WSR 00-07-140

PERMANENT RULES

GAMBLING COMMISSION


[ Order 381 -- Filed March 22, 2000, 11:14 a.m. , effective July 1, 2000 ]

Date of Adoption: March 10, 2000.

Purpose: These changes streamline the bingo rules that charitable and nonprofit organizations operate under. Gambling proceeds, net return and the qualification to be considered an active member were redefined; the retention period of some bingo records was reduced; political contributions are no longer required to be reported to the commission, as they are reported to the Public Disclosure Commission; electronically generated formats or inventory control are allowed as an inventory control format; bingo operators are allowed to offer free and discounted food and nonalcoholic beverages to their players; language was added to clarify that a maximum of sixty-six electronic bingo cards may be played at one time; and language that was redundant with other rules was removed for streamlining purposes.

Citation of Existing Rules Affected by this Order: Repealing WAC 230-08-100, 230-20-120 and 230-20-110; and amending WAC 230-02-108, 230-02-123, 230-02-183, 230-08-080, 230-08-105, 230-12-050, 230-20-244, 230-20-220, 230-20-243, and 230-12-078.

Statutory Authority for Adoption: RCW 9.46.070.

Adopted under notice filed as WSR 00-04-099 on February 2, 2000, with a publication of February 16, 2000.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 10, Repealed 3.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 10, Repealed 3.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 10, Repealed 3; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: July 1, 2000.

March 22, 2000

Susan Arland

Rules Coordinator

OTS-3636.5


AMENDATORY SECTION(Amending WSR 94-01-035, filed 12/6/93, effective 1/6/94)

WAC 230-02-108
Gambling proceeds defined.

For purposes of this title, "gambling proceeds" means((:

(1))) all moneys remaining from the operation of any gambling activity after payment of prizes and necessary expenses.

(1) Expenses are deemed to be necessary when ((the activity can not be operated without such,)) they are required to operate an activity (such as taxes and license fees) or they improve the overall profitability of the activity by increasing gross gambling receipts more than the corresponding increase in expenses((; and)).

(2) ((All assets obtained with moneys generated from gambling activities.)) All assets of the organization are presumed to be obtained with gambling proceeds unless the organization maintains complete separation of funds generated from nongambling sources from funds generated from gambling activities.

[Statutory Authority: RCW 9.46.070, 9.46.0261 and 9.46.0209. 94-01-035, 230-02-108, filed 12/6/93, effective 1/6/94.]

OTS-3641.4


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:


Punch boards/pull-tabs.


(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;


Charitable/nonprofit organization's billing system for members.


(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.


Raffle tickets purchased with credit cards.


(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


Promotional gifts.


(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);

(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).


Food and drink to bingo players.


(5) Free or discounted food or nonalcoholic drink to bingo players.

[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-3637.2


AMENDATORY SECTION(Amending Order 303, filed 11/21/96, effective 12/22/96)

WAC 230-02-123
Charitable or nonprofit organizations -- Net return defined.

"Net return" is the total ((amount of return)) percentage returned from the operation of bingo games after payment of reasonable prizes and necessary expenses.

(1) Net return ((is expressed as a percent of bingo gross gambling receipts and)) is computed by dividing bingo gross gambling receipts into the combined net income from bingo games, punch boards/pull-tabs, amusement games, raffles conducted in conjunction with bingo games, ((and)) food, drink, or other retail sales activities conducted in conjunction with bingo games, and allowable income from rental of the gaming facility.

(2) For purposes of computing net return, local gambling taxes for bingo, punch boards/pull-tabs, and amusement games, whether paid or accrued, will be added to the accounting net income.

[Statutory Authority: RCW 9.46.070, 9.46.0209, 9.46.0237, 9.46.0205 and 9.46.075. 96-24-008 (Order 303), 230-02-123, filed 11/21/96, effective 12/22/96.]

OTS-3638.2


AMENDATORY SECTION(Amending WSR 95-07-093, filed 3/17/95, effective 7/1/95)

WAC 230-02-183
Active member defined.

