Date of Adoption: May 9, 2003.
Purpose: The Gambling Commission is authorized to control equipment used in conjunction with activities authorized under chapter 9.46 RCW. Currently, staff reviews new equipment as part of the initial licensing process of a manufacturer. However, commission rules focus the reviews on ownership and manufacturing issues; security and compliance of the equipment are not addressed in the rules. Procedures for reviewing equipment for integrity and compliance are currently set by policy. This rules package formalizes the process in the administrative rules.
Citation of Existing Rules Affected by this Order: Amending WAC 230-02-412, 230-04-110, and 230-12-315.
Statutory Authority for Adoption: RCW 9.46.070.
Adopted under notice filed as WSR 03-08-002 on March 19, 2003.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 3, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 3, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making:
Pilot Rule Making:
or Other Alternative Rule Making:
Effective Date of Rule: July 1, 2003.
May 15, 2003
AMENDATORY SECTION(Amending Order 385, filed 7/14/00, effective 1/1/01)
WAC 230-02-412 Gambling equipment defined. For purposes of this title, gambling equipment means any device, gambling related software, expendable supply or any other paraphernalia used in conjunction with or to facilitate gambling. Gambling equipment includes, but is not limited to:
(1) Amusement games;
(2) Punch boards and pull-tabs;
(3) Devices for dispensing pull-tabs;
(4) Electronic devices for conducting, facilitating or accounting for the results of gambling activities, including, but not limited to:
(a) Components of a tribal lottery system;
(b) Electronic devices for reading and displaying
outcomes of ((
pull-tabs defined by WAC 230-02-260)) gambling
(c) Accounting systems that are a part of, or directly connected to, a gaming system including, but not limited to:
(i) Bet totalizers; ((
(ii) Progressive jackpot meters; or
(iii) Keno systems;
(5) Bingo equipment, as defined in WAC 230-02-250;
(6) Equipment or machinery utilized for the manufacture of gambling equipment when such equipment is designed primarily for such purpose;
(7) Devices and supplies used to conduct card games, fund-raising events, recreational gaming activities, or Class III gaming activities, as defined in the Indian Gaming Regulatory Act at U.S.C. 25 chapter 29 § 2703 and in Tribal-State compacts, including, but not limited to:
(a) Gaming chips;
(d) Card shuffling devices;
(e) Graphical game layouts for table games;
(f) Ace finders or ((
no-peak)) no-peek devices;
(g) Roulette wheels; ((
(h) Keno equipment; and
(i) Tables manufactured exclusively for gaming purposes.
[Statutory Authority: RCW 9.46.070. 00-15-039 (Order 385), § 230-02-412, filed 7/14/00, effective 1/1/01.]
AMENDATORY SECTION(Amending Order 385, filed 7/14/00, effective 1/1/01)
WAC 230-04-110 Licensing of manufacturers. ((
authorized by WAC 230-04-115,)) A license must be obtained
from the commission prior to manufacturing, selling, or
supplying gambling equipment to any person(s) within this
state, or for use within this state: Provided, That amusement
game manufacturers and manufacturers operating under a special
sales permit (WAC 230-04-115) do not require a manufacturer's
license. The following requirements apply to certification
and licensing of manufacturers:
Information required on an application.
(1) The following information shall be submitted on an application form supplied by the commission:
(a) The full name and address of the applicant;
(b) The full name and address of each location where such devices are manufactured or stored;
(c) The name, home address, and share of ownership of all owners of the manufacturing business if the business is not a corporation. If the business is a corporation, the name, address, and share of ownership of the officers, the directors, and substantial interest holders;
(d) A full description of each separate type of gambling equipment or device that an applicant seeks to manufacture or to market in this state;
(e) The brand name under which each type of gambling device or equipment is sold;
(f) If the applicant is incorporated under laws other than the laws of Washington state, then the full name and business and home address of the resident agent designated by the applicant pursuant to WAC 230-12-300; and
(g) A list of all distributors receiving gambling equipment and all businesses or organizations located within the state of Washington in which the applicant has any financial interest and the details of that financial interest. For the purpose of this subsection, the term financial interest shall include all arrangements through which a person directly or indirectly receives any portion of the profits of the licensed manufacturer and indebtedness between the licensee and any other person, other than a regulated financial institution, in excess of five thousand dollars.
Information to be included with an application.
(2) The following information shall be included as an attachment to the application form:
(a) A list of all affiliated businesses or corporations in which the applicant, officers, directors, or substantial interest holders of the applicant, either directly or indirectly, own or control:
(i) As a sole proprietor;
(ii) As a partner;
(iii) More than fifty percent of the voting stock of a privately held or closed corporation; or
(iv) At least five percent of the voting stock of a publicly traded corporation.
