Original Notice.

     Preproposal statement of inquiry was filed as WSR 05-13-042.

     Title of Rule and Other Identifying Information: New chapters 230-03 and 230-05 WAC.

     Chapter 230-03 WAC, Permitting and licensing rules: WAC 230-03-001 "We," "our," and "us" mean the commission and staff, 230-03-005 Permits for recreational gaming activities, 230-03-010 Fund-raising equipment distributors must report recreational gaming activities, 230-03-015 Permits to conduct bingo at agricultural fairs, 230-03-020 Punch board and pull-tab service business permit, 230-03-025 Applying for a manufacturer's special sales permit, 230-03-030 Other licenses, certificates, inspections, or permits needed to be considered for a gambling license, 230-03-035 Applying for a license, 230-03-040 Signing the application, 230-03-045 Defining substantial interest holder, 230-03-050 Additional information required from applicants for licensing, 230-03-051 Incorporated cities and towns exempt from some information requirements for application, 230-03-055 Reporting changes to application, 230-03-060 Fingerprinting of applicants, 230-03-065 Spouses must also be qualified, 230-03-070 Training required for licensing, 230-03-075 Withdrawing your application, 230-03-080 License approval process, 230-03-085 Denying, suspending, or revoking a license or permit, 230-03-090 Defining "agricultural," 230-03-095 Defining "athletic," 230-03-100 Defining "charitable," 230-03-105 Defining "civic," 230-03-110 Defining "educational," 230-03-115 Defining "fraternal," 230-03-120 Defining "patriotic," 230-03-125 Defining "political," 230-03-130 Defining "religious," 230-03-135 Defining "social," 230-03-140 Full and regular membership requirements, 230-03-145 Additional requirements for charitable and nonprofit licensing, 230-03-150 Additional requirements for branches or chapters of eligible parent organizations, 230-03-155 Submitting a proposed plan of operations for charitable and nonprofit organizations, 230-03-160 Licensed charitable or nonprofit organizations prohibited from managing or operating commercial gambling activities, 230-03-165 Information required with license application for commercial amusement games, 230-03-170 Defining "business premises," 230-03-175 Requirements for commercial stimulant businesses, 230-03-180 Additional materials required for a house-banked card room application, 230-03-185 Applying for a manufacturer license, 230-03-190 Applying for a distributor license, 230-03-195 Additional information required from manufacturer and distributor license applicants, 230-03-200 Defining "gambling equipment," 230-03-210 Applying for a gambling service supplier license, 230-03-215 Gambling service suppliers prohibited from assuming ultimate responsibility, 230-03-220 Marketing level restrictions for punch board or pull-tab manufacturers, distributors, or operators, 230-03-225 Marketing level restrictions for punch board or pull-tab gambling service suppliers, 230-03-230 Applying for linked bingo prize provider license, 230-03-235 Applying for charitable or nonprofit gambling manager license, 230-03-240 Working before receiving a charitable or nonprofit gambling manager license, 230-03-245 Licensing period for charitable or nonprofit gambling manager, 230-03-250 Applying for commercial gambling manager license, 230-03-255 Working before receiving a commercial gambling manager license, 230-03-260 Licensing period for commercial gambling manager, 230-03-265 Applying for a card room employee license, 230-03-270 Working as a card room employee before receiving a license, 230-03-275 Licensing period for card room employee, 230-03-280 Substantial interest holders not required to be licensed as card room employees, 230-03-285 Class III gaming employee working as card room employee, 230-03-290 Card room employees working for additional employer or changing employer, 230-03-300 Applying for a manufacturer's representative license, 230-03-305 Applying for a distributor's representative license, 230-03-310 Applying for gambling service supplier's representative license, 230-03-315 Applying for a linked bingo prize provider's representative license, 230-03-320 Substantial interest holders not required to be licensed as representatives, 230-03-325 Office, clerical, or warehouse workers not required to be licensed as representatives, 230-03-330 Licensed representatives represent only one employer at a time, 230-03-335 Representatives must not work before receiving a license, and 230-03-340 Gambling service supplier representative must report conflicts of interest.

     Chapter 230-05 WAC, Fee rules: WAC 230-05-001 Prorating or refunding of fees, 230-05-005 Fees for review of gambling equipment, supplies, services, or games, 230-05-010 Returned checks, 230-05-015 Two-part payment plan for license fees, 230-05-020 Charitable or nonprofit organization fees, 230-05-025 Commercial stimulant fees, 230-05-030 Other business organization fees, and 230-05-035 Individual license fees.

     Hearing Location(s): Red Lion Hotel, 2300 Evergreen Park Drive, Olympia, WA 98502, (360) 943-4000, on March 10, 2006, at 9:30 a.m.

     Date of Intended Adoption: March 10, 2006.

     Submit Written Comments to: Susan Arland, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504, e-mail Susana@wsgc.wa.gov, fax (360) 486-3625, by March 1, 2006.

     Assistance for Persons with Disabilities: Contact Shirley Corbett by March 1, 2006, TTY (360) 486-3637 or (360) 486-3447.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The gambling commission is rewriting its rules manual using plain English techniques. The rules manual has been divided into sections and is being rewritten a section at a time. The first sections reviewed are the licensing chapter. As part of the rewrite, some items from other chapters (chapter 230-02 WAC, General provisions and definitions; chapter 230-04 WAC, Licensing; chapter 230-08 WAC, Records and reports; and chapter 230-12 WAC, Rules of general applicability), may have been incorporated into this new chapter.

     Following are rules regarding licensing and permitting which are written and now numbered as new chapters.

