Effective Date of Rule: Thirty-one days after filing.

     Purpose: Card room tip reporting: The rule change requires more detailed procedures for the accountability of tips received by card room employees in house-banked card rooms, including the following:

     1. Tip ("toke") drop boxes must be locked and remain under camera coverage at all times; and

     2. Tips must be redeemed under surveillance; and

     3. Card room employees (CRE) must accurately report all tips to their employer. This puts the burden on the CRE to report accurately; and

     4. Tips received by the cage cashier must be counted by the shift/floor supervisor or security.

     Citation of Existing Rules Affected by this Order: Amending WAC 230-40-855.

     Statutory Authority for Adoption: RCW 9.46.070.

      Adopted under notice filed as WSR 06-23-032 on November 6, 2006.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.

     Date Adopted: January 12, 2007.

Susan Arland

Rules Coordinator

OTS-9266.3

AMENDATORY SECTION(Amending Order 383, filed 4/14/00, effective 5/15/00)

WAC 230-40-855   Acceptance of tips from patrons for house-banked activities.   Licensees may allow selected employees to accept tips from patrons. If allowed, tips shall be controlled in a manner to ensure they are only received by authorized persons, properly accounted for, and maintained separate from all other gaming funds. The following restrictions and procedures apply:

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

     (2) Each licensee shall establish procedures necessary to ensure that the acceptance of tips by dealers is observed by the floor supervisor and surveillance. Procedures shall include an overt display of tips received, such as tapping the table with the tip prior to placing it in the tip container.

     (3) All tips must be dropped into a locked tip container which prevents the removal of chips except by unlocking. Tip containers must remain under camera coverage of the closed circuit television system at all times.

     (4) Tips to the cage cashier shall be deposited directly into the tip container by the patron. Cashier tip containers shall be located outside the cage enclosure. Tips received by a cage cashier must be counted by the shift/floor supervisor or security.

     (((4))) (5) Tips received shall be retained by employees or pooled among employees ((in such manner as determined by the licensee)) as described in the licensee's internal controls.

     (((5))) (6) 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 licensee's internal controls and shall describe in detail any methods used to allocate tips. ((Accounting and recording of tip income shall be in sufficient detail to meet federal income tax requirements.))

     (7) All tips received by licensed card room employees must be redeemed under surveillance at the cashier's cage. Card room employees must accurately report all tips to their employer as described in the licensee's internal controls.

     (8) All pooled tips must be redeemed under surveillance at the cashier's cage, count room or a gaming table.

[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), § 230-40-855, filed 4/14/00, effective 5/15/00.]

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