WSR 10-12-092

PROPOSED RULES

GAMBLING COMMISSION


[ Filed June 1, 2010, 11:17 a.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 10-08-033.

     Title of Rule and Other Identifying Information: WAC 230-15-695 Adjusting progressive jackpot amounts.

     Hearing Location(s): Vancouver Heathman Lodge, 7801 Greenwood Drive, Vancouver, WA 98662, (360) 254-3100, on August 12, 2010, at 1:30 p.m.; or on August 13, 2010, at 9:00 a.m.

     Date of Intended Adoption: August 12 or 13, 2010.

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

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

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Progressive jackpots are funded from a percentage of each progressive jackpot wager. Currently, WAC 230-15-695 allows house-banked card game licensees to reduce the amount of a progressive jackpot prize accrued or displayed for specific reasons. The rule does not allow for house-banked card game licensees to reduce the amount of a progressive jackpot prize accrued or displayed in order to seed a different progressive card game without recognizing that amount as gross receipts. If a house-banked card game licensee wants to use money from a progressive reserve account to seed a different progressive card game, they must recognize this amount as gross receipts under WAC 230-15-695(4) and pay the appropriate taxes on said gross receipts. The proposed change would allow house-banked card rooms offering progressive jackpot card games to reduce a reserve or secondary jackpot to seed a different progressive jackpot game without recognizing this amount as gross receipts.

     Statutory Authority for Adoption: RCW 9.46.070.

     Statute Being Implemented: Not applicable.

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

     Name of Proponent: Great American Gaming, Corp., private.

     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.

     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.

June 1, 2010

Susan Arland

Rules Coordinator

OTS-3246.1


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

WAC 230-15-695   Adjusting progressive jackpot amounts.   House-banked card game licensees must not reduce the amount of a progressive jackpot prize accrued or displayed except for the following reasons:

     (1) To reduce the jackpot and the advertised amount by the amount won; or

     (2) To correct an amount displayed incorrectly because of malfunctioning equipment; or

     (3) To correct the display when the amount displayed is greater than the predetermined maximum prize limit; or

     (4) To reduce a reserve or secondary jackpot as long as they record the funds removed as gross receipts and properly documented that in their records; or

     (5) To reduce a reserve or secondary jackpot to recover seed money that was not taken from gross receipts, if they properly document those funds in their records; or

     (6) To reduce the jackpot by the dollar amount they paid for merchandise they award as prizes.

     (7) To reduce a reserve or secondary jackpot to immediately seed a different progressive jackpot if the licensee properly documents this transfer in their records.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), § 230-15-695, filed 4/10/07, effective 1/1/08.]

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