WSR 98-19-131
PERMANENT RULES
GAMBLING COMMISSION
[Order 364--Filed September 23, 1998, 11:25 a.m., effective January 1, 1999]
Date of Adoption: September 11, 1998.
Purpose: Change allows licensees offering three number speed bingo the option to charge a per session fee, rather than a per ticket/card fee. This reduces the paperwork and time spent by employees accounting for tickets/cards. Change relates to bingo games that offer jackpot prizes in which prizes accrue over time. This will ensure that the accounting for accrued prizes is consistent for all bingo games and licensees will now be required to maintain a record, on premises, of the accrual method used when prizes are identified ahead of time. Change allows operators the ability to award extra frequent player points instead of merchandise gifts on the eight occasions per year where they give away promotional merchandise gifts.
Citation of Existing Rules Affected by this Order: Amending WAC 230-20-102, 230-20-125, and 230-20-249.
Statutory Authority for Adoption: RCW 9.46.070.
Adopted under notice filed as WSR 98-15-005 on July 2, 1998, with a publication date of August 5, 1998.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 3, repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, amended 0, repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 0, repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, amended 3, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.
Effective Date of Rule: January 1, 1999.
September 14, 1998
Susan Arland
Public Information Officer
OTS-2249.2
AMENDATORY SECTION (Amending WSR 98-04-024, filed 1/28/98, effective 7/1/98)
WAC 230-20-102 Bingo prizes--Record of winners. All payments of prizes for bingo games shall be accounted for and documented in a manner that affords independent verification of the amount paid and the fact of distribution to winners: Provided, That Class A and B bingo licensees, organizations conducting bingo under the provisions of RCW 9.46.0321, and bingo activities conducted at a qualified agricultural fair are exempt from all portions of this rule if the requirements of WAC 230-08-015 are followed. Payment of all prizes shall be documented using the following procedures:
((What are the receipting and recordkeeping requirements for
bingo prizes?))
(1) A prize receipt shall be completed for each prize awarded at bingo games: Provided, That merchandise prizes with a cost or fair market value of fifteen dollars or less may be receipted on a single log sheet as allowed in subsection (4) of this section. The following minimum information shall be recorded for each prize awarded:
(a) The date;
(b) The game number;
(c) The complete name and address of the winner: Provided, That an address of the winner is not required if prizes greater than $300 are paid by check or a combination of cash or check and:
(i) Checks are drawn on the licensee's gambling bank account;
(ii) Checks are made payable only to the winner: Provided, That checks for prizes won by players under age eighteen may be made payable to the guardian or immediate family member accompanying the player;
(iii) The game number and prize receipt number are notated on the check;
(iv) Checks used are of a type that provides a duplicate copy. The copies become a part of the daily bingo records and must be maintained as such;
(v) All original checks are returned by the bank to the licensee. Original checks shall be available for inspection upon demand by the commission; and
(vi) Checks drawn on the licensee's gambling account are not cashed or otherwise redeemed by the licensee or on the licensees premises.
(d) The dollar amount of the prize or the licensee's cost of noncash prizes;
(e) A full description of all noncash prizes;
(f) The check number, if any portion of the prize is paid by check; and
(g) The initials of the bingo worker making the payout and the cashier making the payment.
(2) Prize receipts shall be consecutively issued in an ascending order. Prize receipts bearing a number below the highest number issued during a session shall be voided and retained with the daily records.
(3) The original of each prize receipt shall be given to the winner and a duplicate copy shall be retained by the licensee as a part of its records for a period of not less than three years. (4) Merchandise prizes with a cost or fair market value of fifteen dollars or less may be receipted on a merchandise prize receipt log. A separate merchandise prize receipt log shall be maintained for each session used, and retained as a part of the bingo daily records. At a minimum, the following information must be recorded on the log:
(a) The date and session;
(b) The game number;
(c) The complete name of the winner printed;
(d) The cost of the prize or fair market value of the prize if donated;
(e) A full description of the prize;
(f) The initials of the person distributing the prize; and
(g) The criteria for awarding the prizes.
((How must prize receipts be printed?))
(5) Prize receipts shall be printed by a commercial printer and meet the following standards:
(a) Manufactured of two-part, self-duplicating paper that provides for an original and a duplicate copy;
(b) Imprinted with the name of the licensee and a consecutive ascending number that does not repeat in at least 100,000 occurrences: Provided, That Class E and smaller licensees may utilize receipts that are not imprinted with the licensee's name and which the consecutive number does not repeat in at least 1,000 occurrences; and
(c) Provide space for the licensee to record the information required by subsection (1) above.
