WSR 06-17-083

PROPOSED RULES

GAMBLING COMMISSION


[ Filed August 14, 2006, 1:51 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 05-17-202.

Title of Rule and Other Identifying Information: Amendatory sections WAC 230-25-040 Fund-raising event -- House rules to be developed and posted -- Limitations on wagers, 230-25-050 Wagering among participants not permitted, and 230-25-325 Limited fund-raising event -- Procedures and restrictions.

Hearing Location(s): Inn at Gig Harbor, 3211 56th Street N.W., Gig Harbor, WA 98335, (253) 851-5402, on October 13, 2006, at 9:30 a.m.

Date of Intended Adoption: October 13, 2006.

Submit Written Comments to: Susan Arland, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504, e-mail Susana@wsgc.wa.gov, fax (360) 486-3625, by October 1, 2006.

Assistance for Persons with Disabilities: Contact Shirley Corbett by October 1, 2006, TTY (360) 486-3637 or (360) 486-3447.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: These proposed rule changes and new rule would allow poker tournaments at fund-raising events (FRE) and limited FREs.

WAC 230-25-040: This rule requires house rules to be posted for fund-raising events, including wagering limits. A new subsection states there are no limits on the number of poker tournament chips that can be wagered at FREs.

WAC 230-25-050: This rule prohibits players from wagering against each other (such as poker games) at FREs. Language was added to provide an exception to this restriction and authorize poker tournaments at FREs.

WAC 230-25-325: Subsection (7) was added to authorize poker tournaments at limited fund-raising events.

Statutory Authority for Adoption: RCW 9.46.070.

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

Name of Proponent: Washington state gambling commission, governmental.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Rules Coordinator, Lacey, (360) 486-3466; Implementation and Enforcement: Rick Day, Director, Lacey, (360) 486-3446.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement has not been prepared pursuant to RCW 19.85.025, and/or the proposed rule change clarifies language of rules without changing the effect.

A cost-benefit analysis is not required under RCW 34.05.328. The Washington state gambling commission is not an agency that is statutorily required to prepare a cost-benefit analysis under RCW 34.05.328.

August 11, 2006

Susan Arland

Rules Coordinator

OTS-9104.1


AMENDATORY SECTION(Amending Order 387, filed 7/17/00, effective 8/17/00)

WAC 230-25-325   Limited fund-raising event -- Procedures and restrictions.   Pursuant to RCW 9.46.0233(2), nonprofit or charitable organizations may offer limited fund-raising events (FREs). Organizations offering limited FREs must operate the FRE under the following operational procedures:


Operating procedures.


(1) Only members of the organization and their guests shall participate in the event. The event shall not be open to the general public.

(2) Participants shall purchase scrip with cash.

(3) Scrip shall be exchanged at gambling stations for chips.

(4) Only bona fide members will be utilized for all transactions involving acceptance of cash for scrip, conducting the schemes to determine the winners of merchandise prizes, and maintaining records during the event.

(5) The value of all purchased prizes must not exceed ten percent of the gross revenue from the event, less the cost of the FRE equipment rental contract.

(6) Any prizes purchased from the FRE equipment distributor must be disclosed. The cost may not exceed the fair market value. Prizes may be disclosed to the public at the retail value.

(7) Poker tournaments may be operated at limited fund-raising events. Tournament rules must be established and posted.


FRE equipment distributors.


Limitations.


(((7))) (8) The nonprofit organization may only contract with a person or organization licensed as a FRE equipment distributor to provide the equipment and staff to operate the gaming stations.

(((8))) (9) Under no circumstances shall employees of the FRE equipment distributor handle cash transactions or allow participants to purchase chips with cash.


Compensation.


(((9))) (10) The fee paid to the FRE equipment distributor shall be in compliance with WAC 230-25-120. The FRE equipment distributor shall not share in any way in the proceeds of the event except as set forth in the rule.


Information to be submitted with FRE application.


(((10))) (11) The application must include details relating to the initial cost to participate, and method for purchasing additional scrip, as well as identify all costs included in the initial price to enter that are not related to the gambling activity (i.e., meals, drinks, etc.). The application must also identify the scheme that will be followed to distribute the merchandise prizes to participants at the end of the event (i.e., raffle, auction, etc.).