     Chapter 230-03 WAC, will include rules relating to permits and licenses; and chapter 230-05 WAC, will include all fees related to permits, licenses, and identification stamps.

     Following are the proposed rule changes that are not strictly just rewritten rules, but changes to the rules.

     WAC 230-04-022 (6), (8) and (9), additional information required from all applicants

     WAC 230-03-055 Report changes to application information. The proposed change will end our collection of data which we do not need to determine licensure. This will help the commission ensure that we do not collect the personal and privileged information of people we are not investigating for license suitability. The new rule will clarify the responsibility of applicants to provide staff with changes to the application information.

     WAC 230-03-160 Licensed charitable or nonprofit organizations prohibited from managing or operating commercial gambling activities. The current rule, WAC 230-04-026, was challenged in Thurston County Superior Court. The court found that a portion of the rule which prohibited ownership by charitable and nonprofit organizations exceeded the authority provided the commission in RCW 9.46.120. The revised rule, WAC 230-03-160, prohibits management or operation of commercial gambling activities by charitable and nonprofit organizations but does not prohibit ownership.

     WAC 230-30-220 Interest in separate business involving punchboards and pull tabs at different marketing level prohibited, 230-30-225 Exception to interest in separate business involving punch boards and pull-tabs at a different marketing level prohibited, 230-04-119(7) Licensing of gambling service suppliers, 230-03-220 Marketing level restrictions for punch board or pull-tab manufacturers, distributors, or operators, and 230-03-225 Marketing level restrictions for punch board or pull-tab gambling service suppliers. We repealed WAC 230-30-220 and 230-30-225 in order to move the rules from the punch board and pull tab chapter to the permitting and licensing chapter, which makes it easier to find the rules. We then combined WAC 230-04-119(7) rule and rewrote all in "plain English." Public safety and the effectiveness of the regulatory enforcement will improve as applicants and licensees can more easily understand the rewritten rule. In rewriting the rules, we have eliminated "exception" language found in the current versions. Exceptions often cause confusion and impede voluntary compliance and regulation.

     WAC 230-04-030 Commission may post public notice of license application on premises. The proposal will repeal WAC 230-04-030 which allows the commission, at its discretion, to post a notice of license application on each premises upon which a gambling activity is to be conducted and invites public comment before the commission issues a license. This change will formalize the agency's current practice which is to not post a notice on an applicant's premises of intent to seek a license.

     WAC 230-04-035 Certification procedure -- Charitable and nonprofit organizations -- Classification of purpose. This proposed change will repeal WAC 230-04-035. The rule requires charitable and nonprofit organizations to be classified as such based on their primary purpose or purposes. Licensing procedures now require an organization to "self-select" their primary purpose from a list of purposes as part of the application process. The list is a summary of items found in RCW 9.46.0209.

     Statutory Authority for Adoption: RCW 9.46.070.

     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: Beth Heston, Rules Simplification Project Manager, Lacey, (360) 486-3464; Implementation: Rick Day, Director, Lacey, (360) 486-3446; and Enforcement: Neal Nunamaker, Deputy Director, Lacey, (360) 486-3452.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement has not been prepared pursuant to RCW 19.85.025 because the proposed rule does not impose more than minor costs to businesses.

     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.

January 25, 2006

Cally Cass

Assistant Director

for Field Operations

OTS-8542.2

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     (1) An organization, business, or association, or department of an organization, business, or association, that holds or sponsors an RGA must either:

     (a) Apply for and get a permit before the event; or

     (b) Hire a licensed fund-raising equipment distributor to organize and conduct the activity.

     (2) Only members and guests of the sponsoring organization, business, or association, or department of the sponsoring organization, business, or association, may participate in the RGA.

     (3) Permit holders must:

     (a) Rent the gambling equipment used in the activity from:

     (i) A licensed distributor of fund-raising event equipment; or

     (ii) A licensee who has conducted a fund-raising event within the last twelve months; and

     (b) Use scrip or chips which have no cash value; and

     (c) Limit the recreational gaming activity to eight hours.

     (4) The permit holder may charge a fee to enter the premises if that fee pays for:

     (a) An accompanying meal and entertainment associated with the activity; or

     (b) The costs of renting the equipment used in the recreational gaming activities.

     (5) The permit holder may allow participants to redeem their scrip or chips for prizes. All prizes must be donated to, or provided by, the permit holder.

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     (1) Include the name of the sponsoring organization, business, or association, or department of an organization, business, or association, and the date, location, and time of the activity.

     (2) Identify any prior RGAs conducted by all licensed distributors on behalf of the sponsoring organization, business, or association, or department of an organization, business, or association, within the last calendar year.

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     (a) An annual permit to conduct bingo games at agricultural fairs; or

     (b) A special property bingo permit to conduct bingo games at a single agricultural fair.

     (2) Each agricultural fair is fully responsible for the operation of bingo conducted under its license.

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     (a) Reconcile sales, prizes, and cash on hand for punch board and pull-tab series; or

     (b) Complete records we require; or

     (c) Store punch boards and pull-tab series removed from play.

     (2) The owners or employees of the service business must not be employees of the operator.

     (3) The owners or employees of the service business must not provide management advice to the operator.

     (4) The punch board and pull-tab service business must apply for a gambling service supplier license if combined gross billings exceed twenty thousand dollars during the permit period.

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     (a) Sell authorized gambling equipment; and

     (b) Demonstrate that the anticipated profits from your sales will be below the cost of obtaining a manufacturer license.

     (2) Otherwise, you must apply for a manufacturer license.

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     (2) If your application is incomplete, you must provide us with the required items within thirty days of notification or we may administratively close the application.