For purposes of this title, "active member" means an individual who is a "bona fide member," as defined by RCW 9.46.0261, and meets all of the requirements set out below:


Reason for joining the organization.


(1) Did not join the organization specifically to participate in, or be an operator or manager of, gambling activities;


Ability to vote.


(2) Is authorized to vote in the election of officers or board members who determine the policies of the organization;


Length of membership.


(3) Has been a member for at least twelve months preceding an application for a gambling license, or has been accepted as a member according to guidelines set out in the organization's bylaws and such acceptance recorded in the official minutes of a regular membership meeting: Provided, That the minimum time provision does not apply to board members or directors if the organization's membership consists entirely of board members or directors elected or appointed for a limited term;


Membership criteria.


(4) Complies with membership criteria, as set out in the organization's bylaws;


Location of residence and meeting attendance.


(5) Lives within the boundaries of Washington state or, if outside the state boundaries, lives within one hundred miles of the main administrative offices of the organization which is located within Washington state or attends seventy-five percent of board meetings: Provided, That the director may waive the requirements of this subsection for organizations applying for a license to conduct raffles only;


Age limit.


(6) Is at least eighteen years old: Provided, That the director may waive this provision when:

(a) The organization's primary purpose is the development of youth;

(b) The organization is applying for a license to conduct only raffles or amusement games;

(c) The organization has at least three members or advisors that are at least eighteen years of age who supervise the operation of the activity; and

(d) One of the adult members or advisors shall be designated as the manager of the activity. This member shall be responsible for ensuring that all activities are operated in accordance with all requirements of the commission and shall attend training required by WAC 230-04-020;


Member participation.


(7) Has participated directly in the activities conducted by the organization over the past twelve months. For purposes of this section, participation by a member in any of the following activities during the twelve-month period immediately preceding an application for certification shall be prima facie evidence of direct participation:

(a) Attended at least one regular membership meeting; or

(b) Voted in person or, if authorized by the organization's bylaws, by proxy at a meeting at which officers and/or board members were elected; or

(c) Has been actively involved in policy setting for the organization by serving as a member of the board of directors or a similar policy setting position; or

(d) Has paid dues imposed by the organization; or

(e) Has served as a volunteer providing services or raising funds from nongambling sources; or

(f) Has maintained a level of communications with the organization that would allow them to demonstrate in-depth knowledge regarding the activities of the organization. In-depth knowledge would include:

(i) The types of program services provided;

(ii) The scope of program services provided;

(iii) Sources and levels of funding available to the organization; and

(iv) Key plans, including major programs and capital projects.


Cities and towns exempted.


(8) Incorporated towns or cities applying for a license to conduct gambling activities are exempted from all requirements of this section. The citizens of an incorporated town or city, who are registered to vote in the election for the mayor or governing body of such town or city, are deemed to be "active members" of such towns and cities.

[Statutory Authority: RCW 9.46.070. 95-07-093, 230-02-183, filed 3/17/95, effective 7/1/95. Statutory Authority: RCW 9.46.070, 9.46.0261 and 9.46.0209. 94-01-035, 230-02-183, filed 12/6/93, effective 1/6/94.]

OTS-3639.3


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

WAC 230-08-080
Daily records -- Bingo.

In addition to any other requirement set forth in these rules, licensees for the operation of bingo shall be required to prepare a detailed record covering each bingo session as defined in WAC 230-02-104: Provided, That operators of bingo games conducted at qualified agricultural fairs and other special locations shall be exempt from this rule, but will be required to keep all operator records by location in order to properly report all information as required by WAC 230-08-250. This detailed daily record shall disclose the following information for each separate session conducted during a bingo occasion:


Gross gambling receipts.


(1) The gross gambling receipts collected for each separate type of sale, of any kind, for bingo games including, but not limited to, regular games, early bird games, blackout games, special games, or pick up games. These gross gambling receipts shall be supported by receipting records required by WAC 230-20-101 and inventory control records required by WAC 230-08-105. Licensees using the combination receipting method shall reconcile the extended value of all disposable cards, packets of cards, and electronically generated cards sold to the amount of sales recorded per the cash register;


Prizes paid.