(b) A list of all businesses or corporations licensed to conduct gambling activities or to supply gambling-related equipment, supplies, or services in which the applicant, officers, directors, or substantial interest holders of the applicant have any interest;
(c) A list of all jurisdictions in which the applicant or any of the officers, directors, or substantial interest holders of the applicant have been licensed regarding gambling related activities at any level during the preceding ten years;
(d) A statement regarding whether the applicant or officers, directors, or substantial interest holders have ever had a license for gambling-related activities denied, revoked, or suspended by any jurisdiction for a period longer than thirty days. All details of such must be provided as a part of the application; and
(e) A statement acknowledging that all records related to the ownership or operation of the business shall be made available for review at the time and place requested by commission staff.
Additional information may be required from applicant.
(3) The following records shall also be available for inspection by commission staff:
(a) Personal financial records of all substantial interest holders;
(b) All records related to the scope of activity, including sales of product, purchases of raw materials and parts, and any contracts, franchises, patent agreements, etc., related to sales or purchases; and
(c) Records related to any financial or management control of or by customers and suppliers.
Applicant to demonstrate ability to comply with rules.
(4) An applicant must demonstrate the ability to comply with all manufacturing, quality control, and operational restrictions imposed on authorized gambling equipment, patented or otherwise restricted gaming schemes (also referred to as proprietary games), or equipment that it seeks to manufacture or market for use within the state of Washington. The licensing process shall include an on-site review of the applicant's manufacturing equipment and process for each separate type of authorized gambling device, equipment, or scheme to ensure capability to comply with all regulatory requirements of this title and state/tribal compacts;
Notifying commission staff of changes on an application.
(5) The applicant shall notify the commission within thirty days of any change in the information submitted on or with the application form, including changes that occur after the license has been issued; and
Applicant to comply with all laws and rules.
(6) The applicant shall comply with all applicable laws of the United States and the state of Washington and all applicable rules of this commission.
[Statutory Authority: RCW 9.46.070. 00-15-039 (Order 385), § 230-04-110, filed 7/14/00, effective 1/1/01. Statutory Authority: RCW 9.46.070 (2), (4), (12) and (20). 97-21-043, § 230-04-110, filed 10/10/97, effective 11/10/97. Statutory Authority: RCW 9.46.070. 95-12-052, § 230-04-110, filed 6/2/95, effective 7/3/95; 94-01-033, § 230-04-110, filed 12/6/93, effective 1/6/94. Statutory Authority: RCW 9.46.070 and 9.46.0331. 91-19-093 (Order 227), § 230-04-110, filed 9/18/91, effective 10/19/91. Statutory Authority: RCW 9.46.070 (4), (11) and (14). 89-24-002 (Order 201), § 230-04-110, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070 (4) and (6). 79-07-019 (Order 90), § 230-04-110, filed 6/14/79; Order 12, § 230-04-110, filed 2/14/74; Order 9, § 230-04-110, filed 12/19/73 at 1:26 p.m.; Order 5, § 230-04-110, filed 12/19/73 at 1:25 p.m.]
AMENDATORY SECTION(Amending WSR 97-14-012, filed 6/20/97, effective 7/21/97)
WAC 230-12-315 Request for review services ((
gambling activities)) -- Fees.
Any person (( requesting
commission staff review, inspection, and/or evaluation of))
submitting equipment, paraphernalia, services, or schemes
(( related to licensed gambling activities shall reimburse the
commission the cost to conduct such. If the requestor is
currently licensed or has applied for a license, there will be
no assessment of cost for the first two hours of service:
Provided, That this two-hour exemption does not apply to any
review conducted as part of a prelicensing investigation)) for
review, inspection, and/or evaluation by commission staff
shall reimburse the commission the cost of services performed.
A deposit of the estimated cost may be required prior to
performance of such service. If a deposit is required, it
shall be received by the commission prior to the performance
of any substantial work on the request.
[Statutory Authority: RCW 9.46.070 (5), (6), (11), (14). 97-14-012, § 230-12-315, filed 6/20/97, effective 7/21/97.]
WAC 230-12-316 Electronic or mechanical equipment review. A licensee must submit electronic or mechanical gambling equipment to the director for review to verify compliance with chapter 9.46 RCW and Title 230 WAC prior to the sale, lease or operation of such equipment. The equipment shall meet technical standards for compliance, accuracy, security and integrity. Persons not licensed by the commission may also request equipment review to verify compliance with state laws and rules.
(1) Manufacturers may be required to submit electronic or mechanical gambling equipment for review.
(a) To allow for continued testing and training, any equipment that is submitted for review under this section may be kept by the director for as long as the equipment remains out for play in the state of Washington.
(b) The gambling commission and staff are not liable for any damage to equipment while in their possession.
(2) Fees for review shall be as set forth in WAC 230-12-315.
(3) Equipment operated in Washington state must be identical to the version reviewed by the director.
(4) Equipment in operation on July 1, 2003, may continue in operation pending review by the director.
(5) If the person submitting such equipment does not agree with the director's decision, a petition for declaratory order may be filed with the commission to be heard de novo by an administrative law judge designated by the commission, pursuant to RCW 34.05.240 and WAC 230-50-850.