PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 10-19-105.
Title of Rule and Other Identifying Information: WAC 230-13-135 Maximum wagers and prize limitations at certain amusement game locations.
Hearing Location(s): State Investment Board, 2100 Evergreen Park Drive S.W., Olympia, WA 98504, on January 13 or 14, 2011, at 9:00 a.m. or 1:00 p.m. NOTE: Meeting dates and times are tentative. Visit our web site at www.wsgc.wa.gov and select public meeting about ten days before the meeting to confirm meeting date/location/start time.
Date of Intended Adoption: January 13 or 14, 2011.
NOTE: Meeting dates and times are tentative. Visit our web site at www.wsgc.wa.gov and select public meeting about ten days before the meeting to confirm meeting date/location/start time.
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 January 1, 2011.
Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by January 1, 2011, TTY (360) 486-3637 or (360) 486-3453.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Dave & Buster's Inc., a restaurant/amusement game business that does not currently operate in Washington is looking into opening a new location in Washington. The petitioner submitted a petition for rule change to increase amusement game wagering limits from $0.50 to $5 and prize limits from $250 to $500 for all locations listed in WAC 230-13-135. These locations include: Regional shopping centers, movie theaters, bowling alleys, miniature golf courses, skating facilities, amusement centers, restaurants, and department and grocery stores.
Reasons Supporting Proposal: According to the petitioner's letter, Dave & Buster's is currently operating restaurant/amusement venues in fifty-seven communities across twenty-four states. They have been engaging in negotiations to enter into a lease for a building in Tukwila to open a restaurant/amusement game business. However, the petitioner stated that their business model which has been successfully implemented in their other locations cannot adequately perform in Washington state due to the maximum $0.50 per play limit. The petitioner also noted in the petition that all guests at their location who are under the age of eighteen must be accompanied by a guardian at least twenty-five years or older. They also have a policy that one adult can only supervise six minors. In addition minors are not allowed to "roam" freely in the building. The guardian must accompany the minors.
Statutory Authority for Adoption: RCW 9.46.070, 9.46.0331, 9.46.0201.
Statute Being Implemented: Not applicable.
Rule is not necessitated by federal law, federal or state court decision.
Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: History of the rule, WAC 230-13-135: Amusement games are played for entertainment only, require a material degree of skill, and operators may only award merchandise prizes (RCW 9.46.0201).
Amusement games operated at the following locations have a wager limit of $0.50 and a prize limit of $250 (WAC 230-13-135):
(1) Regional shopping centers; and
(2) Movie theaters; and
(3) Bowling alleys; and
(4) Miniature golf course facilities; and
(5) Skating facilities; and
(6) Family sports complexes; and
(7) Amusement centers; and
(8) Grocery or department stores; and
(9) Any business whose primary activity is to provide food service for on premises consumption.
School aged minors are allowed to play at these locations. However, minors may not enter these locations during school hours or after 10:00 p.m. These locations are required to have adult supervision on site (RCW 9.46.0331 and WAC 230-13-090).
Amusement games operated at other authorized locations do not have wager and prize limit restrictions (RCW 9.46.0331). These locations include:
(1) Agricultural fair; and
(2) Civic centers of a county, city, or town; and
(4) World's fair or similar exposition that is approved by the bureau of international expositions at Paris, France; and
(5) Community-wide civic festivals held not more than once annually and sponsored or approved by the city, town, or county in which it is held; and
(6) Commercial expositions organized and sponsored by an organization or association representing the retail sales and service operators conducting business in a shopping center or other commercial area developed and operated for retail sales and service, but only upon a parking lot or similar area located in said shopping center or commercial area for a period of no more than seventeen consecutive days by any licensee during any calendar year; and
(7) A location that possesses a valid license from the Washington state liquor control board and prohibits minors on their premises (Taverns and bars, where minors are not allowed to enter).
During the past thirteen years, the commission has received three petitions to increase wagering limits and/or prize limits for all locations listed in WAC 230-13-135 (see below).
Previous Petitions:
(1) At their February 2008 meeting, the commission filed a petition for rule change submitted by Music-Vend Distributing, an amusement game licensee, to increase the maximum wager from $0.50 to $1 for all locations listed in WAC 230-13-135. At the May 2008 meeting, the petition was up for final action and died for lack of a motion, after discussion about children playing amusement games. See minutes from the May 2008 commission meeting.
