Original Notice.

     Preproposal statement of inquiry was filed as WSR 02-19-082.

     Title of Rule: Digital surveillance for card rooms, amending WAC 230-40-625 Closed circuit television system requirements and procedures -- Class F card rooms, 230-40-825 Closed circuit television system -- House-banking, 230-40-550 Incompatible functions defined, 230-40-815 Administrative and accounting control structure -- Organization -- House-banking, 230-40-860 Table inventories and procedures for opening tables for house-banked card games, 230-40-875 Closing gaming tables -- House-banking, and 230-40-895 Key control -- House-banking.

     Purpose: Currently, house-banked card rooms utilize video tapes to record surveillance in card rooms. This rules package sets for the regulatory requirements for card rooms that utilize digital surveillance.

     Statutory Authority for Adoption: RCW 9.46.070.

     Summary: Language was added to authorize digital surveillance in house-banked card rooms. Safeguards were established to ensure the authenticity, integrity and readability of recordings and to ensure our current regulatory program is not compromised by the use of digital surveillance. Furthermore, the retention period for recording jackpot payouts of $500 or more was increased from seven days to thirty days for Class F card rooms. This change updates the rule to maintain consistency with the commission's current retention requirement for the recordings of jackpot payouts.

     Reasons Supporting Proposal: See Purpose above.

     Name of Agency Personnel Responsible for Drafting: Susan Arland, Lacey, (360) 486-3466; Implementation: Rick Day, Lacey, (360) 486-3446; and Enforcement: Bob Berg, Lacey, (360) 486-3452.

     Name of Proponent: Staff, governmental.

     Rule is not necessitated by federal law, federal or state court decision.

     Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose and Summary above.

     Proposal Changes the Following Existing Rules: See Purpose and Summary above.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. Proposal is exempt under RCW 19.85.025(2), therefore, a small business economic impact statement is not required.

     RCW 34.05.328 does not apply to this rule adoption. This agency does not choose to make section 201, chapter 403, Laws of 1995, apply to this rule adoption.

     Hearing Location: Hampton Inn/Foxhall, 3985 Bennett Drive, Bellingham, WA 98225, (360) 676-7700, on April 11, 2003, at 9:30 a.m.

     Assistance for Persons with Disabilities: Contact Shirley Corbett by April 1, 2003, TDD (360) 486-3637 or (360) 486-3447.

     Submit Written Comments to: Susan Arland, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504-2400, (360) 486-3466, fax (360) 486-3625, by April 1, 2003.

     Date of Intended Adoption: April 11, 2003.

February 19, 2003

Susan Arland

Rules Coordinator

OTS-5969.2

AMENDATORY SECTION(Amending Order 403, filed 6/19/01, effective 7/20/01)

WAC 230-40-625   Closed circuit television system ((requirements and procedures)) -- Class F card rooms.   Critical activities related to the operation of a player-supported jackpot (PSJ) and assessment of fees based on amounts wagered (rake method) shall be closely monitored by the use of a closed circuit television (CCTV) system((, including video recording)) and recorded using analog and/or digital recording equipment. If a licensee is conducting both Class F and house-banked activities, the licensee shall be required to meet the surveillance requirements set forth in WAC 230-40-825. Each Class F card room licensee shall install and maintain a CCTV system that meets the following requirements:

Camera coverage.

     (1) The following areas are required to be ((covered)) viewed by the CCTV system:

     (a) All gaming at each table including, but not limited to, the:

     (i) Cards;

     (ii) Wagers;

     (iii) Chip tray;

     (iv) Drop box openings; and

     (v) Players and dealers.

     (b) All activity in the count room or count area including, but not limited to, the:

     (i) Count table;

     (ii) Floor;

     (iii) Drop boxes; and

     (iv) Drop box storage shelves/cabinets.

Camera requirements.

     (2) The CCTV system shall consist of light sensitive cameras that have the ability to determine card and chip values at each gaming table. Each video camera shall be capable of having its ((picture)) images displayed on a video monitor and recorded. Cameras shall be installed in a manner that will prevent them from being readily obstructed, tampered with, or disabled by patrons or employees. Installed cameras shall cover the areas required by this rule and shall include, at a minimum, the following:

     (a) At least one fixed camera focused over each gaming table covering the entire layout;

     (b) At least one fixed camera focused over the dealer area covering the chip rack, all drop box openings, and the community card area;

     (c) At least one fixed or pan, tilt, and zoom (PTZ) camera permanently programmed for the purposes of monitoring players at each gaming table. This camera must be capable of viewing each patron at each gaming position at least once every five minutes;

     (d) A sufficient number of fixed and/or PTZ cameras in the cage only if the count process is conducted there;

     (e) A sufficient number of fixed and/or PTZ cameras in the count area; and

     (f) Any other location as deemed necessary by commission staff.