(2) The amount paid out or accrued for prizes awarded for each bingo game. Each session record shall contain the following minimum information regarding prizes awarded:

(a) The game number;

(b) The dollar amount or the actual cost of each prize;

(c) A complete description of all noncash prizes;

(d) The consecutive number of the prize receipt issued for each prize;

(e) The duplicate copy of the prize receipt issued for all prizes awarded during the session or the merchandise prize receipt log as allowed by WAC 230-20-102(4);

(f) The check number of all checks used to pay winners of bingo games: Provided, That if the payment must be made by check under the guidelines of WAC 230-20-102 (1)(c), the duplicate copy must be maintained as a part of the session records;

(g) Full details of prizes accrued; and

(h) For accrued prizes contributed to a linked bingo prize:

(i) The amount of the contribution;

(ii) The amount of any consolation prize paid by the licensee for a linked bingo prize game; and

(iii) The name of the linked bingo prize provider to whom the contribution is made;


Net gambling receipts.


(3) The net gambling receipts from each bingo session;


Cash on hand.


(4) The cash on hand at the commencement and the conclusion of each session;


Reconciliation of bank deposits.


(5) A reconciliation of cash on hand, net gambling receipts, and the bank deposit of net revenue for each session. The bank deposit shall be supported by a validated copy of the bank deposit receipt. Steps taken to reconcile overages and/or shortages that exceed twenty dollars for any session must be documented;


Attendance.


(6) An attendance record indicating the number of people participating ((and the time the attendance count was made));


Numbers or symbols selected.


(7) All bingo numbers or symbols selected and called during any game that offers a prize exceeding two hundred dollars. The numbers or symbols shall be recorded in the sequence selected. A computer generated "call sheet" may be used in lieu of a manual record if a print-out of results is made;


Winning cards or face numbers.


(8) The winning card or face number(s) for each individual prize awarded that exceeds two hundred dollars: Provided, That if the game is played using disposable bingo cards, the winning card or sheet of cards may be retained in lieu of the card numbers;


Schedule of games to be played.


(9) A copy of the schedule of the games to be played and prizes available for the session: Provided, That if the record is annotated with the effective dates of each game schedule, it may be maintained separately and updated only when a change occurs. Any changes to the advertised and printed game and prize schedule, that occur during a session, must be noted in the session records and verified by the signature of the gambling manager assigned primary responsibility for supervising the session and another bingo worker on duty during the session;


Review of records by gambling manager required.


(10) The gambling manager assigned primary responsibility for supervising the bingo session(s) must review all session records for accuracy, determine that required information is provided, and confirm the required deposit amount(s). After satisfactory completion of this review, the records must be signed by the gambling manager responsible for supervising the session before the gambling manager leaves the premises on the day(s) the session(s) was conducted; and


Format of records and length of retention.


(11) All records required by this section shall be:

(a) Recorded in a standard format prescribed by the commission;

(b) Recorded during the course of each session; and

(c) Retained for a period of not less than twenty-four months, with the exception of the session summary which shall be retained for a period of not less than three years.

[Statutory Authority: RCW 9.46.070. 98-24-090 (Order 369), 230-08-080, filed 12/1/98, effective 1/1/99. Statutory Authority: RCW 9.46.070 (1), (11), (14). 98-04-024, 230-08-080, filed 1/28/98, effective 7/1/98. Statutory Authority: RCW 9.46.070 (1), (8) - (11), (14), (20). 96-13-067 (Order 293), 230-08-080, filed 6/18/96, effective 7/19/96. Statutory Authority: RCW 9.46.070 (1), (8), (9), (11), (13), (14), (20). 95-23-091, 230-08-080, filed 11/20/95, effective 1/1/96. Statutory Authority: RCW 9.46.070. 94-01-034, 230-08-080, filed 12/6/93, effective 1/6/94. Statutory Authority: Chapter 9.46 RCW. 91-21-053 (Order 228), 230-08-080, filed 10/15/91, effective 11/15/91. Statutory Authority: RCW 9.46.020 (1) and (10) and 9.46.070 (3), (11) and (14). 86-09-036 (Order 157), 230-08-080, filed 4/11/86. Statutory Authority: RCW 9.46.070 (8), (11), and (14). 83-13-050 (Order 134), 230-08-080, filed 6/14/83; Order 74, 230-08-080, filed 8/17/77; Order 43, 230-08-080, filed 11/28/75; Order 15, 230-08-080, filed 4/17/74; Order 5, 230-08-080, filed 12/19/73, 1:25 p.m.]

