (Order 252), 230-40-120, filed 6/15/94, effective 7/16/94.  Statutory Authority: RCW 34.05.220(4), [34.05].230 and 9.46.070 (11) and (14).  90-05-032 (Order 205), 230-40-120, filed 2/14/90, effective 3/17/90.  Statutory Authority: RCW 9.46.070 (8), (11) and (14).  89-15-039 (Order 194), 230-40-120, filed 7/18/89, effective 8/18/89.  Statutory Authority: RCW 9.46.050(3) and 9.46.070 (1), (2) and (11).  86-15-025 (Order 159), 230-40-120, filed 7/14/86.  Statutory Authority: RCW 9.46.070 (1), (2) and (11) and 9.46.110.  85-21-046 (Order 154), 230-40-120, filed 10/14/85.  Statutory Authority: RCW 9.46.020 (20)(d) and 9.46.070(11).  82-23-050 (Order 125) and 83-01-045 (Order 125A), 230-40-120, filed 11/15/82 and 12/13/82.  Statutory Authority: RCW 9.46.070(11).  82-04-010 (Order 118), 230-40-120, filed 1/22/82; 81-19-073 (Order 112), 230-40-120, filed 9/15/81.  Statutory Authority: RCW 9.46.070(10).  80-03-059 (Order 98), 230-40-120, filed 2/25/80; Order 80, 230-40-120, filed 12/28/77; Order 51, 230-40-120, filed 4/30/76; Order 48, 230-40-120, filed 3/23/76; Order 23, 230-40-120, filed 9/23/74.]

OTS-2905.3


AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-125
Washington blackjack--Rules of play--Wagering limits.

Washington blackjack is a nonhouse-banking card game permitted in Class A and E card rooms.  Washington blackjack shall be played in the following manner:

(1) Fees to play Washington blackjack shall only be assessed on a time basis and collected using the direct collection method as defined in WAC 230-40-050.

(2) Up to six standard fifty-two-card decks shall be used with suits disregarded and each card valued numerically only as follows: Ace equal 1 or 11; face cards (King, Queen, Jack) equal 10 each; others according to their spots, 10 to 2.   The number of decks used shall be established by house rule.  The cards shall be dealt from a shoe at all times.  The game is played with ((either a house dealer and a player/banker or)) a player who is ((a)) both the dealer((/)) and banker (dealer/banker).

(((2))) (3) When starting a new table the cards are cut to determine who the first dealer/banker will be.  The dealer/banker shall announce the amount of money that he or she will put into the bank.  If a minimum bank ((may be)) is established as per individual house rule it shall not exceed five hundred dollars.  ((If a house dealer is used, the banker delivers the bank to the dealer and the dealer shall place a marker reading "banker" on the bet line in front of the banker.

(3))) (4) Once the bank has been established, the player to the immediate left of the dealer/banker places his/her wager on the bet line and the dealer/banker covers that wager by matching it with a like amount of chips.  Each player makes their wager in turn and each wager is immediately matched by the dealer/banker.  The maximum and minimum wager may be set by house rule but in no event shall the maximum wager exceed twenty-five dollars.  If the bank runs out of money (tapped out) prior to the commencement of the deal, then only those players with a wager covered will be dealt a hand.  

(((4))) (5) The play begins with the dealer/banker dealing one card face up to each covered player including himself/herself, one more card face up to each covered player, and then one down card to himself/herself.  A player may be dealt more than one hand by house rule.  ((When a house dealer is used, no cards are dealt to the banker.))  If a player holds an ace and a face card or a ten, it is a "natural" 21 and the player collects 1.5 times the amount of their bet from the dealer/banker, unless the dealer/banker also has a natural which results in a tie (push).  All ties result in the players and the dealer/banker recovering their wagers.

(((5))) (6) If the dealer/banker has a "natural," he/she collects the wagers from players who do not have a "natural." If the dealer/banker does not have a "natural," he/she pays off any player with a "natural" starting with the first one to the left of the dealer/banker.  Should the dealer/banker not have enough money in the bank to make up the 1.5 for one payoff due on a "natural," then those hands and wagers will be frozen in place until the additional wagers are made up or the hand is over.  If after the hand is over, a dealer/banker cannot cover the 1.5 for one, the player shall get the amount of wager that was covered by the dealer/banker.

(((6))) (7) If the dealer/banker does not have a "natural," play continues with the player on the dealer/banker's immediate left.  The dealer/banker deals cards face up, one by one, as that player calls for them.  The player's aim is to total 21 or as close to 21 without going over.  When a player is satisfied with their total, they shall declare "stand." If the player wants more cards, the player declares "hit." If a player goes over a 21 point count, the hand is a "bust" and they must turn the hand down, while the dealer/banker collects the bet.  The dealer/banker does the same with each remaining player.  Any player who stands must wait while the dealer/banker draws his or her cards.  If the dealer/banker goes bust, each standing player is paid the amount of their wager.  If the dealer/banker "stands," the down card is turned up and players whose totals are higher than the dealer(('s))/banker's are paid.  The dealer/banker collects from any player whose total is less.  Action is always to the left of the dealer/banker.  Any frozen wagers needing to be "made up" will be done in order, to the left of the dealer/banker from losing wagers the dealer/banker collects.

(((7))) (8) Should the dealer/banker not be able to cover all frozen wagers then those frozen wagers are released to the winning players and the deal passes immediately to the left at which time the new dealer/banker shall announce the amount of the bank and shuffle the cards.  The same shall apply if the dealer/banker has no money in the bank.  The dealer/banker may, if allowed by house rule, add to their bank in between hands.

(((8))) (9) Upon completion of the shuffle, the player to the right of the dealer/banker shall cut the cards.  After the cards have been placed into the shoe the dealer/banker shall insert a blank card approximately three quarters of the way through the deck(s).  A dealer/banker may deal from the shoe until he/she reaches the blank card.  After the blank card appears, the dealer/banker may continue dealing that hand, but will not start a new hand.  ((If a house dealer is used, he/she returns the remaining chips in the bank to the banker.))  The player on the dealer/banker's immediate left shall be offered the opportunity to be the next dealer/banker ((or banker)).  The discards may only be reshuffled to complete the last hand.

(((9))) (10) Once wagers are placed and covered on the bet line, no player, including the dealer/banker, may touch those wagers until the winner has been determined.  Any player touching the wagers may be ruled to have fouled and their wager forfeited.

(((10))) (11) Any player who lifts their cards up from the table or slides their cards out of their own playing area shall be ruled to have fouled and their wager may be forfeited.

(((11))) (12) No player may "buy" the bank.  The bank must pass around the table to the left and no player can authorize ((anyone other than a house dealer)) another person to deal for him or her.   No player may be the dealer/banker for more than one consecutive shoe before passing the bank((: Provided, That when there are less than five players at a table a player may deal more than one consecutive shoe only when the remaining players have passed the deal)).

(((12))) (13) The dealer/banker must stand on seventeen or above and must take hits on sixteen or below.  If a dealer/banker has an ace, it shall be counted as eleven if it brings his or her total to seventeen or more (but not over twenty-one).  Provided, the house may elect to play a "soft seventeen," which occurs when the dealer(('s))/banker's first two cards are an ace valued at eleven and a six.  If the house elects to play a soft seventeen, house rules must specify that the dealer/banker must hit a soft seventeen, and must stand on a hard seventeen and any eighteen or above.  House blackjack rules must be posted in plain view to the players and the house must ensure they are consistently followed.

(((13))) (14) The conditions for doubling down shall be set by house rule, provided that the wager may be doubled and the player received only one more card.  The player must then stand on those three cards.  If the dealer(('s))/banker's bank is insufficient to cover a double down wager, the player may wager an amount equal to the dealer(('s))/banker's remaining bank.  The dealer/banker must then cover that wager.  If the dealer/banker has no bank then a player may not double down.

(((14))) (15) If the dealer(('s))/banker's face-up card is a ten, face card or ace, he/she may look at their face-down card to see if they have a natural; if his/her face-up card is anything else, they may not look at their face-down card until their turn comes to draw.  

(((15))) (16) If the dealer/banker's face-up card is an ace, the house may allow the player banking the game to offer an "insurance" bet against losing to the dealer/banker's possible natural. The dealer/banker, before looking at his/her down card, inquires if any player wants insurance. A player who desires insurance places an amount equal to half his/her present wager on his/her own hand. When this bet is made, the dealer/banker looks at his/her down card. If it is a 10 count, the dealer/banker turns it face up and announces a natural. The insurance bettor is paid off at a rate of 2 to 1, and they lose their original wager. If the dealer/banker's down card is not a 10 count card, the player loses his/her insurance bet and continues playing on their original wager.

(17) If a player's first two cards are a pair, then that player may split the pair into two separate hands.  The amount of the player's original bet then goes on one of the cards, and they must place an equal amount as a bet on the other card.   If the dealer/banker does not have enough in their bank to cover the doubled bet, the dealer/banker must cover an amount equal to the value of their remaining bank.  The player then has the option to divide the wagers in any manner between the two hands, not to exceed the allowable limit per hand.  If the dealer/banker has no bank then the player may divide their wager in any manner between the two hands, unless the player's original bet was a minimum allowed in that game then they may not split their pair.  Additional splits shall be determined by house rule.

(((16))) (18) The dealer/banker will pay only on the value of the cards held by the player and shall not pay on the number of cards received or the card sequence.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4).  95-23-109, 230-40-125, filed 11/22/95, effective 1/1/96.  Statutory Authority: RCW 9.46.070.  93-13-062 (Order 240), 230-40-125, filed 6/17/93, effective 7/18/93.  Statutory Authority: Chapter 9.46 RCW.  91-21-053 (Order 228), 230-40-125, filed 10/15/91, effective 11/15/91; 91-05-047 (Order 220), 230-40-125, filed 2/14/91, effective 3/17/91.  Statutory Authority: RCW 9.46.070 (11) and (14).  90-11-058, 230-40-125, filed 5/15/90, effective 6/15/90.  Statutory Authority: RCW 34.05.220(4), [34.05].230 and 9.46.070 (11) and (14).  90-05-032 (Order 205), 230-40-125, filed 2/14/90, effective 3/17/90.]

OTS-2906.2


AMENDATORY SECTION(Amending Order 23, filed 9/23/74)

WAC 230-40-130
Wagers to be made with chips only.

All wagers and fees to play made in connection with a card game shall be made with chips furnished by the licensed premises((. No money, nor other thing of value, shall be used directly in the game itself)): Provided, That operations of house-banked card games may use coins with a value of fifty cents or twenty-five cents: Provided further, That coins with a value of less than twenty-five cents may be used for pai-gow poker games. However, no chips from other card rooms may be accepted.

[Order 23, 230-40-130, filed 9/23/74.]

OTS-2907.1


AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-200
Participants to compete on equal terms--Deal to rotate among players.

Participants in card games shall compete on equal terms with all other participants in the game, and solely as a participant therein.

The deal in any series of nonhouse-banked card games shall be passed from player to player, unless the table incorporates a house dealer as per house rule: Provided, That house dealers may not be used for Washington blackjack.  No player who deals a game shall deal another game until each other player at the table has dealt a game in his turn((: Provided, That any player may voluntarily waive his right to deal any particular game.

Licensees shall take all necessary measures to insure that card games played upon their premises are played in this manner)).

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4).  95-23-109, 230-40-200, filed 11/22/95, effective 1/1/96.  Order 40, 230-40-200, filed 6/26/75; Order 23, 230-40-200, filed 9/23/74.]

OTS-2908.3


AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-225
House dealer allowed in certain games.

((Notwithstanding the provisions of WAC 230-40-200,)) Any licensee may furnish a dealer or "mucker" in any ((Washington blackjack,)) pan or poker game played on the licensed premises.  Dealers shall have no financial interest, directly or indirectly, in the outcome of such game and shall not otherwise participate or play in the game: Provided, That a licensee shall be required to have a house dealer for all house-banked card games, card games operated with a player-supported progressive prize contest, or card games authorized to assess fees for each hand played or fees based on amounts wagered: Provided further, That house dealers may not be used for Washington blackjack.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4).  95-23-109, 230-40-225, filed 11/22/95, effective 1/1/96.  Statutory Authority: RCW 9.46.070.  94-13-098 (Order 252), 230-40-225, filed 6/15/94, effective 7/16/94; Order 29, 230-40-225, filed 1/23/75.]

OTS-2909.2


AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-400
Hours ((limited)) for card games--Procedures for changing hours.

The hours during which card games may be played in licensed public card rooms shall be limited as follows:

(1) Licensees shall not allow the use of their premises for card playing between the hours of 2:00 a.m. and 6:00 a.m.: Provided, That the director may allow closing hours to be adjusted beyond 2:00 a.m. as long as the following conditions ((remain in effect)) are met:

(a) ((The local law enforcement agency with jurisdiction concurs;

(b) Other state agencies involved in regulation of the business do not object; and)) The director shall consult with the local law enforcement agency which has jurisdiction;

(b) The director shall consult with other state agencies involved in regulation of the business;

(c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation.

(((2))) (d) The food and/or drink business being stimulated shall be open to the public for business any time card games are conducted((: Provided, That entry to the business by new customers may be limited if access to the premises is open to the commission, law enforcement, or other state or local regulatory agencies, and service of food and nonalcoholic beverages is available for customers remaining on the premises after 2:00 a.m.));

(((3))) (e) At all times during the hours of operation of a Class E or F card room, the operator or a licensed card room employee must be on duty and in the licensed card room area; and

(f) Any person with ten percent or more interest in licensed card rooms within one mile of each other shall be closed for at least the same four-hour period each day; and

(g) The licensee complies with any other terms and conditions imposed by the director.

(2) The director may deny the request for extended hours or revoke hours already approved if the local law enforcement agency or a state agency objects or if the director determines that the licensee has violated any provisions of chapter 9.46 RCW, any other commission rule, or any of the terms set forth in subsection (1) of this section. All objections to changing a licensee's operating hours or requests to revoke an approved operating schedule must be submitted in writing.

(3) The commission shall afford a licensee an opportunity for a brief adjudicative proceeding prior to denying or revoking the licensee's authorization for extended card room hours. The brief adjudicative proceeding shall be heard by an administrative law judge, and shall follow the procedures set forth in WAC 230-50-010 (4) and (5), and RCW 34.05.494.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4).  95-23-109, 230-40-400, filed 11/22/95, effective 1/1/96.  Statutory Authority: RCW 9.46.070.  95-13-024, 230-40-400, filed 6/13/95, effective 7/14/95.  Statutory Authority: RCW 9.46.070(11).  82-04-010 (Order 118), 230-40-400, filed 1/22/82; Order 58, 230-40-400, filed 8/17/76; Order 40, 230-40-400, filed 6/26/75; Order 23, 230-40-400, filed 9/23/74.]

OTS-3025.1


AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-400
Hours ((limited)) for card games--Procedures for changing hours.

The hours during which card games may be played in licensed public card rooms shall be limited as follows:

(1) Licensees shall not allow the use of their premises for card playing between the hours of 2:00 a.m. and 6:00 a.m.: Provided, That the director may allow closing hours to be adjusted beyond 2:00 a.m. as long as the following conditions ((remain in effect)) are met:

(a) The local law enforcement agency with jurisdiction concurs;

(b) Other state agencies involved in regulation of the business do not object; and

(c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation.