((What records must a licensee keep for the acquisition of prize
receipts?))
(6) All prize receipts purchased or otherwise obtained must be accounted for by the licensee. Prize receipts purchased or otherwise obtained by the licensee shall be documented on a vendor's invoice. This invoice, or a photo-copy thereof, shall be maintained on the premises and available for inspection by commission staff. The following information shall be documented on the purchase invoice:
(a) Name of the vendor;
(b) Name of the purchasing organization;
(c) Date of purchase;
(d) Number of receipts purchased; and
(e) The beginning and ending receipt number.
((For progressive prize type games, how may increases to the
prize pool be accrued and accounted for?))
(7) ((Increases to the prize pool for progressive prize type
games may be accrued and treated as prizes awarded during the
current session if the following conditions are met:
(a))) Licensees may establish an accrued prize fund for any
game or set of games that have a progressive prize or offer a
jackpot prize if special conditions are met during the game.
Contributions to the accrued prize fund shall be treated as
prizes awarded during the current session if the following
conditions are met:
(a) Each game or set of games that offers a prize included in the accrued prize fund must be identified by the licensee prior to making contributions for such games;
(b) The licensee shall maintain a record, in an approved format, of all such games with at least the following information:
(i) The name of the game or set of games;
(ii) The sessions at which the game or set of games is played;
(iii) The game number(s) at each of the sessions the game or set of games is played;
(iv) The amount that will be added to the accrued prize fund each time the game or set of games is played;
(v) A description of how the contribution amount was determined;
(vi) The maximum accrued prize fund balance that will be reached for all games; and
(vii) The date of the most recent changes to this record;
(c) Prize receipts will be issued only when the prize is actually awarded;
(((b) Full details of accrued prizes outstanding at the end
of each calendar quarter, will be furnished on the licensee's
activity report;
(c))) (d) Once an election is made to accrue prizes for a
particular game((, all increases to that prize must be accrued))
or set of games, the predetermined contribution amount must be
added to the accrued prize fund each time the game or set of
games is played, until the accrued prize fund reaches the maximum
balance;
(((d) Prizes must be accrued after the completion of each
session in which they are increased;))
(e) Once the maximum is reached, no contributions will be made until the accrued prize fund balance has been decreased for a prize paid;
(f) Full details of accrued prizes outstanding at the end of each calendar quarter will be furnished on the licensee's activity report;
(g) A reconciliation of the prize fund shall be made on each "Daily summary - Cash control" record;
(((f))) (h) The amount of prize accrued shall be deposited
in the gambling receipts account per WAC 230-12-020;
(((g))) (i) The balance of the gambling receipts banking
account shall not be reduced at any time below the amount of
prizes accrued and currently being offered: Provided, That
accrued prizes may be transferred to a special bank account, for
this purpose, if the balance is maintained at a level equal to or
greater than the amount of prizes accrued and currently being
offered; ((and
(h) In the event management elects to discontinue games for
which prizes have been accrued, the operator shall amend all
activity reports and tax returns previously submitted to reflect
the actual prizes awarded.)) (j) At no time shall the total
accrued prize balance exceed two times the total amount of prizes
available on the games identified in (a) of this subsection; and
(k) The accrued prize fund shall not be utilized for any purpose other than accumulating bingo prizes and the balance shall not be reduced except under the following circumstances:
(i) When prizes are actually awarded;
(ii) If management elects to discontinue games for which prizes were accrued. In this event, the operator shall amend all activity reports and tax returns that are affected by the action and which have been filed.
[Statutory Authority: RCW 9.46.070 (1), (11), (14). 98-04-024, § 230-20-102, filed 1/28/98, effective 7/1/98. Statutory Authority: RCW 9.46.070, 9.46.0209, 9.46.0237, 9.46.0205 and 9.46.075. 96-24-008 (Order 303), § 230-20-102, filed 11/21/96, effective 12/22/96. Statutory Authority: Chapter 9.46 RCW. 91-21-053 (Order 228), § 230-20-102, filed 10/15/91, effective 11/15/91. Statutory Authority: RCW 9.46.070. 90-24-005 (Order 218), § 230-20-102, filed 11/26/90, effective 12/27/90.]
OTS-2250.2
AMENDATORY SECTION (Amending Order 303, filed 11/21/96, effective 12/22/96)
WAC 230-20-125 Discounts and promotional gifts--Authorized--Limits. To increase profits from bingo games and enhance the entertainment aspect of such, licensees may conduct limited promotional activities. The following restrictions and procedures apply to promotional activities conducted as a part of bingo games:
((What general restrictions apply to discounts and promotions for
bingo?))
