WSR 97-03-093

PROPOSED RULES

GAMBLING COMMISSION

[Filed January 17, 1997, 12:03 p.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 96-20-026.

Title of Rule: WAC 230-02-520 School-aged minors--Defined, 230-04-138 Commercial amusement games--Authorized locations, 230-08-060 Commercial amusement game records, 230-12-230 Agreement restricting freedom to buy and sell--Prohibited, 230-20-600 Amusement game--License to give notice to local police prior to conducting, 230-20-630 Amusement games--Fees, rules, prizes and variations in objects to be posted--Fees to be paid cash or scrip--Prizes not to differ from those posted, 230-20-685 Commercial amusement games--Wager and prize limitations, and 230-20-700 Coin or token activated amusement games--Standards.

Purpose: WAC 230-02-520, this rule establishes that children under the age of six years old do not qualify as "school aged minors."

WAC 230-04-138, this rule authorizes the location of commercial amusement games in department or grocery stores having at least ten thousand square feet of retail and support space, and offering for retail sale a minimum line of grocery or nongrocery items.

WAC 230-08-060, this rule changes the scope and nature of record keeping required in several areas. One change amends the previous requirement of records for each individual game to the new standard of records for each location games are located. A second change allows coin or token activated games meeting specific standards to modify their reporting requirements and frequency of reporting. A third change modifies the frequency with which merchandise prize information is reported. A fourth change modifies the frequency and scope of information required for amusement games that issue prize tickets.

WAC 230-12-230, this rule authorizes the use of three-year exclusivity agreements for the purchase of amusement games, and devices, materials, products, equipment, and services used in connection with an amusement game. In addition, these exclusivity agreements may provide for automatic renewal for an additional three-year period if notice of termination is not provided thirty days in advance.

WAC 230-20-600, this rule amends the requirement of local police notification to apply only when an amusement game is located at a new location.

WAC 230-20-630, this rule allows notification requirements to be met by preprinting such information on the amusement game machine, as long as the activity is coin or token activated and all activity takes place within four feet of the player. Additionally, only "limited location" licensees need to assign each amusement concession a number.

WAC 230-20-685, this rule increases the limit on cost of prizes offered from one hundred dollars to five hundred dollars and increases the limit on maximum wager from fifty cents to one dollar.

WAC 230-20-700, this rule authorizes the use of electronic and electro-mechanical metering devices for measuring coin or token activated play. Operators are responsible for obtaining and maintaining accuracy specifications for these measurement devices and removing from play any game using such measurement device that becomes inoperable in any way. Additionally, this rule allows the use of bill acceptors on amusement games when either the game machine returns change, a change machine is located nearby and disclosed to the player, or change services are located nearby and disclosed to the player.

Statutory Authority for Adoption: RCW 9.46.0331, 9.46.070 (1), (3), (8), (9), (11), (13), (14), (20).

Summary: See Purpose above.

Name of Agency Personnel Responsible for Drafting: David Shaw, Lacey, (360) 438-7654, ext. 310; Implementation: Frank Miller, Lacey, (360) 438-7654, ext. 302; and Enforcement: Ben Bishop, Lacey, (360) 438-7654, ext. 370.

Name of Proponent: Washington Amusement Game and Music Operators Association, private.

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

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

Proposal Changes the Following Existing Rules: See Title of Rule and Purpose above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. This proposal falls under the exemption set forth at RCW 19.85.025(2).

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The agency does not choose to make section 201, chapter 403, Laws of 1995, apply to this rule adoption.

Hearing Location: Howard Johnson Hotel, 3105 Pine Street, Everett, WA 98201, on March 14, 1997, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Susan Green by March 10, 1997, TDD (360) 438-7638, or (360) 438-7654, ext. 302.

Submit Written Comments to: David Shaw, P.O. Box 42400, Olympia, WA 98504-2400, FAX (360) 438-8652, by March 10, 1997.

Date of Intended Adoption: March 14, 1997.

January 13, 1997

David D. Shaw

Rules and Policy Coordinator

AMENDATORY SECTION (Amending Order 227, filed 9/18/91, effective 10/19/91 WAC 230-02-520 School-aged minors defined. School-aged minors are defined as persons that are at least six years old and who have not reached an age of ((18)) eighteen years.