(((2))) (d) The food and/or drink business being stimulated shall be open to the public for business any time card games are conducted((: Provided, That entry to the business by new customers may be limited if access to the premises is open to the commission, law enforcement, or other state or local regulatory agencies, and service of food and nonalcoholic beverages is available for customers remaining on the premises after 2:00 a.m.));

(((3))) (e) At all times during the hours of operation of a Class E or F card room, the operator or a licensed card room employee must be on duty and in the licensed card room area; and

(f) Any person with ten percent or more interest in licensed card rooms within one mile of each other shall be closed for at least the same four-hour period each day; and

(g) The licensee complies with any other terms and conditions imposed by the director.

(2) The director may deny the request for extended hours or revoke hours already approved if the local law enforcement agency or a state agency objects or if the director determines that the licensee has violated any provisions of chapter 9.46 RCW, any other commission rule, or any of the terms set forth in subsection (1) of this section. All objections to changing a licensee's operating hours or requests to revoke an approved operating schedule must be submitted in writing.

(3) The commission shall afford a licensee an opportunity for a brief adjudicative proceeding prior to denying or revoking the licensee's authorization for extended card room hours. The brief adjudicative proceeding shall be heard by an administrative law judge, and shall follow the procedures set forth in WAC 230-50-010 (4) and (5), and RCW 34.05.494.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4).  95-23-109, 230-40-400, filed 11/22/95, effective 1/1/96.  Statutory Authority: RCW 9.46.070.  95-13-024, 230-40-400, filed 6/13/95, effective 7/14/95.  Statutory Authority: RCW 9.46.070(11).  82-04-010 (Order 118), 230-40-400, filed 1/22/82; Order 58, 230-40-400, filed 8/17/76; Order 40, 230-40-400, filed 6/26/75; Order 23, 230-40-400, filed 9/23/74.]

OTS-3026.1


AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-400
Hours ((limited)) for card games--Procedures for changing hours.

The hours during which card games may be played in licensed public card rooms shall be limited as follows:

(1) Licensees shall not allow the use of their premises for card playing between the hours of 2:00 a.m. and 6:00 a.m.: Provided, That the director may allow closing hours to be adjusted beyond 2:00 a.m. as long as the following conditions ((remain in effect)) are met:

(a) ((The local law enforcement agency with jurisdiction concurs;

(b) Other state agencies involved in regulation of the business do not object; and)) The director shall consult with the local law enforcement agency which has jurisdiction;

(b) The director shall consult with other state agencies involved in regulation of the business;

(c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation.

(((2))) (d) The food and/or drink business being stimulated shall be open to the public for business any time card games are conducted((: Provided, That entry to the business by new customers may be limited if access to the premises is open to the commission, law enforcement, or other state or local regulatory agencies, and service of food and nonalcoholic beverages is available for customers remaining on the premises after 2:00 a.m.));

(((3))) (e) At all times during the hours of operation of a Class E or F card room, the operator or a licensed card room employee must be on duty and in the licensed card room area; and

(f) Any person with ten percent or more interest in licensed card rooms adjacent to each other shall be closed for at least the same four hour period each day; and

(g) The licensee complies with any other terms and conditions imposed by the director.

(2) The director may deny the request for extended hours or revoke hours already approved if the local law enforcement agency or a state agency objects or if the director determines that the licensee has violated any provisions of chapter 9.46 RCW, any other commission rule, or any of the terms set forth in subsection (1) of this section. All objections to changing a licensee's operating hours or requests to revoke an approved operating schedule must be submitted in writing.

(3) The commission shall afford a licensee an opportunity for a brief adjudicative proceeding prior to denying or revoking the licensee's authorization for extended card room hours. The brief adjudicative proceeding shall be heard by an administrative law judge, and shall follow the procedures set forth in WAC 230-50-010 (4) and (5), and RCW 34.05.494.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4).  95-23-109, 230-40-400, filed 11/22/95, effective 1/1/96.  Statutory Authority: RCW 9.46.070.  95-13-024, 230-40-400, filed 6/13/95, effective 7/14/95.  Statutory Authority: RCW 9.46.070(11).  82-04-010 (Order 118), 230-40-400, filed 1/22/82; Order 58, 230-40-400, filed 8/17/76; Order 40, 230-40-400, filed 6/26/75; Order 23, 230-40-400, filed 9/23/74.]

OTS-3027.1


AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-400
Hours limited for card games.

The hours during which card games may be played in licensed public card rooms shall be limited as follows:

(1) Licensees shall not allow the use of their premises for card playing between the hours of 2:00 a.m. and 6:00 a.m.((: Provided, That the director may allow closing hours to be adjusted beyond 2:00 a.m. as long as the following conditions remain in effect:

(a) The local law enforcement agency with jurisdiction concurs;

(b) Other state agencies involved in regulation of the business do not object; and

(c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation.

(2) The food and/or drink business being stimulated shall be open to the public for business any time card games are conducted: Provided, That entry to the business by new customers may be limited if access to the premises is open to the commission, law enforcement, or other state or local regulatory agencies, and service of food and nonalcoholic beverages is available for customers remaining on the premises after 2:00 a.m.

(3) At all times during the hours of operation of a Class E card room, the operator or a licensed card room employee must be on duty and in the licensed card room area.))

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4).  95-23-109, 230-40-400, filed 11/22/95, effective 1/1/96.  Statutory Authority: RCW 9.46.070.  95-13-024, 230-40-400, filed 6/13/95, effective 7/14/95.  Statutory Authority: RCW 9.46.070(11).  82-04-010 (Order 118), 230-40-400, filed 1/22/82; Order 58, 230-40-400, filed 8/17/76; Order 40, 230-40-400, filed 6/26/75; Order 23, 230-40-400, filed 9/23/74.]

OTS-3028.1


AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-400
Hours ((limited)) for card games.

The hours during which card games may be played in licensed public card rooms shall be limited as follows:

(1) Licensees shall not allow the use of their premises for card playing between the hours of ((2:00 a.m. and 6:00 a.m.: Provided, That the director may allow closing hours to be adjusted beyond 2:00 a.m. as long as the following conditions remain in effect:

(a) The local law enforcement agency with jurisdiction concurs;

(b) Other state agencies involved in regulation of the business do not object; and

(c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation.

(2) The food and/or drink business being stimulated shall be open to the public for business any time card games are conducted: Provided, That entry to the business by new customers may be limited if access to the premises is open to the commission, law enforcement, or other state or local regulatory agencies, and service of food and nonalcoholic beverages is available for customers remaining on the premises after 2:00 a.m.

(3) At all times during the hours of operation of a Class E card room, the operator or a licensed card room employee must be on duty and in the licensed card room area)) 4 a.m. and 8 a.m.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4).  95-23-109, 230-40-400, filed 11/22/95, effective 1/1/96.  Statutory Authority: RCW 9.46.070.  95-13-024, 230-40-400, filed 6/13/95, effective 7/14/95.  Statutory Authority: RCW 9.46.070(11).  82-04-010 (Order 118), 230-40-400, filed 1/22/82; Order 58, 230-40-400, filed 8/17/76; Order 40, 230-40-400, filed 6/26/75; Order 23, 230-40-400, filed 9/23/74.]

OTS-2910.2


AMENDATORY SECTION(Amending WSR 97-14-013, filed 6/20/97, effective 7/21/97)

WAC 230-50-010
Adjudicative proceedings--Hearings.

(1) ((Adjudicated)) Adjudicative proceedings shall be commenced for any and all matters wherein the commission is causing administrative charges to be brought against any applicant, licensee or permittee within the limitations to chapter 34.05 RCW as applicable.

(2) The commission shall afford an applicant for a license an opportunity for an ((adjudicated)) adjudicative proceeding prior to denying such application, and shall afford a licensee the opportunity for an ((adjudicated)) adjudicative proceeding prior to suspending or revoking a license.

(3) The commission will afford a person applying to the commission for approval of a pull-tab dispensing device under WAC 230-30-095 an opportunity for an ((adjudicated)) adjudicative proceeding prior to denying approval of such device.

(4) No hearing will be conducted with respect to any ((adjudicated)) adjudicative proceeding unless an application for an ((adjudicated)) adjudicative proceeding and request for hearing is timely filed by the applicant or licensee with the commission in compliance with WAC 230-50-210.  The application must be made upon a form to be obtained from the commission, or facsimile thereof, and must be received within 20 days following service upon the party affected by the commission or the director of a notice of administrative charges and opportunity for an ((adjudicated)) adjudicative proceeding.  Said document shall contain the maximum penalty that may be assessed should an application not be filed by the party affected.  An application for an ((adjudicated)) adjudicative proceeding and request for hearing shall accompany all notices of administrative charges.

(5) If an application for an ((adjudicated)) adjudicative proceeding is not timely filed, then the party affected shall have waived the right to a hearing on the allegations set forth in the notice of administrative charges.  The party shall be deemed to be in default pursuant to RCW 34.05.440 and the commission and director may take action against the party not to exceed the maximum penalty as stated in the notice of administrative charges and opportunity for an ((adjudicated)) adjudicative proceeding, which action shall be final.

(6) The procedures of RCW 34.05.485, brief adjudicative proceedings, shall be used for the following purposes:

(a) All hearings in which the penalty sought by the commission is for a suspension of seven days or less;

(b) Hearings held pursuant to WAC 230-50-015 (stay of summary suspension);

(c) Hearings held pursuant to WAC 230-04-400(3) (failure to pay required gambling taxes);

(d) Hearings held pursuant to WAC 230-04-190 (10)(c) (two part payment plan: Failure to make second payment);

(e) Hearings in which the parties have stipulated to facts or the parties have stipulated to charges, and the hearing is limited to a determination of whether facts constitute violations as charged and/or determination of appropriate penalty to be imposed;

(f) Denial of an application to operate at a higher bingo license class when the licensee has been restricted by WAC 230-20-062;

(g) Petitions for a variance to bingo net return requirements authorized by WAC 230-20-060; ((or))

(h) Denial or revocation of extended card room hours pursuant to WAC 230-40-400;

(i) Denial of request for Phase II pursuant to WAC 230-40-810; or

(j) Where the parties have stipulated to the use of brief adjudicative proceedings.

[Statutory Authority: RCW 9.46.070 (1), (2).  97-14-013, 230-50-010, filed 6/20/97, effective 7/21/97.  Statutory Authority: RCW 9.46.070.  95-13-030, 230-50-010, filed 6/13/95, effective 7/14/95; 92-19-107 (Order 231), 230-50-010, filed 9/18/92, effective 10/19/92.  Statutory Authority: Chapter 34.05 RCW.  89-24-003 (Order 200), 230-50-010, filed 11/27/89, effective 12/28/89.  Statutory Authority: RCW 9.46.070(13).  80-03-059 (Order 98), 230-50-010, filed 2/25/80; Order 45, 230-50-010, filed 12/30/75; Order 9, 230-50-010, filed 12/19/73.]

OTS-2862.3


NEW SECTION
WAC 230-40-600
Authorization procedures for player-supported progressive prize contests.

In order to ensure operators of player-supported progressive prize contests have an adequate control environment functioning, the following requirements shall be met:

(1) Each gaming operation shall submit a description of its internal control procedures detailing rules of play for player-supported progressive prize contests in the standard format prescribed by commission staff;

(2) The internal control submission shall undergo a review process and be approved prior to implementation; and

(3) Any changes to a gaming operation’s system of internal controls for the player-supported progressive prize contests must be submitted to commission staff and be approved prior to implementation.

[]

OTS-2863.4


NEW SECTION
WAC 230-40-610
Player-supported progressive prize contest--Restrictions--Manner of conducting--Approval.

Card room operators with a Class E or F card room license may establish a prize fund for the purpose of operating player-supported progressive prize contests (player-supported jackpot or PSJ). Only a PSJ approved in writing by the director or the director’s designee shall be allowed. The operator must establish a detailed written procedure for funding each PSJ offered.

(1) Funding of a PSJ: An operator may provide house funds to establish a PSJ. The organization shall issue a check from the general business account into the PSJ account to start the prize fund. Recouping of start-up funds shall be done by issuing a check from the PSJ account to the business general account. Electronic bank transfers shall satisfy this requirement. Start-up funds shall not exceed five thousand dollars per PSJ.

(2) An operator may assess an amount not to exceed one dollar per hand or game that each player contributes to a PSJ. Each assessment shall be separately collected and recorded in a format prescribed by commission staff.

(3) The operator acts only as the custodian of the PSJ funds and maintains no legal right to the funds. All PSJ prizes shall be awarded.

(4) Each operator shall designate a "prize fund custodian" who shall be responsible for safeguarding and disbursing funds to winners. The custodian shall have signature authority for prize fund bank accounts and ensure accountability of all funds collected for use in a PSJ. The operator shall meet deposit requirements of WAC 230-12-072.

(5) PSJ funds can only be used for awarding cash prizes based upon a format approved by commission staff. Access to PSJ funds shall be restricted to the prize fund custodian.

(6) Prize amounts paid in cash shall not exceed five hundred dollars. Prize amounts not awarded in cash shall be paid by check, the type which provides a duplicate copy, which shall not be cashed on the organization’s premises. A record of all prizes paid shall be maintained in the format prescribed by commission staff and shall include:

(a) For prizes up to fifty dollars, a system of accounting denoting each individual prize may be utilized.

(b) For prizes in excess of fifty dollars, the following information shall be recorded on a prize record:

(i) Full printed name;

(ii) Date of birth;

(iii) Street address;

(iv) Driver’s license number or Social Security number;

(v) Amount of the prize awarded;

(vi) Description of the winning hand;

(vii) Time and date awarded; and

(viii) The supervisor’s, dealer’s and winner’s initials.

(c) Upon awarding a prize of five hundred dollars or more, the dealer shall fan the winning hand in view of the surveillance camera. The hand shall be collected and sealed with the prize record. The winning hand and remaining deck shall be maintained on the premises as part of daily card room records for a period of fourteen days, unless released by a commission agent.

(7) Owners and managers may participate in card games that offer a PSJ, but may not share in the winnings of any prize awarded. If playing in a game with a PSJ, owners and managers must turn their cards face up at the end of each game so that the cards may be observed by other players at the table and surveillance. Any prize winnings an owner or manager may be entitled to under game rules, must be divided equally among the other players at the table.

(8) Floor supervisors may participate in card games that offer a PSJ, but may not share in any prize, unless a card room manager or owner is on-site during the game to resolve disputes.

(9) Card room employees may participate in card games that offer a PSJ and share in prize winnings unless they are supervising the game. If a card room employee is supervising a game he/she must distribute any prize winnings equally among all other players at the table.

(10) All card games offering a PSJ must utilize a house dealer.

(11) Security requirements: Each gaming table offering a PSJ shall be required to install a closed circuit television system as outlined in WAC 230-40-825.

(12) Licensees offering a PSJ shall have at least one supervisor for every five tables: Provided, That should a licensee utilize two separate areas of a particular gaming establishment, then each area shall require at least one supervisor. At a minimum, the licensee must have at least two licensed card room employees in the card room at all times if a PSJ is being utilized. One such employee must be a floor supervisor.