(((11))) (12) All contracts signed by the FRE licensee with the FRE equipment distributor and premises provider must be submitted with the FRE license application.


Fees.


(((12))) (13) The licensing fee for a limited FRE shall be as set forth in WAC 230-04-202(4).

[Statutory Authority: RCW 9.46.070. 00-15-048 (Order 387), 230-25-325, filed 7/17/00, effective 8/17/00.]

OTS-9103.2


AMENDATORY SECTION(Amending Order 409, filed 2/22/02, effective 7/1/02)

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 electronic dauber unit shall not allow a player to play more than sixty-six cards at one time.

(c) Each player shall not use more than one electronic dauber at any point in time. Provided, That a player can play an unlimited amount of disposable or hard bingo cards in addition to using one electronic dauber unit.


Reserving electronic bingo card daubers.


(d) 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.


(e) 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. 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.


(f) Each player utilizing an electronic dauber must have in their possession cards that meet all requirements of WAC 230-20-240 and 230-20-106. 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.


(g) 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. Except that fees may be based on the number of cards sold to a device only for player selection games as described in WAC 230-20-241; and


Discounts and marketing schemes.


(h) 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 230-20-106.

[Statutory Authority: RCW 9.46.070. 02-06-006 (Order 409), 230-20-244, filed 2/22/02, effective 7/1/02; 00-07-140 (Order 381), 230-20-244, filed 3/22/00, effective 7/1/00; 94-17-090 (Order 255), 230-20-244, filed 8/16/94, effective 9/16/94.]

OTS-8326.2


AMENDATORY SECTION(Amending Order 78, filed 11/17/77)

WAC 230-25-050   Wagering among participants not permitted.   ((No)) Licensees ((to conduct)) conducting a fund-raising event shall not permit, as a part of that fund-raising event, a gambling activity which involves a wagering of money or other items of value by one participant against another participant. This rule ((shall not be construed to)) does not prohibit gambling activities wholly administered by the licensee wherein the licensee collects wagers from among the participants and determines the winners and amounts of prizes on a parimutuel basis or poker tournaments as authorized under WAC 230-25-045.

[Order 78, 230-25-050, filed 11/17/77.]

OTS-8325.2


AMENDATORY SECTION(Amending Order 387, filed 7/17/00, effective 8/17/00)

WAC 230-25-040   Fund-raising event -- House rules to be developed and posted -- Limitations on wagers.   (1) Before conducting a fund-raising event (FRE), each licensee shall develop house rules to govern the scope and manner of all gambling activities to be conducted during the FRE. At a minimum, these rules shall:

(a) State the maximum amount of a single wager that may be placed by FRE participants. Wagering limits are as follows:

(i) Single wagers shall not exceed ten dollars;

(ii) Raffles or other similar drawings may exceed the ten dollar wagering limit, but may not exceed the limitations set forth in RCW 9.46.0277; ((and))

(iii) There are no limits on wagers made using scrip; and

(iv) There are no limits on the number of poker tournament chips that may be wagered.

(b) Prohibit any thing of value from being given to any person involved in the management or operation of the FRE; and

(c) Prohibit any person involved in the management or operation of the FRE from accepting any thing of value.


Posting house rules.


(2) A copy of the rules shall be conspicuously posted in the area where the FRE is being conducted at all times during the FRE. A copy must be available, upon request, to any law enforcement officer or representative of the commission, or member of the general public.

[Statutory Authority: RCW 9.46.070. 00-15-048 (Order 387), 230-25-040, filed 7/17/00, effective 8/17/00. Statutory Authority: RCW 9.46.0277 and 9.46.070. 96-07-077, 230-25-040, filed 3/19/96, effective 7/1/96. Statutory Authority: RCW 9.46.020(23) and 9.46.070(14). 81-19-072 (Order 111), 230-25-040, filed 9/15/81. Statutory Authority: RCW 9.46.070(10). 78-11-049 (Order 87), 230-25-040, filed 10/20/78; Order 78, 230-25-040, filed 11/17/77.]

Washington State Code Reviser's Office