[Statutory Authority: RCW 9.46.070 and 9.46.0331. 91-19-093 (Order 227), 230-02-520, filed 9/18/91, effective 10/19/91.]

AMENDATORY SECTION (Amending Order 300, filed 7/23/96 [9/18/96], effective 10/19/96 [10/20/96])

WAC 230-04-138 Commercial amusement games--Authorized locations. (1) Amusement games may only be conducted by commercial amusement game licensees when operated as a part of, and/or upon the site of:

(a) Any agricultural fair as authorized under chapter 15.76 or 36.37 RCW; or

(b) A civic center of a county, city or town; or

(c) A world's fair or similar exposition which is approved by the Bureau of International Expositions at Paris, France; or

(d) A community-wide civic festival held not more than once annually and sponsored or approved by the city, town, or county in which it is held; or

(e) A commercial exposition organized and sponsored by an organization or association representing the retail sales and service operators conducting business in a shopping center or other commercial area developed and operating for retail sales and service, but only upon a parking lot or similar area located in said shopping center or commercial area for a period of no more than seventeen consecutive days by any licensee during any calendar year; or

(f) An amusement park. An amusement park is a group of activities, at a permanent location, to which people go to be entertained through a combination of various mechanical or aquatic rides, theatrical productions, motion picture and/or slide show presentation with food and drink service. The amusement park must include at least five different mechanical or aquatic rides, three additional activities and the gross receipts must be primarily from these amusement activities; or

(g) Within a regional shopping center. A regional shopping center is a shopping center developed and operated for retail sales and service by retail sales and service operators and consisting of more than six hundred thousand gross square feet not including parking areas. Amusement games conducted as a part of, and upon the site of, a regional shopping center shall not be subject to the prohibition on leases of premises based on a percentage of gambling receipts set forth in RCW 9.46.120; or

(h) Any location that possesses a valid license from the Washington state liquor control board and prohibits minors on their premises; or

(i) Movie theaters, bowling alleys, miniature golf course facilities, skating facilities, and amusement centers. For the purposes of this section an amusement center shall be defined as a permanent location whose primary source of income is from the operation of ten or more amusement devices; or

(j) Any business whose primary activity is to provide food service for on premises consumption; or

(k) Within a department or grocery store((. A grocery store is any retail store selling a)) whose primary business is the retail sale of a full line of clothing, accessories, and household goods, or a full line of dry grocery, canned goods, or nonfood items plus some perishable items, or a combination of both, and consisting of more than ((twelve)) ten thousand gross square feet of retail and support space not including the parking areas; or

(l) Any premise controlled and operated by a bona fide charitable/nonprofit organization that it currently licensed to operate punchboards and pull tabs and/or bingo if the rent or other consideration paid to the charitable/nonprofit organization is equal to or greater than twenty-two percent of the gross gambling receipts of the activity.

(2) No amusement games may be conducted in any location except in conformance with local zoning, fire, health, and similar regulations.

(3) No amusement games may be conducted in any location(s) without first having obtained written permission to do so from the person or organization owning the premises or property where the activity will be operated. If the games are conducted as a part of or in conjunction with any of the activities set out in subsection (1)(a), (b), (c), (d), or (e) of this section, written permission must be obtained from the person or organization sponsoring the activity.

(4) All rental agreements relating to use of a premises or site to conduct amusement games must be submitted to the commission as a part of the application.

(5) Any operator licensed to conduct Class B or above amusement games may enter into a contract with the business owner of any of the locations set out in subsection (1)(f), (g), (h), (i), (j), (k), or with charitable/nonprofit organizations set out in subsection (l) of this section to locate and operate amusement games upon their premises if they are licensed to conduct amusement games. All such contracts must be written and specific in terms, setting out the time of the contract, amount of rent or consideration, rent due dates, and all expenses to be borne by each party.

