WSR 06-17-132

PERMANENT RULES

GAMBLING COMMISSION


[ Order 601 -- Filed August 22, 2006, 8:50 a.m. , effective January 1, 2008 ]


Effective Date of Rule: January 1, 2008.

Purpose: The gambling commission is rewriting its rules manual using plain English techniques. The rules manual has been divided into sections and is being rewritten a section at a time. As part of the rewrite, some items from chapter 230-02 WAC, General provisions and definitions; chapter 230-04 WAC, Licensing; chapter 230-08 WAC, Records and reports; chapter 230-12 WAC, Rules of general applicability, may be incorporated into this new chapter. This new chapter is numbered chapter 230-06 WAC and contains rules pertaining to all licensees.

(1) Intoxicated persons participating in gambling activities:

WAC 230-06-015 Prevent intoxicated persons from operating or playing gambling activities, the proposed change will expand the current rules prohibiting intoxicated persons from operating or playing punch boards, pull-tabs, or card games to apply to all gambling activities. This change will make commission enforcement more consistent across all gambling activities. All gambling licensees will now have to prevent intoxicated persons from operating or participating in gambling activities.

(2) Reporting timelines:

WAC 230-06-085 Report changes to application information and submit updated documents and information, 230-06-090 Report criminal actions filed, 230-06-095 Report civil and administrative actions filed, 230-06-100 Change given name, trade name, or corporate name, 230-06-110 Report change of management, 230-06-130 Sell or transfer gambling equipment to manufacturers or distributors, and 230-06-145 Failing to apply for license class upgrade, the current rules have a number of different time periods associated with submitting information regarding licensure. These new rules will standardize the amount of time we give licensees to submit several types of information to thirty days. The proposed change will make our regulation of licensees more consistent because it changes the response period to a consistent thirty days for each type of information.

Statutory Authority for Adoption: RCW 9.46.070.

Adopted under notice filed as WSR 06-07-156 on March 22, 2006, with a published date of April 25 [5], 2006.

Changes Other than Editing from Proposed to Adopted Version: At a public meeting, the commission pulled WAC 230-06-040, from this rules package. It will be included in new chapter 230-07 WAC, Charitable and nonprofit rules, as it relates only to charitable and nonprofit organizations.

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 29, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 29, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 29, Amended 0, Repealed 0.

Date Adopted: August 21, 2006.

Susan Arland

Rules Coordinator

OTS-8717.3

Chapter 230-06 WAC

RULES FOR ALL LICENSEES

RULES FOR CONDUCTING A GAMBLING ACTIVITY
NEW SECTION
WAC 230-06-001   Defining "operator."   "Operator" means any person who buys or otherwise receives gambling equipment for use in authorized gambling activities from a manufacturer or distributor and operates or displays that equipment.

[]


NEW SECTION
WAC 230-06-005   Accept checks in gambling activities.   (1) Licensees may accept a check in the place of cash from a player for authorized gambling activities if the check is fully negotiable when it is accepted and is:

(a) From the player's personal account and is dated the same day; or

(b) Issued by a government agency or by a business, such as a payroll check.

(2) Licensees must not accept:

(a) Third-party checks drawn on a personal account or counter checks; or

(b) Checks from a player who owes the licensee money from a previous returned personal check. If licensees use check guarantee and collection services, this subsection does not apply.

(3) If licensees accept a check in violation of the provisions of this section, they are violating the rules against extending credit.

[]


NEW SECTION
WAC 230-06-010   Age restrictions for players.   Licensee must not allow anyone under the age of eighteen to participate in gambling activities except:

(1) To play in licensed bingo games when accompanied by an adult member of his/her immediate family or a guardian, who is at least eighteen years old. "Immediate family" means only the spouse, parents, or grandparents of an individual. "Guardian" means only a court-appointed, legal guardian of an individual; or

(2) To play bingo at agricultural fairs or school carnivals; or

(3) To play amusement games; or

(4) To sell raffle tickets.