Video recording equipment requirements.

     (3) Video recording equipment shall meet the following requirements:

     (a) ((Record)) Analog recording, including audio recording where required, using a video cassette recorder, shall comply with the following requirements:

     (i) Images shall be recorded at a rate of not less than twenty pictures per second on standard VHS format; and

     (((b) Insert)) (ii) Recorded images shall accurately reflect the time and date ((on)) of the video recording. If multiple time and date generators are used, they shall be synchronized to the same time and date; ((and)) or

     (((c))) (b) Digital recording, including audio recording where required, using a hard drive storage system, shall comply with the following requirements:

     (i) Images shall be recorded on a hard drive that the licensed operator and their employees do not have access to the erase or reformat features;

     (ii) The system must provide uninterrupted recording of surveillance, this shall include during playback or copying;

     (iii) Recording systems shall be capable of copying original images;

     (iv) Images shall be stored at a rate of not less than twenty-five images per second;

     (v) Resolution shall be 640 x 480 or higher;

     (vi) Images shall be stored in a format that is readable by commission computer equipment;

     (vii) Images must be stored in a format that contains a method to verify the authenticity of the original recording and copies;

     (viii) Recording systems shall be equipped with an audio alarm that shall notify the operator in the event a recording is interrupted for any reason;

     (ix) Recorded images shall include the accurate time and date the video was originally recorded; and

     (x) Previously recorded material may be overwritten after seven continuous days of gaming.

Use of multiplexing and quad recording devices.

     (4) Multiplexing/quad recording devices may only be used for external surveillance, movement of drop boxes between tables and the count room, and on entrances and exits: Provided, That split screen devices may be utilized for areas not required to have surveillance coverage.

Recording of illegal or suspicious activities.

     (5) Illegal or suspicious activities within the monitored portion of the licensed premises shall be reported to commission staff, pursuant to WAC 230-40-815 (3)(a)(v) through (vi). Additionally, licensees shall ensure two copies of the entire recorded image sequence are made reflecting the questioned activity. One copy shall be provided to commission staff or other law enforcement representatives upon demand and the other copy maintained by the licensee for a period of thirty days.

Activities to be ((videotaped)) recorded.

     (((4))) (6) Video signals from all cameras shall be recorded when:

     (a) Gaming tables are in operation;

     (b) Drop boxes or chip trays are stored on the gaming tables;

     (c) Drop boxes are being transported; or

     (d) Drop box contents are being counted.

Surveillance activity log.

     (((5))) (7) The licensee shall maintain a record of all surveillance activities in the surveillance room. A surveillance log shall be maintained by surveillance personnel and shall include, at a minimum, the following:

     (a) Date and time of surveillance;

     (b) Person initiating surveillance;

     (c) Time of termination of surveillance;

     (d) Summary of the results of the surveillance; and

     (e) A record of any equipment or camera malfunctions.

Employee sign-in log.

     (((6))) (8) A surveillance room sign-in log shall be maintained to document the time each surveillance employee monitors the card room. The surveillance sign-in log shall be available for inspection at any time by commission staff or law enforcement personnel.

((Tape labeling and retention.

     (7))) Labeling and storing video and audio recordings.

     (9) Video and audio ((tapes)) recordings shall be marked to denote the activity recorded and retained for a period necessary to afford commission staff or law enforcement personnel reasonable access. The following minimum retention periods apply to ((tapes)) recordings:

     (a) ((All tapes)) Recordings shall be retained for a minimum of seven complete gaming days.

     (b) ((Tapes)) Recordings of evidentiary value shall be maintained as requested by commission staff; and

     (c) Tapes documenting jackpot payouts of five hundred dollars or more shall be retained for at least ((seven)) thirty days; and

     (d) Commission staff may increase any of the retention requirements noted in this section by notifying the licensee.

Dispute resolution.