[Statutory Authority: RCW 1996 c 283 134, RCW 9.46.0331, 9.46.070 (1), (3), (5), (7)-(9), (11), (13), (14), (17), (20) and 9.46.090. 96-19-081 (Order 300), 230-04-138, filed 9/18/96, effective 10/20/96. Statutory Authority: RCW 9.46.070. 93-19-090 (Order 244), 230-04-138, filed 9/15/93, effective 10/16/93; 93-01-013, 230-04-138, filed 12/4/92, effective 1/4/93. Statutory Authority: RCW 9.46.070 and 9.46.0331. 91-19-093 (Order 227), 230-04-138, filed 9/18/91, effective 10/19/91.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

AMENDATORY SECTION (Amending Order 244, filed 9/15/93, effective 10/16/93 WAC 230-08-060 Commercial amusement game records. Licensees for the operation of commercial amusement games shall be required to prepare a detailed record for each ((game or concession)) location games are operated. These records shall be maintained for a period of not less than three years. These records shall ((be recorded using a prescribed format provided by the commission and)) include details necessary to determine the gross gambling receipts received from players, the value of prizes awarded, and the fact that prizes were awarded to winners. Records shall include the following:

(1) The gross gambling receipts collected from ((each separate)) amusement games at each location or concession, supported by proper receipting records. ((The minimum r)) Records shall contain an entry for each withdrawal of receipts from ((a)) the games((. For)): Provided, That coin or token activated amusement games ((with coin-in meters)) that meet standards set forth in WAC 230-20-700 shall only require an entry of the ending meter reading, the number of plays, and gross gambling receipts at the end of each month: Provided further, That a summary of the operation of the activity, which includes at least coin-in meter readings and gross gambling receipts, shall be provided to charitable/nonprofit organizations each time a game is serviced and/or moneys received. ((. the minimum entry will be the coin-in meter reading at the time of each withdrawal of receipts of a game: Provided, That a summary of the operation of the activity, which includes at least coin-in meter readings and gross gambling receipts, shall be provided to charitable/nonprofit organizations each time a game is serviced and/or moneys received));

(2) The number and actual cost of merchandise prizes awarded for each location reported at a minimum on a monthly basis. ((The minimum records shall contain an entry of the number and actual cost of prizes each time prizes are added to the inventory of a game or concession and when disbursements are made for prizes));

(3) For amusement games that issue tickets for the redemption of prizes the minimum entry shall be a log of the beginning/ending non-resettable ticket out meters or ticket numbers at each collection of funds from each game ((ticket numbers at the end of the month for each game)); and

(4) Full details on all expenses ((including:

(a) All cash disbursements;

(b) The number and actual cost of all prizes purchased;

(c) All other expenses directly related to the conduct of amusement games; and

(d) All disbursements of receipts to locations authorized by WAC 230-04-138)) directly related to the conduct of licensed amusement games for each licensee.

[Statutory Authority: RCW 9.46.070. 93-19-090 (Order 244), 230-08-060, filed 9/15/93, effective 10/16/93. Statutory Authority: RCW 9.46.070 and 9.46.0331. 91-19-093 (Order 227), 230-08-060, filed 9/18/91, effective 10/19/91. Statutory Authority: RCW 9.46.070 (4), (11) and (14). 89-24-002 (Order 201), 230-08-060, filed 11/27/89, effective 12/28/89.]

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending Order 15, filed 4/17/74)

WAC 230-12-230 Agreements restricting freedom to buy and sell--Prohibited. (1) Except as provided in subsections (3) ad (4), n((N))o person shall enter into any agreement, expressly or implied, with any other person which requires any person to purchase exclusively from, or sell exclusively to, any other person, or which prohibits any person from purchasing from or selling to any other person, any devices, materials, products, equipment or services which are used or offered in any way in connection with a gambling activity.

(2) No person shall enter into any agreement, express or implied, wherein any person is prohibited from, or required to, make purchases or sales only within a particular geographic area: Provided, That such agreements may be entered into between a licensee and its licensed representative.

(3) For amusement games, a person may enter into an agreement with another person for a period up to three years requiring such person to purchase exclusively from or sell exclusively to such other person, amusement games. The agreement may provide that it shall be automatically renewed for another three year period, or successive three year periods, if neither party gives termination notice of the agreement at least thirty days prior to its termination date.