OTS-3582.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-08-100 Political contributions of licensees to be reported.

OTS-3640.2


AMENDATORY SECTION(Amending Order 293, filed 6/18/96, effective 7/19/96)

WAC 230-08-105
Disposable bingo cards -- Inventory control record.

All disposable bingo cards purchased or otherwise obtained must be controlled and accounted for by the licensee. This control function shall be accomplished by maintaining an inventory control record prepared in a format prescribed by the commission for Class D and above licensees: Provided, That alternative formats, including electronically generated formats, accomplishing regulatory requirements may be approved by commission staff.


Purchase invoices.


(1) All purchase invoices, or a photocopy thereof, for disposable bingo cards received must be maintained on the bingo premises;


Packing slips.


(2) Manufacturer packing records, required by WAC 230-20-192, shall be maintained as a part of the inventory control record;


Information to be recorded for disposable bingo cards.


(3) The following information must be recorded for disposable bingo cards immediately after purchase or before the next bingo occasion:

(a) The identification and inspection services stamp number;

(b) The serial number or, if packets, the serial number of the top page;

(c) The number of cards or card packets in the series;

(d) The type of card or card packet;

(e) The purchase invoice number;

(f) The purchase invoice date;

(g) Date and session first placed into play; and

(h) The dollar value assigned each sheet or card packet when placed into play;


Combination receipting method.


Information to be recorded for disposable bingo cards.


(4) In addition to the information required in subsection (3) of this section, licensees using the combination receipting method, per WAC 230-20-108, shall record the following for each session sets or collations of cards are sold:

(a) The session number and date;

(b) The beginning and ending audit control numbers of the top page of the packets;

(c) Adjustments for any missing packets, per the manufacturer's packing record;

(d) The number of packets distributed to sales points and returned as unsold;

(e) Total packets issued;

(f) The value of each packet;

(g) The extended value obtained by multiplying total packets issued times the value of each packet. This total shall be carried forward to the "Daily Bingo Summary" and reconciled to the amount of sales per the cash register record; and

(h) The cumulative number of packets issued from the collation, session-to-date;


Dividing cards into subgroups.


(5) Licensees using the combination receipting method may divide sets or collations of cards into no more than ten subgroups only if the information required by subsections (3) and (4) of this section are recorded for each subgroup.

[Statutory Authority: RCW 9.46.070 (1), (8) - (11), (14), (20). 96-13-067 (Order 293), 230-08-105, filed 6/18/96, effective 7/19/96. Statutory Authority: RCW 9.46.070. 95-19-070, 230-08-105, filed 9/18/95, effective 1/1/96; 94-01-034, 230-08-105, filed 12/6/93, effective 1/6/94.]

OTS-3667.2


AMENDATORY SECTION(Amending WSR 94-01-035, filed 12/6/93, effective 1/6/94)

WAC 230-12-078
Bona fide charitable or nonprofit organizations -- Responsibilities -- Independent management control structure required.

It shall be the affirmative responsibility of each charitable or nonprofit organization licensed to conduct gambling activities, and its officers or board of directors, to ensure the legislative intent regarding gambling activities is met.


Independent management control system for all charitable/nonprofit organizations.


(1)
This responsibility shall be fulfilled by developing and maintaining an independent management control system that ensures the following:

(a) Gambling activities are closely supervised and operated according to commission guidelines;

(b) Gambling proceeds are used solely to advance the purposes of the organization;

(c) All assets of the organization are protected from misuse or defalcation; and

(d) An operating environment that facilitates implementation of the officers' or board of directors' policies is maintained.