(13) In the event that an organization ceases to operate a card room, fails to maintain a valid card room license, or discontinues player-supported progressive prize contests, the balance (less any nonrecouped seed money) of all PSJ accounts will be forwarded to the Washington State Council on Problem Gambling: Provided, That an operator may seek approval from the director or his/her designee to revise their prize contests in order to distribute all accumulated prize funds.

(14) House rules to include administrative fees shall be posted in a location readily visible by all players and disclose the conditions under which prizes may be won, the prize amount, cost to participate, and any other conditions which may affect the outcome of the game.

(15) If a dispute arises involving the outcome of a PSJ, the organization shall notify commission staff within twenty-four hours and preserve the video recording, the winning hand and remaining deck, and all records for the game where the dispute occurred. The licensee shall document all information pertaining to the dispute including:

(a) The names, addresses, and phone numbers of all players, card room staff, and any witnesses involved;

(b) Amount of the advertised PSJ; and

(c) A full description of the circumstances surrounding the dispute.

(16) All disputes involving a PSJ will be investigated by commission staff, with a report submitted to the director. A written decision will be issued by the director, or his/her designee, and such decision shall be final.

(17) During the course of dispute resolution, the commission may become the temporary custodian of any and all prize funds. The PSJ will be suspended until the dispute is resolved.

[]

OTS-2864.4


NEW SECTION
WAC 230-40-800
Adoption of rules for house-banked card games.

Licensees that operate house-banked card games shall establish rules and procedures governing their operation. The following restrictions and procedures apply:

(1) House-banked card games shall not be operated prior to approval from commission staff. The gaming operation shall submit all rules governing the game to commission staff for approval. Game rules adopted shall include, in addition to the rules of play, specifications provided by the equipment manufacturer or supplier applicable to gaming equipment to include at least the following:

(a) Physical characteristics of chips; and

(b) Physical characteristics of the following:

(i) Cards (including procedures for receipt and storage);

(ii) All gaming tables and layouts;

(iii) Dealing shoes (including procedures for receipt and storage);

(iv) Card peeking devices;

(v) Bill changer devices; and

(vi) Such other equipment as may be required for use in otherwise authorized games.

(2) Rules for each authorized game, shall include at least the following:

(a) Procedures of play;

(b) Minimum and maximum permissible wagers;

(c) Shuffling, cutting, and dealing techniques, as applicable;

(d) Dealer take and pay procedures;

(e) Payout odds on each form of wager;

(f) Procedures to be followed on occurrence of irregularities, including explanation of irregularities as applicable to each game; and

(g) Prohibitions on side betting between and against player(s) and against the house.

(3) Rule summaries of each game's method of play shall be visibly displayed in the gaming operation. The betting limits applicable to any card game shall be displayed at the gaming table.

[]

OTS-2866.4


NEW SECTION
WAC 230-40-810
Authorization procedures for Phase II wagering limits for housed-banked card games.

In order to ensure an adequate control environment, a Class F card room licensee shall meet specific authorization procedures prior to being approved for Phase II wagering limits. The licensee shall demonstrate that they have fully complied with all commission requirements and are capable of operating at higher wager limits. In order to demonstrate their capability, an operator shall be reviewed by commission staff and receive a recommendation from the director. The following requirements and procedures apply to the review and approval process:

(1) Operation at Phase I limits for a minimum of six months.

(2) Compliance with commission requirements, including no material violations resulting in written warnings or administrative actions, complete or pending.

(3) Payment of all taxes on gambling activities owed to counties, cities, or towns. For purposes of this section, gambling taxes include those taxes owed as of the most recent reporting period (month or quarter), as provided in the jurisdiction's ordinance, plus any interest and/or penalties that may be due.

(4) Completion of a review by commission staff that shall consist of examining the gaming operation's compliance with applicable WAC rules and the operator's internal control submission and determining if the gaming operation has developed a sufficient control environment to warrant Phase II limits:

(a) Upon commission approval, the gaming operation shall be authorized to conduct gaming at Phase II limits.

(b) Operators shall be required to pay the cost of this review prior to going to Phase II limits.

(5) The director may deny a request for Phase II based on a licensee's failure to comply with one or more requirements in subsection (1), (2), (3), or (4) of this section or if the director determines that the licensee has violated any provisions of chapter 9.46 RCW or any other commission rule.

(6) The commission shall afford a licensee an opportunity for a brief adjudicative proceeding prior to denying the licensee's request for Phase II. The brief adjudicative proceeding shall be heard by an administrative law judge, and shall follow the procedures set forth in WAC 230-50-010 (4) and (5), and RCW 34.05.494.

[]

OTS-2867.4


NEW SECTION
WAC 230-40-815
House-banked card games--Administrative and accounting control structure--Organization of gaming operation.

It shall be the responsibility of each gaming operation licensed to operate house-banked card games to ensure that all games are operated fairly, in accordance with all rules of the commission, and that all income and expenses are recorded. Operators shall fulfill this responsibility by maintaining a control environment that includes at least the following:

(1) The gaming operation shall have a system of internal administrative and accounting controls that include at least the following:

(a) Administrative controls, which include, but are not limited to, the organization's plan, procedures, and records concerned with decision processes leading to management's authorization of transactions; and

(b) Accounting controls which include the organization's plan, procedures, and records concerned with the safeguarding of assets and the reliability of financial records. These controls must be designed to provide reasonable assurance that:

(i) Transactions are executed in accordance with management's general and specific authorization;

(ii) Transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles, and to maintain accountability for assets;

(iii) Access to assets is permitted only in accordance with management's authorization; and

(iv) The recorded accountability for assets is compared with existing assets at least annually and appropriate action is taken within five working days with respect to any differences.

(2) The gaming operation's system of internal administrative controls shall provide for the following:

(a) Competent personnel with an understanding of prescribed procedures;

(b) The segregation of incompatible functions so that no employee is in a position to perpetrate and conceal errors or irregularities in the normal course of his or her duties; and

(c) Each employee of a Class F card room shall be licensed by the commission and shall be knowledgeable in all accounting and internal control practices and procedures relevant to each employee's individual function.

(3) The gaming operation shall, at a minimum, establish the following departments or functions that shall be independent from all other departments or functions in the gaming operation.

(a) A security/surveillance department. The head of security/surveillance shall be responsible for, but not limited to, the following:

(i) The clandestine surveillance of the operation and conduct of the table games;

(ii) The clandestine surveillance of the operation of the cashier's cage;

(iii) The video and audio taping of activities in the count rooms;

(iv) The detection of cheating, theft, embezzlement, and other illegal activities in the gaming facility, count rooms, and cashier's cage;

(v) The video taping of unusual or suspected illegal activities;

(vi) The notification of appropriate supervisors, and commission staff, within three working days, upon the detection of cheating, theft, embezzlement, or other illegal activities;

(vii) Control of cards and dealing shoes, including storage of new and used cards and shoes, and control of the disposition and/or destruction of same when removed from service; and

(viii) Ensuring that each dealer is evaluated for at least fifteen minutes per week to determine if all required dealer procedures and techniques set forth in the gaming operation's approved internal controls are followed. A written report will be submitted to the CEO/COO for each dealer evaluation at the end of each week.

(b) A gaming operation department supervised by a gaming operation manager who shall be responsible for the operation of all house-banked card games conducted by ensuring the following:

(i) Card games are operated by licensed dealers who are assigned to each gaming table;

(ii) A floor supervisor is assigned the responsibility for the overall supervision of the conduct of gaming within a pit and can supervise no more than five tables. Provided, That a single supervisor may supervise up to seven tables, if only seven tables are in operation and the layout was preapproved by commission staff. The shift manager shall oversee floor supervisors and report to the gaming operation manager; and

(iii) A shift manager, who reports to the gaming operations manager, is assigned to supervise all gaming related activities that occur during each shift. In the absence of the gaming operation manager, the shift manager shall have the authority of a gaming operation manager.

(c) A gaming operation accounting department supervised by an individual who shall report directly to the CEO/COO. The responsibilities of the accounting department shall include, but not be limited to, the following:

(i) Implementing and monitoring of accounting controls;

(ii) The preparation, control, and storage of records and data required;

(iii) The control of unused forms inventory along with reconciliation of forms used in the gaming operation to the unused forms inventory; and

(iv) The control and supervision of the cashier's cage.

[]

OTS-2869.4


NEW SECTION
WAC 230-40-820
House-banked card games--Internal control evaluation--Required procedures.

To ensure commission rules and the licensee's internal control procedures are adhered to, commission staff will complete a review and evaluation of the internal control structure for all licensees operating house-banked card games, during each license year: Provided, That a review will not be required for an operator who has undergone a Phase II review within the last six months of the license year. The following restrictions and procedures apply:

(1) Commission staff shall evaluate the system of internal administrative and accounting controls for all house-banked gaming operations. This evaluation shall assure that the controls are adequate for the scope of operations and have been complied with in every material aspect.

(2) During each license year, a comprehensive review of management’s internal control structure will be completed, which will include the control environment, accounting system and control procedures. The comprehensive review shall be in addition to regular monitoring inspections performed by commission staff.

(3) A comprehensive report will be prepared on an annual basis summarizing all the areas reviewed, all material discrepancies noted during the year, and any corrective action taken.

(4) The director may contract for services outlined above to be performed by outside agencies as deemed necessary.

(5) The full cost of reviews will be paid by the licensee, whether conducted by commission staff or a contractor hired by the commission.

[]

OTS-3029.1


NEW SECTION
WAC 230-40-820
House-banked card games--Internal control evaluation--Required procedures.

To ensure commission rules and the licensee's internal control procedures are adhered to, commission staff will complete a review and evaluation of the internal control structure for all licensees operating house-banked card games. The following restrictions and procedures apply:

(1) Commission staff shall evaluate the system of internal administrative and accounting controls for all house-banked gaming operations. This evaluation shall assure that the controls are adequate for the scope of operations and have been complied with in every material aspect.

(2) During each license year, a comprehensive review of management’s internal control structure will be completed, which will include the control environment, accounting system and control procedures. The comprehensive review shall be in addition to regular monitoring inspections performed by commission staff.

(3) A comprehensive report will be prepared on an annual basis summarizing all the areas reviewed, all material discrepancies noted during the year, and any corrective action taken.

(4) The director may contract for services outlined above to be performed by outside agencies as deemed necessary. The contractor must, at a minimum, be licensed as a certified public accountant for the state of Washington and possess adequate experience and education in the gaming industry to ensure the report meets commission standards.

(5) The full cost of reviews will be paid by the licensee, whether conducted by commission staff or a contractor hired by the commission.

[]

OTS-2870.4


NEW SECTION
WAC 230-40-825
Closed circuit television system requirements and procedures.

All activities related to the operation of card games shall be closely monitored. Critical activities related to house-banked card games, player-supported progressive prize contests and assessment of fees based on amounts wagered (rake method) shall be monitored by use of a closed circuit television system and a video recording. The following restrictions and operating procedures apply when a closed circuit television system is required.

(1) Each gaming operation shall install and maintain a closed circuit television system that meets at least the specifications set forth below:

(a) Light sensitive cameras with pan, tilt, and zoom (PTZ) capabilities where necessary to effectively and clandestinely monitor in detail and from various vantage points, including the following:

(i) The gaming conducted at each gaming table in the facility;

(ii) The activities in the gaming operation pits;

(iii) Each table game area, with sufficient clarity to identify patrons and dealers;

(iv) Each table game surface, with sufficient coverage and clarity to simultaneously view the table bank and determine the configuration of wagers, card values and game outcome;

(v) The operations conducted at and in the cashier's cage;

(vi) Entrance to the cashier’s cage;

(vii) The count processes conducted in the count rooms, which processes shall be in conformity with commission rules;

(viii) The movement of cash, gaming chips, and drop boxes in the establishment;

(ix) The entrances and exits to the gaming operation and the count rooms; and

(x) Such other areas as the commission designates.

(b) All video cameras must be installed in a manner that will prevent them from being readily obstructed, tampered with, or disabled by patrons or employees.

(c) Where a PTZ camera is used to observe card tables and gambling related activities, the camera must be placed behind a smoked dome, one-way mirror or similar materials that conceal the camera from view.

(d) Video recording units, with time and date insertion capabilities, for recording what is being viewed by any camera of the system. Recording and playback of video signals shall be at a rate of not less than twenty frames per second. If multiple time and date generators are used, they shall be synchronized to the same time and date. The displayed date and time shall not significantly obstruct the recorded view. The following locations or activities shall be video taped:

(i) All gaming stations in operation or in which drop boxes are stored, to include video recording of all items noted in (a)(i) through (viii) of this subsection;

(ii) All entries to the count room;

(iii) The entire count process, including audio recording;

(iv) Any unusual or suspicious activities;

(v) Movement of drop boxes between tables and the count room; and

(vi) Any other activity or location designated by commission staff.

(e) One or more surveillance rooms in the establishment which shall have controlled access and be used by the employees of the gaming operation assigned to monitor the activities in the gaming operation and which may be used as necessary by agents of the commission.

(2) Lighting to provide sufficient clarity shall be present in all areas, including gaming tables and pits, where closed circuit camera coverage is required.

(3) Each video camera required by these rules shall be capable of having its picture displayed on a video monitor and recorded.

(4) The surveillance system must include a sufficient number of monitors to simultaneously display multiple card tables, the cashier’s cage, count room activities, and views of any dedicated cameras.

(5) Multiplexing devices may only be used for external surveillance, movement of drop boxes between tables and the count room and on entrances and exits.

(6) The gaming operation shall be required to maintain a record of all surveillance activities in the surveillance room. The surveillance log shall be maintained by surveillance personnel and shall include, at a minimum, the following:

(a) Date and time of surveillance;

(b) Person initiating surveillance;

(c) Reason for surveillance;

(d) Time of termination of surveillance;

(e) Summary of the results of the surveillance; and

(f) A record of any equipment or camera malfunctions.

(7) A surveillance room log shall be available for inspection at any time by commission staff or local law enforcement.

(8) Video and audio tapes shall be retained for at least seven days or for such longer period as commission staff may require. Tapes of evidentiary value or documenting details of jackpot payouts over three thousand dollars shall be retained for at least thirty days, or longer if requested by commission staff.

(9) Entrances to the closed circuit television surveillance rooms shall not be readily observable from the gaming operation area.

(10) A surveillance employee shall be present in the surveillance room and monitoring the activities of the operation, via the surveillance room equipment, at all times the card room is open to conduct gaming: Provided, That licensed employees not serving in an incompatible function may provide temporary relief for surveillance employees during routine work breaks. A relief break shall not exceed thirty minutes: Provided further, That a surveillance employee is not required to be present if an operator does not assess fees using the rake method, offer house-banked card games, or player-supported progressive jackpot contests.

All surveillance employees shall have a demonstrated knowledge of the following:

(a) Operating surveillance systems pertaining to card rooms;

(b) An understanding of the procedures for the games being played; and

(c) The overall procedures relating to the duties of all employees of a Class F card room being monitored (dealers, shift managers, floor supervisors, cage personnel, and count team).

(11) The surveillance room sign-in log shall be used to document the time each surveillance employee monitors the gaming operation. Commission agents and law enforcement personnel shall be provided immediate access to the surveillance room upon request.

[]

OTS-2871.3


NEW SECTION
WAC 230-40-830
Cashier’s cage--Requirements.