     (((8))) (10) In the event there is not sufficient clarity due to violations of the above requirements, the burden will be on the licensee to prove any action taken was warranted. Otherwise, all disputes ((will)) shall be resolved in favor of the player: Provided, That a review by commission staff may be requested if the licensee feels circumstances warrant, for example, cheating has occurred.

[Statutory Authority: RCW 9.46.070. 01-13-091 (Order 403), § 230-40-625, filed 6/19/01, effective 7/20/01.]

OTS-5972.2

AMENDATORY SECTION(Amending Order 403, filed 6/19/01, effective 7/20/01)

WAC 230-40-825   Closed circuit television system -- House-banking.   Critical activities related to the operation of house-banked card games shall be closely monitored by the use of a closed circuit television (CCTV) system((, including video recording)) and recorded using analog and/or digital recording equipment. Each house-banked card room licensee shall install and maintain a CCTV system that meets the following requirements.

Camera coverage.

     (1) The following areas are required to be ((covered)) viewed by the CCTV system:

     (a) All gaming at each table including, but not limited to, the following:

     (i) Cards;

     (ii) Wagers;

     (iii) Chip tray;

     (iv) Drop box openings;

     (v) Card shoe;

     (vi) Shuffling devices; and

     (vii) Players and dealers.

     (b) All activity in the pits.

     (c) All activity in the cashier's cage including, but not limited to, the:

     (i) Outside entrance;

     (ii) Fill/credit dispenser;

     (iii) Customer transactions;

     (iv) Cash and chip drawers;

     (v) Vault/safe;

     (vi) Storage cabinets;

     (vii) Fill or credit transactions; and

     (viii) Floor.

     (d) All activity in the count room including, but not limited to, the:

     (i) Count table;

     (ii) Floor;

     (iii) Counting devices;

     (iv) Trolley;

     (v) Drop boxes;

     (vi) Storage shelves/cabinets; and

     (vii) Entrance and exits.

     (e) The movement of cash, gaming chips, and drop boxes.

     (f) Entrances and exits to the card room.

Camera requirements.

     (2) The CCTV system shall consist of light sensitive cameras including those with pan, tilt, and zoom (PTZ) capabilities ((that have the capability)) having the ability to determine card and chip values and the configuration of wagers at each gaming table. Each video camera shall be capable of having its ((picture)) images displayed on a video monitor and recorded. Cameras shall be installed in a manner that will prevent them from being readily obstructed, tampered with, or disabled by patrons or employees. PTZ cameras shall be placed behind a smoked dome, one-way mirror or similar materials that conceal the camera from view. Installed cameras shall cover the areas required by this rule and shall include at a minimum:

     (a) At least one fixed camera focused over each gaming table covering the entire layout;

     (b) A sufficient number of fixed and/or PTZ cameras permanently programmed for the purposes of monitoring players at each gaming table. The PTZ cameras must be capable of viewing each patron at each gaming position at least once every five minutes;

     (c) A sufficient number of PTZ cameras for the purpose of determining the configuration of wagers and card values at each gaming table. Any time a winning wager, including jackpot or bonus payouts in excess of five hundred dollars are won, surveillance shall utilize this camera to verify the winning hand, the amount of the wager, and the player who won the prize. Each licensee shall have documented procedures in their internal controls stipulating the manner in which this will be carried out;

     (d) A sufficient number of fixed and/or PTZ cameras in the cage(s);

     (e) A sufficient number of fixed and/or PTZ cameras in the count room; and

     (f) Any other location as deemed necessary by commission staff.

Video recording equipment requirements.

     (3) Video recording equipment shall meet the following requirements:

     (a) ((Record)) Analog recording, including audio recording where required, using a video cassette recorder, shall comply with the following requirements:

     (i) Images shall be recorded at a rate of not less than twenty pictures per second((;

     (b) Insert)) on standard VHS format; and

     (ii) Recorded images shall accurately reflect the time and date ((on)) of the video recording. If multiple time and date generators are used, they shall be synchronized to the same time and date; ((and

     (c))) or

     (b) Digital recording, including audio recording where required, using a hard drive storage system, shall comply with the following requirements:

     (i) Images shall be recorded on a hard drive that the licensed operator and their employees do not have access to the erase or reformat features;

     (ii) The system must provide uninterrupted recording of surveillance, this shall include during playback or copying;

     (iii) Recording systems shall be capable of copying original images;

     (iv) Images shall be stored at a rate of not less than twenty-five images per second;

     (v) Resolution shall be 640 X 480 or higher;

     (vi) Images must be stored in a format that is readable by commission computer equipment;

     (vii) Images must be stored in a format that contains a method to verify the authenticity of the original recording and copies;

     (viii) Recording systems shall be equipped with an audio alarm that shall notify the operator in the event a recording is interrupted for any reason;

     (ix) Recorded images shall include the accurate time and date the video was originally recorded; and

     (x) Previously recorded material may be overwritten after seven continuous days of gaming.