Group III, IV or V management control system.


(2) Each charitable or nonprofit organization licensed to conduct gambling activities in Groups ((II or Group)) III, IV or V, as defined in WAC 230-04-040, shall fulfill its responsibilities by:

(((1))) (a) Developing and implementing a management control system which:

(((a))) (b) Will be overseen by an independent slate of officers or board of directors, that has been elected by a process in which all active members have a single vote;

(((b))) (c) Includes written policies which set the responsibilities of officers, board of directors, and employees;

(((c))) (d) Includes written policies establishing the scope of authority delegated to officers, board of directors, and employees;

(((d))) (e) Includes affirmative management and accounting controls that ensure that all funds and other assets directly or indirectly obtained with gambling proceeds are protected from misuse, dedicated solely to the purposes of the organization, and do not inure to the private use of any person. For purposes of this section, the following uses of gambling proceeds shall not be deemed inurement:

(i) Providing program services to members or the public; or

(ii) Expenditures for necessary expenses, including salaries or wages for services to perform the purposes of the organization. Salaries or wages paid to members, officers, board of directors, or direct family members of any of the preceding, shall not be deemed inurement if they are necessary, reasonable, and the decision to pay such is made in an independent management control environment.

(((e))) (f) Includes a planning process that sets goals regarding uses of gambling proceeds and allows the officers or board of directors to monitor progress toward meeting such goals: Provided, That organizations reserving funds in endowments or trust funds under limitations in WAC 230-04-024 (8)(b) and (c) must have a formal business plan or budget outlining uses of such;

(((f))) (g) Includes a system of internal accounting controls that is designed to reduce errors, minimize risk of defalcations, and safeguard assets. The organization's officers or board of directors shall implement procedures to monitor established controls for compliance. The internal accounting control system shall include at least the following controls:

(i) Management approval for expenditures;

(ii) Procedures that restrict access to assets to only those individuals authorized by management;

(iii) Procedures to ensure all transactions are recorded in accordance with generally accepted accounting principles. Transactions shall be recorded with enough detail to maintain accountability of assets; and

(iv) Periodic comparison of recorded assets to physical assets and reconciliation of all differences.

(((g))) (h) Will be documented and available for commission staff review.


Independent operating environment - conflicts of interest.


(((2))) (3) Maintaining an independent operating environment. An organization's operating environment will be independent when its officers, board members, and supervisory level employees completely separate their personal interests and the interest of the organization: Provided, That an organization shall not be in violation of this section if individual officers or board members acknowledge potential conflicts of interest and abstain from voting on issues that directly or indirectly affect their personal interest. Any potential conflicts of interest situations involving supervisor level employees must be reviewed and approved by the governing board of the organization. All discussions or balloting regarding potential conflicts of interest shall be recorded in the official meeting minutes. Any of the following actions by officers, board members, or supervisory level employees that are not approved by the board of directors and documented in the official minutes shall provide a presumption of the lack of an independent operating environment:

(a) They directly or indirectly receive financial or personal benefit from the organization or share in gambling proceeds of the organization; or

(b) They are directly or indirectly responsible for supervision of, or have decision-making authority over transactions that may result in direct or indirect financial or personal benefit to: Their direct relatives, including spouses, parents, children, siblings, and similar relationships, whether by blood, adoption, or marriage; persons with whom they maintain a common household; or persons with whom they have a business relationship; or

(c) They directly or, through lack of action, indirectly allow others to receive or share in the gambling proceeds of the organization.

[Statutory Authority: RCW 9.46.070, 9.46.0261 and 9.46.0209. 94-01-035, 230-12-078, filed 12/6/93, effective 1/6/94.]

OTS-3802.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-20-110 Prohibited practices.

OTS-3643.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-20-120 No free food or beverages to be provided at bingo games -- Exceptions.

OTS-3665.4


AMENDATORY SECTION(Amending WSR 95-12-051, filed 6/2/95, effective 7/3/95)

WAC 230-20-220
Bingo operators shall not play in bingo games.