All cash, cash equivalents, and chips related to the operation of card games shall be closely controlled and records maintained documenting receipts and disbursements. Each card room shall maintain a cashier's function whose responsibility shall be to secure and account for all chips and monies in the gaming operation. At a minimum the following restrictions and procedures apply:

(1) As part of the gaming operation there shall be on or immediately adjacent to the gaming floor a physical structure known as the cashier's cage (cage) to house the cashiers and to serve as the central location for, at a minimum, the following:

(a) The custody of the cage inventory comprising currency, coin, patron checks, gaming chips, forms, documents and records normally associated with the operation of a cage;

(b) The approval of patron checks for the purpose of gaming in conformity with these standards;

(c) The receipt and distribution of gaming chips from the gaming table and the redemption of gaming chips from patrons in conformity with these standards. The purchase of gaming chips by patrons shall only occur at the gaming table; and

(d) Such other functions normally associated with the operation of a cage.

(2) The cage shall be designed, constructed and operated to provide maximum security and accountability for funds including, at a minimum, the following:

(a) An enclosed structure except for openings through which items such as gaming chips, checks, cash, records, and documents can be passed to service the public and gaming tables;

(b) Manually triggered silent alarm systems connected directly to the surveillance rooms of the closed circuit television system or an alarmed monitoring agency;

(c) Access shall be through a locked door, which shall have closed circuit television coverage which is monitored by the gaming operation security department.

(3) Entry to the cage shall be limited to authorized personnel. The gaming operation shall place on file with the accounting department the names of all persons authorized to enter the cage, those who possess the combination or the keys or who control the mechanism to open the locks securing the entrance to the cage, and those who possess the ability to operate the alarm systems.

(4) A log shall be maintained documenting all persons entering the cashier’s cage. The log must contain the person’s name, title, time entering and exiting, and date of entry.

(5) Gaming operations not offering house-banked card games shall not be required to meet the above requirements: Provided, That the card room shall maintain a system for securing and properly accounting for all gaming chips and monies of the gaming operation.

[]

OTS-2872.4


NEW SECTION
WAC 230-40-833
Cashier’s bank and minimum bankroll.

All card room operators with house-banked card games or player-supported progressive prize contests shall maintain sufficient funds to meet all cash out and prize payout requirements.

(1) All assets for which the cashiers are responsible shall be maintained on an imprest basis. This requires funds to be replenished on a regular basis by exactly the amount of expenditures from the cage less the amount of funds added. Expenditures shall be reviewed by a supervisor of the accounting department before replenishment: Provided, That organizations demonstrating the ability to control cage activity can request commission staff approval for a float basis as an alternative procedure.

(2) The gaming operation shall have a cash bankroll in addition to the imprest funds normally maintained by the cashier's cage. The bankroll shall be on hand in the cashier's cage or readily available to the cashier's cage at the opening of every shift. A minimum bankroll amount shall be established by the gaming operation.

(3) The gaming operation shall have sufficient cash on hand to redeem all chips and payout all prizes: Provided, That payments of prizes may be paid by check as long as sufficient funds are available on deposit. Lack of funds available to cash in chips and pay prizes shall be prima facie evidence of fraud.

[]

OTS-2873.3


NEW SECTION
WAC 230-40-835
Accounting controls for cashier's cage.

Licensees required to maintain a cashier's cage shall adhere to the following controls to ensure proper accountability for funds. The following restrictions and procedures apply:

(1) Cashiers shall be responsible for at least the following functions:

(a) Receive cash, checks, and gaming chips from patrons for check consolidations, total or partial redemptions or substitutions;

(b) Receive gaming chips from patrons in exchange for cash;

(c) Receive travelers' checks and other cash equivalents (including money orders, certified checks, and cashier checks) from patrons in exchange for currency or coin;

(d) Receive documentation with signatures thereon, required to be prepared for the effective segregation of functions in the cashier's cage;

(e) Receive from security department personnel, chips and coins removed from gaming tables in exchange for the issuance of a credit;

(f) Receive from security department members, requests for fills in exchange for the issuance of a fill slip and the disbursal of gaming chips;

(g) Receive cash from the coin and currency count rooms;

(h) At the end of each shift, the cashiers assigned to the outgoing shift, shall count each cage inventory item and record on a cashier's count sheet the face value of each inventory item and the total of the opening and closing inventories. The total closing inventory shall be reconciled with the total opening inventory;

(i) Prepare the overall cage reconciliation and accounting records; and

(j) Perform such other functions as necessary to ensure proper accountability of funds and chips consistent with these standards.

(2) Signatures attesting to accuracy shall, at a minimum, be contained on the following:

(a) Cashier's count sheet; and

(b) Cage inventory count sheet, which includes the signatures of the cashiers assigned to the incoming and outgoing shifts.

(3) At the conclusion of the daily gaming activity, copies of the cashier's count sheet, cage inventory count sheet and related documentation shall be forwarded to the accounting department for agreement of opening and closing inventories, and agreement of amounts thereon to other forms, records and documentation for recording of transactions.

[]

OTS-2874.3


NEW SECTION
WAC 230-40-840
Drop boxes--Requirements.

Licensees required to utilize drop boxes shall construct and control them in a manner to ensure security of contents. All card rooms operating house-banked card games or collecting fees utilizing the drop box as a collection method shall meet the following requirements and procedures:

(1) Each gaming table shall have attached to it a metal container known as a "drop box" into which all cash, duplicate fill slips and credit slips, request for fills and request for credits, and table inventory forms shall be deposited.

(2) Each drop box shall have the following:

(a) A lock securing the contents. The key to this lock shall be maintained and controlled by the accounting department;

(b) A separate lock securing the drop box to the gaming table. This lock shall be keyed differently from the lock securing the contents of the drop box. The key utilized to unlock this lock shall be maintained and controlled by the security department;

(c) An opening through which currency, coins, chips, forms, records and documents can be inserted into the drop box;

(d) Permanently imprinted or impressed thereon and clearly visible, a number corresponding to a permanent number on the gaming table to which it is attached and a marking to indicate the game. The shift shall also be included if drop boxes are removed from tables more than once an operating day: Provided, That emergency drop boxes may be maintained without such number or marking, if the word "emergency" is permanently imprinted or impressed thereon and when put into use, are temporarily marked with the number of the gaming table and identification of the game and shift.

(3) All drop boxes removed from the gaming tables shall be transported directly to the count room and secured by one security department member and one employee of the gaming operation: Provided, That operators not required to maintain a count room shall transport drop boxes directly to the count area.

(4) All drop boxes not attached to a gaming table, shall be stored in the count room in an enclosed storage cabinet or trolley and secured in such cabinet or trolley by two separately keyed locks. The key to one lock shall be maintained and controlled by the security department and the key to the other lock shall be maintained and controlled by the gaming operations department.

(5) Drop boxes, when not in use during a shift, may be stored on the gaming tables if licensed security personnel are present in the gaming area at all times drop boxes are stored on the gaming tables and the entire area is covered by taped surveillance. If adequate security is not provided during this time, the drop boxes shall be stored as required in subsection (4) of this section.

[]

OTS-2875.2


NEW SECTION
WAC 230-40-845
Procedures for exchange of checks submitted by gaming patrons at cashier's cage.

In addition to the requirements set forth in WAC 230-12-053, checks submitted to the cashier's cage at a licensed public card room are subject to the following restrictions and procedures:

(1) All checks sought to be exchanged at the cashiers' cage shall be presented directly to the cashier who will do the following:

(a) Restrictively endorse the check "for deposit only" to the gaming operation's bank account;

(b) Initial the check;

(c) Date and time stamp the check;

(d) Verify that the patron is not listed on the returned check log;

(e) Immediately exchange the check for currency and coin in an amount equal to the amount for which the check is drawn; and

(f) Forward all patron checks to the main bank cashier.

(2) Prior to acceptance of a traveler's check from a patron, the cashier shall do the following:

(a) Require the patron to countersign the traveler's check in his or her presence;

(b) Compare the countersignature with the original signature on the traveler's check;

(c) Examine the traveler's check for any other signs of tampering, forgery or alteration; and

(d) Perform any other procedures that the issuer of the traveler's check requires in order to indemnify the acceptor against loss.

(3) Prior to the acceptance of any check from a patron, the cashier shall examine that patron's identification to confirm patron's identity and shall maintain documentation supporting that examination.

(4) All checks received shall be deposited in the gaming operation's bank account within two banking days after receipt.

(5) All dishonored checks returned by a bank ("returned checks") after deposit shall be returned directly to, and controlled by accounting department employees: Provided, That if a collection agency is used which maintains dishonored checks, a photo copy of the check shall be sufficient.

(6) Records of all returned checks shall be maintained by accounting department employees and shall be available to cashiers. Such records shall include, at a minimum, the following:

(a) The date of the check;

(b) The name and address of the drawer of the check;

(c) The amount of the check;

(d) The date(s) the check was dishonored;

(e) The date(s) and amount(s) of any collections received on the check after being returned by a bank.

(7) If a check is dishonored, the name of the person who submitted the check shall be kept in a log, and available to the cashier. Such person shall be prohibited from submitting additional checks until the amount owed is paid in full: Provided, That a check dishonored by a bank may be immediately redeposited if there is sufficient reason to believe the check will be honored the second time.

[]

OTS-3030.1


NEW SECTION
WAC 230-40-845
Procedures for exchange of checks submitted by gaming patrons at cashier's cage.

In addition to the requirements set forth in WAC 230-12-053, checks submitted to the cashier's cage at a licensed public card room are subject to the following: Provided, That third-party checks shall not be accepted.

(1) All checks sought to be exchanged at the cashiers' cage shall be presented directly to the cashier who will do the following:

(a) Restrictively endorse the check "for deposit only" to the gaming operation's bank account;

(b) Initial the check;

(c) Date and time stamp the check;

(d) Verify that the patron is not listed on the returned check log;

(e) Immediately exchange the check for currency and coin in an amount equal to the amount for which the check is drawn; and

(f) Forward all patron checks to the main bank cashier.

(2) Prior to acceptance of a traveler's check from a patron, the cashier shall do the following:

(a) Require the patron to countersign the traveler's check in his or her presence;

(b) Compare the countersignature with the original signature on the traveler's check;

(c) Examine the traveler's check for any other signs of tampering, forgery or alteration; and

(d) Perform any other procedures that the issuer of the traveler's check requires in order to indemnify the acceptor against loss.

(3) Prior to the acceptance of any check from a patron, the cashier shall examine that patron's identification to confirm patron's identity and shall maintain documentation supporting that examination.

(4) All checks received shall be deposited in the gaming operation's bank account within two banking days after receipt.

(5) All dishonored checks returned by a bank ("returned checks") after deposit shall be returned directly to, and controlled by accounting department employees: Provided, That if a collection agency is used which maintains dishonored checks, a photo copy of the check shall be sufficient.

(6) Records of all returned checks shall be maintained by accounting department employees and shall be available to cashiers. Such records shall include, at a minimum, the following:

(a) The date of the check;

(b) The name and address of the drawer of the check;

(c) The amount of the check;

(d) The date(s) the check was dishonored;

(e) The date(s) and amount(s) of any collections received on the check after being returned by a bank.

(7) If a check is dishonored, the name of the person who submitted the check shall be kept in a log, and available to the cashier. Such person shall be prohibited from submitting additional checks until the amount owed is paid in full: Provided, That a check dishonored by a bank may be immediately redeposited if there is sufficient reason to believe the check will be honored the second time.

[]

OTS-2876.2


NEW SECTION
WAC 230-40-850
Procedures for accepting cash at house-banked gaming tables.

The purchase of gaming chips by patrons shall be conducted in a manner to ensure proper accountability of chips and cash. The following restrictions and procedures apply:

(1) Gaming chips shall only be purchased at the gaming table;

(2) When chips are purchased at a gaming table, the cash shall be spread on the top of the gaming table by the dealer in a manner that allows the patron, floor supervisor, and surveillance officer full view of the transaction;

(3) The amount of cash shall be announced by the dealer accepting it in a tone of voice to be heard by the patron who presented the cash and the floor supervisor specifically assigned to the gaming table. All cash changes of one hundred dollars or more shall be verified by the supervisor;

(4) Prior to giving gaming chips to the patron, the dealer shall prove each denomination of chips in a manner that discloses the number of chips to the patron, table supervisor, and surveillance. Procedures for proving chips shall be included in the licensee's approved system of internal controls; and

(5) Immediately after gaming chips, equivalent to the cash amount paid by the patron, have been given to the patron, the cash shall be taken from the top of the gaming table and placed by the dealer into the drop box attached to the gaming table.

[]

OTS-2877.3


NEW SECTION
WAC 230-40-855
Acceptance of gratuities from patrons for house-banked activities.

Gratuities shall be controlled in a manner to ensure they are only received by authorized persons and are properly accounted for. The following restrictions and procedures apply:

(1) No gaming operation employee directly concerned with management, supervision, accounting, security, or surveillance shall solicit or accept any tip or gratuity from any player or patron: Provided, That cage cashiers shall be allowed to accept tips.

(2) Upon receipt from a patron of a tip, a dealer assigned to a gaming table shall tap the table and extend his or her arm to show the floor supervisor that he/she has received a tip and immediately deposit such tip in the tip box.

(3) A cashier shall display the tip to the surveillance camera to show he/she has received a tip and immediately deposit such tip in the tip container.

(4) Tips received shall be retained by employees or pooled among employees in such manner as determined by the gaming operation.

(5) Licensees shall establish and implement procedures for the proper accounting of tips received by authorized card room employees. The procedures shall be fully documented in the operator's internal controls and shall describe in detail any methods used to allocate gratuities. Accounting and recording of gratuity income shall be in sufficient detail to meet federal income tax requirements.

[]

OTS-2878.3


NEW SECTION
WAC 230-40-860
Table inventories and procedures for opening tables for house-banked card games.

Procedures shall be established to ensure proper accountability of gaming chips and coins stored at gaming tables and for beginning play at such tables. The following restrictions and procedures apply:

(1) Whenever a gaming table is opened for gaming, operations shall commence with an amount of gaming chips and coins to be known as the "table inventory" and the gaming operation shall not cause or permit gaming chips or coins to be added to or removed from such table inventory during the gaming day except:

(a) In exchange for cash;

(b) In payment of winning wagers and collection of losing wagers made at such gaming table;

(c) In exchange for gaming chips received from a patron having an equal aggregate face value; and

(d) In conformity with procedures set forth in WAC 230-40-865 and 230-40-870.

(2) Each table inventory and the table inventory slip prepared in conformity with the procedures set forth in WAC 230-40-875 shall be stored during nongaming hours in a separate locked, clear container which shall be clearly marked on the outside with the game and the gaming table number to which it corresponds. The information on the table inventory slip shall be visible from the outside of the container. All containers shall be stored either in the cashier's cage during nongaming hours or may be secured at the gaming table if security personnel are on duty and surveillance is in operation.

(3) The keys to the locked containers containing the table inventories shall be maintained and controlled by the gaming operation department in a secure place and shall at no time be made accessible to any cashier's cage personnel or to any person responsible for transporting such table inventories to or from the gaming tables.

