WSR 16-23-167

PROPOSED RULES

GAMBLING COMMISSION

[Filed November 23, 2016, 11:52 a.m.]

Supplemental Notice to WSR 16-12-113.

Preproposal statement of inquiry was filed as WSR 16-07-122.

Title of Rule and Other Identifying Information: Amending WAC 230-06-030 Restrictions and conditions for gambling promotions and 230-06-031 Using wheels in promotional contests of chance, fund-raising events, or gambling activities; promotional contests of chance.

Hearing Location(s): Red Lion, 2300 Evergreen Park Drive S.W., Olympia, WA 98502, (360) 943-4000, on January 12 or 13, 2017, at 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 12 or 13, 2017.

Submit Written Comments to: Rules Coordinator, P.O. Box 42400, Olympia, WA 98504-2400, e-mail rules.coordinator@wsgc.wa.gov, fax (360) 486-3625, by December 20, 2016.

Assistance for Persons with Disabilities: Contact Julie Anderson by January 2, 2017, TTY (360) 486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Promotions: The proposed change would allow operators to offer gambling promotions that:

•	Allow entry based on disclosed criteria;
•	Offer lottery tickets as a prize;
•	Add additional merchandise or cash prizes to licensed gambling activities;
•	Allow licensed manufacturers, distributors, and service suppliers to give licensees cash or merchandise to offer as a prize to all licensed operators; and
•	Allow card rooms to use a physical drawing, spinning a wheel or selection from a group of concealed items to award a prize.

Gambling promotions would no longer be reviewed or approved by us except when a licensed manufacturer, distributor or service supplier provides cash or merchandise to a licensed operator for a single promotion that exceeds $25,000. In this case, a licensed manufacturer, distributor and service supplier must receive advance approval by the director. The licensee must submit sufficient information for the director's approval and include specific items from which the director will base their decision.

Use of Wheels in Promotions: The proposed change would allow card room licensees to use spinning wheels in conjunction with promotions they offer to customers.

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: Washington state gambling commission, governmental.

Name of Agency Personnel Responsible for Drafting: Tina Griffin, Assistant Director, Lacey, (360) 486-3546; Implementation: David Trujillo, Director, Lacey, (360) 486-3512; and Enforcement: Josh Stueckle, Agent-in-Charge, Spokane, (509) 325-7909.

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 changes would not impose additional costs. The rule changes would allow operators more opportunities for hours of operation and for promotions.

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 23, 2016

Michelle Rancour

Acting Rules Coordinator

AMENDATORY SECTION (Amending WSR 14-17-056, filed 8/15/14, effective 9/15/14)

WAC 230-06-030 Restrictions and conditions for gambling promotions.

Licensees may conduct gambling promotions to encourage players to participate in ((a)) the gambling activity((, but you must follow)) they are licensed to conduct without our review or approval under these restrictions and conditions:

(1) ((You must give all players an equal opportunity to participate; and

(2))) You must establish ((standards)) rules and restrictions to determine how you will give promotional prizes and items to players((. You must not give the items based on an element of chance, such as a drawing or spinning wheel, unless you are doing so as part of a bingo game)); and

(((3))) (2) You must display all rules and restrictions clearly in the gambling area and include them on promotional materials or advertisements; and

(3) You must give all players eligible for the promotion an equal opportunity to participate; and

(4) Except for members-only progressive raffles conducted as authorized in WAC 230-11-091, you must not give another chance to participate in a gambling activity we regulate as a promotional item; and

(((4) You must display all rules or restrictions clearly in the gambling area and include them on promotional materials or advertisements; and

(5) You must not combine gambling activities and related gambling promotions in any way with a promotional contest of chance as defined in RCW 9.46.0356.))

(5) As part of a gambling promotion, you may add additional merchandise or cash prizes, including increasing payouts for gambling activities you are licensed to conduct; and

(6) Licensed manufacturers, distributors, and service suppliers may give cash or merchandise items to licensed operators to be used as promotional prizes as long as:

(a) The cash or merchandise is offered to all licensed operators; and

(b) The gambling promotion is approved by the director or director's designee when cash or merchandise provided to a licensed operator for a single promotion over twenty-five thousand dollars; and

(7) In order for a licensed manufacturer, distributor, and service supplier to receive approval, the plan for the gambling promotion must be submitted to the director at least ninety days in advance of the intended start date. The promotion must include sufficient information for the director's approval, comply with all applicable federal and state laws, and include:

(a) The gambling promotion rules and restrictions; and

(b) How the operator will safeguard the prizes; and

(d) The beginning and ending dates for the gambling promotion; and

(e) A detailed prize winner's record to be filled out upon completion of the promotion that includes the winner's name, prizes paid out, date the prize was awarded; and

(f) Any other information we request; and

(8) You must not give promotional prizes or items based on additional elements of chance except that:

(a) Licensed bingo operators are authorized to give promotional prizes or items as part of a bingo game; and

(b) Licensed card rooms are authorized to give promotional prizes or items as part of a physical drawing, spinning a wheel, or selecting from a group of concealed items; and

(9) You must not combine gambling activities and related gambling promotions in any way with a promotional contest of chance as defined in RCW 9.46.0356.

Amended Section [AMENDATORY SECTION (Amending WSR 07-21-116, filed 10/22/07)]

WAC 230-06-031 Using wheels in promotional contests of chance, fund-raising events, or gambling activities.

Promotional contests of chance (PCOCs)

(1) Operators may use wheels specifically manufactured for a promotional contest of chance (PCOC), whether commercially made or home made.

(2) Operators must not use professionally manufactured wheels made specifically for gambling activities (for example, Big 6 Wheels) in PCOCs unless they receive permission ahead of time from us.

Fund-raising events

(3) Operators may use commercially made wheels in gambling activities for fund-raising events.

Separation of PCOCs from gambling activities and promotions

(4) No wheel may be used in conjunction with their gambling activities by((:

(a) Card room licensees; or

(b))) Pull-tab licensees.

Card rooms, pull-tabs, bingo, raffles

(5) Licensees and operators must not use professionally manufactured wheels made specifically for gambling activities (for example, Big 6 Wheels) in:

(a) Bingo; or

(b) Card games; or

(6) Operators may use commercially made or home made wheels as part of drawings for prizes, good neighbor prizes, or second element of chance prizes as part of bingo games, as set out in WAC 230-10-280 or to award promotional prizes on card games as set out in WAC 230-06-030.

(7) Raffle licensees and operators may use:

(a) Other types of wheels, such as paddle wheels, in raffles; and

(b) Commercially made or home made wheels in an alternative drawing format for determining the winner of a raffle. Alternative drawing formats are set out in WAC 230-11-055 and 230-11-060.

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

Reviser's note: The unnecessary underscoring in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.