Except as authorized by this section, no bingo operator shall allow ((a)) any person who ((receives any compensation, directly or indirectly, for the operation of, any bingo game conducted by the operator)) participates in the operation or management of a bingo game to play in ((a)) any bingo games conducted by that ((operator)) licensee.

((No operator shall allow any person who, without payment, assists in the operation of any bingo game conducted by that operator to play in any bingo game conducted by that operator on the same bingo occasion. However, the second paragraph of this rule shall not apply to Class A, B, and C bingo licensees, or to games operating under the authority of chapter 9.46 RCW.)) This prohibition shall not apply to the following:

(1) Persons that work without compensation: Provided, That volunteers shall not be allowed to play at bingo sessions during which they participate in the management or operation; or

(2) Class A, B, or C bingo licensees.

[Statutory Authority: RCW 9.46.070. 95-12-051, 230-20-220, filed 6/2/95, effective 7/3/95; 94-07-084 (Order 250), 230-20-220, filed 3/16/94, effective 4/16/94. Statutory Authority: RCW 9.46.070 (11) and (14). 82-01-065 and 82-03-033 (Order 115 and 116), 230-20-220, filed 12/18/81 and 1/18/82; Order 65, 230-20-220, filed 1/7/77; Order 53, 230-20-220, filed 5/25/76; Order 5, 230-20-220, filed 12/19/73, 1:25 p.m.]

OTS-3666.2


AMENDATORY SECTION(Amending WSR 94-01-033, filed 12/6/93, effective 1/6/94)

WAC 230-20-243
Hidden face bingo games.

Licensees may play bingo games that allow cards to be sold after numbers or symbols have been selected and called if the numbers or symbols imprinted on the cards can not be determined by any means prior to being opened by the player. The following restrictions apply to games involving hidden face bingo cards:


Card requirements.


(1) Cards meeting the requirements of WAC 230-20-192 must be used;


Sales receipt and inventory control record.


(2) The disposable bingo card receipting method (WAC 230-20-101(4)) must be used to receipt for sales of these cards and all inventory requirements set out in WAC 230-08-105 apply;


Duplicate cards shall not be sold.


(3) To ensure that duplicate cards are not sold during a game, strict compliance with consecutive issuance of cards must be followed and each complete set and/or subset of cards must be sold in its entirety prior to issuance of any cards from a different set and/or subset: Provided, That cards from more than one set may be sold during a game if care is taken to ensure that duplicate cards are not sold;


Play shall be completed during each session.


(4) All play must be completed during a single session and only involve cards that are sold during that session;


"On-the-way" games.


(5) A new set of numbers or symbols shall be selected and called for each game or set of games if "on-the-way" games are played. Players that have paid to participate in the game must be present when the numbers or symbols are selected;


Separate display board for numbers called.


(6) The licensee must have a separate display board, visible to the players, for displaying numbers called. The numbers must be constantly displayed until the game is completed: Provided, That for purposes of this section, alternative displays may be utilized in lieu of a flashboard, as required by WAC 230-20-240, if the numbers are displayed on the electronic flashboard during all number selection periods; ((and))


Posting requirements.


(7) The requirements of what constitutes a completed game must be documented and clearly posted for player review; and


Instant winner games.


(8) Instant winner games may be operated only as authorized in WAC 230-20-241(2)
.

[Statutory Authority: RCW 9.46.070. 94-01-033, 230-20-243, filed 12/6/93, effective 1/6/94.]

OTS-3664.3


AMENDATORY SECTION(Amending Order 255, filed 8/16/94, effective 9/16/94)

WAC 230-20-244
Electronic bingo card daubers -- Definition -- Operating restrictions -- Standards.

The commission deems that any device, apparatus, or scheme that allows a player in any gambling activity a material advantage over other players is against public policy and restriction of such is in the public's interest. Electronic bingo card marking devices or daubers are deemed to provide a player a material advantage unless operated in accordance with subsection (2) of this section. For purposes of this title, the following definitions, restrictions, and standards apply to such devices:


Definition.