(4) Licensees shall abide by the following procedures when opening gaming tables for play:

(a) The locked container securing the table inventory and the table inventory slip shall be unlocked by the gaming operation supervisor assigned to such table;

(b) A dealer assigned to the gaming table shall prove the contents of the container in the presence of the gaming operation supervisor assigned to such table and shall compare the count to the "opener", as defined in WAC 230-40-875, removed from the container. The procedures used to prove the chip and coin inventory shall be set forth in the licensee's internal controls;

(c) Signatures attesting to the accuracy of the information on the opener shall be placed on such opener by the dealer assigned to the table and the gaming operation supervisor that observed the dealer count the contents of the container;

(d) Any discrepancy between the amount of gaming chips and coins counted and the amount of the gaming chips and coins recorded on the opener, shall be immediately reported to the gaming operation manager, assistant gaming operation manager, or gaming operation shift manager in charge at such time. Security will complete the standard security report and maintain a copy in the log containing the notification of error slips. The licensee shall notify commission staff within twenty-four hours of errors of one hundred dollars or more, or if there is a pattern relating to regular shortages;

(e) After the count of the contents of the container and the signing of the opener, such slip shall be immediately deposited in the drop box attached to the gaming table by the dealer after the opening of such table.

[]

OTS-2879.3


NEW SECTION
WAC 230-40-865
Procedure for distributing gaming chips and coins to house-banked gaming tables--Requests and fills.

Gaming chips and coins shall only be distributed to gaming tables with adequate security and in a manner that ensures proper accountability. The following restrictions and procedures apply.

(1) A "request for fill" shall be prepared by a gaming operation supervisor to authorize the preparation of a "fill slip" for the distribution of gaming chips and coins to gaming tables. The request for fill shall be prepared in a duplicate form. Request for fill forms shall be secured in a manner that limits access to gaming operation supervisors.

(2) On the original and duplicate of the request for fill, the following information, at a minimum, shall be recorded:

(a) The date, time, and shift of preparation;

(b) The denomination of gaming chips or coins to be distributed to the gaming tables;

(c) The total amount of each denomination of gaming chips or coins to be distributed to the gaming tables;

(d) The game and table number to which the gaming chips or coins are to be distributed;

(e) The signature of the gaming operation supervisor; and

(f) The signature of the security department employee that distributed the chips and coins.

(3) After preparation of the request for fill, the original of such request shall be transported directly to the cashier's cage by security.

(4) The duplicate copy of the request for fill shall be placed by the dealer or floor supervisor in public view on the gaming table to which the gaming chips or coins are to be received. Such duplicate copy shall not be removed until the chips and coins are received, at which time the request for fill and fill slip are deposited in the drop box.

(5) A fill slip shall be prepared by a cashier whenever gaming chips or coins are distributed to the gaming tables from the cashier's cage.

(6) Fill slips shall be serially prenumbered forms, and each series of fill slips shall be used in sequential order, and the series of all fill slips received by a gaming operation shall be accounted for separately: Provided, That a computer system may be used which includes a nonrepeating sequential numbering system that is consistent with the controls and safeguards of the manual system. All the originals and duplicates of void fill slips shall be marked "VOID" and shall require the signature of the preparer.

(7) The following procedures and requirements shall be observed with regard to fill slips:

(a) Each series of fill slips shall be in triplicate form to be kept in a locked dispenser that will permit an individual fill slip in the series and its copies to be written upon simultaneously while still located in the dispenser, and that will discharge the original and duplicate while the triplicate remains in a continuous, unbroken form in the dispenser: Provided, That if a computer system is used, which includes a nonrepeating sequential numbering system, the controls and safeguards of the manual system must be present; and

(b) Access to the triplicate copy of the form shall be maintained and controlled at all times by an accounting department employee responsible for controlling and accounting for the unused supply of fill slips, placing fill slips in the dispensers, and removing from the dispensers, each day, the triplicate copies remaining therein.

(8) On the original, duplicate, and triplicate copies of the fill slip, the preparer shall record, at a minimum, the following information:

(a) The denomination of the gaming chips or coins being distributed;

(b) The total amount of the gaming chips or coins being distributed;

(c) The total amount of all denominations of gaming chips or coins being distributed;

(d) The game and table number to which the gaming chips or coins are being distributed;

(e) The date and shift during which the distribution of gaming chips or coins occur; and

(f) The signature of the preparer.

(9) Upon preparation, the time of preparation of the fill slip shall be recorded, at a minimum, on the original and the duplicate.

(10) All gaming chips or coins distributed to the gaming tables from the cashier's cage shall be transported directly by a security department employee. This employee shall verify the request for fill to the amount of the fill slip and sign the original of the request for fill, which is maintained at the cashier's cage, before transporting the gaming chips or coins and the original and duplicate of the fill slip for signature.

(11) Signatures attesting to the accuracy of the information contained on the original and duplicate of the fill slips shall, at a minimum, be those of the following personnel at the following times:

(a) The cashier upon preparation;

(b) The security department employee transporting the gaming chips or coins to the gaming table upon receipt from the cashier of gaming chips or coins;

(c) The dealer assigned to the gaming table upon receipt; and

(d) The gaming operation supervisor assigned to the gaming table, upon receipt of the gaming chips or coins at such table.

(12) Upon meeting the signature requirements, the security department employee that transported the gaming chips or coins and the original and duplicate copies of the fill slip to the table, shall observe the following:

(a) The dealer shall immediately place the duplicate fill slip and duplicate request for fill in the drop box attached to the gaming table to which the gaming chips or coins were transported.

(b) The security department employee shall then return the original fill slip to the cashier's cage where the original fill slip and request for fill shall be maintained together and controlled by cage employees.

(13) The original and duplicate "VOID" fill slips, the original request for fill and the original fill slip, maintained and controlled in conformity with subsection (12) of this section shall be forwarded to the following:

(a) The count team, as described in WAC 230-40-885(2), for agreement with the duplicate copy of the fill slip and duplicate copy of the request for fill removed from the drop box after which the original and duplicate copy of the request for fill and the original and duplicate copy of the fill slip shall be forwarded to the accounting department for agreement, on a daily basis, with the triplicate; or

(b) The accounting department for agreement, on a daily basis, with the duplicate fill slip and duplicate copy of the request for fill removed from the drop box and the triplicate.

(14) Transfers of gaming chips from one gaming table to another gaming table shall be prohibited. All transfers of gaming chips shall be to the cashier's cage.

[]

OTS-2880.3


NEW SECTION
WAC 230-40-870
Procedure for removing gaming chips and coins from house-banked gaming tables--Requests and credits.

All transfers of gaming chips and coins shall be closely controlled and documented in a manner that ensures accountability. Gaming chips and coins shall only be removed from gaming tables with adequate security. The following restrictions and procedures apply:

(1) A "request for credit" shall be prepared by a gaming operation supervisor to authorize the preparation of a "credit slip" for the removal of gaming chips and coins to the cashier's cage. The request for credit shall be in duplicate form. Request for credit forms shall be secured in a manner that allows access only to gaming operation supervisors.

(2) On the original and the duplicate copy of the request for credit the following information, at a minimum, shall be recorded:

(a) The date, time and shift of preparation;

(b) The denomination of gaming chips or coins to be removed from the gaming table;

(c) The total amount of each denomination of gaming chips or coins to be removed from the gaming table;

(d) The game and table number from which the gaming chips or coins are to be removed; and

(e) The signature of the gaming operation supervisor and dealer assigned to the gaming table from which gaming chips or coins are to be removed.

(3) Immediately upon preparation of a request for credit and transfer of gaming chips or coins to a security department employee, a gaming operation supervisor shall obtain on the duplicate copy of the request for credit the signature of the security department member to whom the gaming chips and coins were transferred. The dealer shall place the duplicate copy in public view on the gaming table from which the gaming chips or coins were removed. Such request for credit shall not be removed until a credit slip is received from the cashier’s cage at which time the request for credit and credit slip are deposited in the drop box.

(4) The original of the request for credit and the gaming chips or coins removed from the gaming table shall be transported directly to the cashier's cage by the security department employee.

(5) A credit slip shall be prepared by the cashier’s cage whenever gaming chips or coins are removed from the gaming tables to the cashier's cage.

(6) Credit slips shall be serially prenumbered forms, each series of credit slips shall be used in sequential order, and the series number of all credit slips received by a gaming operation shall be separately accounted for: Provided, That a computer system may be used which includes a nonrepeating sequential numbering system that is consistent with the controls and safeguards of the manual system. All original and duplicate copies of voided credit slips shall be marked "VOID" and shall require the signature of the preparer.

(7) The following procedures and requirements shall be observed with regard to credit slips:

(a) Each series of credit slips shall be a three-part form and shall be inserted in a locked dispenser that will permit an individual slip in the series and its copies to be written upon simultaneously while still locked in the dispenser, and that will discharge the original and duplicate while the triplicate remains in a continuous, unbroken form in the dispenser: Provided, That if a computer system is used, which includes a nonrepeating sequential numbering system, the controls and safeguards of the manual system must be present; and

(b) Access to the triplicate copy shall be maintained and controlled at all times by an accounting department employee responsible for controlling and accounting for the unused supply of credit slips, placing credit slips in the dispensers, and removing from the dispensers, each day, the triplicates remaining therein.

(8) On the original, duplicate and triplicate copies of a credit slip, the preparer shall record, at a minimum, the following information:

(a) The denomination of the gaming chips or coins removed from the gaming table to the cashier's cage;

(b) The total amount of each denomination of gaming chips or coins removed from the gaming table to the cashier's cage;

(c) The total amount of all denominations of gaming chips or coins removed from the gaming table to the cashier's cage;

(d) The game and table number from which the gaming chips or coins were removed;

(e) The date and shift during which the removal of gaming chips or coins occurs; and

(f) The signature of the preparer.

(9) Upon preparation, the time of preparation of the credit slip shall be recorded, at a minimum, on the original and duplicate copy.

(10) Signatures attesting to the accuracy of the information contained on the original and the duplicate copy of a credit slip shall be, at a minimum, the following personnel at the following times:

(a) The cage cashier upon preparation;

(b) The security department employee transporting the gaming chips or coins to the cashier's cage upon presentation to the cashier;

(c) The dealer assigned to the gaming table upon receipt at such table from the security department employee; and

(d) The gaming operation supervisor assigned to the gaming table upon receipt at such table.

(11) Upon meeting the signature requirements, the security department employee transporting the original and duplicate copies of the credit slip to the gaming table, shall observe the following:

(a) The dealer shall immediately place the duplicate copies of the credit slip and request for credit in the drop box attached to the gaming table from which the gaming chips or coins are removed; and

(b) The security department employee shall expeditiously return the original credit slip to the cashier’s cage where the original of the credit slip and request for credit shall be maintained together, and controlled by cage employees.

(12) The original and duplicate copies of "VOID" credit slips and the original request for credit and the original credit slip, maintained and controlled in conformity with subsection (11) of this section shall be forwarded to:

(a) The count team, as described in WAC 230-40-885(2), for agreement with the duplicate credit slip and the duplicate request for credit removed from the drop box, after which the request for credit and the original and duplicate credit slip shall be forwarded to the accounting department for agreement, on a daily basis, with the triplicate; or

(b) The accounting department for agreement, on a daily basis, with the duplicate copies of the credit slip and request for credit removed from the drop box and the triplicate.

[]

OTS-2881.3


NEW SECTION
WAC 230-40-875
Procedures for closing house-banked gaming tables.

Procedures shall be followed for closing gaming tables that ensures proper accountability of gaming chips and coins. The following restrictions and procedures apply:

(1) Whenever the gaming activity at each gaming table is concluded for the day, the gaming chips and coins shall be counted by the dealer assigned to the gaming table and observed by a gaming operation supervisor. The entire count and closure process shall be monitored and taped by the surveillance department.

(2) The gaming chips and coins counted shall be recorded on a table inventory slip by the gaming operation supervisor assigned to the gaming table.

(3) Table inventory slips shall be three-part serially prenumbered forms and on the original of the slip (closer), the duplicate of the slip (opener), and on the triplicate, which is maintained and controlled by security, the gaming operation supervisor shall record the following:

(a) The date and identification of the shift ended;

(b) The game and table number;

(c) The total value of each denomination of gaming chips and coins remaining at the tables; and

(d) The total value of all denominations of gaming chips and coins remaining at the gaming tables.

(4) Signatures attesting to the accuracy of the information recorded on the table inventory slips at the time of closing the gaming tables shall be of the dealer and the gaming operation supervisor assigned to the gaming table who observed the dealer count the contents of the table inventory.

(5) Upon meeting the signature requirements:

(a) The closer shall be deposited in a drop box attached to the gaming table immediately prior to the closing of the table;

(b) The opener and the gaming chips and coins remaining at the table shall be placed in a clear container provided for that purpose after which the container shall be locked; and

(c) The triplicate copy of the table inventory slip shall be forwarded to the accounting department by a security department employee.

(6) At the end of each gaming day, if the locked containers are transported to the cashier's cage, a cage cashier shall determine that all locked containers have been returned to the cage and adequately secured or, if the locked containers are secured to the gaming table, a gaming operation supervisor shall account for all the locked containers.

(7) In the event drop boxes are removed from gaming tables at other than the close of the gaming day, they shall be removed at a shift change. A table inventory slip shall be prepared as required above with the incoming and outgoing supervisor verifying the inventory and signing.

[]

OTS-2882.3


NEW SECTION
WAC 230-40-880
Count room--Requirements.

All card room operators offering house-banked card games or utilizing drop boxes for the collection of game fees or wagers shall be required to maintain a secured area for the counting of gaming chips, coin, and currency. The following requirements, restrictions, and procedures apply:

(1) As part of the gaming operation, there shall be a room specifically designated for counting the contents of drop boxes, which shall be known as the "count room": Provided, That operators not offering house-banked card games shall not be required to maintain a count room for counting the contents of drop boxes if they have another secure location and they meet all other commission requirements for surveillance and counting procedures.

(2) The count room shall be a fully enclosed room with only one entry designed and constructed to provide maximum security for the materials housed therein and for the activities conducted therein, to include at a minimum, the following:

(a) A door equipped with at least one lock securing the interior of the count room, the key to which shall be maintained and controlled by the gaming operation department or an employee of the security department;

(b) The gaming operation department or security department shall establish a sign-out procedure for all keys removed from the security department; and

(c) An alarm device connected to the entrance of the count room in such a manner as to cause a signaling to the surveillance employees of the closed circuit television system whenever the door to the count room is opened.

(3) The following shall be located within the count room:

(a) A table constructed of clear glass or similar material with a base that does not obstruct viewing for the emptying, counting, and recording of the contents of the drop boxes which shall be known as the "count";

(b) Closed circuit television cameras and microphones that are capable of, but not limited to, the following:

(i) Effective and detailed video and audio monitoring of the entire count process; and

(ii) Effective, detailed video-monitoring of the count room and all contents, including storage cabinets or trolleys used to store drop boxes.

(c) The licensee shall post a sign within the count room or at the entrance disclosing that audio recordings within the count room are being conducted at all times.

[]

OTS-2883.3


NEW SECTION
WAC 230-40-885
Counting and recording contents of drop boxes--Procedures.

The contents of drop boxes shall be counted and recorded in a manner that ensures the proper accountability of all gaming chips, coins, and currency. The following restrictions and procedures apply:

(1) The gaming operation shall notify the security department whenever the contents of drop boxes removed from gaming tables are to be counted and recorded, which, at a minimum, shall be once each gaming day.