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     (1) The person signing the application must be:

     (a) The highest ranking officer of a charitable, nonprofit, or profit-seeking corporation, or limited liability company seeking licensure; or

     (b) The owner of a sole proprietorship seeking licensure; or

     (c) All partners of a partnership or general partner of a limited partnership seeking licensure; or

     (d) The mayor or the mayor's designated representative of an incorporated city or town submitting the application.

     (2) The person seeking an individual license and a designated officer of the organization for which the person will work must both sign the application.

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     (2) Evidence of substantial interest may include, but is not limited to:

     (a) Directly or indirectly owning, operating, managing, or controlling an entity or any part of an entity; or

     (b) Directly or indirectly profiting from an entity or assuming liability for debts or expenditures of the entity; or

     (c) Being an officer or director or managing member of an entity; or

     (d) Owning ten percent or more of any class of stock in a privately or closely held corporation; or

     (e) Owning five percent or more of any class of stock in a publicly traded corporation; or

     (f) Owning ten percent or more of the membership shares/units in a privately or closely held limited liability company; or

     (g) Owning five percent or more of the membership shares/units in a publicly traded limited liability company; or

     (h) Providing ten percent or more of cash, goods, or services for the start up of operations or the continuing operation of the business during any calendar year or fiscal year. To calculate ten percent of cash, goods, or services, take the operational expenses of the business over the past calendar or fiscal year, less depreciation and amortization expenses, and multiply that number by ten percent; or

     (i) Receiving, directly or indirectly, a salary, commission, royalties, or other form of compensation based on the gambling receipts.

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     (a) Articles of incorporation and bylaws; or, if not a corporation, a copy of any bylaws and other documents which set out the organizational structure and purposes of the organization; and

     (b) The name of the resident agent as required by state law, and the agent's business and home address; and

     (c) Internal Revenue Service tax exemption letter, if one is necessary; and

     (d) All lease or rental agreements, whether oral or written, between the applicant and the owner of the site where applicant will conduct gambling activity; and

     (e) Any franchise agreements or other agreements, whether written or oral, between applicant and distributors or manufacturers of equipment or between applicant and any other person whose agreements relate to gambling activities or gambling equipment; and

     (f) All proposed financing, consulting, and management agreements or contracts between applicant and any gambling service supplier; and

     (g) Enough personal information to ensure each substantial interest holder is qualified to hold a license or participate in an authorized gambling activity.

     (2) Applicants must also give us any other information we request within thirty days of the request or within any other time frame we provide.

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     (1) All lease or rental agreements, whether oral or written, between the applicant and the owner of the site where applicant will conduct gambling activity; and

     (2) Any franchise agreements or other agreements, whether written or oral, between applicant and distributors or manufacturers of equipment or between applicant and any other person whose agreements relate to gambling activities or gambling equipment; and

     (3) All proposed financing, consulting, and management agreements or contracts between applicant and any gambling service supplier.

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     (1) Amusement games for commercial use: Class E and above; and

     (2) Card games: Class E, Class F and house-banked card rooms; and

     (3) Punch boards/pull-tabs for commercial stimulant: Class F and above; and

     (4) Manufacturers: Class B and above; and

     (5) Distributors: Class B and above; and

     (6) Gambling service suppliers; and

     (7) Representatives for distributors, manufacturers, gambling service suppliers, and linked bingo prize providers; and

     (8) Managers of commercial gambling operations; and

     (9) Public card room employees; and

     (10) Linked bingo prize providers.

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     (2) If you are a licensed employee of a gambling operation, we do not require your spouse to meet the licensing qualifications.

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     (a) Signed the licensing application; or

     (b) Are a manager; or

     (c) Are responsible for conducting gambling activities or completing records.

     (2) You must complete training within thirty days of the effective date of your license.

     (3) We do not require manufacturers or manufacturers' representatives to complete training.

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     (2) Withdrawing an application will not affect any future application for a license.

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     (2) The commissioners take action on applications at a public meeting. These actions may include license approval, holding an application over to a future meeting, or returning an application to staff for further investigation.

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     (1) Commits any act that constitutes grounds for denying, suspending, or revoking licenses or permits under RCW 9.46.075; or

     (2) Has been convicted of, or forfeited bond on a charge of, or pleaded guilty to a misdemeanor or felony crime involving physical harm to individuals. "Physical harm to individuals" includes any form of criminal assault, any crime involving a threat of physical harm against another person, or any crime involving an intention to inflict physical harm on another person; or

     (3) Has demonstrated willful disregard for complying with ordinances, statutes, administrative rules, or court orders, whether at the local, state, or federal level; or

     (4) Has failed to pay gambling taxes to local taxing authorities and the local taxing authority must petition us to take action; or

     (5) Is serving a period of probation or community supervision imposed as a sentence for any juvenile, misdemeanor, or felony criminal offense, whether or not the offense is covered under RCW 9.46.075(4); or

     (6) Is the subject of an outstanding gross misdemeanor or felony arrest warrant; or

     (7) Poses a threat to the effective regulation of gambling, or creates or increases the likelihood of unfair or illegal practices, methods, and activities in the conduct of gambling activities, as demonstrated by:

     (a) Prior activities; or

     (b) Criminal record; or

     (c) Reputation; or

     (d) Habits; or

     (e) Associations; or

     (8) Knowingly provides or provided goods or services to an entity that illegally operates gambling activities.

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     (a) Cultivating land;

     (b) Harvesting crops or aquatic resources; or

     (c) Raising livestock.

     (2) This definition includes incorporated granges as described in chapter 24.28 RCW.