(1) Electronic bingo card daubers are defined as electronic appliances used by players to identify bingo cards that contain numbers or symbols input by a player. These devices electronically store preprinted bingo cards purchased by a player, provide a means for players to input numbers or symbols called by the operator, compare the numbers or symbols input by the player to bingo cards previously stored in an electronic data base, and identify to the player those stored bingo cards that contain the numbers or symbols input by the player: Provided, That player-owned devices, which are not directly interfaced with or connected to equipment used to conduct bingo games or the electronic data base in which electronically generated bingo cards are stored in any manner, are not "electronic bingo card daubers" for purposes of this title;


Operating restrictions.


(2) Electronic bingo card daubers will not be deemed to provide players a material advantage and may be used by players in bingo games when operated in the following manner:


Player responsibilities.


(a) The player must perform at least the following functions:

(i) Input each number or symbol called by the operator into the memory of the dauber unit by use of a separate input function for each number symbol. Automatic or global marking of numbers or symbols is prohibited;

(ii) Notify the operator when a winning pattern or "bingo" occurs by means that do not utilize the dauber unit or the associated system; and

(iii) Identify the winning card and display the card to the operator;


Maximum number of cards to be played during each game.


(b) Each player using an electronic dauber is limited to playing a maximum of sixty-six cards with the assistance of an electronic dauber during any game;


Reserving electronic bingo card daubers.


(c) Operators shall not reserve electronic daubers for any player. An operator must devise and disclose to players a scheme for assignment of dauber units to players during each session. Such schemes shall allow all players an equal opportunity to utilize the available dauber units. If a drawing is used to assign dauber units to players, the operator shall ensure that each player participating in the drawing has an equal chance to win: Provided, That operators that offer electronic dauber units shall reserve at least one device for players with disabilities that would restrict their ability to mark cards and such disabilities are consistent with definitions set forth in the Americans with Disabilities Act (ADA). If there are no requests for use of this unit prior to fifteen minutes before the scheduled start of the session, it may be made available for use by any players;


Fees.


(d) If operators charge players a fee for use of the electronic daubers, such fees must be a flat fee and shall not be based on the number or dollar value of cards purchased. Fees charged shall be treated as rental income and may be used to reduce any expenses of operating these devices for compliance with net income requirements. Rental fees shall be considered bingo receipts for purposes of WAC 230-12-020: Provided, That players with disabilities that would restrict their ability to mark cards and such disabilities are consistent with the ADA shall not be required to pay a rental fee or to comply with minimum purchase requirements imposed on all players utilizing electronic daubers. Such players are required to comply with any minimum purchase requirement imposed on all players by an operator;


Card requirements.


(e) Each player utilizing an electronic dauber must have in their possession cards that meet all requirements of WAC 230-20-240 and 230-20-101(3). Electronic images of cards or faces stored in such devices are for player convenience only and are not bingo cards for purposes of this title;


Leasing by an operator.


(f) If the electronic daubers are leased to an operator, the lease cannot be based in whole or part on the amount of bingo card sales or rental income derived from such devices; and


Discounts and marketing schemes.


(g) The use of electronic daubers is prohibited when a licensee utilizes any marketing scheme for cards that results in a decrease in the per unit price of each card as the number of cards purchased increases: Provided, That a single discount level is authorized for each type of card sold if:

(i) The licensee has a minimum purchase requirement;

(ii) The discount applies to all additional cards purchased; and

(iii) "All you can play" schemes are prohibited;


Standards.


(3) Electronic bingo card daubers must meet the following standards:

(a) Be manufactured by licensed manufacturers;

(b) Be sold, leased, and serviced by licensed distributors or manufacturers: Provided, That operators may perform routine maintenance on devices under their control;

(c) Not be capable of accessing the electronic computer system in any manner that would allow modification of the program which operates and controls the dauber units or the cards stored in the electronic data base; and

(d) Be capable of complying with applicable requirements of WAC 230-20-101(3).

[Statutory Authority: RCW 9.46.070. 94-17-090 (Order 255), 230-20-244, filed 8/16/94, effective 9/16/94.]

Washington State Code Reviser's Office