[]


NEW SECTION
WAC 230-06-015   Prevent intoxicated persons from operating or playing gambling activities.   Licensees must not allow any person who appears to be intoxicated or under the influence of any narcotic or other substance to operate or play any gambling activity.

[]


NEW SECTION
WAC 230-06-020   Restrictions on alcohol as prizes.   Licensees must not offer or award beverages that contain alcohol as a prize or in place of a prize for any gambling activity except:

(1) Dice or coin contests for music, food, or beverage payment as authorized by RCW 9.46.0305; and

(2) Unlicensed members-only raffles authorized by RCW 9.46.0315, but only if the liquor control board granted the appropriate permit; and

(3) Other gambling activities where the liquor control board has authorized alcohol as a prize.

[]


NEW SECTION
WAC 230-06-025   Restrictions on firearms as prizes.   Only charitable or nonprofit organizations operating a raffle may award firearms, air guns, or other mechanical devices which are capable of discharging dangerous projectiles, including but not limited to, BB or CO2 guns, rifles, shotguns, pistols or revolvers, or crossbows as a prize. If the prize awarded is restricted from transfer by state or federal law, the licensee must award the winner a certificate, redeemable by a licensed firearms dealer, for the prize offered.

[]


NEW SECTION
WAC 230-06-030   Restrictions and conditions for gambling promotions.   Licensees may conduct gambling promotions to encourage players to participate in a gambling activity, but you must follow these restrictions and conditions:

(1) Promotional items must not exceed five hundred dollars each; and

(2) You must give all players an equal opportunity to participate; and

(3) You must establish standards to determine how you will give promotional items to players. You must not give the items based on an element of chance, such as a drawing or spinning wheel, unless you are doing so as part of a bingo game; and

(4) You must not give another chance to participate in a gambling activity as a promotional item; and

(5) You must display all rules or restrictions clearly in the gambling area and include them on promotional materials or advertisements; and

(6) You must not combine gambling activities and related gambling promotions in any way with a promotional contest of chance as defined in RCW 9.46.0356.

[]


NEW SECTION
WAC 230-06-035   Offer no credit, loans, or gifts.   (1) Licensees, employees, or members must not extend credit, make loans, or give gifts to any person playing in an authorized gambling activity or which makes it possible for any person to play in an authorized gambling activity.

(2) Gifts are items licensees give to their customers. Licensees must not connect these gifts to gambling activities we regulate unless the gifts are:

(a) Gambling promotions; or

(b) Transportation services to and from gambling activities; or

(c) Free or discounted food, drink, or merchandise which:

(i) Costs less than five hundred dollars per individual item; and

(ii) Must not be traded back to you for cash; and

(iii) Must not give a chance to participate further in an authorized gambling activity.

(3) You must collect the price required to participate in the gambling activity in full before allowing someone to participate. Licensees must collect cash, check, or electronic point-of-sale bank transfer.

(4) If the price paid for the opportunity to play a punch board or pull-tab series is ten dollars or less, licensees may collect the price immediately after the play is completed.

(5) If a charitable or nonprofit organization has a regular billing system for all of the activities of its members, it may use its billing system in connection with the playing of any licensed activities as long as the organization limits play to full and active members of its organization.

(6) Charitable or nonprofit organizations may allow credit cards, issued by a state regulated or federally regulated financial institution, for payment to participate in raffles.

[]


NEW SECTION
WAC 230-06-045   Conduct gambling activities on licensed business premises only.   (1) Licensees must conduct all gambling activities, except for raffle ticket sales, on the licensed business premises.

(2) Charitable or nonprofit organizations licensed to conduct bingo and punch board and pull-tab games may sell punch boards and pull-tabs to customers of a licensed card room if the charitable or nonprofit organization:

(a) Shares a common wall with the card room; and

(b) Controls all doors, counters, or windows allowing customer access through the common wall between the two premises and the charitable or nonprofit organization can securely close and lock the doors, counters, or windows; and

(c) Keeps and sells the punch board and pull-tab games and redeems prizes only on their licensed business premises. Punch board and pull-tab players may take already purchased punch boards and pull-tabs into the card room area; and

(d) Allows only its employees to sell the punch board and pull-tabs; and

(e) Posts signs at the door, window, or counter common to the two business premises that clearly notify customers of the organization's identity.