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     (1) Relief of poverty, indigence, or personal distress;

     (2) Help for disadvantaged persons;

     (3) Treatment and prevention of physical or mental distress;

     (4) Assisting youths, seventeen years old or younger, through programs that teach them cultural and social skills necessary to integrate them into society, improve their physical fitness, or prevent delinquency.

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     (2) To have full and regular membership status in a Washington charitable or nonprofit organization, you must:

     (a) Be at least eighteen years old, unless the organization:

     (i) Has a primary purpose that is the development of youth; and

     (ii) Is applying only for a raffle or amusement game license; and

     (iii) Has at least three members or advisors who are at least eighteen years old and who supervise the operation of the gambling activity; and

     (iv) Has an adult member or advisor designated as the manager for the gambling activity; and

     (b) Take part in at least one of the following activities of the organization:

     (i) Attend at least one regular membership meeting per year; or

     (ii) Vote for officers and/or board members; or

     (iii) Help set policy by serving as a member of the board of directors or a similar policy setting position; or

     (iv) Serve as a volunteer providing services or raising funds from nongambling sources; or

     (v) Maintain a level of communication that demonstrates knowledge of the activities of the organization; and

     (c) Live within one hundred miles of the main administrative offices of your organization which are located in Washington, or attend seventy-five percent of the organization's board meetings.

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     (a) Official minutes of the organization's formation meeting and all membership and board meetings for the last twelve months including issues discussed, decisions made, and members in attendance; and

     (b) A listing of the names of all "full and regular members." The organization must provide full names, addresses, telephone numbers, and the dates they became full and regular members; and

     (c) A copy of the most recently approved articles of incorporation or bylaws or both; and

     (d) All correspondence with the Internal Revenue Service and the secretary of state regarding the organization's status as a nonprofit organization; and

     (e) Proof of federal tax deductible status for contributions to the organization.

     (2) Organizations must submit documents that demonstrate that the organization made significant progress in meeting its stated charitable or nonprofit purpose(s) during the twelve consecutive months before applying for a license.

     (3) Organizations must provide, in their bylaws or in their articles of incorporation, a statement that guarantees that, if the organization is dissolved, all the assets remaining after satisfaction of all their debts must be distributed to another charitable or nonprofit organization qualified under RCW 9.46.0209.

     (4) Charitable or nonprofit organizations must provide us with the names of gambling managers who will oversee gambling activities. The organization must note on the application which manager has the highest level of authority and assign that person the title "primary gambling manager" on the application.

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     (a) Requests licensing to conduct gambling activities with combined annual gross receipts in excess of three million dollars; or

     (b) Plans to pay premises rent exceeding two thousand dollars per month, including all terms.

     (2) The plan must show enough detail to allow us to assess the potential for compliance with cash flow requirements. It must also include at least the following information:

     (a) Research procedures and planning assumptions used; and

     (b) Planned number of customers or attendance; and

     (c) Days and hours of operations; and

     (d) Estimated gross gambling receipts from each activity; and

     (e) Estimated expenses and net income; and

     (f) Details of income generating activities planned in conjunction with the gambling activity, such as snack bar operations or other retail sales and the anticipated net income from those activities; and

     (g) Any other information related to your gambling license application that we request.

     (3) If planned activities include bingo, the organization must provide:

     (a) Anticipated market area and map of competing organizations that operate similar gambling activities, along with their days of operation; and

     (b) Number of bingo sessions, bingo card prices, and estimated sales per player; and

     (c) Bingo prize payouts and game schedules.

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(1) All locations:	(a)	A list of times and dates when the applicant will operate the activity; and
	(b)	A copy of any rental/lease agreement which allows operation of commercial amusement games at any location the applicant does not own or otherwise control. The applicant must disclose full details of the rental/lease agreement, including any revenue sharing provisions, all costs the applicant will share, and any restrictions on the number of amusement games the applicant operates; and
	(c)	Copies of any rental or lease contracts related to the amusement game equipment.
(2) Permanent locations:	(a)	Amusement parks: The number of mechanical or aquatic rides, theatrical productions, motion pictures, and slide show presentations available for the public.
	(b)	Regional shopping centers: Size of the shopping center, in gross square feet, not including parking areas.
	(c)	Taverns and restaurants with cocktail lounges: Washington state liquor control board license number and expiration date, and a statement of whether the business prohibits minors from all portions of the premises.
	(d)	Movie theaters, bowling alleys, miniature golf course facilities, skating facilities, and amusement centers: Complete description of the business activities conducted. For an amusement center, the number of amusement devices, income derived from those devices, and all other business activities conducted during the last twelve months.
	(e)	Any business whose primary activity is to provide food service for on-premises consumption: Amount of gross income the entire business generates; and the portion of gross income the food service for on-premises consumption generates.
	(f)	Department or grocery stores: Type of retail products sold; size of the store premises, in gross square feet, not including parking areas.
(3) Limited time locations:		The applicant must receive written permission from the sponsor of any activity and submit planned operating dates for all locations at which the applicant plans to operate during the year. This operating plan must be updated any time the dates of operation change.

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     (1) Proof that it is an "established business" as used in RCW 9.46.0217. "Established business" means any business that has been open to the public for sales of food or drink for on-premises eating and drinking for ninety days or more; or

     (a) Provides us with a proposed operating plan which includes:

     (i) Hours of operation; and

     (ii) Estimated gross sales from each separate activity the business will conduct on the business premises including, but not limited to:

     (A) Food or drinks for "on-premises" eating and drinking; and

     (B) Food or drinks "to go"; and

     (C) All other business activities; and

     (b) Is ready to conduct food or drink sales; and

     (c) Passes an inspection by us; and

     (2) Proof that it is "primarily engaged in the selling of food or drink for consumption on premises" as used in RCW 9.46.070(2). "Primarily engaged in the selling of food or drink for consumption on premises" means that before receiving a gambling license the business has total gross sales of food or drink for on-premises consumption equal to or greater than all other combined gross sales, rentals, or other income-producing activities which occur on the business premises when measured on an annual basis.

