WSR 15-09-071
PROPOSED RULES
GAMBLING COMMISSION
[Filed April 15, 2015, 12:00 p.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 14-19-115 and 15-04-041.
Title of Rule and Other Identifying Information: New rule WAC 230-11-999 Pilot project allowing the use of electronic raffle systems to conduct 50/50 raffles.
Hearing Location(s): Red Lion Seattle Airport, 18220 International Boulevard, Seattle, WA 98188, (206) 246-5535, on July 9 or 10, 2015, 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: July 9 or 10, 2015.
Submit Written Comments to: Susan Newer, P.O. Box 42400, Olympia, WA 98504-2400, e-mail Susan.Newer@wsgc.wa.gov, fax (360) 486-3625, by July 1, 2015.
Assistance for Persons with Disabilities: Contact Michelle Rancour by July 1, 2015, TTY (360) 486-3637 or (360) 486-3453.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This new rule would authorize a pilot project to test the regulatory and economic impact of charitable/nonprofit licensees using electronic raffle systems to conduct 50/50 raffles. In a 50/50 raffle, fifty percent of the proceeds from ticket sales are awarded to one winner with the remaining fifty percent going to the charitable/nonprofit organization operating the raffle. Description of the electronic raffle system:
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In other states or provinces (Illinois, Colorado, North Dakota, Ohio, and British Columbia), electronic raffle tickets are typically sold at major sporting events by persons staffing kiosks equipped with touch screen devices and other staff moving around the facility with handheld wireless equipment.
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The electronic raffle system is used to print raffle tickets and customer receipts, account for raffle ticket sales, and show progressively increasing prize amounts.
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All other aspects of the raffle, including a manual drawing of winning tickets, must follow existing raffle requirements.
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Electronic raffle systems will be reviewed and approved by commission staff. Any conditions or restrictions for operating the system would be included in a letter to the manufacturer approving its use.
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: Washington state gambling commission, governmental.
Name of Agency Personnel Responsible for Drafting: Susan Newer, Lacey, (360) 486-3466; Implementation: David Trujillo, Director, Lacey, (360) 486-3512; 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 licensees. Although there is a cost for participation in the pilot program, raffle licensees are not required to use the electronic raffle 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.
April 15, 2015
Susan Newer
Rules Coordinator
NEW SECTION
WAC 230-11-999 Pilot project allowing the use of electronic raffle systems to conduct 50/50 raffles.
The commission finds it to be in the public's interest to conduct a pilot project to test the regulatory and economic impact of charitable and nonprofit licensees using electronic raffle systems at sporting events to conduct "50/50" raffles (raffles as defined in RCW 9.46.0277).
(1) In a 50/50 raffle, fifty percent of the proceeds from ticket sales are awarded to the winner as a cash prize and the remaining fifty percent are kept by the charitable/nonprofit organization operating the raffle.
(2) Raffle licensees, licensed manufacturers, and service suppliers who wish to be in the pilot project must submit a written request to participate to the director or his designee. An operating agreement must be signed before participating in the pilot project.
(3) Applicants and licensees that choose to participate in the pilot project will pay the following fees to offset agency costs to administer the pilot project:
(a) Manufacturers of the electronic raffle equipment must obtain a Class F manufacturer license and pay:
(i) $10,000 start-up flat fee; and
(ii) A fee of 1% of gross receipts from selling or leasing electronic raffle systems.
(b) Raffle operators using electronic raffle equipment must obtain a Class F raffle license and pay a fee of 1% of gross raffle receipts.
(c) Arena owners or sporting teams/organizations must obtain a service supplier license for possession of electronic raffle equipment and pay a fee of 1% of gross receipts from the lease or rental of the electronic raffle equipment or other contracted amounts, if any.
(4) The pilot project will begin once the first manufacturer is licensed and their equipment is approved and will continue for eighteen months.
(5) If a licensee fails to comply with the requirements of the pilot project, the director may remove the licensee from the pilot project.
(6) Staff will provide a report to the commission with their recommendations after twelve months of activity.
(7) Licensees in the pilot project may continue to use electronic raffle systems to conduct 50/50 raffles unless the commission finally disapproves its use or until new rules are approved.