(2) The opening, counting and recording of the contents of drop boxes shall be performed in the presence of and by those employees assigned by the gaming operation for the conduct of the count. The count team must consist of three employees who shall not be in a position to perpetrate or conceal errors or irregularities in the normal course of his or her duties. Anyone both recording transactions and having access to the relevant assets is in a position to perpetrate errors or irregularities.

(3) Immediately prior to the opening of the drop boxes, the doors to the count room shall be securely locked and except as otherwise authorized, no person shall be permitted to enter or leave the count room, except during a normal work break or in an emergency, until the entire counting, recording, and verification process is completed.

(4) Immediately prior to the commencement of the count, one count team member shall notify the person assigned to the closed circuit television surveillance room in the establishment that the count is about to begin, after which such a person shall make a video and audio recording of the entire counting process.

(5) Contents of drop boxes shall not be mixed prior to counting and recording of each drop box. Procedures and requirements for conducting the count shall be the following:

(a) As each drop box is placed on the count table, one count team member shall announce, in a tone of voice to be heard by all persons present and to be recorded by the audio recording device, the game, table number, and shift marked thereon;

(b) The contents of each drop box shall be emptied and counted separately on the count table;

(c) Immediately after the contents of a drop box are emptied onto the count table, the inside of the drop box shall be held up to the full view of a closed circuit television camera, and shall be shown to at least one other count team member to confirm that all contents of the drop box have been removed, after which the drop box shall be locked and placed in the storage area for drop boxes;

(d) The contents of each drop box shall be segregated by a count team member into separate stacks on the count table by denominations of coin and currency and by type of form, record or document;

(e) Each denomination of coin and currency shall be counted separately by at least two count team members who shall place individual bills and coins of the same denomination on the count table in full view of the closed circuit television cameras, and such count shall be observed and the accuracy confirmed orally or in writing, by at least one other count team member;

(f) As the contents of each drop box is counted, one count team member shall record or verify on a master game report, by game, table number, and shift, the following information:

(i) The total amount of currency and coin counted;

(ii) The amount of the opener;

(iii) The amount of the closer;

(iv) The serial number and amount of each fill slip;

(v) The total amount of all fill slips;

(vi) The serial number and amount of each credit slip;

(vii) The total amount of all credit slips; and

(viii) The win or loss.

(g) After the contents of each drop box have been counted and recorded, one member of the count team shall record by game and shift, on the master game report, the total amounts of currency and coin, table inventory slips, fill slips and credit slips counted, and win or loss, together with such additional information as may be required on the master game report by the gaming operation;

(h) Notwithstanding the requirements of (f) and (g) of this subsection, if the gaming operation's system of accounting and internal controls provides for the recording on the master game report of fill slips, credit slips, and table inventory slips by cage cashiers prior to the commencement of the count, a count team member shall compare the serial numbers and totals of the amounts recorded thereon to the fill slips, credit slips, and table inventory slips removed from the drop boxes;

(i) Notwithstanding the requirements of (f) and (g) of this subsection, if the gaming operation's system of accounting and internal controls provides for the count team functions to be comprised only of counting and recording currency, coin, and credits, accounting department employees shall perform all other counting, recording and comparing duties herein; and

(j) After completion and verification of the master game report, each count team member shall sign the report attesting to the accuracy of the information recorded thereon.

(6) Procedures and requirements at the conclusion of the count for each gaming shift shall be the following:

(a) All cash removed from each drop box after the initial count shall be presented in the count room by a count team member to a cashier who, prior to having access to the information recorded on the master game report and in the presence of the count team, shall recount, either manually or mechanically, the cash received;

(b) The top copy of the master game report, after signing, and the request for fills, the fill slips, the request for credits, the credit slips, and the table inventory slips removed from drop boxes, shall be transported directly to the accounting department and shall not be available to any cashier's cage personnel; and

(c) If the gaming operation's system of accounting and internal controls does not provide for the forwarding from the cashier's cage of the duplicate of the fill slips, credit slips, request for credits, request for fills, such documents recorded or to be recorded on the master game report shall be transported from the count room directly to the accounting department.

(7) The originals and copies of the master game report, request for fills, fill slips, request for credits, credit slips and table inventory slips shall on a daily basis, in the accounting department be:

(a) Compared for agreement with each other, on a test basis, by persons with no recording responsibilities and, if applicable, to triplicates or stored data;

(b) Reviewed for the appropriate number and propriety of signatures on a test basis;

(c) Accounted for by series numbers, if applicable;

(d) Tested for proper calculation, summarization, and recording;

(e) Subsequently recorded; and

(f) Maintained and controlled by the accounting department.

(8) Card rooms not operating house-banked card games shall not have to meet the requirements above: Provided, That the following requirements shall be met:

(a) The count shall occur at a specific time that has been reported to commission staff;

(b) All fees shall be counted at least once each operating day;

(c) The count shall be made by at least two licensed employees of the card room who shall record the amount on the count slip for each drop box;

(d) The surveillance requirements of WAC 230-40-845 shall be met; and

(e) An entry shall be made in the daily card room record for each table and each type of fee collected at a table. Count slips for each table shall be retained with the daily records.

[]

OTS-2884.3


NEW SECTION
WAC 230-40-890
Signatures--Requirements.

Each transfer of cash, coins, or chips shall be documented and verified by signatures of individuals responsible for applicable records. A record of authorized signatures shall be maintained for all employees of a Class F card room authorized to approve tranfers of cash, coin, or chips. The following restrictions and operating procedures apply to operators conducting house-banked card games:

(1) Signatures shall:

(a) Be, at a minimum, the signer's first initial and last name, i.e., "B. Smith";

(b) Be immediately adjacent to, or above the clearly printed or preprinted title of the signer and his or her card room employee license number; and

(c) Signify that the signer has prepared forms, records, and documents, and/or is authorized to a sufficient extent to attest to the accuracy of the information recorded thereon, in conformity with these standards and the gaming operation's system of accounting and internal control.

(2) The licensee shall ensure that signature cards are completed for each person who signs or initials forms, records and documents, and shall include samples of signatures and initials of signers. Such signature records shall be prepared in the presence of a member of the accounting department who shall verify the employee’s identity by review of a picture identification card. Completed cards shall be maintained in a dated signature card file, sorted by department and listed alphabetically by name. The signature records shall be adjusted on a timely basis to reflect changes of personnel.

(3) Signature cards shall be securely stored in the accounting department. A copy of each signature card shall be maintained in the cashier’s cage and be used by cage personnel to verify applicable signatures.

[]

OTS-2846.4


NEW SECTION
WAC 230-40-550
Player-supported progressive prize contest defined.

A player-supported progressive prize contest (player-supported jackpot or PSJ) is a separate contest directly related to the play and/or outcome of an authorized card game for which a player pays a fee to participate. It is not the card game itself and shall not include contests of chance based upon any contingency not determined during the course of play of a single card game.

[]

OTS-2849.3


NEW SECTION
WAC 230-40-552
Incompatible functions defined.

Incompatible functions for accounting and internal control purposes are functions, duties, or responsibilities that places any person or department in a position to both perpetrate and conceal errors or irregularities in the normal course of his or her duties. Anyone both recording transactions and having access to the relevant assets is in a position to perpetrate errors or irregularities.

[]

OTS-2851.4


NEW SECTION
WAC 230-40-554
Drop box defined.

A drop box is a metal container which shall be used for deposits of all cash, duplicate fill slips, credit slips, request for fills, request for credits, and table inventory forms.

[]

OTS-2852.2


NEW SECTION
WAC 230-40-556
Cash equivalent defined.

Cash equivalent is a treasury check, personal check, travelers check, wire transfer of funds, money order, certified check, cashiers check, a check drawn on the gaming operation payable to the patron or to the gaming operation, or a voucher recording cash drawn against a credit card or debit card.

[]

OTS-2853.3


NEW SECTION
WAC 230-40-558
Prize fund custodian defined.

A prize fund custodian is the individual responsible for safeguarding funds received from player-supported progressive prize contests and disbursing prizes to winners. A prize fund custodian may be an owner, partner, officer, or licensed individual designated by a card room owner, partner, or officer.

[]

OTS-2854.4


NEW SECTION
WAC 230-40-560
Chief executive officer/chief operations officer defined.

The chief executive officer/chief operations officer (CEO/COO) is the executive who has been designated by the owner, partners, or board of directors as the individual with overall responsibility for the business licensed to conduct card games.

[]

OTS-2855.2


NEW SECTION
WAC 230-40-562
Gaming operations manager defined.

A gaming operations manager is a licensed card room employee who has been designated by the chief executive officer (CEO) or chief operating officer (COO) as responsible for management of all card room operations.

[]

OTS-2856.2


NEW SECTION
WAC 230-40-564
Shift manager defined.

A shift manager is a licensed card room employee who shall be responsible for all card room operations during a given shift. The shift manager reports to the gaming operations manager and shall be the direct supervisor of the floor supervisor.

[]

OTS-2857.2


NEW SECTION
WAC 230-40-566
Floor supervisor defined.

A floor supervisor is a licensed card room employee who shall be responsible for directly supervising a limited number of card games and the dealers assigned to those games within a designated area known as the "pit."

[]

OTS-2858.3


NEW SECTION
WAC 230-40-568
Dealer defined.

A dealer is a licensed card room employee who is responsible for conducting card games and deals cards, collects and pays off players' bets, and collects fees. The dealer shall also be responsible for signing forms as required.

[]

OTS-2843.3


NEW SECTION
WAC 230-02-109
Net win defined.

"Net win" means gross wagers received by a licensee from the operation of house-banked card games or fund-raising events, less the amount paid to players for winning wagers, accrual of prizes for jackpot contests and repayment of amounts used to seed guaranteed jackpot prizes.

[]

OTS-2911.3


AMENDATORY SECTION(Amending Order 228, filed 10/15/91, effective 11/15/91)

WAC 230-02-110
Gross gambling receipts defined.

"Gross gambling receipts" means the monetary value ((that would be)), stated in U.S. currency, due to any operator of a gambling activity for ((any chance taken, for any table fees for card playing, other fees for participation, or rent and lease fees for amusement games received by commercial amusement game operations, as evidenced by required records)) purchase of a chance to play a punch board or pull-tab series; purchase of a chance to enter a raffle; fees or purchase of cards to participate in bingo games; fees for participation in an amusement game, including rent or lease payments paid to operators or franchisers for allowing use of an amusement game; and any fee to participate in, or net win from, any card games or fund-raising events as defined in WAC 230-02-109.  The value shall be ((stated in U.S. currency,)) before any deductions for prizes or ((any)) other expenses. ((In the absence of records, gross gambling receipts shall be the maximum that would be due to an operator from that particular activity if operated at maximum capacity.)) The following are not considered gross gambling receipts:

(1) To enter into a player-supported progressive prize contest held in conjunction with card games: Provided, That any portion of wagers deducted for any purpose other than increasing current prizes or repayment of amounts used to seed such prizes shall not be treated as gross gambling receipts;

(2) Investigation funds placed on deposit with the commission for purposes of unannounced monitoring of card games: Provided, That any such funds that are refunded to the licensee by the commission, shall be treated as gross gambling receipts at the time of refund.

[Statutory Authority: Chapter 9.46 RCW.  91-21-053 (Order 228), 230-02-110, filed 10/15/91, effective 11/15/91; 86-19-056 (Order 161), 230-02-110, filed 9/15/86, effective 1/1/87; Order 5, 230-02-110, filed 12/19/73.]

OTS-3020.1


AMENDATORY SECTION(Amending WSR 98-04-023, filed 1/28/98, effective 7/1/98)

WAC 230-02-425
Key employee defined.

A "key employee" is a card room employee, as defined by WAC 230-02-415, who performs any of the following functions in a licensed public or social card room:

(1) Manages the day-to-day affairs of a Class E or Class A card room;

(2) Conducts any duty that is a material part of the system of internal management or accounting controls for a card room approved to conduct ((house or player funded banked)) house-banked card games; or

(3) Acts as a custodian of a player-supported jackpot scheme.

[Statutory Authority: RCW 9.46.070(5).  98-04-023, 230-02-425, filed 1/28/98, effective 7/1/98.]

OTS-2912.2


AMENDATORY SECTION(Amending Order 190, filed 4/18/89, effective 7/1/89)

WAC 230-04-022
Certification procedure--Information required from all applicants.

In addition to other information required by the commission, each applicant shall provide the following information on or attached to the application:

(1) Copy of corporate applicants' articles of incorporation and bylaws; or, if not a corporation, a copy of any bylaws and other documents which set out the organizational structure and purposes of the organization;

(2) A copy of a nonprofit or charitable applicant's Internal Revenue Service tax exemption letter if one has been obtained;

(3) Details and copies of all lease or rental arrangements, whether oral or written, between the applicant and the owner of premises upon which the gambling activity will be conducted, if such premises are leased or rented;

(4) Details and copies of any and all franchise agreements or other agreements, whether written or oral, if any, between the applicant and distributors or manufacturers of equipment or between the applicant and any other person where those agreements relate to gambling activities or gambling equipment;

(5) Details and copies of all proposed management agreements or contracts between the applicant and any gambling service supplier involved in providing services defined in WAC 230-02-205. All such agreements or contracts shall be reviewed by the commission staff to assure compliance with this title prior to providing service or management of activities and prior to the effective dates of the agreements;

(6) The name, address, date of birth, and Social Security number of each paid employee or agent who will work in the activity for which the license is sought and a schedule of the proposed number of employees, job descriptions, and a proposed pay schedule;

(((6))) (7) For each person listed below, a completed copy of the commission's form entitled "Personal information form":

(a) Each person who has a substantial interest in the applicant;

(b) Each person who is the chief executive officer, the chairman of a board, and the financial records officer of a corporation and/or bona fide nonprofit charitable organization;

(c) Each person who will serve in a supervisory capacity over those persons in the direct management or direct operation of the activity for which the license is sought;

(((7))) (8) If any information required on the application, changes or becomes inaccurate in any way, the commission shall be notified prior to issuance of a license.  Failure to notify the commission of any changes affecting an application may constitute grounds for suspension or revocation of all licenses.

(((8))) (9) Sections (1), (2), and (((6))) (7) shall not apply to applications by or on behalf of an incorporated city or town in the state of Washington.

[Statutory Authority: RCW 9.46.070 (7), (8), (9), (10), (14), (19) and (20).  89-09-047 (Order 190), 230-04-022, filed 4/18/89, effective 7/1/89.]

OTS-2913.3


AMENDATORY SECTION(Amending Order 304, filed 11/21/96, effective 1/1/97)

WAC 230-04-140
Licensing of public card room employees.

(1) No person shall act as ((a public card room)) an employee in a Class E or F public card room unless he or she has either received a license to do so from the commission or, if:

(a) The commission has not previously revoked a license or denied an application by that person for such a license; and

(b) He or she has properly applied for such license.  If there has been such a previous denial or revocation, or if the applicant has been convicted of, or forfeited bond upon a charge of, or pleaded guilty to certain offenses set forth in RCW 9.46.158, or violated any of the provisions of RCW 9.46.075 and WAC 230-04-400, that person shall not act as a public card room employee unless he or she has been issued a license by the commission.