[]


NEW SECTION
WAC 230-06-050   Review of electronic or mechanical gambling equipment.   (1) Persons who wish to submit gambling equipment, supplies, services, or games for our review to verify compliance with chapter 9.46 RCW and Title 230 WAC must pay the application deposit before we perform the review. They must also reimburse us for any additional costs of the review.

(2) We may require manufacturers to submit electronic or mechanical gambling equipment for review. To allow for continued testing and training, staff may keep any equipment submitted for review for as long as the equipment remains in play in Washington. The manufacturers must reimburse us for any costs of the review. We are not liable for any damage to equipment while in our possession.

(3) Licensees must operate equipment identical to the version staff approved.

[]

NOTIFYING LAW ENFORCEMENT, POSTING PUBLIC NOTICES, AND RECORDKEEPING
NEW SECTION
WAC 230-06-055   Notify law enforcement of gambling activity.   (1) Licensees must notify local law enforcement agencies, in writing, that they have been licensed before they begin to conduct any activity under the license.

(2) Licensees must tell local law enforcement agencies:

(a) The address where they will conduct the gambling activity; and

(b) The type of gambling activity licensed; and

(c) The first date they will conduct the gambling activity; and

(d) The proposed schedule for the operation of the gambling activity if they plan to conduct the activity on a regular basis.

(3) Licensees must not conduct the activity until they have made the notification.

[]


NEW SECTION
WAC 230-06-060   Maintain copy of commission rules on business premises.   Licensees must maintain a current version of our rules on their business premises. If any person asks to see our rules, the licensee must produce the rules for that person.

[]


NEW SECTION
WAC 230-06-065   Display copies of all licenses or have them present on business premises.   (1) Licensees must prominently display all gambling activity licenses or permits we have issued in the gambling area of their business premises.

(2) Licensees must have these licenses and permits ready for inspection by us, other law enforcement, and the public at all times.

(3) Card room employers may choose not to display employee licenses, but must maintain a copy of all card room employees' licenses, proof of licensing, or applications if we have not issued a license, on the licensed premises at all times.

[]


NEW SECTION
WAC 230-06-070   Keep monthly records.   Every person or organization licensed to operate any gambling activity must maintain permanent monthly records of all financial transactions directly or indirectly related to gambling activities. The licensee must include all financial transactions in enough detail to prove compliance with recordkeeping requirements for the specific gambling activity.

(1) Every licensee must record for each licensed activity:

(a) The gross gambling receipts; and

(b) Full details on all expenses; and

(c) The total cost of all prizes paid.

(2) Commercial stimulant licensees must also record:

(a) Gross sales of food and drink for consumption on the business premises; and

(b) Gross sales of food and drink for consumption off the business premises; and

(c) Gross sales from all other business activities occurring on the business premises.

(3) Licensees must record each licensed activity separately and include all transactions occurring during the calendar month. Licensees must complete these records and have them available for audit or inspection by our agents or other law enforcement no later than thirty days following the end of each month.

(4) Licensees must include copies of all additional financial data which support tax reports to any governmental agency.

(5) Licensees must maintain each of these records for at least three years from the end of the fiscal year.

[]


NEW SECTION
WAC 230-06-075   Removal of equipment or records for inspection.   (1) If we believe with a reasonable probability that you, your employees, or your members are violating or have violated the provisions of chapter 9.46 RCW, its amendments, or any of our rules, we may remove, inspect, and investigate any records, equipment, parts, and devices of any nature located on your premises that relate to the licensed activity or any other gambling activity.

(2) We also may remove records from your premises or your control in order to facilitate our review of the records.

(3) If we receive a written request from you, we will provide you with copies of retained records.

(4) After the case is resolved, we will return all records, equipment, parts, and devices to the premises or to your address.