(1) Licensees may promote bingo games by providing players discounts or gifts of nominal value on up to eight occasions annually under the following conditions:
(a) Licensees may offer players discounts or reductions in the price to play bingo for purposes of evaluating the effectiveness of advertising of bingo games if:
(i) Discounts are only awarded to players that present a coupon that was issued by the licensee for a specific date and session;
(ii) Coupons shall not be available on the licensed premises: Provided, That this section does not prevent the sale of newspapers in which such coupons are printed on the licensed premises;
(iii) Coupons are printed in newspapers or similar media that are normally sold or delivered to an individual's residence;
(iv) The discount does not exceed fifty percent of the minimum cost to play or three dollars, whichever is less;
(v) Any conditions or restrictions of the discount are disclosed in all advertisements offering the discount; and
(vi) Records required by subsection (2) of this section are maintained.
(b) Licensees may award promotional gifts to players if:
(i) Only merchandise gifts with a cost to the licensee of no more than three dollars per gift are awarded;
(ii) The gifts are treated as prizes; and
(iii) A record is completed for each session setting out the criterion for selecting the recipients, the number of gifts, and total cost of the gifts.
((What are the general receipting and recordkeeping requirements
for discounts and promotional gifts?))
(2) Licensees shall use the combination receipting method set forth in WAC 230-20-108 to record discounts awarded by this section. All discounts shall be recorded on the cash register receipt during the sales transaction;
(3) Records must be maintained as a part of the daily bingo records that provide full details of each discount or gift awarded. All discounts must be reconciled to sales and cash on the "Bingo daily record-Cash control" record. Such records must include at least the following details:
(a) Time and date of the activity;
(b) Full description of the activity, including any conditions or restrictions;
(c) A copy of all advertisements for such promotions; and
(d) All coupons or "frequent player" cards redeemed which shall include the name, address, and birth date of customers redeeming such.
((What restrictions apply to special recognition "birthday
gifts?"))
(4) Licensees may provide special recognition gifts to players during the calendar week of their birthday. These gifts are excluded from the eight occasion limitation if the following requirements are met:
(a) Such gifts shall not exceed a value of three dollars;
(b) The recipient's name and date of birth are recorded; and
(c) These gifts are treated as prizes and applicable records are maintained.
((What restrictions, and receipting and recordkeeping
requirements apply to "frequent player" promotions?))
(5) Licensees may promote bingo games by offering incentives to players which are based on the customer participating in games for a specific number of sessions, playing during a session when promotional gifts are awarded to players, as authorized by subsection (1)(b) of this section, or for spending a specific dollar amount to play bingo over a period of time if:
(a) These "frequent player" incentives ((shall be)) are
redeemed only for promotional marketing gifts((, whose cost does
not exceed one half of one percent of the dollar amount spent by
the player through the licensee's cash register receipting method
of sales));
(b) These incentives ((shall be)) are accumulated in the
form of "credits" or "points" that equate to a specified number
of dollars spent by the player;
(c) The redemption value of points or credits awarded under this section does not exceed:
(i) One-half of one percent of the total dollar amount spent by a player and recorded through the cash register method of recording bingo sales; or
(ii) Three dollars for each occasion that points or credits are awarded as promotional gifts under authority of subsection (1)(b) of this section;
(d) Such credits or points shall have no cash or partial redemption value;
(((d))) (e) Players shall be informed of any expiration date
of points or credits earned;
(((e))) (f) The licensee shall develop a control system to
account for points or credits issued, redeemed, or expired.
Credits or points shall be controlled by issuing points at the
time of cash register receipting method sale and recorded either
with a computer-based tracking system or approved manual system.
The following conditions apply to accumulation records:
(i) If cards are used, cards shall meet all of the requirements set forth for tickets used for receipting for bingo income in WAC 230-20-104 and the recording of credits on such cards shall be accomplished by means under control of the licensee, such as stamps, punches, employee initials, etc.; and
(ii) Computer-based records used to record points shall be approved by the commission staff.
[Statutory Authority: RCW 9.46.070, 9.46.0209, 9.46.0237, 9.46.0205 and 9.46.075. 96-24-008 (Order 303), § 230-20-125, filed 11/21/96, effective 12/22/96.]
