Effective Date of Rule: Thirty-one days after filing.

     Purpose: Poker at fund-raising events: Poker is now authorized to be played at fund-raising events (Reno Nights).

     Citation of Existing Rules Affected by this Order: Amending WAC 230-25-040, 230-25-050, and 230-25-325.

     Statutory Authority for Adoption: RCW 9.46.070.

      Adopted under notice filed as WSR 06-17-083 [and 06-18-001] on August 14, 2006 [and August 23, 2006] with a published date of September 6, 2006 [and September 20, 2006].

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 3, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 3, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 1, Amended 3, Repealed 0.

     Date Adopted: October 13, 2006.

Susan Arland

Rules Coordinator

OTS-9104.1

AMENDATORY SECTION(Amending Order 387, filed 7/17/00, effective 8/17/00)

WAC 230-25-325   Limited fund-raising event -- Procedures and restrictions.   Pursuant to RCW 9.46.0233(2), nonprofit or charitable organizations may offer limited fund-raising events (FREs). Organizations offering limited FREs must operate the FRE under the following operational procedures:

Operating procedures.

     (1) Only members of the organization and their guests shall participate in the event. The event shall not be open to the general public.

     (2) Participants shall purchase scrip with cash.

     (3) Scrip shall be exchanged at gambling stations for chips.

     (4) Only bona fide members will be utilized for all transactions involving acceptance of cash for scrip, conducting the schemes to determine the winners of merchandise prizes, and maintaining records during the event.

     (5) The value of all purchased prizes must not exceed ten percent of the gross revenue from the event, less the cost of the FRE equipment rental contract.

     (6) Any prizes purchased from the FRE equipment distributor must be disclosed. The cost may not exceed the fair market value. Prizes may be disclosed to the public at the retail value.

     (7) Poker tournaments may be operated at limited fund-raising events. Tournament rules must be established and posted.

FRE equipment distributors.

Limitations.

    
     (((7))) (8) The nonprofit organization may only contract with a person or organization licensed as a FRE equipment distributor to provide the equipment and staff to operate the gaming stations.

     (((8))) (9) Under no circumstances shall employees of the FRE equipment distributor handle cash transactions or allow participants to purchase chips with cash.

Compensation.

     (((9))) (10) The fee paid to the FRE equipment distributor shall be in compliance with WAC 230-25-120. The FRE equipment distributor shall not share in any way in the proceeds of the event except as set forth in the rule.

Information to be submitted with FRE application.

     (((10))) (11) The application must include details relating to the initial cost to participate, and method for purchasing additional scrip, as well as identify all costs included in the initial price to enter that are not related to the gambling activity (i.e., meals, drinks, etc.). The application must also identify the scheme that will be followed to distribute the merchandise prizes to participants at the end of the event (i.e., raffle, auction, etc.).

     (((11))) (12) All contracts signed by the FRE licensee with the FRE equipment distributor and premises provider must be submitted with the FRE license application.

Fees.

     (((12))) (13) The licensing fee for a limited FRE shall be as set forth in WAC 230-04-202(4).

[Statutory Authority: RCW 9.46.070. 00-15-048 (Order 387), § 230-25-325, filed 7/17/00, effective 8/17/00.]

OTS-8325.2

AMENDATORY SECTION(Amending Order 387, filed 7/17/00, effective 8/17/00)

WAC 230-25-040   Fund-raising event -- House rules to be developed and posted -- Limitations on wagers.   (1) Before conducting a fund-raising event (FRE), each licensee shall develop house rules to govern the scope and manner of all gambling activities to be conducted during the FRE. At a minimum, these rules shall:

     (a) State the maximum amount of a single wager that may be placed by FRE participants. Wagering limits are as follows:

     (i) Single wagers shall not exceed ten dollars;

     (ii) Raffles or other similar drawings may exceed the ten dollar wagering limit, but may not exceed the limitations set forth in RCW 9.46.0277; ((and))

     (iii) There are no limits on wagers made using scrip; and

     (iv) There are no limits on the number of poker tournament chips that may be wagered.

     (b) Prohibit any thing of value from being given to any person involved in the management or operation of the FRE; and

     (c) Prohibit any person involved in the management or operation of the FRE from accepting any thing of value.

Posting house rules.

     (2) A copy of the rules shall be conspicuously posted in the area where the FRE is being conducted at all times during the FRE. A copy must be available, upon request, to any law enforcement officer or representative of the commission, or member of the general public.

[Statutory Authority: RCW 9.46.070. 00-15-048 (Order 387), § 230-25-040, filed 7/17/00, effective 8/17/00. Statutory Authority: RCW 9.46.0277 and 9.46.070. 96-07-077, § 230-25-040, filed 3/19/96, effective 7/1/96. Statutory Authority: RCW 9.46.020(23) and 9.46.070(14). 81-19-072 (Order 111), § 230-25-040, filed 9/15/81. Statutory Authority: RCW 9.46.070(10). 78-11-049 (Order 87), § 230-25-040, filed 10/20/78; Order 78, § 230-25-040, filed 11/17/77.]

OTS-8326.2

AMENDATORY SECTION(Amending Order 78, filed 11/17/77)

WAC 230-25-050   Wagering among participants not permitted.   ((No)) Licensees ((to conduct)) conducting a fund-raising event shall not permit, as a part of that fund-raising event, a gambling activity which involves a wagering of money or other items of value by one participant against another participant. This rule ((shall not be construed to)) does not prohibit gambling activities wholly administered by the licensee wherein the licensee collects wagers from among the participants and determines the winners and amounts of prizes on a parimutuel basis or poker tournaments as authorized under WAC 230-25-045.

[Order 78, § 230-25-050, filed 11/17/77.]

OTS-8364.2

NEW SECTION
WAC 230-25-045   Poker tournaments at fund-raising events and limited fund-raising events.   Poker tournaments are authorized at fund-raising events (FREs) and limited FREs under FRE rules with the following additional requirements.

Net receipts limitation.

     (1) All money paid to enter a tournament or purchase chips or script to enter a tournament is considered to be a wager for the purpose of determining the $10,000 net receipts limits.

Prizes.

     (2) Chips used in card tournaments do not have a monetary value and may only be redeemed for prizes.

Posting of rules.

     (3) The licensee must adopt poker tournament rules and conspicuously post the rules at the tournament location.

Prize records.

     (4) The licensee must maintain a record of all prizes awarded to include the amount the licensed operator actually paid for each prize and the name and complete address of each winning participant. If prizes are donated, the licensee must maintain a record that includes the name of the donor and a description of the prizes donated.

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