WSR 09-15-070

PERMANENT RULES

GAMBLING COMMISSION


[ Order 654 -- Filed July 13, 2009, 8:48 a.m. , effective January 1, 2010 ]


     Effective Date of Rule: January 1, 2010.

     Purpose: The Recreational Gaming Association (RGA) requested a rule change to eliminate the requirement for house-banked card room licensees to maintain an amount equal to all individual odds-based wager prizes offered which are greater than $25,000 in a separate bank account. An "odds-based wager" means a wager where the player wins an amount over and above the amount he or she wagered if a fixed pattern or combination of cards occurs, for example, a royal flush, four aces, or a pair. Since the "odds based wager" prize is incorporated in the minimum cash on hand calculation, there is no longer a need for these funds to be held in a separate bank account. The change allows house-banked licensees who offer more than one individual odds-based wager prize greater than $25,000 to keep an amount equal to the second highest odds-based wager prize in a bank, mutual savings bank, or credit union in Washington state or possess a verifiable line of credit from a Washington state financial institution.

     Citation of Existing Rules Affected by this Order: Amending WAC 230-15-455.

     Statutory Authority for Adoption: RCW 9.46.070.

      Adopted under notice filed as WSR 09-09-054 filed on April 10, 2009, and published May 6, 2009.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.

     Date Adopted: July 13, 2009.

Susan Arland

Rules Coordinator

OTS-2279.1


AMENDATORY SECTION(Amending Order 608, filed 4/10/07, effective 1/1/08)

WAC 230-15-455   Keeping funds to pay prizes, progressive jackpot prizes, and odds-based wager prizes.   (1) House-banked card game licensees must ensure that they have sufficient funds available to pay prizes, progressive jackpot prizes and odds-based wager prizes. An "odds-based wager" means a wager where the player wins an amount over and above the amount he or she wagered if a fixed pattern or combination of cards occurs, for example, a royal flush, four aces, or a pair.

     (2) Licensees must not offer card games until they have met all of these requirements:

     (a) Progressive jackpot prizes.

     (i) Keep a separate bank account for progressive jackpot prizes ((and odds-based wager prizes)). The account must be kept in a bank, mutual savings bank, or credit union located in Washington state; ((and

     (b) Keep in the account an amount equal to all individual odds-based wager prizes offered which are greater than twenty-five thousand dollars and all progressive jackpot prize funds; and

     (c) Use the highest wager they allow to calculate the individual odds-based wager prize amount and determine the deposit requirement; and

     (d))) (ii) Deposit ((at least weekly)) all funds accrued for progressive jackpot prizes at least weekly; and

     (iii) If the prize bank account is reduced below the level required, licensees must immediately stop operating games until they are in compliance.

     (b) Odds-based wager prizes.

     (i) Licensees offering more than one individual odds-based wager prize greater than twenty-five thousand dollars must keep an amount equal to the second highest odds-based wager prize offered in a bank, mutual savings bank, or a credit union located in Washington state; or possess a verifiable line of credit from a Washington state financial institution for at least the amount required; and

     (ii) Use the highest wager they allow to calculate the individual odds-based wager prize amount to determine the amount for this requirement.

     (3) Licensees may limit pay outs by using table and/or individual player aggregates.

     (4) ((If the prize bank account is reduced below the level required, licensees must immediately stop operating games until they are in compliance.

     (5))) A licensee's failure to keep funds as required in this rule is prima facie evidence of defrauding the public and a violation of RCW 9.46.190.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), § 230-15-455, filed 4/10/07, effective 1/1/08.]

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