WSR 16-22-049
PERMANENT RULES
GAMBLING COMMISSION
[Filed October 28, 2016, 2:45 p.m., effective November 28, 2016]
Effective Date of Rule: Thirty-one days after filing.
Purpose: In July 2015, the commissioners authorized group 12 amusement games to be played by persons twenty-one and over. These rules address recordkeeping and the nontransferability of tokens. Currently, amusement game operators are only required to notify us once a year of the amusement games they have. They are also only required to report their overall amusement game gross receipts. These rule changes will help staff know where group 12 amusement games are being operated and the gross receipts they are bringing in. The rule changes also address not commingling coupons, tickets, tokens or tokens on an electronic token card to other gambling related redemption systems to help ensure cash is not indirectly awarded as prizes.
Citation of Existing Rules Affected by this Order: Amending WAC 230-07-125, 230-13-005, 230-13-075, and 230-13-170.
Statutory Authority for Adoption: RCW 9.46.070, 9.46.0201.
Adopted under notice filed as WSR 16-17-141 on August 23, 2016.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 4, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Date Adopted: October 28, 2016.
Michelle Rancour
Acting Rules Coordinator
AMENDATORY SECTION (Amending WSR 07-10-032, filed 4/24/07, effective 1/1/08)
WAC 230-07-125 Recordkeeping requirements for lower volume charitable or nonprofit organizations.
(1) Organizations operating without a license under RCW 9.46.0315 or 9.46.0321 and lower volume charitable or nonprofit licensees must keep a set of permanent monthly records of the gambling activities. Lower volume licensees include:
(a) Fund-raising events;
(b) Bingo (Classes A, B, and C);
(c) Raffles (Classes A, B, C, and D);
(d) Amusement games (Classes A, B, C, and D); and
(e) Card games (Classes A, B, and C).
(2) The monthly records must include, at least:
(a) The gross gambling receipts from each activity;
(b) The gross gambling receipts from group 12 amusement games;
(c) The total amount of cash prizes actually paid out;
(((c))) (d) The total of the cost to the licensee of all merchandise prizes actually paid out for each activity;
(((d))) (e) A summary of all expenses related to each of the activities; and
(((e))) (f) The net income received from the activity, the purpose(s) for which the net income was raised, and the amount paid to each recipient.
(3) Licensees must keep these records for three years from the end of the license year for which the record was created.
(4) Organizations operating under RCW 9.46.0315 or 9.46.0321 must maintain their records for one year.
AMENDATORY SECTION (Amending WSR 16-09-045, filed 4/15/16, effective 7/15/16)
WAC 230-13-005 Amusement games authorized.
(1) We authorize the approved groups of amusement games set forth in this chapter. Operators must only operate amusement games that meet the standards of at least one of the authorized groups.
(2) Commercial businesses or nonprofit or charitable organizations may apply for licenses for amusement games.
(3) Charitable or nonprofit organizations also may conduct group 1 through 11 amusement games without a license when authorized to do so under RCW 9.46.0321 and 9.46.0331.
(4) Operators must operate amusement games as either:
(a) An attended amusement game.
(i) An "attended amusement game" means an amusement game that requires the presence or assistance of a person (attendant) in the regular operation of the game; and
(ii) These games must award a merchandise prize to players if players achieve the objective with one cost of play; and
(iii) An attendant accepts cash, check, tickets or scrip to play the amusement game. The tickets and scrip are not redeemable for cash and must show the name of the operator or sponsor; or
(b) A coin or token activated amusement game.
(i) A "coin or token activated amusement game" means an amusement game that uses a mechanical, electronic, or electro-mechanical machine to allow the player to activate the game by inserting coins, cash, tokens, or tokens on an electronic token card; and
(ii) These games may dispense merchandise prizes, or coupons, tickets, tokens, or tokens onto an electronic token card redeemable for merchandise prizes; and
(iii) Coupons, tickets, tokens or tokens on an electronic token card can be electronically stored for redemption under this section as long as the coupons, tickets, tokens or tokens on an electronic token card are:
(A) Deposited into, and tracked on, a separate amusement game accounting system; and
(B) Not commingled with any tracking, reward, or other gambling related redemption systems; and
(C) Redeemed only for merchandise prizes.
(5) Amusement games must not:
(a) Award additional plays as prizes; or
(b) Allow coupons, tickets, tokens or tokens on electronic token cards that are awarded to be replayed; or
(c) Result in any cash payment being awarded.
(6) Amusement games must only award merchandise prizes.
(a) Merchandise prizes mean noncash prizes including toys, novelties, retail items such as electronic goods, clothing, accessories, as well as food, beverages and other items sold by the operator as a normal part of their business in compliance with all other state laws and regulations, except as provided in (b) of this subsection.
(b) Pull-tabs and other gambling activities, gift certificates or gift cards do not constitute merchandise prizes.
(7) Electronic token card means a card issued by the operator that stores purchased credits available to play the amusement game separate from the coupons, tickets, or tokens awarded or dispensed as prizes from the play of the amusement game. Coupons, tickets, or tokens awarded as prizes cannot be used to play amusement games and must only be redeemed for merchandise prizes.
AMENDATORY SECTION (Amending WSR 07-15-064, filed 7/16/07, effective 1/1/08)
WAC 230-13-075 Assigning and reporting group numbers of authorized amusement games.
(1) Amusement game licensees must determine the authorized group number of each game and prepare a list of all games they plan to operate during each license year. They must submit this list to us with their activity report. The list must contain, at least, the name and group number of each game.
(2) Amusement game licensees must notify us within thirty days of putting into play and removing from play a group 12 amusement game. Reporting must be in the format we require.
AMENDATORY SECTION (Amending WSR 07-15-064, filed 7/16/07, effective 1/1/08)
WAC 230-13-170 Recordkeeping for commercial amusement games.
(1) Amusement game licensees must prepare a detailed record for each location where they operate games. They must retain the records for at least three years. The records must include details necessary to determine:
(a) Gross gambling receipts received from players((; and)) from:
(i) Group 1 through 11 amusement games; and
(ii) Group 12 amusement games; and
(b) Value of prizes awarded to winners.
(2) Records must include, at least:
(a) The gross gambling receipts collected from amusement games at each location, with receipting records; and
(b) An entry for each withdrawal of receipts from the games. Coin or token activated amusement games only require an entry of the ending meter reading, the number of plays, and gross gambling receipts at the end of each month; and
(c) A summary of the operation of the activity. This includes, at least, coin-in meter readings and gross gambling receipts. Operators must provide these coin-in meter readings and gross gambling receipts to charitable or nonprofit organizations each time they service a game or disburse money.
(3) Licensees must report at least monthly the number and actual cost of merchandise prizes awarded for each location.
(4) For amusement games that issue tickets for the redemption of prizes, licensees must at least log the beginning and ending nonresettable ticket out meters or ticket numbers during each collection of funds from each game.
(5) Licensees must provide the full details for all amusement game operating expenses.