[]

REPORTING CHANGES TO APPLICATION INFORMATION
NEW SECTION
WAC 230-06-080   Report changes to application information and submit updated documents and information.   (1) Licensees must notify us in writing if any information filed with the application changes in any way within thirty days of the change.

(2) Licensees must submit to us any new or updated documents and information, including the following:

(a) Articles of incorporation or bylaws, or any other documents which set out the organizational structure and purposes; and

(b) All oral or written contracts and agreements which relate to gambling activities or alter the organizational structure of the licensee's organization or business activities in Washington; and

(c) All cash or asset contributions, draws from lines of credit, and loans (except those from recognized financial institutions) during any calendar year which by themselves or totaled together are more than ten thousand dollars. Cash or asset contributions do not include donations to licensed charitable or nonprofit organizations; and

(d) Internal Revenue Service tax deductible status of contributions for charitable and nonprofit organizations.

[]

REPORTING CRIMINAL, ADMINISTRATIVE, AND CIVIL ACTIONS
NEW SECTION
WAC 230-06-085   Report criminal actions filed.   (1) Licensees must report to us in writing within thirty days all criminal actions filed against the licensee, any manager of the licensed gambling activity, the business organization, or any person holding a substantial interest in the business organization.

(2) We must receive a copy of the final written decision or settlement within thirty days after the case is resolved.

[]


NEW SECTION
WAC 230-06-090   Report administrative and civil actions filed.   (1) All licensees must report to us in writing within thirty days all administrative actions filed against them by other gambling regulatory agencies, including those from other countries and Indian tribes.

(2) Licensed organizations must report to us in writing within thirty days all civil and administrative actions that are filed by or against any manager of the licensed gambling activity, the business organization, or any person holding a substantial interest in the business organization. Actions include, but are not limited to:

(a) Divorces; and

(b) Bankruptcy; and

(c) Tax liens; and

(d) Business dissolutions.

(3) The report must consist of a complete copy of the original documents filed. Licensees must notify the commission of the final disposition of the case and include a copy of the final documents filed including, but not limited to, settlement agreements.

(4) For cases involving patent infringement on gambling equipment, licensees must send only the final written decision or settlement.

(5) We must receive a copy of the final written decision or settlement within thirty days after the case is resolved.

[]

CHANGING NAMES OR LOCATIONS
NEW SECTION
WAC 230-06-095   Change given name, trade name, or corporate name.   Licensees must notify us and pay a fee for any change to the given name, trade name, or corporate name on their license at least thirty days before the actual change date.

[]


NEW SECTION
WAC 230-06-100   Changing business locations.   (1) Licensees must apply to us and pay a fee to change the location of their licensed business premises. Licensees must receive our approval before changing the business location.

(2) Commercial amusement game licensees may add or delete from the list of locations for which we issued their license without paying a fee.

[]

CHANGING MANAGEMENT OR OWNERSHIP
NEW SECTION
WAC 230-06-105   Report change of management.   (1) Licensees must report in writing changes made to their organization's management, directors, officers, or any other position that makes management decisions directly affecting the operation of their licensed gambling activity. We provide the forms to report these changes.

(2) If you are a commercial business licensee, you must report within thirty days.

(3) If you are a charitable or nonprofit organization licensee, you must report the changes when renewing your annual license.

[]

SALES AND TRANSFERS OF EQUIPMENT, PRODUCTS, AND SERVICES
NEW SECTION
WAC 230-06-110   Buy, sell, or transfer gambling equipment.   (1) Before selling gambling equipment, licensees must ensure that the buyer possesses a valid gambling license.

(2) Before purchasing gambling equipment, licensees must ensure that the seller possesses a valid gambling license.

(3) Applicants for Class F or house-banked card room licenses may purchase and possess gambling equipment during the prelicensing process, but only after receiving written approval from us.

(4) Licensees may transfer gambling equipment as a part of a sale of a business as long as a condition of the sale is that the buyer receives a gambling license before the sale is complete. Licensees must make a complete record of all gambling equipment transferred in this manner, including commission identification and inspection services stamp numbers. Licensees must report these transfers, including a copy of the inventory record, to us.