Use of multiplexing and quad recording devices.

     (4) Multiplexing/quad recording devices may only be used for external surveillance, movement of drop boxes between tables and the count room, and on entrances and exits: Provided, That split screen devices may be utilized for areas not required to have surveillance coverage.

Recording of illegal or suspicious activities.

     (5) Illegal or suspicious activities within the monitored portion of the licensed premises shall be reported to commission staff, pursuant to WAC 230-40-815 (3)(a)(v) through (vi). Additionally, licensees shall ensure two copies of the entire recorded image sequence are made reflecting the questioned activity. One copy shall be provided to commission staff or other law enforcement representatives upon demand and the other copy maintained by the licensee for a period of thirty days.

Activities to be ((videotaped)) recorded.

     (((4))) (6) Video signals from all cameras shall be recorded when:

     (a) Gaming tables are in operation;

     (b) Drop boxes or chip trays are stored on the gaming tables;

     (c) Drop boxes are being transported; or

     (d) Drop box contents are being counted.

Video monitors.

     (((5))) (7) The CCTV system shall include a sufficient number of video monitors to simultaneously view multiple gaming tables, the cashier's cage, and count room activities.

Surveillance room.

     (((6))) (8) The licensee shall maintain one or more surveillance rooms with the following minimum requirements:

     (a) The surveillance room shall have controlled access and be used solely by the employees of the surveillance department assigned to monitor activities: Provided, That this restriction does not apply to owners or approved supervisory or management personnel.

     (b) Commission agents and law enforcement personnel shall be provided immediate access to the surveillance room upon request.

     (c) Entrances to surveillance rooms shall not be readily observable from the gaming operation area.

     (d) The licensee shall ensure a surveillance employee is present in the surveillance room and monitoring the activities of the operation, via the surveillance room equipment, any time the card room is open to conduct gaming and during the count process: Provided, That the licensee may allow the surveillance room to operate without staff for a period not to exceed thirty minutes per shift for the purpose of routine breaks.

Surveillance staff not required.

     (((7))) (9) Licensees that are licensed for five or fewer tables and not operating under Phase II limits, shall not be required to maintain a staffed surveillance room.

Surveillance activity log.

     (((8))) (10) The licensee shall maintain a record of all surveillance activities in the surveillance room. A surveillance log shall be maintained by surveillance personnel and shall include, at a minimum, the following:

     (a) Date and time of surveillance;

     (b) Person initiating surveillance;

     (c) Time of termination of surveillance;

     (d) Summary of the results of the surveillance; and

     (e) A record of any equipment or camera malfunctions.

Employee sign-in log.

     (((9))) (11) A surveillance room sign-in log shall be maintained to document the time each surveillance employee monitors the card room. The surveillance sign-in log shall be available for inspection at any time by commission staff or law enforcement personnel.

Labeling and storing ((tapes)) video and audio recordings.

     (((10))) (12) Video and audio ((tapes)) recordings shall be marked to denote the activity recorded and retained for a period necessary to afford commission staff or law enforcement personnel reasonable access. The following minimum retention periods apply to ((tapes)) recordings:

     (a) ((All tapes)) Recordings shall be retained for a minimum of seven complete gaming days;

     (b) ((Tapes)) Recordings of evidentiary value shall be maintained as requested by commission staff; and

     (c) Tapes documenting jackpot payouts over three thousand dollars shall be retained for at least thirty days; and

     (d) Commission staff may increase any of the retention requirements noted in this section by notifying the licensee.

Dispute resolution.

     (((11))) (13) In the event there is not sufficient clarity due to violations of the above requirements, the burden will be on the licensee to prove any action taken was warranted. Otherwise, all disputes ((will)) shall be resolved in favor of the player: Provided, That a review by commission staff may be requested if the licensee feels circumstances warrant, for example, cheating has occurred.

