[Filed September 16, 2020, 11:06 a.m.]

Preproposal statement of inquiry was filed as WSR 19-19-081.

Title of Rule and Other Identifying Information: WAC 230-06-035 Credit, loans, or gifts prohibited and 230-14-047 Standards for electronic video pull-tab dispensers.

Hearing Location(s): On October 15, 2020, and November 17, 2020, at 9:00 a.m., at Washington State Gambling Commission, 4564 7th Avenue S.E., Lacey, WA 98503. Public hearings will take place at scheduled commission meetings. The meeting dates, times, and locations are tentative. Visit our website at www.wsgc.wa.gov approximately seven days prior to the meeting, select "The Commission," and then select "Public Meetings," to confirm hearing date, location, start time, and agenda items.

Date of Intended Adoption: November 17, 2020.

Submit Written Comments to: Ashlie Laydon, P.O. Box 42400, Olympia, WA 98504-2400, email rules.coordinator@wsgc.wa.gov, fax 360-486-3632, by November 5, 2020.

Assistance for Persons with Disabilities: Contact Julie Anderson, phone 360-486-3453, TTY 360-486-3637, email julie.anderson@wsgc.wa.gov, by November 5, 2020.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The gambling commission is considering amending its payment method rules to accept credit cards as a payment method option for card games, pull-tabs, and bingo.

Reasons Supporting Proposal: Under the current rules, the following payment methods are accepted for the participation of gambling activities: Cash, check, gift certificate, gift card, and electronic point-of-sale transfer. The agency received a petition asking that commercial pull-tab operators be allowed to accept credit cards. The petition was accepted but with the purpose to take a broader review at allowing credit cards to be used for all gambling activities where it is not currently allowed. The proposed changes will allow operators the option to accept credit cards as a method of payment for card games, pull-tabs, and bingo (raffles already allow the use of credit cards). Amusement games are excluded at this time because they were not contemplated at the time the petition was accepted and staff has not had the opportunity to explore how credit cards could be used for amusement games while continuing to ensure they operate as intended by the legislature and how the use of credit cards for amusement games may impact minors who play these games.

Statutory Authority for Adoption: RCW 9.46.070.

Statute Being Implemented: RCW 9.46.070.

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: Businesses have the option to accept credit cards as a method of payment.

Name of Proponent: Steven Berven, private.

Name of Agency Personnel Responsible for Drafting: Brian Considine, Attorney, 4565 7th Avenue S.E, Lacey, WA 98503, 360-486-3469; Implementation: David Trujillo, Director, 4565 7th Avenue S.E., Lacey, WA 98503, 360-486-3512; and Enforcement: Tina Griffin, Assistant Director, 4565 7th Avenue S.E., Lacey, WA 98503, 360-486-3546.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. A cost-benefit analysis is not required per RCW 34.05.328 (5)(a)(i).

The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. The proposed rule change was requested by a licensee to help his business and the proposed rules look to put into effect the licensee's request. Additionally, the proposed rule amendments allow, but do not require, businesses to accept credit cards as a method of payment for card games, pull-tabs, and bingo. Therefore, a licensee does not need to incur any costs under these proposed rules unless it determines accepting credit cards is in its best business interests. Then, the implementation of this option may impose some minor costs upfront to businesses if they choose to accept credit cards, such as making changes to their point-of-sale system and/or credit card transaction fees. However, if a business chooses to implement this change, the commission expects the change would result in positive net revenue or the business would not decide to accept credit cards, which is still an option. Therefore, it is unlikely to have a net cost to businesses that choose to implement this change.

AMENDATORY SECTION(Amending WSR 07-21-116, filed 10/22/07, effective 1/1/08)

WAC 230-06-035Credit, loans, or gifts prohibited.

(1) Licensees, employees, or members must not offer or give credit, loans, or gifts to any person playing in an authorized gambling activity or which makes it possible for any person to play in an authorized gambling activity.

(2) Gifts are items licensees give to their customers. Licensees must not connect these gifts to gambling activities we regulate unless the gifts are:

(a) Gambling promotions; or

(b) Transportation services to and from gambling activities; or

(i) Costs less than five hundred dollars per individual item; and

(ii) Must not be traded back to you for cash; and

(iii) Must not give a chance to participate further in an authorized gambling activity.

(3) You must collect the price required to participate in the gambling activity in full before allowing someone to participate. Licensees must collect cash, check, gift certificate, gift card, credit card, or electronic point-of-sale bank transfer.

(4) If the price paid for the opportunity to play a punch board or pull-tab series is ten dollars or less, licensees may collect the price immediately after the play is completed.

(5) If a charitable or nonprofit organization has a regular billing system for all of the activities of its members, it may use its billing system in connection with the playing of any licensed activities as long as the organization limits play to full and active members of its organization.

(((6) Charitable or nonprofit organizations may allow credit cards, issued by a state regulated or federally regulated financial institution, for payment to participate in raffles.))

AMENDATORY SECTION(Amending WSR 14-23-048, filed 11/14/14, effective 12/15/14)

WAC 230-14-047Standards for electronic video pull-tab dispensers.

Electronic video pull-tab dispensers must be approved by us prior to use.

(1) Electronic video pull-tab dispensers must dispense a paper pull-tab as defined in WAC 230-14-010 and follow the rules for:

(a) Pull-tabs; and

(b) Flares; and

(2) Electronic video pull-tab dispensers that use a reading and displaying function must:

(a) Use a video monitor for entertainment purposes only; and

(b) Open all, or a portion of, the pull-tab in order to read encoded data that indicates the win or loss of the pull-tab if the dispenser is equipped to automatically open pull-tabs; and

(d) Read the correct cash award from the pull-tab either when it is dispensed or when the pull-tab is reinserted into the dispenser; and

(e) Display the cash award from the pull-tab, one pull-tab at a time; and

(f) Provide:

(i) An electronic accounting of the number of pull-tabs dispensed; and

(ii) A way to identify the software version and name; and

(iii) A way to access and verify approved components; and

(iv) Security on the dispenser to prevent unauthorized access to graphic and prize amount displays.

(3) Cash cards used in electronic video pull-tab dispensers must:

(a) Be purchased with cash, check, gift certificates, credit card, or electronic point-of-sale bank transfer before use in the dispenser; and

(b) Be convertible to cash at any time during business hours; and

(4) Electronic video pull-tab dispensers that accept cash cards may award any pull-tab cash prize of twenty dollars or less onto the cash card.