[Filed December 20, 2021, 10:20 a.m., effective January 20, 2022]

Effective Date of Rule: Thirty-one days after filing.

Purpose: The gambling commission received a petition requesting that operators running house-banked jackpots be allowed to keep required jackpot money in a separate, off-site account rather than on premises. This change would address operator and player safety concerns. These rule changes address card room licensees keeping funds in a separate, off-site account rather than on premises, and also address maintaining funds and paying out prizes.

Citation of Rules Affected by this Order: New WAC 230-15-673 Paying out house jackpot prizes and 230-15-674 Keeping funds to pay house jackpot prizes; and amending WAC 230-15-050 Minimum case on hand requirements.

Statutory Authority for Adoption: RCW 9.46.070.

Adopted under notice filed as WSR 21-21-092 on October 19, 2021.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 1, Repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 2, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 2, Amended 1, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: December 7, 2021.

AMENDATORY SECTION(Amending WSR 09-03-024, filed 1/9/09, effective 2/9/09)

WAC 230-15-050Minimum cash on hand requirements.

(1) Card game licensees must have sufficient cash on hand to redeem all chips issued for play and pay out all prizes.

(2) Within three hours of opening for the business day, at a time included in the internal controls, house-banked card game licensees must have at least the following minimum amount of cash on premises in their cage, safe, and vault combined:

(a) One thousand dollars for each house-banked table on the gambling floor; plus

(b) The amount of the largest single prize available excluding progressive jackpot, player-supported jackpot, and house jackpot prizes ((when WAC rules require a deposit into a separate bank account (for example, player-supported jackpots and progressive jackpots))).

For example: If a house-banked card room has ((fifteen))15 house-banked tables and a largest single prize of ((twenty-three thousand dollars))$23,000, before opening, the cage must have at least ((thirty-eight thousand dollars))$38,000 on hand: 15 tables x $1,000 = $15,000 + largest single prize of $23,000 = $38,000.

(3) Except for the restrictions on player-supported jackpot pay outs in WAC 230-15-405 and progressive jackpot pay outs in WAC 230-15-690, licensees may pay prizes by check if sufficient funds are available on deposit.

(4) Failure to keep funds to cash in chips, pay prizes, or redeem gambling related checks is prima facie evidence of fraud. Meeting the minimum cage cash amount does not relieve the licensee from the requirement to have sufficient funds available to redeem all chips and pay out all prizes.

WAC 230-15-673Paying out house jackpot prizes.

(1) House-banked card room licensees must immediately pay out verified prizes of $5,000 or less.

(2) For verified prizes over $5,000, licensees must immediately pay out a minimum of $5,000 and pay the remaining balance within 24 hours by check. The player may request that the licensee pay up to the entire prize balance by check. Licensees must then issue a check for the entire prize balance within 24 hours.

WAC 230-15-674Keeping funds to pay house jackpot prizes.

House-banked card room licensees must maintain at least the amount of the single largest house jackpot prize offered in a bank, mutual savings bank, or credit union located in Washington. Licensees must maintain a monthly record showing the daily amount of each house jackpot prize offered.