(2) On or before the first day he or she actually performs work as a public card room employee, a person shall submit an application for a license to the commission.  Such application shall not be deemed complete and properly submitted for the purposes of this rule unless and until all questions on the commission's application form and attachments are fully and truthfully answered and the form, with all attachments, together with the required fee, has been delivered to the commission office during regular business hours (or actually deposited in the United States mail properly addressed to the commission): Provided, That ((the requirements of this section shall not apply to persons employed in a public card room operating under a Class B or Class D license only)) there will be a twenty-day waiting period from the date the application is postmarked (or date stamped by the commission if delivered in person) before the employee may begin performing as a card room employee in a Class F public card room: Provided further, That commission staff may waive the twenty-day waiting period for an employee when there is an urgent and unexpected need to prevent an interruption in the card room activity beyond the control of the licensee. This waiver will only be allowed if expedited review procedures can be completed. Waivers will not be granted as a means to accommodate the start-up of operations, temporary employee absences, or to provide for special occasions or holidays that are within the control of the licensee. In addition, the applicant must complete a training course as provided by the commission within 30 days after the first day worked.

(3) If an applicant elects to perform the duties of a card room employee prior to receiving a license as authorized under the provisions of paragraph (1)(a) and (b) above, the commission shall retain the entire application fee regardless of the disposition of the application.

(4) A sole owner, partner, major officer and/or owner of a substantial interest in a corporation licensed to operate a public card room shall not be required to be additionally licensed as a public card room employee to perform duties in connection with the card room.  Except as provided in this section, an operator of a public card room shall not employ any unlicensed person to perform duties for which a license is required in or in connection with a public card room, and shall take all measures necessary to prevent an unlicensed person from doing so.

(([(5)])) (5) The operator of a public card room or partner or officer of the entity operating the card room for which the applicant will work shall sign the application of each such public card room employee acknowledging that the applicant will be working for that operator with the operator's knowledge and consent.

(6) A card room employee license shall be valid for a period not to exceed one year beginning on the date of issuance or the date the application was submitted if the applicant began working prior to licensure, as authorized by subsection (2) of this section, whichever occurs first. In the event that a card room employee terminates employment, for any reason, with the organization listed on the license application, the license shall become immediately void and shall be returned to the commission.

(7) If there are thirty or more days remaining before the license expires and the licensee has not violated any of the provisions of RCW 9.46.075 and WAC 230-04-400, a card room employee may apply for a transfer of the license to another organization. The organization employing the card room employee shall sign the application for transfer acknowledging employment. The fee for the transfer shall be as required by WAC 230-04-204. The employee may immediately begin work after submission of a transfer application. A copy of the transfer application shall be maintained by the employing organization and available for review by state and local law enforcement, and commission staff until a valid license is issued. Certified Class III gaming employees may apply for transfers to licensed card rooms under the provisions of this rule.

[Statutory Authority: RCW 9.46.070 and 9.46.116.  96-24-007 (Order 304), 230-04-140, filed 11/21/96, effective 1/1/97.  Statutory Authority: Chapter 9.46 RCW.  87-09-043 (Order 167), 230-04-140, filed 4/14/87.  Statutory Authority: RCW 9.46.070 (1), (7), (11), (14), and (17).  83-21-073 (Order 137), 230-04-140, filed 10/18/83.  Statutory Authority: RCW 9.46.070(16).  80-03-059 (Order 98), 230-04-140, filed 2/25/80; 79-09-029 (Order 91), 230-04-140, filed 8/14/79; 78-08-055 (Order 86), 230-04-140, filed 7/20/78, effective 9/1/78; 78-06-066 (Order 85), 230-04-140, filed 5/25/78, effective 9/1/78.]

OTS-2917.3


AMENDATORY SECTION(Amending Order 366, filed 10/9/98, effective 11/9/98)

WAC 230-04-203
Fees--Commercial stimulant and other business organizations.

All persons seeking to operate gambling activities at business locations shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, inspection services, or when assessed the cost of special investigation procedures by the commission:



LICENSE TYPE

DEFINITION

FEE
1.CARD GAMES
Class BLimited card games - hearts, rummy, pitch, pinochle, ((mahjongg,)) and/or cribbage (Fee to play charged)

(($ 161))

B-5Up to and including five tables$ 161
Class CTournament only, no more than ten consecutive days per tournament.

(($ 161))

C-5Up to and including five tables$ 161
C-10Up to and including ten tables$ 300
C-15Up to and including fifteen tables$ 500
Class DGeneral (No fee to play charged)(($ 52))
D-5Up to and including five tables$ 52
Class EGeneral (Fee to play charged)
E-1One table only$ 386
E-2Up to and including two tables$ 663
E-3Up to and including three tables$ 1,106
E-4Up to and including four tables$ 2,214
E-5Up to and including five tables$ 3,330
E-7Up to and including seven tables$ 5,000
E-10Up to and including ten tables$ 6,000
E-12Up to and including twelve tables$ 7,000
E-15Up to and including fifteen tables$ 9,000
Class FHouse-banked card room activities. All tables within a card room operating any house-banked card games shall be licensed under Class F fees. Authorization procedures are outlined in WAC 230-04-205
*Annual License Fee$ 10,000
Per table fee (up to fifteen tables)$ 1,000
*In addition to the above initial license fee, the commission may assess all applicants/licensees the actual costs that exceed the license fee for conducting the initial investigation and inspection, in addition to any follow-up reviews or investigations involved in the approval of subsequent phases of operation, higher wager authorizations, internal control evaluations, or the introduction of new activities or schemes.

2.

COMMERCIAL

AMUSEMENT

GAMES


(Fee based on annual gross

gambling receipts)

*Class APremises only** $ 276/$ 126
Class BUp to $ 50,000$ 386
Class CUp to $ 100,000$ 992
Class DUp to $ 250,000$ 2,214
Class EUp to $ 500,000$ 3,884
Class FUp to $1,000,000$ 6,662
Class GOver $1,000,000$ 8,334
* Allows a business that is qualified under WAC 230-04-138 (1)(f), (g), (h), (i), or (j) to enter into a contract with a class "B" or above commercial amusement game licensee to locate and operate amusement games upon their premises.
** Provides for a fee reduction of $150 when: Renewing an annual license; applying for an additional license(s) at the same premises; and/or applying for multiple licenses at the same premises.

3.

PUNCH BOARDS/

PULL-TABS


(Fee based on annual gross

gambling receipts)

VARIANCE*
Class AUp to $50,000$ 5,000$ 527
Class BUp to $100,000$ 5,000$ 940
Class CUp to $200,000$ 10,000$ 1,774
Class DUp to $300,000$ 10,000$ 2,578
Class EUp to $400,000$ 10,000$ 3,330
Class FUp to $500,000$ 10,000$ 4,020
Class GUp to $600,000$ 10,000$ 4,658
Class HUp to $700,000$ 10,000$ 5,242
Class IUp to $800,000$ 10,000$ 5,776
Class JUp to $1,000,000$ 20,000$ 6,548
Class KUp to $1,250,000$ 25,000$ 7,268
Class LUp to $1,500,000$ 25,000$ 7,938
Class MUp to $1,750,000$ 25,000$ 8,490
Class NUp to $2,000,000$ 25,000$ 8,992
Class OOver $ 2,000,000Nonapplicable$ 9,880
* A licensee will be allowed a one-time variance for each license class without having to upgrade or pay the penalties set forth in WAC 230-04-260: Provided, That a licensee utilizing the variance shall be required to upgrade to the higher license class upon renewal.

4.

DISTRIBUTOR

(Fee based on annual gross sales

of gambling related supplies and

equipment)

(a) Class ANonpunch board/pull-tab only$ 553
Class BUp to $ 250,000$ 1,106
Class CUp to $ 500,000$ 1,660
Class DUp to $1,000,000$ 2,214
Class EUp to $2,500,000$ 2,882
Class FOver $2,500,000$ 3,550
In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification.
(b)FUND-RAISING

EVENT EQUIPMENT

DISTRIBUTOR

Class ARents or leases equipment for fund-raising event or recreational gaming activity up to 10 times per year.

$ 219

Class BRents or leases equipment for fund-raising event or recreational gaming activity more than 10 times per year.

$ 553


5.

MANUFACTURER

(Fee based on annual gross sales

of gambling related supplies and

equipment)

Class AMachines only$ 553
Class BUp to $ 250,000$ 1,106
Class CUp to $ 500,000$ 1,660
Class DUp to $1,000,000$ 2,214
Class EUp to $2,500,000$ 2,882
Class FOver $2,500,000$ 3,550
In addition to the annual fee, the commission will assess all applicants the actual costs incurred in conducting the investigation and inspection necessary for initial certification, quality control inspection for additional activities or product lines, and renewal of licenses when travel cost is incurred to complete the investigation.

6.

PERMITS

AGRICULTURAL FAIR/

SPECIAL PROPERTY

BINGO

Class AOne location and event only

(See WAC 230-04-191)

$ 26
Class BAnnual permit for specified

different events and locations

(See WAC 230-04-193)

$ 161

RECREATIONAL

GAMING ACTIVITY

(RGA)

(See WAC 230-02-505

and 230-25-330)

$ 52


7.

CHANGES
NAME(See WAC 230-04-310)$ 26
LOCATION(See WAC 230-04-320)$ 26
BUSINESS(Same owners)$ 52
CLASSIFICATION(See WAC 230-04-340)
LICENSE CLASS(See WAC 230-04-260) New class fee, less previous fee paid, plus

$ 26

DUPLICATE LICENSE(See WAC 230-04-290)$ 26
OWNERSHIP OF STOCK(See WAC 230-04-340)$ 52
LICENSE TRANSFERS(See WAC 230-04-125,

230-04-340, and

230-04-350)

$ 52

8.

SPECIAL FEES
INVESTIGATION(See WAC 230-04-240)As required
IDENTIFICATION AND

INSPECTION

SERVICES STAMPS

(See WAC 230-08-017)As required
QUALITY CONTROL

INSPECTION FEES

(See WAC 230-30-030)As required
REPLACEMENT OF

IDENTIFICATION

STAMPS

(See WAC 230-30-017)

$ 26

EXCEEDING LICENSE

CLASS

(See WAC 230-04-260)As required
REVIEW,

INSPECTION AND/

OR EVALUATION

OF EQUIPMENT,

PARAPHERNALIA,

SERVICES, OR

SCHEMES

(See WAC 230-12-315)As required
SPECIAL SALES

PERMITS

(See WAC 230-04-115)As required

9.

SIX-MONTH

PAYMENT PLAN


(See WAC 230-04-190)


$ 26

[Statutory Authority: RCW 9.46.070.  98-21-010 (Order 366), 230-04-203, filed 10/9/98, effective 11/9/98.  Statutory Authority: RCW 9.46.070(5). 97-23-053, 230-04-203, filed 11/17/97, effective 6/30/98. Statutory Authority: RCW 9.46.070 (5), (6), (11), (14). 97-14-012, 230-04-203, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070 and 9.46.116. 96-24-007 (Order 304), 230-04-203, filed 11/21/96, effective 1/1/97. Statutory Authority: RCW 9.46.070. 95-12-052, 230-04-203, filed 6/2/95, effective 7/3/95; 95-02-003 and 94-23-007, 230-04-203, filed 12/22/94 and 11/3/94, effective 1/22/95 and 1/1/95.]

OTS-2918.2


AMENDATORY SECTION(Amending Order 366, filed 10/9/98, effective 11/9/98)

WAC 230-04-204
Fees--Individuals.

Individuals shall submit the following fees to the commission when applying for gambling licenses, permits, miscellaneous changes, or when assessed the cost of special investigation procedures by the commission:



LICENSE TYPEDEFINITIONFEE
1.CHARITABLE OR NONPROFIT GAMBLING MANAGEROriginal$161
Renewal$78
Change of Employer$78

2.COMMERCIAL GAMBLING MANAGEROriginal$161
Renewal$78
Change of Employer$78

3.DISTRIBUTOR'S OR GAMBLING SERVICES SUPPLIER REPRESENTATIVEOriginal$219
Renewal$135

4.MANUFACTURER'S REPRESENTATIVEOriginal$219
Renewal$135

5.PUBLIC CARD ROOM EMPLOYEE((CLASS A - NONKEY EMPLOYEES:))
CLASS A - PERFORMS DUTIES AS DEFINED IN WAC 230-02-415 IN A CLASS E CARD ROOM.
Original$161
Renewal$78
Transfer/Additional Employee$54
CLASS B - ((KEY)) HOUSE-BANKED CARD ROOM EMPLOYEES((*)) PERFORMS DUTIES AS DEFINED IN WAC ((230-02-425:)) 230-02-415 IN A CLASS F CARD ROOM.
Original,
in-state$217
Original,
out-of-state$271
Renewal$135
Transfer/Additional employee/House-banked conversion$54
((*SUPPORTS CARD ROOMS HAVING SPECIAL APPROVED ACTIVITIES AS SPECIFIED IN WAC 230-04-203(1)))

6.OTHER FEES
CHANGE OF NAME(See WAC 230-04-310)$26
DUPLICATE LICENSE(See WAC 230-04-290)$26
REPLACEMENT
OUT-OF-STATE(See WAC 230-04-240)As
RECORDS INQUIRYrequired

[Statutory Authority: RCW 9.46.070.  98-21-010 (Order 366), 230-04-204, filed 10/9/98, effective 11/9/98.  Statutory Authority: RCW 9.46.070(5).  97-23-053, 230-04-204, filed 11/17/97, effective 6/30/98.  Statutory Authority: RCW 9.46.070 and 9.46.116.  96-24-007 (Order 304), 230-04-204, filed 11/21/96, effective 1/1/97.  Statutory Authority: RCW 9.46.070.  96-09-070, 230-04-204, filed 4/16/96, effective 7/1/96; 94-23-007, 230-04-204, filed 11/3/94, effective 1/1/95.]

OTS-2865.4


NEW SECTION
WAC 230-04-207
House-banked card games--Authorization procedures.

Prior to receiving a license to operate house-banked card games, each licensee shall demonstrate that it has an adequate control environment functioning and the following requirements shall be met:

(1) Each gaming operation shall submit a description of its system of internal accounting and administrative controls, which shall be in agreement with the requirements of this title. The submission shall contain both a narrative and diagrammatic representation of the internal control system to be utilized by the operation. Control procedures shall be submitted in the standard format prescribed by commission staff.

(2) The internal control submission shall undergo a review process and a preoperation inspection shall be conducted prior to implementation of gaming operations. After satisfactory completion, a report shall be prepared and submitted to the director for review. Upon director approval, the gaming operation shall be authorized to conduct gaming within the limits of Phase I operations.

(3) Prior to operating house-banked card games, operators shall pay a one thousand dollar deposit to cover the cost of wagering expenses incurred by commission staff in conducting undercover inspections and investigations within the card room. An additional deposit shall be required to be paid in the event all funds have been exhausted. Operators shall receive a refund of any unused funds if they voluntarily cease to operate house-banked card games.

(4) Full details on all promotions, schemes or other means used to promote card games operated in gaming operations which offer house-banked card games must be submitted to commission staff and be approved prior to implementing.

(5) Any changes to a gaming operation's system of internal controls must be submitted to commission staff and be approved prior to implementation.

[]

OTS-2844.3


NEW SECTION
WAC 230-08-027
House-banked card games--General accounting records to be maintained.