[Statutory Authority: RCW 9.46.070. 01-13-091 (Order 403), § 230-40-825, filed 6/19/01, effective 7/20/01; 00-09-052 (Order 383), § 230-40-825, filed 4/14/00, effective 5/15/00.]

OTS-5975.1

AMENDATORY SECTION(Amending Order 403, filed 6/19/01, effective 7/20/01)

WAC 230-40-895   Key control -- House-banking.   All activities related to the operation of house-banked card games shall be closely monitored and controlled. The following restrictions and operating procedures shall apply for control of card room keys to restrict access to areas by unauthorized card room employees.

Specifications.

     (1) Each licensee shall install and maintain key control boxes that meet at least the specifications set forth below:

     (a) Constructed of metal with a minimum of one keylock mechanism: Provided, That coded key boxes or combination key boxes are permitted;

     (b) Be attached to a permanent structure without visibility of hardware used to attach the key box;

     (c) Be tamper proof;

     (d) Have keys stored therein to be easily identifiable, labeled, and displayed individually in numeric or alphabetic order; and

     (e) The physical location of key control boxes may be determined by each licensee. The location shall not permit an individual to gain access to a restricted area that he/she would otherwise not be allowed to enter. If key boxes are located in areas where unauthorized individuals have access, that person may only have custody of the key and open the key box in the presence of the key custodian; or while under camera coverage.

Access.

     (2) Individual key control boxes shall be maintained by at least four departments including gaming operations, accounting, security, and surveillance. Access to key control boxes shall be limited to the licensed card room employee(s) responsible for overall supervision or management of the operation for which the box is maintained. Keys shall be controlled in the following manner:

Gaming operations department.

     (a) Keys included in the key control box maintained by the gaming operations department shall include:

     (i) Key to each pit podium;

     (ii) Key(s) to drawers and other locking cabinets located in each pit podium;

     (iii) Key to remove the clear plastic cover from the container used to store gaming chips and secured to the gaming tables;

     (iv) Key to the second lock on the enclosed storage cabinet or trolley used to store or transport all drop boxes removed from the gaming tables;

     (v) Key to all upper tier and lower tier jackpot payout boxes included with authorized card games;

     (vi) Key to all electrical control boxes used to maintain authorized card games; and

     (vii) Other keys included in the licensee's internal controls and approved by commission staff.

Security department.

     (b) Keys included in the key control box maintained by security shall include:

     (i) Key to the lock used to secure the count room door;

     (ii) Key utilized to unlock and reset the drop boxes from the gaming tables;

     (iii) Key to the first lock on the enclosed storage cabinet or trolley used to store or transport all drop boxes removed from the gaming tables to the count room;

     (iv) Key to the storage cabinet(s) or other secure facility used to store the card inventory including decks which have not been placed into play and decks removed from play and waiting to be destroyed;

     (v) Key to main entry or access door of the card room; and

     (vi) Other keys included in the licensee's internal controls and approved by commission staff.

Accounting department.

     (c) Keys included in the key control box maintained by the accounting department shall include:

     (i) Key to the lock securing the contents of the drop boxes;

     (ii) Key to the rear of the locked dispenser used to store the triplicate of the fill/credit slips in a continuous, unbroken form;

     (iii) Key to the door to the cashier's cage;

     (iv) Key to reset the lock to the drop boxes;

     (v) Keys included in the licensee's internal controls and approved by commission staff;

     (vi) Keys maintained by the cashier's cage including:

     (A) Key(s) to each cashier's window drawer;

     (B) Key to the chip drawer or fill bank;

     (C) Key to the vault or safe;

     (D) Key to the door to the cashier's cage;

     (E) Key to the front of the locked dispenser used to store the triplicate of the fill/credit slips in continuous, unbroken form;

     (F) Other keys included in the licensee's internal controls and approved by commission staff; and

     (G) Key(s) to the dealer tip boxes.

Surveillance department.

     (d) Keys included in the key control box maintained by surveillance shall include:

     (i) Key to the room used for clandestine surveillance; and

     (ii) Key to the storage cabinet(s) or locker(s) used to maintain ((tapes)) surveillance recordings of evidentiary value or ((tapes)) recordings documenting details of jackpot payouts.

Owner/CEO master key box.

     (e) A master key control box may be maintained with access strictly limited to the owner(s) or chief operating officer responsible for exercising the overall management or authority over all the operations of the card room and may include:

     (i) All spare or extra keys for the areas noted above.