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     (1) A detailed description, including flow charts, of your planned internal accounting and administrative control system. You must submit the information in the standard format we require; and

     (2) A detailed diagram of the planned physical layout of the business premises. The diagram must include at least:

     (a) The location of all gambling tables; and

     (b) The location of all surveillance cameras; and

     (c) The count room; and

     (d) The surveillance room; and

     (e) The cashier's cage; and

     (3) A detailed description of the card games offered for play, including rules of play, and the type of gambling tables operated, including table layouts.

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     (1) Make or assemble a completed piece or pieces of gambling equipment for use in authorized gambling activities; or

     (2) Convert, modify, combine, add to, or remove parts or components of any gambling equipment for use in authorized gambling activities.

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     (1) Buy or otherwise obtain a finished piece of gambling equipment for use in authorized gambling activities from another person and sell or provide that gambling equipment to a third person for resale, display, or use; or

     (2) Are a manufacturer who sells or provides gambling equipment you do not make to any other person for resale, display, or use; or

     (3) Service and repair authorized gambling equipment. However, distributors must not add, modify, or alter the gambling equipment; or

     (4) Modify gambling equipment using materials provided by manufacturers to upgrade equipment to current technology.

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     (1) A list of all businesses or corporations which you, or officers, directors, or substantial interest holders of your business, either directly or indirectly, own or control as a substantial interest holder; and

     (2) A list of all businesses or corporations licensed to conduct gambling activities or to supply gambling-related equipment, supplies, or services in which you, officers, directors, or substantial interest holders of your business have any interest; and

     (3) A list of all jurisdictions in which you or any of the officers, directors, or substantial interest holders of your business have had a gambling-related license at any level during the previous ten years; and

     (4) A statement about whether you, or officers, directors, or substantial interest holders have ever been part of a business that had a gambling-related license denied, revoked, or suspended by any jurisdiction for a period longer than thirty days.

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     (1) Amusement games;

     (2) Punch boards and pull-tabs;

     (3) Devices for dispensing pull-tabs;

     (4) Electronic devices for conducting, facilitating, or accounting for the results of gambling activities, including, but not limited to:

     (a) Components of a tribal lottery system;

     (b) Electronic devices for reading and displaying outcomes of gambling activities; and

     (c) Accounting systems that are a part of, or directly connected to, a gambling system including, but not limited to:

     (i) Bet totalizers; or

     (ii) Progressive jackpot meters; or

     (iii) Keno systems;

     (5) Bingo equipment;

     (6) Devices and supplies used to conduct card games, fund-raising events, recreational gaming activities, or Class III gaming activities, as defined in the Indian Gaming Regulatory Act at U.S.C. 25 chapter 29 § 2703 and in tribal-state compacts including, but not limited to:

     (a) Gambling chips;

     (b) Cards;

     (c) Dice;

     (d) Card shuffling devices;

     (e) Graphical game layouts for table games;

     (f) Ace finders or no-peek devices;

     (g) Roulette wheels;

     (h) Keno equipment; and

     (i) Tables manufactured exclusively for gambling purposes.

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     (a) Consulting or advisory services regarding gambling activities; or

     (b) Gambling management services; or

     (c) Financing for purchases or leases of gambling equipment or for providing infrastructure that supports gambling operations for more than one licensee; or

     (d) Providing the assembly of components for gambling equipment under a contract with a licensed manufacturer; or

     (e) Installing, integrating, maintaining, or servicing digital surveillance systems that allow direct access to the operating system; or

     (f) Training individuals to conduct authorized gambling activities; or

     (g) Providing any other service or activity where influence may be exerted over any gambling activity licensed by the commission.

     (2) You do not need a gambling service supplier license if you are:

     (a) A bank, mutual savings bank, or credit union regulated by the department of financial institutions or any federally regulated commercial lending institution; or

     (b) A university or college regulated by the Washington state board of community and technical colleges and the higher education coordinating board that trains individuals to conduct authorized gambling activities; or

     (c) An attorney, accountant, or governmental affairs consultant whose primary business is providing professional services that are unrelated to the management or operation of gambling activities; or

     (d) A person that only provides nonmanagement-related recordkeeping services for punch board and pull-tab operators, when the combined total gross billings from such services does not exceed twenty thousand dollars during any calendar year.

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     (a) Operator; and

     (b) Distributor or manufacturer.

     (2) If you are a manufacturer or distributor, or spouse of a manufacturer or distributor of punch boards, pull-tabs, pull-tab dispensing devices, or related equipment, you must not have a substantial interest in a business that operates punch boards or pull-tabs.

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     (a) Equipment and supplies to offer linked bingo; and

     (b) Linked bingo prize management; and

     (c) Distribution of necessary gambling equipment and supplies.

     (2) Distributors must receive a linked bingo prize provider license before providing gambling equipment and supplies to play linked bingo games.

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     (1) Will have control to a material degree over a Class D and above bingo license; or

     (2) Will have control to a material degree over a Class C and above punch boards and pull-tabs license; or

     (3) Will be the supervisor of gambling managers who manage a Class D and above bingo license or Class C and above punch boards and pull-tabs license; or

     (4) Will be assigned the highest level of authority by the officers or governing board of directors to manage the day-to-day affairs of the organization and is responsible for safeguarding assets purchased with gambling funds and/or managing the disbursement of gambling funds when the organization:

     (a) Is licensed to receive more than three hundred thousand dollars in gross gambling receipts; or

     (b) Has established a trust and/or endowment fund to which gambling receipts in excess of one hundred thousand dollars have been contributed; or

     (5) Will be the supervisor of the operation of progressive jackpot pull-tab games.