OTS-2251.1
AMENDATORY SECTION (Amending Order 303, filed 11/21/96, effective 12/22/96)
WAC 230-20-249 Three number speed bingo--Operational procedures--Restrictions. Licensees may play "speed bingo" if the conditions set forth in this section are followed:
(1) For purposes of this section, "three number speed bingo" is defined as a bingo game that:
(a) Is played using a reduced number of balls and special cards with less than twenty-five spaces;
(b) The rate of calling numbers is faster than normal;
(c) The price to play includes an "ante," which is retained by the licensee, and a wager that begins at three units and decreases by one for each number covered on a player's card; and
(d) players compete against all other players for a pool of prizes that varies according to the numbers covered by players during the game;
(2) The following restrictions apply to speed bingo:
(a) The price to play speed bingo, including wagers, shall not exceed two dollars per card, per game;
(b) The price to play shall be the same for each card;
(c) The licensee shall not retain any part of players' wagers and all wagers not covering a called number on a player's card shall be paid to winners. If there is more than one winner, wagers shall be equally split among all winners: Provided, That licensees may develop a scheme for splitting odd numbers of chips between winners; and
(d) Gross gambling receipts for speed bingo shall be only the amount of fees collected from players for tickets to participate and excludes wagers and prizes paid to players.
(3) Speed bingo shall be played as follows:
(a) The game shall be played using thirty numbered balls, with numbers one through seventy-five available for use;
(b) Special cards that have three spaces imprinted with numbers that correspond to the numbers on the balls utilized for play;
(c) ((Tickets shall be used by players to participate in the
game. The following procedures apply to tickets:
(i) Players shall purchase tickets for play prior to start
of any game;
(ii) Tickets may be valued at any price below two dollars
Provided, That the combined value of the ticket and wagers may
not exceed two dollars per card, per game;
(iii))) The licensee may elect to collect fees by charging a
set amount for each card for the entire session or an amount per
card for each game;
(d) The ticket receipting method set forth in WAC 230-20-105 shall be used to receipt for income received to play games. In addition, the following requirements shall be met:
(i) All tickets sold and collected must be canceled by stamping the calendar date on the ticket at the time of sale or permanently defacing the tickets when collected;
(ii) All tickets sold for per session fees shall be accounted for using the combination receipting method set forth in WAC 230-20-108;
(((iv) All tickets shall be stamped with the calendar date
at the time sold to players;
(v) Different colored tickets shall be used for each session
speed bingo is played; and
(vi))) (iii) Tickets sold and collected from players shall
be reconciled to cash for each session((.));
(((d))) (e) Wagers shall be made and prizes paid using
wagering chips. Wagers may be valued at any price as long as the
total value of wagers and ((tickets)) fees does not exceed two
dollars per card, per game. The requirements of WAC 230-40-070
shall be followed for wagering chips and banking services. For
licensees charging a flat fee per session to participate, the fee
per game shall be determined by dividing the fee per session by
the minimum number of games to be played;
(((e))) (f) Each player pays the licensee one ticket for
each bingo card played for each game: Provided, That when the
licensee charges a per session fee, the player's ticket and cash
register receipt must remain visible and on the table at all
times during the game;
(((f))) (g) Each player's beginning wager is three chips for
each bingo card played during any single game. A player must
have three chips for each card being played prior to the
beginning of the game;
(((g))) (h) During play of the game, players place a
wagering chip on each number on their cards that is matched with
called numbers. Once a wagering chip is used to cover a valid
number, it is retained by the player and no longer available to
be won by the game winner(s). Wagering chips must remain on the
number on the card until all losing wagers are collected from
players by the licensee. The bingo worker collecting wagers must
verify that covered numbers are valid;
(((h))) (i) The first player to cover all three numbers on
any card is the winner;
(((i))) (j) After the winning card is verified, all
unprotected chips are collected from all players and paid to the
winner.
(4) The following WAC sections are not applicable to speed bingo:
(a) WAC 230-20-010 (1)(b) requiring all prizes available to be disclosed to players prior to their paying to participate: Provided, That licensees shall disclose the per-card cost to play and the amount of wagers required to play a single card;
(b) WAC 230-20-240(2) requiring that seventy-five balls, numbered one through seventy-five, be used to conduct games;
(c) WAC 230-20-240 (4)(a) requiring bingo cards to have twenty-five spaces;
(d) WAC 230-20-240(5) requiring Class F and above licensees to use disposable or electronically-generated bingo cards;
(e) WAC 230-20-101 regarding the ticket receipting method;
(f) WAC 230-20-246(6) requiring the symbol or number to be displayed to players: Provided, That the symbol or number must be displayed by use of a flashboard required by WAC 230-20-240(3) and the flashboard and audio system shall be fully functional; and
(g) WAC 230-08-080(2) and 230-20-102 regarding records for prizes awarded.
[Statutory Authority: RCW 9.46.070, 9.46.0209, 9.46.0237, 9.46.0205 and 9.46.075. 96-24-008 (Order 303), § 230-20-249, filed 11/21/96, effective 12/22/96.]