     (ii) Other keys included in the licensee's internal controls and approved by commission staff.

Control log.

     (3) Each licensee shall maintain for each key control box, a key control log used to record the issuance of and return of all keys used to control the restricted access areas by card room employees identified. The key control log shall be maintained in the format prescribed by the commission.

Keys to key control box.

     (4) Keys to secure the contents of each key control box required above shall be strictly controlled as follows.

     (a) There shall be one key for each key control box which shall be controlled by the manager of the department for which the key control box is designated. This key shall be distributed to the manager or supervisor in charge and maintained in their possession when gaming is being conducted.

     (b) Keys to each key control box will be maintained in a secure manner as approved by commission staff and documented in the licensee's written internal controls.

     (c) All spare or duplicate keys to the key control boxes identified above will be maintained in the master key control box and be controlled by the owner(s).

Electronic key control systems.

     (5) Licensees may utilize electronic key control systems, if reviewed and approved in writing by the director or the director's designee.

Extra key control box - emergencies only.

     (6) For emergency situations, licensees may maintain an additional key control box which can be accessed on a limited basis to protect the safety of employees. The key control boxes which meet this requirement shall be preapproved by commission staff.

[Statutory Authority: RCW 9.46.070. 01-13-091 (Order 403), § 230-40-895, filed 6/19/01, effective 7/20/01; 00-09-052 (Order 383), § 230-40-895, filed 4/14/00, effective 5/15/00.]

OTS-5971.1

AMENDATORY SECTION(Amending Order 383, filed 4/14/00, effective 5/15/00)

WAC 230-40-550   Incompatible functions defined.   Incompatible functions for accounting and internal control purposes are functions, duties, or responsibilities that place any person or department in a position to both perpetrate and conceal errors or irregularities in the normal course of his or her duties. Anyone both recording transactions and having access to the relevant assets is in a position to perpetrate errors or irregularities. For example, an employee that writes checks should not reconcile the bank account; or an employee that transports funds should not have access to keys for locks securing such funds or to surveillance ((tapes)) recordings of the transaction.

[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), § 230-40-550, filed 4/14/00, effective 5/15/00.]

OTS-5970.1

AMENDATORY SECTION(Amending Order 403, filed 6/19/01, effective 7/20/01)

WAC 230-40-815   Administrative and accounting control structure -- Organization -- House-banking.   Each licensee operating a house-banked card game shall ensure that all games are closely controlled, operated fairly and in accordance with all rules of the commission. The following control procedures and conditions shall be met:

Internal controls.

     (1) The licensee shall have a system of internal controls that include at least the following:

     (a) Administrative controls, which include, but are not limited to, the organization's plan, procedures, and records concerned with decision processes leading to management's authorization of transactions; and

     (b) Accounting controls which include the licensee's plan, procedures, and records concerned with the safeguarding of assets and the reliability of financial records. These controls must be designed to provide reasonable assurance that:

     (i) Transactions are executed in accordance with management's general and specific authorization;

     (ii) Transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles, and to maintain accountability for assets;

     (iii) Access to assets is permitted only in accordance with management's authorization; and

     (iv) The recorded accountability for assets is compared with existing assets at least annually and appropriate action is taken within five working days with respect to any differences.

Administrative controls.

     (2) The licensee's system of administrative controls shall provide for the following:

     (a) Competent personnel with an understanding of prescribed procedures;

     (b) The segregation of incompatible functions so that no employee is in a position to perpetrate and conceal errors or irregularities in the normal course of his or her duties; and

     (c) Each employee of a house-banked card room shall be licensed by the commission and shall be knowledgeable in all accounting and internal control practices and procedures relevant to each employee's individual function.

Separate departments and functions.

     (3) The licensee shall, at a minimum, establish the following departments or functions that shall be independent from all other departments or functions:

Surveillance.

