WSR 10-07-068



[ Filed March 16, 2010, 11:01 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 09-24-064.

Title of Rule and Other Identifying Information: WAC 230-15-720 Deposit and reconciliation requirements for progressive jackpot prizes and 230-15-400 Accounting for player-supported jackpot funds.

Hearing Location(s): Red Lion Hotel, 2525 North 20th Avenue, Pasco, WA 99301, (509) 547-0701, on May 14, 2010, at 9:00 a.m.

Date of Intended Adoption: May 14, 2010.

Submit Written Comments to: Susan Arland, P.O. Box 42400, Olympia, WA 98504-2400, e-mail, fax (360) 486-3625, by May 1, 2010.

Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by May 1, 2010, TTY (360) 486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The rule change would allow card room licensees the option of having commission agents verify player-supported jackpot and progressive jackpot prize funds deposits on-line.

Reasons Supporting Proposal: A majority of card room licensees use on-line banking. This rule change will allow licensees and staff to use on-line access to bank accounts to verify player-supported jackpot funds and progressive jackpot prize funds. This rule change will bring our rules up to date with current technology, while not compromising the integrity of our regulatory program. The change will codify current agency practice.

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: 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 was not prepared because the proposed rule change does not impose more than minor costs, as defined in chapter 19.85 RCW, to licensees. There are no costs imposed on licensees because the proposed change reduces or eliminates the need for licensees to retain paperwork.

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 16, 2010

Susan Arland

Rules Coordinator


AMENDATORY SECTION(Amending Order 660, filed 9/11/09, effective 1/1/10)

WAC 230-15-400   Accounting for player-supported jackpot funds.   Class F or house-banked licensees must:

(1) Maintain a separate bank account in a bank, mutual savings bank, or credit union in Washington state for holding player-supported jackpot (PSJ) funds; and

(2) Deposit only funds from PSJs into the account; and

(3) Not make payouts from the PSJ funds until licensees have first deposited the funds in the PSJ account. However, licensees may pay out prizes won during the gambling day and deduct administrative expenses before licensees deposit the funds; and

(4) Transfer or deposit the PSJ funds into the PSJ account or with an armored car service no later than the second banking day after the close of business; and

(5) Identify all deposits or transfers of PSJ funds by the type of PSJ fund and date of collection. Licensees must keep the validated deposit receipts or transfer information as a part of their required daily records or have on-line access to their player-supported jackpot bank accounts; and

(6) Transfer the amount from the PSJ account to the cage or general account before the end of the month if PSJ prizes are paid from the cage or general account. The licensee must keep the transfer information as part of the written records; and

(7) Reconcile the account balance in their bank statement to the PSJ prize balance on their PSJ fund accrual record each month. "Reconcile" means the licensee must compare the two balances, resolve any differences, and document the comparison and the differences in writing. Licensees must keep the reconciliation as part of their records.

[Statutory Authority: RCW 9.46.070. 09-19-051 (Order 660), 230-15-400, filed 9/11/09, effective 1/1/10; 07-10-034 (Order 611), 230-15-400, filed 4/24/07, effective 1/1/08.]


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

WAC 230-15-720   Deposit and reconciliation requirements for progressive jackpot prizes.   (1) House-banked card game licensees must deposit all progressive jackpot funds in a separate bank account at least weekly.

(2) Licensees must:

(a) Keep a record of all deposits; and

(b) For each progressive prize, identify the deposits by game name and number and dates of collection; and

(c) Maintain validated deposit slips as part of their records or have on-line access to their progressive jackpot prize bank accounts.

(3) At the end of the month, licensees must:

(a) Reconcile the account balance with the bank statement to the progressive jackpot fund balances. "Reconcile" means the licensee must compare the two balances, resolve any differences, and document the comparison and the differences in writing; and

(b) Keep the reconciliation as part of their records.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), 230-15-720, filed 4/10/07, effective 1/1/08.]

Washington State Code Reviser's Office