(4) As related exclusively to amusement games, a person may enter into an agreement with another person for a period up to three years requiring such person t purchase exclusively from or sell exclusively to such other person, devices, materials, products, equipment, or services which are used in connection with a particular amusement game. The agreement shall provide that it shall be automatically renewed for another three year period, or successive three year periods, if neither party gives termination notice of the agreement at least thirty days prior to its termination date. [Order 15, ' 230-12-230, filed 4/17/74.]

[Order 15, 230-12-230, filed 4/17/74.]

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

Reviser's note: The brackets and enclosed material in the text of the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending Order 55, filed 6/25/76)

WAC 230-20-600 Amusement games--Licensee to give notice to local police jurisdiction prior to conducting--Inspection of equipment by police. No person licensed to conduct amusement games shall conduct any such games at any location within the state of Washington without having first given notice to the local police agency of the jurisdiction within which the amusement games are to be conducted. Such notice shall be in writing, addressed to the head of the local police agency, and shall be delivered no less than ten days in advance of the date upon which the amusement games are to be conducted: Provided, That this time may be reduced by the chief officer of the local law enforcement agency for good cause shown.

Such notice shall include the following information:

(1) The name and address of the licensee, and the name and local address of the person exercising managerial authority over the conduct of the games at that location;

(2) The date or dates the amusement games will be conducted;

(3) The location at which the amusement games will be conducted.

The licensee shall not utilize any equipment in the conduct of the amusement games unless the equipment has been available for inspection by the local police agency for a period of two hours immediately preceding such utilization.

(4) The requirements in this section shall not apply to locating individual commercial amusement games at an existing location.

[Order 55, 230-20-600, filed 6/25/76.]

AMENDATORY SECTION (Amending WSR 95-12-051, filed 6/2/95, effective 7/3/95)

WAC 230-20-630 Amusement games--Fees, rules, prizes and variations in objects to be posted--Fees to be paid in cash or scrip--Prizes not to differ from those posted. Amusement game operators shall fully inform players regarding all aspects of the activity, including at least the following:

(1) No person shall conduct any amusement game at any location within the state of Washington unless ((there is posted in a conspicuous place, readily visible to persons playing the game, a sign(s))) players are notified of the cost to play, rules of play, and prizes available. Notification shall be by posting of a sign that is readily visible, unobstructed form view, made of permanent material, such as wood, poster board, metal or plastic ((with)), and all required information is imprinted by use of lettering at least one and one-half inches in height ((that contains the following information)): Provided, That if the activity is a coin or token activated game and all aspects of the activity are within four feet of the player, the sign and information required by this subsection may either be preprinted on the machine by the manufacturer or by a sign attached to the machine. The lettering for such signs may be smaller than one and one-half inches in height as long as the sign is conspicuous and legible to players. The following information shall be imprinted on signs required by this section:

(a) Fees charged for playing;

(b) The rules by which the game is to be played;

(c) Prizes or numbers of tickets to be won;

(d) Any variation in the size or weight of objects utilized in the game which is not readily visible to the player;

(e) The name of the operator and an assigned concession number, if applicable; and

(f) The group number of the game being conducted.

(2) ((Licensed amusement game operators)) All licensees operating amusement games under a "limited location" license shall assign each concession a number and a list of all concessions and their assigned numbers shall be kept available in the concession office.

(3) No amusement games shall be conducted wherein the price charged for playing said game is paid other than in cash, or in an amount other than that posted upon the premises of said game. The term "cash" as used herein shall include checks. In addition, the operator may accept as consideration, tokens, scrip or tickets, but only under the following conditions:

(a) The value of each token, ticket or item of script, as measured by the equivalent amount of cash which a player would have to present in lieu of said token, ticket or scrip, must be indicated on the face thereof;

(b) Said tokens, tickets or scrip are not redeemable for cash;

(c) Said tickets or scrip shall bear the name of the operator or sponsor.