     (a) A surveillance department which shall not include security functions or personnel. The head of surveillance shall be responsible for, but not limited to, the following:

     (i) The clandestine surveillance of the operation and conduct of the table games;

     (ii) The clandestine surveillance of the operation of the cashier's cage;

     (iii) The video and audio ((taping)) recording of activities in the count rooms;

     (iv) The detection of cheating, theft, embezzlement, and other illegal activities in the gaming facility, count rooms, and cashier's cage;

     (v) The video ((taping)) recording of unusual or suspected illegal activities;

     (vi) The notification of appropriate supervisors and commission staff, within three working days, upon the detection of cheating, theft, embezzlement, or other illegal activities;

     (vii) Ensuring that each dealer is evaluated to determine if all required dealer procedures and techniques set forth in the licensee's approved internal controls are followed; and

     (viii) Ensuring all surveillance employees have a demonstrated knowledge of the following:

     (A) Operating surveillance systems;

     (B) Rules of play and procedures for the games being played; and

     (C) The overall procedures relating to the duties of all employees of the house-banked card room being monitored (dealers, shift managers, floor supervisors, cage cashier's and count team members).

Security.

     (b) A security department, supervised by a security department manager, is responsible for at least the following:

     (i) Control of cards and dealing shoes, including storage of new and used cards and shoes, and control of the disposition and/or destruction of same when removed from service; and

     (ii) Transfer of cash and chips to and from the gaming tables, cage and count room.

Gaming operations.

     (c) A gaming operation department supervised by a gaming operation department manager who shall be responsible for the operation of all house-banked card games conducted by ensuring the following:

     (i) Card games are operated by licensed dealers who are assigned to each gaming table;

     (ii) A floor supervisor is assigned the responsibility for the overall supervision of the conduct of gaming within a pit and can supervise no more than five tables: Provided, That a single supervisor may supervise up to seven tables, if only seven tables are in operation and the layout was preapproved by commission staff;

     (iii) A licensee which utilizes two separate areas of a gaming establishment shall require at least one supervisor in each area; and

     (iv) A shift manager, who reports to the gaming operation department manager, is assigned to supervise floor supervisors and all gaming related activities that occur during each shift. In the absence of the gaming operation department manager, the shift manager shall have the authority of a gaming operation department manager: Provided, That in addition to the floor supervisors required in this subsection, licensees operating more than ten tables shall be required to have a shift manager on the premises.

Accounting.

     (d) An accounting department supervised by an individual who shall report directly to the chief executive officer or chief operations officer. The responsibilities of the accounting department shall include, but not be limited to, the following:

     (i) Implementing and monitoring of accounting controls;

     (ii) The preparation, control, and storage of records and data required;

     (iii) The control of unused forms inventory along with reconciliation of forms used; and

     (iv) The control and supervision of the cashier's cage.

Modifications.

     (4) Any changes to the licensee's system of internal controls must be submitted to commission staff and be approved prior to implementation.

Employees shall be informed of internal controls.

     (5) All licensed operators shall inform their card room employees of the internal controls related to their respective area of responsibility. Furthermore, both the operator and all card room employees shall follow these internal controls at all times.

[Statutory Authority: RCW 9.46.070. 01-13-091 (Order 403), § 230-40-815, filed 6/19/01, effective 7/20/01; 00-09-052 (Order 383), § 230-40-815, filed 4/14/00, effective 5/15/00.]

OTS-5973.1

AMENDATORY SECTION(Amending Order 383, filed 4/14/00, effective 5/15/00)

WAC 230-40-860   Table inventories and procedures for opening tables for house-banked card games.   Procedures shall be established to ensure proper accountability of gaming chips and coins stored at gaming tables and for beginning play at such tables. The following restrictions and procedures apply:

Removing and adding table inventory.

     (1) Whenever a gaming table is opened for gaming, operations shall commence with an amount of gaming chips and coins to be known as the "table inventory" and the licensee shall not cause or permit gaming chips or coins to be added to or removed from such table inventory during the gaming day except:

     (a) In exchange for cash from patrons;

     (b) In payment of winning wagers and collection of losing wagers made at such gaming table;

     (c) In exchange for gaming chips received from a patron having an equal aggregate face value; and

     (d) In conformity with procedures set forth in WAC 230-40-865 and 230-40-870.

Storing containers and inventory slips.

     (2) Each table inventory and the table inventory slip prepared in conformity with the procedures set forth in WAC 230-40-875 shall be stored during nongaming hours in a separate locked, clear container which shall be clearly marked on the outside with the game and the gaming table number to which it corresponds. The information on the table inventory slip shall be visible from the outside of the container. All containers shall be stored in the cashier's cage during nongaming hours: Provided, That containers may be secured at the gaming table if under taped surveillance.

Keys to locked containers.

     (3) The keys to table inventory containers shall be maintained and controlled by the gaming operation department in a secure place and shall at no time be made accessible to any cashier's cage personnel or to any person responsible for transporting such table inventories to or from the gaming tables.