[]


NEW SECTION
WAC 230-06-115   Using checks or credit cards to purchase gambling equipment, products, or services.   (1) Licensees may use checks or credit cards from state or federally regulated financial institutions to purchase gambling equipment, devices, related supplies or paraphernalia, and services.

(a) Checks must be drawn on the licensed buyer's business account or on the personal account of an owner, partner, officer, or a substantial interest holder of a corporate licensee; and

(b) Checks must be negotiable and dated on or before the delivery date of the product or service.

(2) Licensees must deposit checks at their bank:

(a) Within ten calendar days after the date the licensee delivered the product or service; or

(b) If a licensed buyer makes payment by mail, within thirteen days from the date postmarked on the envelope containing the payment.

[]


NEW SECTION
WAC 230-06-120   Sell or transfer gambling equipment to manufacturers or distributors.   (1) If we have revoked your operator or distributor license, your license has expired, or you have voluntarily surrendered your license, you may sell or otherwise transfer gambling equipment to a licensed manufacturer or distributor.

(2) Transfers of gambling equipment in this manner are subject to the following requirements:

(a) The transfer must be complete within thirty days of the date the license became invalid; and

(b) Distributors must use the cash or credit against amounts they owe manufacturers; and

(c) Operators or distributors selling the equipment must report to us within ten days of the transaction a complete inventory of all the gambling equipment transferred, including commission identification and inspection services stamp numbers; and

(d) Manufacturers or distributors receiving the equipment must prepare a credit memorandum and retain it with their records.

[]

LICENSE RENEWALS
NEW SECTION
WAC 230-06-125   Renew your license in a timely manner.   (1) Licensees must ensure a properly completed renewal application and all applicable fees are received at our headquarters fifteen days before the expiration date on their license.

(2) If licensees do not submit a properly completed application and all fees, their license expires, and they must immediately stop the gambling activity covered by their license.

(3) If your license expires, you must submit a new application and you must not operate any gambling activity until a new license is issued.

[]


NEW SECTION
WAC 230-06-130   Exceeding license class.   (1) Licensees must not exceed the gross gambling receipts limits for their license class during any annual license period.

(2) Licensees must apply a projection of year-to-date receipts to the remaining period of their license and, if it indicates that it is reasonably likely that they may exceed their license, they must immediately:

(a) Apply for a license that authorizes the anticipated level of gross gambling receipts; and

(b) Submit the fee required for the new license, minus the amount originally submitted for the previous license, plus a change of classification fee.

(3) If we issue a license upgrade, it is valid only for the remainder of the original term of the license.

(4) Licensees may exceed license class limits once, by the amount shown in the fees table, without having to upgrade or pay the penalties as long as they upgrade to the higher license class the next time they renew their license.

[]


NEW SECTION
WAC 230-06-135   Failing to apply for license class upgrade.   (1) If licensees fail to apply for a license class upgrade and exceed the license class limit within a present or previous license year, we assess an additional fee. We charge an additional fee of up to fifty percent of the difference between the fee for the present license class and the new license class, or one thousand dollars, whichever is less.

(2) Licensees must pay any required license class upgrade fee, plus any additional fee required by subsection (1) of this section, within thirty days of our notification.

(3) Failure to pay the fees may result in an immediate summary suspension of all licenses.

[]


NEW SECTION
WAC 230-06-140   Partial refund of license fees if gambling receipts limit not met.   (1) Licensees may apply for a partial refund of their license fee when their annual gross gambling receipts are less than the minimum for the class of license we issued to them.

(2) Licensees may receive a refund for the difference between the fees actually paid and the fees that would normally apply to the level of gross gambling receipts actually received during the period.

(3) Licensees may make their request for refund after the end of any annual license period and before the end of the next annual license period.

[]


NEW SECTION
WAC 230-06-145   Surrendering suspended or revoked licenses.   If we suspend or revoke your license, you must, on demand, surrender the license and return it to us.

[]

Washington State Code Reviser's Office