WSR 11-23-172

PROPOSED RULES

GAMBLING COMMISSION


[ Filed November 22, 2011, 4:39 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 11-15-019.

Title of Rule and Other Identifying Information: New sections WAC 230-11-200 Defining "electronic raffle system," 230-11-205 Operating requirements for electronic raffle systems, 230-11-210 Leasing electronic raffle systems and 230-16-152 Remote access of electronic raffle systems; and amending WAC 230-11-065 Raffle prizes and 230-11-067 Requesting approval to offer raffle prizes exceeding forty thousand dollars per prize or eighty thousand dollars annually.

Hearing Location(s): Grand Mound Great Wolf Lodge, 20500 Old Highway 99 S.W., Grand Mound, WA 98531, (360) 273-7718, on February 9 or 10, 2012, 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: February 9 or 10, 2012. 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 February 1, 2012.

Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by February 1, 2012, TTY (360) 486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: 50/50 Central, formerly a licensed manufacturer, is requesting a rule change to allow raffle tickets to be sold using electronic raffle systems. The system is loaded into hand held equipment that prints raffle tickets. For example, an individual representing a charitable/nonprofit organization could walk around an arena with a handheld point of sale (POS) system and ask people if they want to purchase a raffle ticket. If so, the individual representing the nonprofit would collect money, print a receipt from the POS equipment and give the receipt to the purchaser. The raffle number(s) are printed on the receipt. Individuals who purchase tickets would not interact with the equipment. Currently, one discount plan is allowed per raffle (for example, tickets are $8 each, or buy two for $10). The rule change would allow raffles that use the electronic accounting system to use up to four discount plans for a raffle. The petitioner also requests removing the requirement that raffle licensees must get approval from the commission to exceed $80,000 in prizes annually.

Reasons Supporting Proposal: See above.

Statutory Authority for Adoption: RCW 9.46.070, 9.46.0277.

Statute Being Implemented: Not applicable.

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

Name of Proponent: Blair Smith, representing 50/50 Central Ltd., a previously licensed manufacturer, 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 rule change would not impose additional costs on any licensee. Although there is a cost associated with purchasing the electronic raffle system, licensees would not be required to use the system.

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 21, 2011

Susan Arland

Rules Coordinator

OTS-4417.1


AMENDATORY SECTION(Amending Order 668, filed 5/17/10, effective 7/1/10)

WAC 230-11-065   Raffle prizes.   (1) Organizations must own the prizes offered to winners before the date of the drawing. However, if the winner has an option to receive a cash prize instead of the merchandise, the organization may enter into a contract to purchase the merchandise prize after the winner chooses his or her option. The organization must have the funds to make the purchase on account before the date of the drawing.

(2) At the time and date of any raffle drawing, the organization must have on deposit an unencumbered amount of money that is equal to or greater than all cash prizes being offered in the raffle. The organization must have these funds deposited in the gambling receipts account, if required, or in a recognized Washington state depository authorized to receive funds. The organization must not reduce the balance of funds available from this account below the required amount before awarding the prize(s).

(3) Raffle prizes must:

(a) Be available at the time and place of the drawing; and

(b) If cash, be United States currency or an equivalent amount of negotiable instruments; and

(c) For licensees, not exceed forty thousand dollars per prize ((or eighty thousand dollars in total raffle prizes in a license year,)) except as authorized in WAC 230-11-067.

[Statutory Authority: RCW 9.46.070. 10-11-086 (Order 668), 230-11-065, filed 5/17/10, effective 7/1/10; 06-20-040 (Order 602), 230-11-065, filed 9/26/06, effective 1/1/08.]


AMENDATORY SECTION(Amending Order 668, filed 5/17/10, effective 7/1/10)

WAC 230-11-067   Requesting approval to offer raffle prizes exceeding forty thousand dollars per prize ((or eighty thousand dollars annually)).   The commissioners may vote to approve a licensee to exceed raffle prize limits on specific occasions if a licensee shows good cause in writing.

The licensee must submit a raffle plan to us that includes at least the following information:

(1) The organization's goals for conducting the raffle; and

(2) A brief overview of the licensee's mission and vision including the type of programs supported by the licensee and clients served; and

(3) Specific details of the raffle rules including:

(a) Date of the drawing; and

(b) Cost of raffle tickets; and

(c) Prizes available; and

(d) Security of prizes; and

(e) Plans for selling raffle tickets; and

(f) Description of how the licensee protects the integrity of the raffle; and

(4) An explanation of how the proceeds from the raffle will be used; and

(5) A plan to protect the licensee in the event of low ticket sales and other risks; and

(6) An explanation of how the licensee will purchase the prize(s) for the raffle; and

(7) A projected budget including:

(a) Estimated gross gambling receipts, expenses, and net income for the raffle; and

(b) Minimum number of projected ticket sales to break even; and

(c) Corresponding sales and prize levels with projected revenues and expenses for each level; and

(d) Minimum and maximum prizes available; and

(8) Any other information that we request or any information the licensee wishes to submit.

[Statutory Authority: RCW 9.46.070. 10-11-086 (Order 668), 230-11-067, filed 5/17/10, effective 7/1/10.]

OTS-4415.3

ELECTRONIC RAFFLE SYSTEMS
NEW SECTION
WAC 230-11-200   Defining "electronic raffle system."   "Electronic raffle system" means computer software and related gambling equipment approved by us and used by raffle licensees to sell tickets, account for sales, and print paper tickets to determine winners.

[]


NEW SECTION
WAC 230-11-205   Operating requirements for electronic raffle systems.   Electronic raffle systems must be approved by us prior to use, meet the requirements below, and not perform additional functions:

(1) Raffle licensees using electronic raffle systems must:

(a) Conduct their raffles in the same way as other raffles; and

(b) Print individual raffle tickets prior to the drawing; and

(c) Disconnect all connections that go outside of the electronic raffle system to ensure that internet capability is not available; and

(d) Not allow raffle players to interact with the electronic raffle system.

(2) Approved electronic raffle systems may bundle tickets and sell them at a discount if they:

(a) Create the discount plan before selling any raffle tickets; and

(b) Do not change the discount plan during the raffle; and

(c) Make single nondiscounted tickets available to all participants; and

(d) Only use up to a maximum of four discount plans for each raffle; and

(e) Print each discounted raffle ticket number included in a bundle and a description of the discount plan on a single ticket/receipt.

[]


NEW SECTION
WAC 230-11-210   Leasing electronic raffle systems.   If a raffle licensee leases an electronic raffle system from a manufacturer, the lease must not be based on, in whole or in part, the raffle receipts. However, manufacturers may charge a fixed amount per event.

[]

OTS-4416.2

ELECTRONIC RAFFLE SYSTEMS
NEW SECTION
WAC 230-16-152   Remote access of electronic raffle systems.   Licensed manufacturers or manufacturer representatives may access the electronic raffle systems for maintenance or repair. Remote access will only be enabled for the duration of the maintenance or repair and the connection terminated immediately after.

[]

Washington State Code Reviser's Office