(2) At the March 2007 commission meeting, a petition for rule change submitted by Nickels and Dimes, an amusement game licensee, was up for filing. The petitioner was requesting that amusement game wagering limits be increased from $0.50 to $2 for all locations listed in WAC 230-13-135. The petitioner was also requesting to increase amusement game prize limits from $200 to $600. At the March meeting, the petitioner withdrew their request to increase prize limits and requested that only wagering limits be increased. The commission filed his request for further discussion. At their July 2007 meeting, the commission did not adopt the petitioner's request to increase amusement game wagering limits from $0.50 to $2. The commission was concerned about increasing wagering limits on games geared to children. See minutes from the April, May, and July 2007 commission meeting.
(3) In 1997, a petition for rule change from Music Vend and the Washington Amusement and Music Operators Association was filed by the commission. The petitioner requested wagering limits for amusement games be increased from $0.50 to $1 and prize limits be increased from $100 to $500. The commission was concerned about increasing wagering limits because minors were allowed to play. The commission amended and adopted the petition to keep wagering limits at $0.50, but agreed to increase prize limits to $250. See minutes from the May 1997 commission meeting.
Impact on Licensees:
| • | Amusement game licensees operating games at the locations listed in WAC 230-13-135 would be able to set higher wagering limits up to $5 on amusement games which is comparable to what agricultural fairs and carnivals are already doing. |
| • | Amusement game licensees at these locations may be able to offer the newest types of amusement games. Modern amusement games are expensive to purchase and maintain. They cannot offer these games when they are only able to charge $0.50 per play. |
| • | Offering modern amusement games may increase adult players. |
| • | These licensees would be able to offer prizes such as name brand electronics. |
| • | If these licensees are able to charge more per play they will likely see an increase in gross receipts, which may increase taxes for local governments. |
We currently receive very few if any complaints about amusement games; however, there is a chance additional resources may be needed to respond to complaints with the higher limits. If we received many complaints, it would be difficult to timely respond to them and would require devoting resources from other regulatory programs.
Resource Impacts: Additional regulatory resources may be needed to monitor amusement games.
Policy Considerations: Higher wager and prize limits would be allowed at permanent locations where minors spend money on this activity. Although minors can play amusement games at agricultural fairs where there are no wager or prize limits, these are temporary locations.
The maximum cost for a pull-tab is $1. Pull-tab games are operated in a supervised environment and are not accessible to minors. Pull-tab games are highly regulated and may offer cash or merchandise prizes. However, there is no skill involved in pull-tabs, while a player can improve their chance of winning playing an amusement game. Furthermore, pull-tabs can be bundled and sold at a higher price than $1; however, operators must allow players to purchase a single ticket. Few players request an individual tab on games that offer bundled tickets.
Name of Proponent: Dave and Buster's, Inc., 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.
November 5, 2010
Susan Arland
Rules Coordinator
OTS-3649.2
AMENDATORY SECTION(Amending Order 650, filed 7/13/09,
effective 8/13/09)
WAC 230-13-135
Maximum wagers and prize limitations at
certain amusement game locations.
The maximum wager is
((fifty cents)) five dollars and the maximum cost for a prize
is ((two)) five hundred ((fifty)) dollars if school-aged
minors are allowed to play amusement games at the following
locations:
(1) Regional shopping centers; and
(2) Movie theaters; and
(3) Bowling alleys; and
(4) Miniature golf course facilities; and
(5) Skating facilities; and
(6) Family sports complexes.
(((i))) (a) A "family sports complex" is a facility, at a
permanent location, to which people go to play sports. A
family sports complex must offer multiple sports activities,
such as indoor soccer, outdoor soccer, lacrosse, baseball,
Frisbee, and lawn bowling and the gross receipts must be
primarily from these sports activities.
(((ii))) (b) A family sports complex does not include a
facility owned or operated by a school or school district; and
(7) ((Amusement centers; and
(8))) Grocery or department stores. A "department or grocery store" means a business that offers the retail sale of a full line of clothing, accessories, and household goods, or a full line of dry grocery, canned goods, or nonfood items plus some perishable items, or a combination of these. A department or grocery store must have more than ten thousand square feet of retail and support space, not including the parking areas; and
(((9))) (8) Any business whose primary activity is to
provide food service for on premises consumption.
[Statutory Authority: RCW 9.46.070. 09-15-067 (Order 650), § 230-13-135, filed 7/13/09, effective 8/13/09; 08-11-036 (Order 625), § 230-13-135, filed 5/14/08, effective 7/1/08; 07-15-064 (Order 612), § 230-13-135, filed 7/16/07, effective 1/1/08.]