WSR 08-07-069

PROPOSED RULES

GAMBLING COMMISSION


[ Filed March 17, 2008, 4:24 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 07-17-185.

Title of Rule and Other Identifying Information: Amending WAC 230-03-005 permits for recreational gaming activities, 230-06-110 Buying, selling or transferring gambling equipment, 230-14-085 Calculating markup for merchandise prizes and 230-15-460 Supervision requirements for house-banked card games; and new section WAC 230-15-453 Using match play or similar coupons in gambling promotions.

Hearing Location(s): Red Lion Hotel, 2525 North 20th Avenue, Pasco, WA 99301, (509) 547-0701, on May 9, 2008, at 9:30 a.m.

Date of Intended Adoption: May 9, 2008.

Submit Written Comments to: Susan Arland, P.O. Box 42400, Olympia, WA 98504-2400, e-mail Susan2@wsgc.wa.gov, fax (360) 486-3625, by May 1, 2008.

Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by May 1, 2008, TTY (360) 486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This rules package incorporates rule interpretations that existed since 2005 and 2006.

Reasons Supporting Proposal: See above.

Statutory Authority for Adoption: RCW 9.46.070.

Statute Being Implemented: Not applicable.

Name of Proponent: Washington state gambling commission, governmental.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Rules Coordinator, Lacey, (360) 486-3466; Implementation: Rick Day, Director, Lacey, (360) 486-3446; and Enforcement: Mark Harris, Assistant Director, Lacey, (360) 486-3579.

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 because the change would not impose additional costs on businesses.

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.

March 17, 2008

Susan Arland

Rules Coordinator

OTS-1360.1


AMENDATORY SECTION(Amending Order 457, filed 3/22/06, effective 1/1/08)

WAC 230-03-005   Permits for recreational gaming activities.   A recreational gaming activity (RGA) is a nongambling activity, using poker tables and gambling equipment authorized for use in fund-raising events((,)). An RGA is conducted no more than two times per calendar year, by, or on behalf of, a sponsoring organization, business, or association, or department of an organization, business, or association.

(1) An organization, business, or association, or department of an organization, business, or association, that holds or sponsors an RGA must either:

(a) Apply for and get a permit before the event; or

(b) Hire a licensed fund-raising equipment distributor to organize and conduct the activity.

(2) Only members and guests of the sponsoring organization, business, or association, or department of the sponsoring organization, business, or association, may participate in the RGA.

(3) Permit holders must:

(a) Rent the gambling equipment used in the RGA from:

(i) A licensed distributor of fund-raising event equipment; or

(ii) A licensee who has conducted a fund-raising event within the last twelve months; and

(b) Use scrip or chips which have no cash value; and

(c) Limit the RGA to eight hours.

(4) The permit holder may charge a fee to enter the premises if that fee pays for:

(a) An accompanying meal and entertainment associated with the RGA; or

(b) The costs of renting the equipment used in the RGA.

(5) All prizes must be donated to, or provided by, the permit holder.

(6) The permit holder may allow participants to:

(a) Redeem their scrip or chips for prizes; or

(b) Trade scrip or chips for tickets which are then drawn to determine the prize winners. ((All prizes must be donated to, or provided by, the permit holder.))

[Statutory Authority: RCW 9.46.070. 06-07-157 (Order 457), 230-03-005, filed 3/22/06, effective 1/1/08.]

OTS-1361.1


AMENDATORY SECTION(Amending Order 617, filed 10/22/07, effective 1/1/08)

WAC 230-06-110   Buying, selling, or transferring gambling equipment.   (1) All licensees and persons authorized to possess gambling equipment must closely control the gambling equipment in their possession.

(2) Before selling gambling equipment, licensees must ensure that the buyer possesses a valid gambling license or can legally possess the equipment without a license.

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

(4) 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.

(5) Charitable and nonprofit organizations conducting unlicensed bingo games, as allowed by RCW 9.46.0321, may possess bingo equipment without a license.

(6) 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 I.D. stamps. Licensees must report these transfers, including a copy of the inventory record, to us.

[Statutory Authority: RCW 9.46.070. 07-21-116 (Order 617), 230-06-110, filed 10/22/07, effective 1/1/08; 06-17-132 (Order 601), 230-06-110, filed 8/22/06, effective 1/1/08.]

OTS-1362.1


AMENDATORY SECTION(Amending Order 614, filed 8/10/07, effective 1/1/08)

WAC 230-14-085   Calculating markup for merchandise prizes.   (1) To calculate sixty percent of total gross for merchandise prizes, operators take the amount actually paid for the prize and add to it no more than fifty percent of that cost as markup.

(2) Gift certificates from a licensee's own establishment may be used as merchandise prizes for pull-tab games but must not be included in the sixty percent payout calculation.

(3) The total cost to the operator for the purchase of a prize must not exceed ((seven hundred fifty)) twenty-five hundred dollars.

[Statutory Authority: RCW 9.46.070. 07-17-058 (Order 614), 230-14-085, filed 8/10/07, effective 1/1/08.]

OTS-1358.1


NEW SECTION
WAC 230-15-453   Using match play or similar coupons in gambling promotions.   Match play coupons may be offered as gambling promotions with the following restrictions:

(1) The coupons have no value. Players cannot "double down" on the "match play" portion of the wager.

(2) Players may double down on the chip portion of the wager, not to exceed maximum wagering limits.

(3) A match play coupon is not considered part of the player's wager in determining the amount wagered. Match play coupons may be used by players who wager the maximum allowed.

(4) A match play coupon is itself a gambling promotion and cannot be awarded as a prize in a promotional contest of chance, as authorized in RCW 9.46.0356, or as a prize on a card game.

(5) Restrictions on the use of coupons must be disclosed on the coupon.

(6) Expiration dates must be included on the coupon.

(7) Match play and other similar type coupon promotions such as Lucky Bucks and Free Ace, etc., may be given to participants in a card tournament as long as they are given to all participants and are not awarded based on the outcome of the tournament.

[]

OTS-1363.1


AMENDATORY SECTION(Amending Order 608, filed 4/10/07, effective 1/1/08)

WAC 230-15-460   Supervision requirements for house-banked card rooms.   (1) House-banked card game licensees must have at least one floor supervisor for each gambling area. Each supervisor may supervise up to seven tables. We must approve the arrangement of tables in the internal controls.

(2) Licensees must have two levels of supervision present on the business premises if more than ten tables are open. Poker tables operated in a separate gambling area are not included in the calculation of levels of supervision.

(3) A card room employee may act as a dealer and a supervisor during the same shift as long as he or she does not sign forms as both the dealer and the supervisor.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), 230-15-460, filed 4/10/07, effective 1/1/08.]

Washington State Code Reviser's Office