Every licensee authorized to offer house-banked card games shall keep and maintain a complete set of records, which have been approved by commission staff. Such records shall include all details of activities related to the conduct of the licensed activity. The following requirements shall apply:

(1) Each gaming operation shall maintain legible, accurate and complete records of all transactions relating to the revenues and costs of the gaming operation. These records shall be maintained in a format to ensure consistency, comparability, and effective disclosure of financial information.

(2) General accounting records shall be maintained on a double entry system of accounting with transactions recorded on an accrual basis, to include detailed, supporting, subsidiary records, sufficient to meet the requirements below.

(3) The detailed, supporting and subsidiary records shall include, but not necessarily be limited to:

(a) Records of all patrons' checks initially accepted, deposited, and returned as "uncollected," and ultimately written off as "uncollectible";

(b) Statistical game records to reflect drop and win amounts for each table, for each game, and for at least each period for which the drop boxes are removed, which shall be at the minimum the end of each gaming day;

(c) Records of investments in property, including but not limited to equipment used directly in connection with the gaming operation;

(d) Records of amounts payable by the gaming operation;

(e) Records which identify the purchase, receipt, and destruction of all cards and gaming chips used in wagering; and

(f) Records of services provided for the operation of gaming activity.

(4) Whenever duplicate or triplicate copies are required of a form, record or document:

(a) The original, duplicate, and triplicate copies shall be color-coded;

(b) If under these standards, forms, records, and documents are required to be inserted in a locked dispenser, the last copy shall remain in a continuous unbroken form in the dispenser; and

(c) If under these standards, forms or serial numbers of forms are required to be accounted for or copies of forms are required to be compared for agreement and exceptions noted, such exceptions shall be reported immediately to the commission for investigation.

(5) Unless otherwise specified in these standards, or exempted by the director or his designee, all forms, records, documents and stored data required to be prepared, maintained and controlled shall:

(a) Have the title of the form, record, document, or stored data such as "fill slip," "request for fill," "credit slip," "request for credit," "reconciliation," etc., imprinted or preprinted thereon or therein; and

(b) Be located at the gaming operation.

(6) Licensees shall maintain a records system that ensures all applicable employees have met licensing requirements. The system shall include employee names, license numbers and expiration dates. Records shall be prepared for employees documenting the mailing of their license application with the required payment and whether they have adhered to the twenty-day wait, if applicable. The licensee shall ensure all license applications are submitted when required and the commission is notified if a license has not been received within sixty days of submitting the application.

(7) All accounting records shall be kept for a period not less than three years from the month of the recorded information.

[]

OTS-2914.1


AMENDATORY SECTION(Amending Order 369, filed 12/1/98, effective 1/1/99)

WAC 230-08-040
Sales invoices--Minimum information to be recorded for transfer of gambling equipment and merchandise--Retention--Penalties.

The following requirements apply to sales invoices:

(1) In addition to entries required by WAC 230-08-025, the following information shall be recorded on invoices for sales or transfer of gambling equipment ((and)), merchandise, and card room forms:

(a) Punch boards/pull-tabs - for each board or series:

(i) Trade name of device;

(ii) Type of device;

(iii) Form number or other manufacturer-assigned scheme to specifically identify a device, including the size or number of chances; and

(iv) Identification and inspection services stamp number.

(b) Pull-tab dispensing devices:

(i) Trade name of device;

(ii) Type of device; and

(iii) Identification and inspection services stamp number.

(c) Disposable bingo cards - for each set of cards or collation of packets:

(i) Type of product, including product line;

(ii) Description of product, including the number of cartons, "series," "on," "cut," and "up";

(iii) Identification and inspection services stamp number;

(iv) Serial number or, if packets, serial number of the top page;

(v) Color and border pattern or, if packets, color and border pattern of the top page;

(vi) The unit or package number when a series or collation has been divided as authorized in WAC 230-20-192(6); and

(vii) For disposable bingo cards to be sold for linked bingo prizes the beginning and ending sheet numbers sold to or returned from the operator.

(d) Merchandise to be used as prizes for any gambling activity, whether purchased from a licensed distributor or from other than a licensed distributor, must be recorded on a sales invoice or receipt.  The following information must be on the sales invoice or receipt provided by the seller:

(i) The date of purchase;

(ii) The company's name and adequate business address;

(iii) A full description of each item purchased;

(iv) The quantity of items purchased; and

(v) The cost per individual items purchased; and

(e) Card room forms - all required serially prenumbered forms:

(i) Type of form;

(ii) Beginning and ending serial numbers; and

(iii) Quantity of forms.

(f) All other gambling equipment:

(i) Trade name of device;

(ii) Type of device;

(iii) Serial number or other identification numbers or characteristics; and

(iv) Identification and inspection services stamp number.

(2) All sales invoices and receipts must be maintained by the operator for at least three years.

(3) Any manufacturer, distributor, linked bingo prize provider, or licensed representative of the above, who fails to accurately complete any invoice for the sale or return of a punch board, pull-tab series, pull-tab dispensing device, disposable bingo cards, related merchandise, or other gambling device may be assessed a fee of up to fifty dollars per incomplete invoice.  The fee shall be used to defray extra costs incurred by the commission in tracking transfers or other monitoring procedures as a result of errors or omissions.

[Statutory Authority: RCW 9.46.070.  98-24-090 (Order 369), 230-08-040, filed 12/1/98, effective 1/1/99.  Statutory Authority: RCW 9.46.070 (5), (6), (11), (14).  97-14-012, 230-08-040, filed 6/20/97, effective 7/21/97.  Statutory Authority: RCW 9.46.070.  94-01-033, 230-08-040, filed 12/6/93, effective 1/6/94.]

OTS-2915.3


AMENDATORY SECTION(Amending Order 238, filed 4/21/93, effective 7/1/93)

WAC 230-08-090
Daily records--Card games.

In addition to any other requirements set forth in these rules, persons licensed to operate card rooms at which a fee is charged to play or which operates player-supported progressive prize contests (player-supported jackpot or PSJ) or house-banked card games shall be required to prepare a detailed record covering each ((occasion.  This)) day of operation. Each separate record shall be maintained continuously during hours of operation and ((updated immediately following the collection of fees during all time periods.  The commission shall provide to the licensee a consecutively prenumbered standard format record sheet.  This form shall contain the following:

(1) The date of the occasion;

(2) The time that the half hour fee was charged;

(3) The amount of half hour fee charged per table;

(4) The number of players at each table at half hour intervals to include all nonpaying house players;

(5))) entries made as required by this section. The format for such records shall be as prescribed by the commission. The records shall include information to be placed in a form, record or document, or in stored data which shall be annotated in ink or other permanent form. Data maintained in computer data bases must be printed on a periodic basis. Daily card room records shall be maintained as follows:

(1) Separate records shall be prepared for each day social card games are played and fees collected or house-banked card games are operated. Such records shall be completed for each table and each PSJ for which fees are collected from players. The minimum daily records shall include the following information:

(a) The date and time period during which fees were collected or house-banked card games were operated.

(b) The assessment method and the fee charged per assessment method for each table.

(c) The names and time of play for each nonpaying house player (which may only include licensed card room employees and the licensee);

(((6))) (d) The amount of fees collected at each table at each ((half hour)) collection interval;

(((7))) (e) The ((cumulative)) gross amount received from fees collected on each ((occasion and in total;

(8) A reconciliation of chips and cash on a daily basis; and

(9) A printed name, signature, and hours worked of the person who was responsible for the collection of fees.)) operating day by table and by assessment method.

(f) The number of players at the time of fee collection when fees are assessed based on a period of time;

(g) A record of card room employees and hours worked; and

(h) The total drop which includes all cash placed in drop boxes and the net win or loss by the table and game type from house-banked card games.

(2) Fees for tournaments shall be recorded as set forth in WAC 230-40-055.

(3) PSJ records shall include the following information in addition to the information required by subsection (1) of this section:

(a) A separate entry for each type of PSJ for which fees were collected to include:

(i) Table number;

(ii) Prize fund number; and

(iii) Assessment rate.

(b) PSJ fund accrual record.

(4) A daily summary record that includes a reconciliation of all fees collected during an operating day shall be prepared for each day card games are operated and fees collected. This record shall include at least the following:

(a) The name of the licensed operator;

(b) The date of the activity. If the activity spans two days, the day that the activity begins shall be recorded;

(c) Card room hours of operation;

(d) The beginning and ending balances of all chips and cash in the cage;

(e) The printed name and signature of person(s) preparing the record; and

(f) Such other daily records as required for specific card room activities.

(5) All detailed records ((sheets issued to a licensee shall be numerically accounted for, and)) prepared shall be maintained on the premises for a period of not less than three years ((from the date of the occasion which it records.  An "occasion" for card rooms shall be defined as 20 hours beginning at 6:00 a.m. one day and running continuously through 2:00 a.m. the following day)).

[Statutory Authority: RCW 9.46.070(8), 9.46.0325 and 9.46.070.  93-10-005 (Order 238), 230-08-090, filed 4/21/93, effective 7/1/93.  Statutory Authority: RCW 9.46.070 (8) and (17).  83-23-055 (Order 138), 230-08-090, filed 11/15/83.  Statutory Authority: RCW 9.46.070(8) and (14).  82-11-028 (Order 120), 230-08-090, filed 5/11/82; Order 23, 230-08-090, filed 9/23/74.]

OTS-2916.1


AMENDATORY SECTION(Amending Order 303, filed 11/21/96, effective 12/22/96)

WAC 230-12-050
Extension of credit, loans, or gifts prohibited--Limited exception.

No licensee, member or employee thereof shall extend credit, make a loan, or grant a gift to any person playing in an authorized activity, or which enables a person to play in an authorized activity.  The consideration required to participate in the activity shall be collected in full, by cash, check, or electronic point-of-sale bank transfer, prior to participation: Provided, That this prohibition shall not apply to the following situations:

(1) The consideration paid for the opportunity to play a punch board or pull-tab series may be collected immediately after the play is completed only when such consideration is ten dollars or less;

(2) When a bona fide charitable or bona fide nonprofit organization conducting any of the activities authorized by chapter 9.46 RCW or commission rules has a regular billing system for all of the activities of its members with such organization, such billing system may be utilized in connection with the playing of any of the activities authorized hereunder if:

(a) The playing of such activity is limited to regular members of such organization who have become regular members prior to the commencement of such activity and whose qualifications for membership were not dependent upon, or in any way related to, the playing of such activity; and

(b) The commission has given its prior written consent to the use of such billing system in connection with the conduct of activities authorized under these rules.

(3) Charitable or nonprofit organizations utilizing credit cards, issued by a state and/or federally regulated financial institution, for payment to participate in raffles; and

(4) Promotional gifts detailed below:

(a) The providing of free or discounted food, drink, or merchandise to card players at a public card room;

(b) Promotional activities conducted as a part of bingo games and authorized by WAC 230-20-125;

(c) Performances as authorized by WAC 230-20-111;

(d) Free play for card playing as authorized by WAC 230-40-050(((4))) (7);

(e) "Free roll" or customer appreciation tournaments as authorized by WAC 230-40-055(2); and

(f) Promotional game cards meeting the standards of WAC 230-46-070 (1), (a), (b), (c), (d), (e).

[Statutory Authority: RCW 9.46.070, 9.46.0209, 9.46.0237, 9.46.0205 and 9.46.075.  96-24-008 (Order 303), 230-12-050, filed 11/21/96, effective 12/22/96.  Statutory Authority: RCW 9.46.070.  94-13-099 (Order 253), 230-12-050, filed 6/15/94, effective 7/16/94.  Statutory Authority: RCW 9.46.070 (11), (14) and 9.46.0218 [9.46.0281].  89-05-024 (Order 186), 230-12-050, filed 2/13/89; Order 51, 230-12-050, filed 4/30/76; Order 15, 230-12-050, filed 4/17/74; Order 5, 230-12-050, filed 12/19/73.]

OTS-2845.3


NEW SECTION
WAC 230-12-072
Player-supported progressive prize contest funds--Deposit requirements.

Each organization licensed to conduct player-supported progressive prize contests (player-supported jackpots or PSJs) shall protect and ensure proper accountability of all funds collected from players. Funds shall be controlled as follows:

(1) Each licensee shall maintain a bank account for holding PSJ funds. The account shall be kept separate from all other accounts of the entity and be maintained in a recognized Washington state depository for purposes of depositing PSJ funds: Provided, That if such activities are conducted on the United States’ portion of the Point Roberts Peninsula, Washington, the deposit may be made in a British Columbia Branch of a Canadian bank: Provided further, That the licensee conducting the activities must provide commission staff unrestricted access to the licensee’s Canadian bank records and the Canadian bank must provide written confirmation of its intent to honor the licensee’s release.

(2) Only receipts from PSJs shall be deposited into the account.

(3) No expenditures shall be made from the receipts of any PSJ until such receipts have first been deposited in the PSJ account: Provided, That operators may pay out prizes won during the operating day and deduct administrative expenses prior to deposit.

(4) Receipts from the operation of PSJs, which are being held pending disbursement, shall be deposited in the licensee’s PSJ account within two banking days of the date of collection.

(5) All deposits of PSJ funds shall be specifically identified by type of fund and dates of collection. The validated deposit receipt shall be kept as a part of the records required by WAC 230-08-090.

(6) At the end of each month, the account balance per the bank statement shall be reconciled to the PSJ fund balances. The reconciliation shall be kept as a part of the records required by WAC 230-08-090.

[]

OTS-3021.1


NEW SECTION
WAC 230-12-345
Leases, rentals, and license agreements--Requirements--Restrictions.

Manufacturers and distributors may lease or rent gambling equipment, other than punch boards, pull-tabs, bingo supplies, chips, cards, and other consumable gambling-related equipment or devices to operators. In addition, manufacturers may enter into license agreements with operators permitting them to use their patented, copyrighted, or trademarked card games. All operating leases, rentals, or license agreements must be transacted on a cash basis only. The following requirements and procedures shall apply:

(1) For purposes of this section, lease, rental, or license fees must be received by the manufacturer or distributor in advance of the period in which the equipment, device, or card game is to be used. Agreements shall be constructed so that regularly scheduled payments comply with this condition.

(2) When an operator fails to pay regularly scheduled payments in accordance with subsection (1) of this section, the following procedures shall apply:

(a) If payment is not received within ten days of the payment due date, the manufacturer or distributor shall notify the delinquent operator and the commission by the end of the next business day. The following information shall be reported:

(i) Operator’s name;

(ii) Delinquent amount and due date; and

(iii) Any relevant information about the account if it is delinquent.

(b) If payment is not received within twenty days, the manufacturer shall notify the operator that it must cease using or operating the equipment, device, or card game immediately.

(c) If payment is still not received within thirty days, the manufacturer or distributor shall remove any equipment, device, or card game materials provided under the agreement from the licensed premises within five days. The commission shall be notified of the date and time removal is to occur.

(d) When a manufacturer or distributor receives an operator’s delinquent payment, it shall notify the commission by the end of the next business day.

(3) Any freight, delivery, installation, or other set up fees must be paid within thirty days of the delivery date.

(4) Operators that fail to pay for lease, rental, or license fees by the date due may be deemed to have solicited credit.

(5) Manufacturers or distributors that fail to comply with the procedures noted above may be deemed to have extended credit.

(6) All capital leases for the sale of gambling equipment shall comply with WAC 230-12-340.

[]

Washington State Code Reviser's Office