Opening tables for play.

     (4) Licensees shall abide by the following procedures when opening gaming tables for play:

     (a) The locked container securing the table inventory and the table inventory slip shall be unlocked by the gaming operation supervisor assigned to such table;

     (b) A dealer assigned to the gaming table shall prove the contents of the container in the presence of the gaming operation supervisor assigned to such table and shall compare the count to the "opener," as defined in WAC 230-40-875, removed from the container. The procedures used to prove the chip and coin inventory shall be set forth in the licensee's internal controls;

     (c) Signatures attesting to the accuracy of the information on the opener shall be placed on such "opener" by the dealer assigned to the table and the gaming operation supervisor that observed the dealer count the contents of the container;

     (d) Any discrepancy between the amount of gaming chips and coins counted and the amount of the gaming chips and coins recorded on the "opener," shall be immediately reported to the gaming operation manager, assistant gaming operation manager, or gaming operation shift manager in charge at such time. The manager in charge shall complete the notification of error slip, which will be verified by security and transported to accounting or the cashier's cage. Accounting will maintain a copy in the log containing the notification of error slips. The licensee shall notify commission staff within twenty-four hours of errors of two hundred dollars or more or if there is a pattern relating to regular shortages;

     (e) After the count of the contents of the container and the signing of the "opener," such slip shall be immediately deposited in the drop box attached to the gaming table by the dealer.

[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), § 230-40-860, filed 4/14/00, effective 5/15/00.]

OTS-5974.1

AMENDATORY SECTION(Amending Order 403, filed 6/19/01, effective 7/20/01)

WAC 230-40-875   Closing gaming tables -- House-banking.   Procedures shall be followed for closing gaming tables that ensure proper accountability of gaming chips and coins. The following restrictions and procedures apply:

Counting chips and coins.

     (1) Whenever the gaming activity at each gaming table is concluded for the day, the gaming chips and coins shall be counted by the dealer assigned to the gaming table and observed by a gaming operation supervisor. The entire count and closure process shall be monitored and ((taped)) recorded by the surveillance department.

Recording the count.

     (2) The gaming chips and coins counted shall be recorded on a table inventory slip by the gaming operation supervisor assigned to the gaming table.

Table inventory slips.

     (3) Table inventory slips shall be three-part serially prenumbered forms and on the original of the slip (closer), the duplicate of the slip (opener), and on the triplicate, which is maintained and controlled by security, the gaming operation supervisor shall record the following:

     (a) The date and identification of the shift ended;

     (b) The game and table number;

     (c) The total value of each denomination of gaming chips and coins remaining at the tables; and

     (d) The total value of all denominations of gaming chips and coins remaining at the gaming tables.

Verification signatures.

     (4) Signatures attesting to the accuracy of the information recorded on the table inventory slips at the time of closing the gaming tables shall be of the dealer and the gaming operation supervisor assigned to the gaming table who observed the dealer count the contents of the table inventory.

Distributing table inventory slips.

     (5) Upon meeting the signature requirements:

     (a) The closer shall be deposited in a drop box attached to the gaming table immediately prior to the closing of the table;

     (b) The opener and the gaming chips and coins remaining at the table shall be placed in a clear container provided for that purpose after which the container shall be locked; and

     (c) The triplicate copy of the table inventory slip shall be forwarded to the accounting department by a security department employee.

VOID procedures.

     (6) In the event the closer is voided, the preparer shall void this form by writing the word "VOID" on all copies of the form. All copies of the form shall then be forwarded to the accounting department.

     (7) At the end of each gaming day, if the locked containers are transported to the cashier's cage, a cage cashier shall determine that all locked containers have been returned to the cage and adequately secured or, if the locked containers are secured to the gaming table, a gaming operation supervisor shall account for all the locked containers.

Removing drop boxes from tables.

     (8) In the event drop boxes are removed from gaming tables at other than the close of the gaming day, they shall be removed at a shift change. A table inventory slip shall be prepared as required above with the incoming and outgoing supervisor verifying the inventory and signing.

[Statutory Authority: RCW 9.46.070. 01-13-091 (Order 403), § 230-40-875, filed 6/19/01, effective 7/20/01; 00-09-052 (Order 383), § 230-40-875, filed 4/14/00, effective 5/15/00.]

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