Original Notice.

     Preproposal statement of inquiry was filed as WSR 04-05-077.

     Title of Rule: Amending WAC 230-40-070 Licensee to furnish all cards, chips and other services.

     Purpose: The proposed amendment allows Class E and Class F licensees that do not offer player-supported jackpots to use nonlogo cards.

     Statutory Authority for Adoption: RCW 9.46.070 and 9.46.0282.

     Summary: Currently, this rule requires house-banked, Class F, and Class E over 5 tables, card room licensees to use logo cards. Logo cards provide a security feature so that other cards are not introduced into a game from the outside. Several Class E and Class F licensees are finding it difficult to obtain logo cards and have requested the ability to use cards without logos. Staff does not have regulatory concerns with Class E and Class F licensees using nonlogo cards, if they do not offer player-supported jackpots. House-banked card games and any games offering a player-supported jackpot should continue to use logo cards. This change will affect approximately six licensees.

     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: Neal Nunamaker, 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: LaConner Maple Hall, 108 Commercial Street, LaConner, WA 98257, (360) 466-3101, on July 9, 2004, at 9:30 a.m.

     Assistance for Persons with Disabilities: Contact Shirley Corbett by July 1, 2004, 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 July 1, 2004.

     Date of Intended Adoption: July 9, 2004.

April 20, 2004

Susan Arland

Rules Coordinator

OTS-7144.1

AMENDATORY SECTION(Amending Order 405, filed 7/13/01, effective 1/1/02)

WAC 230-40-070   Licensee to furnish all cards, chips and other services.   Each public card room and Class A social card room licensee shall furnish all chips and cards in connection with all card games conducted on its premises at no additional charge to the players, except as provided in WAC 230-40-050(6).

Standards for chips and cards.

     All chips and cards shall be of generally conventional size and design, and include safeguards that maximize the integrity of the card games. The following standards and procedures apply to this section:

     (1) The licensee shall furnish chips and cards that meet the following requirements:

     (a) Chips. Chips must include the house name or logo, clearly denote the chip value, be produced by a licensed manufacturer, and purchased from a licensed manufacturer or distributor: Provided, That the director may exempt Class A, B, C, and E licensees with five tables or less from this provision if chips are readily identifiable as having been furnished by that particular licensee and values of chips are clearly posted in the card room: Provided further, That Class D licensees are exempt from the provisions set forth in this subsection; and

     (b) Cards. For all house-banked card games and all games offering a player-supported jackpot, the deck or decks of cards must ((include the house name or logo, be produced by a licensed manufacturer, and be purchased from a licensed manufacturer or distributor: Provided, That Class A, B, C, D, and E licensees with five tables or less are exempt from this provision. These licensees shall comply with all other requirements related to the type of games being played)) meet the following requirements:

     (i) Include the house name or logo;

     (ii) Be produced by a licensed manufacturer; and

     (iii) Be purchased from a licensed manufacturer or distributor.

     (c) Electronic facsimiles of cards. Electronic card facsimiles may be approved by the director for use in house-banked card games subject to the following conditions:

     (i) The system shall:

     (A) Produce accurate facsimiles of one or more standard decks of playing cards;

     (B) Randomly shuffle the cards prior to each round of play or shoe loading;

     (C) Contain a backup system for recording and display of at least five previous rounds of play;

     (D) Contain security protocols which prevent unauthorized access;

     (E) Provide a means of testing of computer software;

     (F) Meet any additional technical standards required by the commission;

     (G) Be operated only under card room internal controls specific to each system; and

     (H) Be tested by a licensed game testing laboratory for compliance with these requirements.

     (ii) The system shall be operated by card room personnel and shall not be designed to allow the player to play against the device.

     (iii) The costs of initial laboratory testing and any additional testing required by the commission shall be paid for by the manufacturer.

Bank services.

     (2) The licensee shall sell its chips to all players desiring to buy them and redeem all chips at the value for which they were sold. The licensee shall collect the money taken in on chips sold and fees collected and shall keep these funds separate and apart from all other money received by the licensee.

Selling chips for cash or check.

     (3) Chips shall be sold for cash only and a licensee shall not extend credit of any nature to a person purchasing chips: Provided, That a licensee may accept a check in accordance with WAC 230-12-053 and 230-40-845. Each receipt by a person of a quantity of chips from the licensee shall be a separate transaction for the purpose of this rule. Checks received for chips retained by the licensee after close of business shall be deposited by the licensee not later than the second day following receipt upon which the licensee's bank is open for business.

Protecting the integrity of cards and chips.

     (4) The licensee shall safeguard all chips and cards to assure integrity of games and banking services. Licensees shall not allow:

     (a) Playing cards that have been shaved, sanded, cut, carved, or otherwise marked in any manner which may make certain cards identifiable to players other than as allowed by the rules of the particular game.

     (b) Any cards or chips which are not furnished by the licensee to be used in any card game conducted upon its premises; or

     (c) Any other person to buy or sell chips for use in card games upon its premises.

[Statutory Authority: RCW 9.46.070. 01-15-054 (Order 405), § 230-40-070, filed 7/13/01, effective 1/1/02; 00-09-052 (Order 383), § 230-40-070, filed 4/14/00, effective 5/15/00. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 89-11-048 (Order 192), § 230-40-070, filed 5/16/89. Statutory Authority: RCW 9.46.070 (11), (14) and 9.46.0218 [9.46.0281]. 89-05-024 (Order 186), § 230-40-070, filed 2/13/89. Statutory Authority: RCW 9.46.070 (1), (2), (4), (5), (6), (11), (14) and (17). 86-13-055 (Order 158), § 230-40-070, filed 6/13/86; Order 74, § 230-40-070, filed 8/17/77; Order 40, § 230-40-070, filed 6/26/75; Order 29, § 230-40-070, filed 1/23/75; Order 23, § 230-40-070, filed 9/23/74.]

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