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     (2) If you meet any of the conditions of RCW 9.46.158, you must not perform any of the duties of a charitable or nonprofit gambling manager until you receive a license from us.

     (3) If you elect to perform any of the duties of a charitable or nonprofit gambling manager before licensing, we will keep your entire application fee regardless of the outcome of your application.

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     (2) If you meet any of the conditions of RCW 9.46.158, you must not perform any of the duties of a commercial gambling manager until you receive a license from us.

     (3) If you elect to perform any of the duties of a commercial gambling manager before licensing, we will keep your entire application fee, regardless of the outcome of your application.

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     (1) Class E card room; or

     (2) Class F card room; or

     (3) House-banked card room; and

     (4) You perform any of the following functions:

     (a) Collecting fees; or

     (b) Dealing; or

     (c) Supervising any card game or other card room employee, such as acting as a pit boss, floor person, or section supervisor; or

     (d) Selling or redeeming chips; or

     (e) Performing cashier or cage duties such as counting and handling chips or cash, completing credit slips, fill slips, or inventory slips, or accounting for other card room receipts in the cage; or

     (f) Observing dealers and card games to detect cheating or control functions; or

     (g) Controlling card room funds including keys to secure locations; or

     (h) Taking part in the operation of a card game.

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     (2) We may waive the ten-day waiting period if:

     (a) Your employer can demonstrate an urgent and unexpected need for you as an employee; and

     (b) Your employer's business would close or the control structure of the activity would be weakened if we failed to grant such waiver; and

     (c) Your employer could not control the circumstances causing the need for a waiver; and

     (d) You pay the fee for the waiver.

     (3) If you meet any of the conditions of RCW 9.46.158, you must not perform the duties of a card room employee until you receive a license.

     (4) If you choose to perform the duties of a card room employee before receiving your license, we will keep the entire application fee regardless of the outcome of your application.

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     (2) If the owner you work for owns more than one licensed business, you may represent the owner in all those licensed businesses without applying for another representative license.

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OTS-8543.1

     (2) We may adjust expiration dates to end on the same day for organizations licensed for more than one activity. Whenever we adjust license expiration dates under this provision, we may prorate the required fees.

     (3) We will not prorate or refund fees when:

     (a) You discontinue your gambling activities; or

     (b) You voluntarily surrender your license or permit; or

     (c) We suspend or revoke your license.

     (4) We keep a portion of your application fees whether we deny or administratively close your application or you withdraw it.

     (5) If you are a licensee, you may apply for a partial refund of your license fee if your annual gross gambling receipts are less than the minimum for your license class. We will refund the difference between the fees you paid and the fees for the license class level you actually met. You must request the refund within twelve months.

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     (a) Pay us in full, by certified check, money order, or cash, within five days of notification; and

     (b) Pay an additional processing charge of thirty dollars.

     (2) If you fail to pay within five days of notification:

     (a) We will administratively close your application; or

     (b) Your license expires and all gambling activity must stop.

     (3) If we administratively close your application or your license expires, you must give us a new application with fees paid by certified check, money order, or cash in order to be considered for a license.

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     (a) You elect to participate; and

     (b) The license fee is at least eight hundred dollars; and

     (c) You pay an administrative processing fee as set out in WAC 230-05-020 or 230-05-030, plus one-half of the annual license fee at the time of application or renewal.

     (2) We issue licenses under the two-part payment plan with an expiration date of not more than one year and a second-half payment due date.

     (a) If we receive your second-half payment on or before the due date, the license will remain in effect until the expiration date.

     (b) If you fail to submit the second-half payment on or before the due date, the license expires and gambling activities must stop.

     (3) Your gross gambling receipts during the first-half payment period must not exceed fifty percent of the authorized class limitation for annual gross gambling receipts. Licensees whose gross gambling receipts exceed fifty percent of the authorized level must apply for a license at the appropriate license class and pay the full upgrade fee, plus an administrative processing fee, as set out in WAC 230-05-020 and 230-05-030.

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1. Amusement games

License	Annual Gross Gambling Receipts	Fee
Class A	Premises only	$54
Class B	Up to $10,000	$54
Class C	Up to $25,000	$294
Class D	Up to $50,000	$472
Class E	Over $50,000	$822

2. Bingo

License	Annual Gross Gambling Receipts	Fee	One Time Variance*
Class A	Up to $25,000	$54	$1,000
Class B	Up to $75,000	$171	$1,000
Class C	Up to $150,000	$350	$2,000
Class D	Up to $350,000	$944	$4,000
Class E	Up to $650,000	$1,590	$8,000
Class F	Up to $1,500,000	$3,196	$15,000
Class G	Up to $2,000,000	$4,612	$23,000
Class H	Up to $3,000,000	$6,162	$30,000
Class I	Up to $4,000,000	$7,700	$38,000
Class J	Up to $5,000,000	$9,238	$45,000
Class K	Up to $6,000,000	$10,364	$53,000
Class L	Up to $7,000,000	$11,846	$60,000
Class M	Up to $8,000,000	$13,330	$65,000
Class N	Up to $9,000,000	$14,500	$70,000
Class O	Up to $10,000,000	$16,000	$75,000
Class P	Up to $11,000,000	$17,500	$80,000
Class Q	Up to $12,000,000	$21,000	$85,000
Class R	Up to $13,000,000	$24,000	$90,000
Class S	Up to $14,000,000	$27,000	$95,000

*See chapter 230-06 WAC, Exceeding license class.