(4) No amusement games shall be conducted within the state of Washington wherein the prize to be given to a prospective winner is other than that posted upon the premises of said game: Provided, however, That after an individual player has won two or more prizes, an operator may offer said player the opportunity to exchange said prizes for one or more other prizes, but only if the prize to be received by the player in exchange was on display during the play of the game. Any prize system which requires forfeiture of previously won prize(s) in exchange for another play is prohibited. Operators of amusement games may utilize a scheme for distribution of prizes wherein the winners of individual prizes receive tickets, which are subsequently redeemable in combination with other tickets won for a merchandise prize.

[Statutory Authority: RCW 9.46.070. 95-12-051, 230-20-630, filed 6/2/95, effective 7/3/95; 94-01-036, 230-20-630, filed 12/6/93, effective 1/6/94. Statutory Authority: RCW 9.46.070 and 9.46.0331. 91-19-093 (Order 227), 230-20-630, filed 9/18/91, effective 10/19/91. Statutory Authority: RCW 9.46.070 (4), (11) and (14). 89-24-002 (Order 201), 230-20-630, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 88-07-059 (Order 175), 230-20-630, filed 3/15/88; Order 55, 230-20-630, filed 6/25/76.]

Reviser's note: The typographical errors in the above section occurred in the copy filed by the agency and appear in the Register pursuant to the requirements of RCW 34.08.040.

AMENDATORY SECTION (Amending WSR 93-12-082, filed 5/28/93, effective 7/1/93)

WAC 230-20-685 Commercial amusement games--Wager and prize limitations. For locations authorized under WAC 230-04-138 (1)(g), (i), (j), or (k) where school-aged minors are allowed to play, the following limitations shall apply.

(1) Prize limitations. No prize offered shall exceed a cost to the operator of ((one)) five hundred dollars.

(2) Consideration. The maximum wager for play shall not exceed ((fifty cents)) one dollar.

[Statutory Authority: RCW 9.46.070(2) and 9.46.0331(2). 93-12-082, 230-20-685, filed 5/28/93, effective 7/1/93. Statutory Authority: RCW 9.46.070 (3)(11)(14). 92-19-106 (Order 230), 230-20-685, filed 9/18/92, effective 10/19/92.]

AMENDATORY SECTION (Amending Order 260, filed 11/17/94, effective 1/5/95 [1/1/95])

WAC 230-20-700 Coin or token activated amusement games--Standards. All coin or token activated amusement games must meet the standards set forth below:

(1) ((All coin or token activated a)) Amusement games operated at locations authorized under WAC 230-04-138 (1)(f), (g), (i), (j), (k), or (l) must have ((nonresettable coin-in meters, the removal or disconnection of which stops the play of the machine. The meter)) a mechanical, electro-mechanical, or electronic means of measuring and recording the number of times the game was activated for play. The manufacturer's specifications for the applicable measurement device must certify that such device is ((must be certified as)) accurate to within plus or minus ((1 coin or token)) one play in ((1,000)) one thousand plays. The operator is responsible for both obtaining such specifications and maintaining this information on file and available for agency review. If such measuring device or meter becomes inoperable by any means, the operator must remove the game from play until repairs are made.

(2) All coin or token activated amusement games must ((have a coin acceptor capable of taking money for one play and)) provide players the ability to purchase a single play. Such games may have ((an additional)) a bill acceptor to ((include)) allow paper money to be utilized if: ((. All games utilizing paper money acceptors shall either return change or clearly disclose to the customer that change is not returned by the device and where on the premises this change may be obtained prior to play. Operators using amusement games that do not return change must have a change-making bill acceptor or the ability to obtain change, in))

(a) The machine returns change to the player; or

(b) A change machine that accepts paper money is located in the immediate vicinity of such games and the location of such is clearly disclosed to the player; or

(c) The operator provides change services in the immediate vicinity and discloses such to the player.

[Statutory Authority: RCW 9.46.070. 94-23-093 (Order 260), 230-20-700, filed 11/17/94, effective 1/1/95; 94-01-036, 230-20-700, filed 12/6/93, effective 1/6/94. Statutory Authority: Chapter 9.46 RCW. 91-21-053 (Order 228), 230-20-700, filed 10/15/91, effective 11/15/91.]

Reviser's note: The bracketed material preceding the section above was supplied by the code reviser's office.

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.

© Washington State Code Reviser's Office