3. Card games

License	Description	Fee
Class A	Nonhouse-banked - fee to play	$589
Class B	Limited card games - hearts, rummy, pitch, pinochle, and cribbage - fee to play	$171
Class C	Tournament only - no more than thirty consecutive days per tournament	$54
Class D	Nonhouse-banked - no fee to play	$54

4. Fund-raising event

License	Description	Fee
Class A	One event - not more than 24 consecutive hours
	First time applicant	$350
	Previously licensed applicant	$206
Class B	One event - not more than 72 consecutive hours
	First time applicant	$589
	Previously licensed applicant	$361
Class C	Additional participant in joint event - not lead organization	$171
Class D	Limited fund-raising event - one event - not more than six consecutive hours
	First time applicant	$154
	Previously licensed applicant	$103
Class E	Fund-raising event equipment distributor - rents or leases equipment no more than ten times per year	$233
Class F	Fund-raising event equipment distributor - rents or leases equipment more than ten times per year	$589

5. Punch boards/pull-tabs

License	Annual Gross Gambling Receipts	Fee	One Time Variance*
Class A	Up to $50,000	$561	$5,000
Class B	Up to $100,000	$1,002	$5,000
Class C	Up to $200,000	$1,892	$10,000
Class D	Up to $300,000	$2,750	$10,000
Class E	Up to $400,000	$3,552	$10,000
Class F	Up to $500,000	$4,288	$10,000
Class G	Up to $600,000	$4,970	$10,000
Class H	Up to $700,000	$5,594	$10,000
Class I	Up to $800,000	$6,162	$10,000
Class J	Up to $1,000,000	$6,986	$20,000
Class K	Up to $1,250,000	$7,756	$25,000
Class L	Up to $1,500,000	$8,470	$25,000
Class M	Up to $1,750,000	$9,038	$25,000
Class N	Up to $2,000,000	$9,594	$25,000
Class O	Up to $2,500,000	$10,542	$30,000
Class P	Up to $3,000,000	$11,200	$35,000
Class Q	Up to $4,000,000	$13,200	$40,000
Class R	Up to $5,000,000	$15,000	$50,000
Class S	Up to $6,000,000	$17,000	$60,000
Class T	Up to $7,000,000	$19,000	$70,000
Class U	Up to $8,000,000	$21,000	$80,000
Class V	Over $8,000,000	$23,000	$80,000

*See chapter 230-06 WAC, Exceeding license class.

6. Raffles

License	Annual Gross Gambling Receipts	Fee
Class A	Up to $5,000	$54
Class B	Up to $10,000	$171
Class C	Up to $25,000	$350
Class D	Up to $50,000	$589
Class E	Up to $75,000	$944
Class F	Over $75,000	$1,414

7. Combination license

License	Description	Fee
Class A	Allows gross gambling receipts of up to $25,000 from bingo, $7,500 from raffles, and $7,500 from amusement games, not to exceed $30,000 combined gross gambling receipts from all such activities. Allows Class D card games.	$106
Class B	Allows gross gambling receipts of up to $60,000 from bingo, $15,000 from raffles, and $15,000 from amusement games, not to exceed $75,000 combined gross gambling receipts from all such activities. Allows Class D card games.	$276
Class C	Allows gross gambling receipts of up to $125,000 from bingo, $30,000 from raffles, and $30,000 from amusement games, not to exceed $150,000 combined gross gambling receipts from all such activities. Allows Class D card games.	$639

8. Special property bingo

Once annually

$26

9. Permits

Recreational gaming activity

$54

10. Changes

Type	Fee
Name	$26
Location	$26
Fund-raising event date or time	$26
License class	$26
Duplicate license	$26

11. Other fees

Type	Fee
Replacement identification stamps	$26
Failing to apply for license class upgrade	Fifty percent of the difference between our fees for the licensee's present license class and the new license class or one thousand dollars, whichever is less, plus $26
Review, inspection and/or evaluation of equipment, paraphernalia, services, or schemes	Deposit and fees as required

12. Two part payment plan participation

Annual participation

$26

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1. Card games - Nonhouse-banked

    

License	Description	Fee
Class B	Up to five tables of limited card games - hearts, rummy, pitch, pinochle, and/or cribbage - fee to play	$175
Class C	Tournament only, no more than thirty consecutive days per tournament
C-5	Up to five tables	$175
C-10	Up to ten tables	$318
C-15	Up to fifteen tables	$529
Class D	Up to five tables - no fee to play	$55
Class E	Fee to play
E-1	One table only	$422
E-2	Up to two tables	$727
E-3	Up to three tables	$1,210
E-4	Up to four tables	$2,426
E-5	Up to five tables	$3,650
Additional tables	Per table - up to a maximum of fifteen	$1,060
Class F	Endorsement/upgrade of Class E includes permission to use alternative fee collections and use of player-supported jackpots	$1,590

2. Card games - House-banked

     All tables within a card room operating any house-banked card game must be licensed under this license class.

License	Fee
Annual	$6,368
Additional fee per table - up to fifteen tables	$1,590

3. Punch boards and pull-tabs

License	Annual Gross Gambling Receipts	Fee	One Time Variance*
Class A	Up to $50,000	$577	$5,000
Class B	Up to $100,000	$1,030	$10,000
Class C	Up to $200,000	$1,942	$10,000
Class D	Up to $300,000	$2,826	$10,000
Class E	Up to $400,000	$3,650	$10,000
Class F	Up to $500,000	$4,408	$10,000
Class G	Up to $600,000	$5,108	$10,000
Class H	Up to $700,000	$5,748	$10,000
Class I	Up to $800,000	$6,332	$10,000
Class J	Up to $1,000,000	$7,180	$20,000
Class K	Up to $1,250,000	$7,970	$25,000
Class L	Up to $1,500,000	$8,704	$25,000
Class M	Up to $1,750,000	$9,310	$25,000
Class N	Up to $2,000,000	$9,862	$25,000
Class O	Up to $2,500,000	$10,836	$30,000
Class P	Up to $3,000,000	$11,200	$35,000
Class Q	Up to $4,000,000	$13,200	$40,000
Class R	Up to $5,000,000	$15,000	$50,000
Class S	Up to $6,000,000	$17,000	$60,000
Class T	Up to $7,000,000	$19,000	$70,000
Class U	Up to $8,000,000	$21,000	$80,000
Class V	Over $8,000,000	$23,000	$80,000

*See chapter 230-06 WAC, Exceeding license class.

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1. Commercial amusement games

License	Annual Gross Gambling Receipts	Fee
Class A	Premises only	*$301/$137
Class B	Up to $50,000	$422
Class C	Up to $100,000	$1,086
Class D	Up to $250,000	$2,426
Class E	Up to $500,000	$4,256
Class F	Up to $1,000,000	$7,306
Class G	Over $1,000,000	$9,140

*We reduce the license fee by $164 when you apply for additional licenses at the same business premises, apply for multiple licenses at the same business premises, or a licensee is renewing an annual license.

2. Distributor

License	Annual Gross Sales	Fee
Class A	Nonpunch board/pull-tab only	$603
Class B	Up to $250,000	$1,210
Class C	Up to $500,000	$1,818
Class D	Up to $1,000,000	$2,426
Class E	Up to $2,500,000	$3,160
Class F	Over $2,500,000	$3,890

3. Fund-raising event equipment distributor

License	Description	Fee
Class A	Rents or leases equipment for fund-raising event or recreational gaming activity up to 10 times per year.	$239
Class B	Rents or leases equipment for fund-raising event or recreational gaming activity more than 10 times per year.	$603

4. Gambling service supplier

License	Fee
Annual	$630
Financing, consulting, and management contract review	$136

5. Linked bingo prize provider

License	Fee
Annual	$4,048

6. Manufacturer

License	Annual Gross Sales	Fee
Class A	Pull-tab dispensing devices only	$603
Class B	Up to $250,000	$1,210
Class C	Up to $500,000	$1,818
Class D	Up to $1,000,000	$2,426
Class E	Up to $2,500,000	$3,160
Class F	Over $2,500,000	$3,890

7. Permits

Type	Description	Fee
Agricultural fair	One location and event only	$26
Agricultural fair annual permit	Annual permit for specified different events and locations	$175
Recreational gaming activity		$55
Manufacturer's special sales permit		$211
Punch board and pull-tab service business permit	Initial application fee	$217
Punch board and pull-tab service business permit	Renewal	$53

8. Changes

Application	Description	Fee
Name		$26
Location		$26
Business classification	Same owners	$55
Exceeding license class	New class fee, less previous fee paid, plus	$26
Duplicate license		$26
Corporate stock/limited liability company shares/units		$55
License transfers		$55

9. Other fees

Type	Fee
Defective punch board/pull-tab cost recovery fees	$100
Failing to apply for license class upgrade	Fifty percent of the difference between our fees for the licensee's present license class and the new license class or one thousand dollars, whichever is less, plus $26
Review of gambling equipment, supplies, services, or games	Cost reimbursement

10. Identification stamps

Type		Fee
(a) Punch boards and pull-tabs
(i) Standard	Wagers fifty cents and below	$.27
	Wagers over fifty cents	$1.05
(ii) Progressive jackpot pull-tab series	Per series	$10.60
(iii) Pull-tab series with carry-over jackpots	Per series	$1.05
(b) Pull-tab dispensing devices
(i) Mechanical and electro-mechanical		$.27
(ii) Electronic	Dispensing devices that require initial and ongoing evaluation of electronic components or functions, such as reading encoded data on pull-tabs, accounting for income or prizes	$106.17 annually
Replacement of identification stamps		$26
(c) Disposable bingo cards
(i) Single game sets of individual cards or sheets of cards		$.27
(ii) Multigame card packets		$1.16
(iii) Cards used to play for linked bingo prizes	Fee per 250 cards	$.42
(iv) Cards used to play for linked bingo prizes	Fee per 5,000 cards	$8.49
(d) Coin or token-activated amusement games
Annually - operated at any Class A amusement game license location		$26.53
(e) Electronic bingo card daubers
Annual		$10.60
(f) Electronic card facsimile table
Annual		$361.51

11. Two-part payment plan participation

Annual participation

$26

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1. Charitable or nonprofit gambling manager

License	Fee
Original	$171
Renewal	$82
Change of employer	$82

2. Linked bingo prize provider representative

License	Fee
Original	$239
Renewal	$146

3. Commercial gambling manager

License	Fee
Original	$175
Renewal	$84
Change of employer	$84

4. Distributor's or gambling services supplier's representative

License	Fee
Original	$239
Renewal	$146

5. Manufacturer's representative

License	Fee
Original	$239
Renewal	$146

6. Public card room employee

License	Fee
Class A - Performs card room employee duties in a Class E card room
Original	$175
Renewal	$84
Class B - Performs card room employee duties in enhanced and house-banked card rooms
Original, in-state	$237
Original, out-of-state	$295
Renewal	$146
Transfer/additional employee/conversion/emergency waiver request	$57

7. Other fees

Change of name	$26
Duplicate license	$26

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