WSR 02-07-081

PROPOSED RULES

GAMBLING COMMISSION


[ Filed March 19, 2002, 3:15 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 01-15-095.

Title of Rule: Promoting gambling activities, new section WAC 230-12-045 Promotions for gambling activities -- Conditions -- Restrictions; amendatory sections WAC 230-12-050 Extension of credit, loans, or gifts prohibited -- Limited exception and 230-40-800 Operating rules for house-banked card games; and repealed sections WAC 230-02-145 Promotional marketing gifts, 230-20-111 Promotional activities -- Performances as gifts -- Advance approval required, 230-20-125 Discounts and promotional gifts -- Authorized -- Limits, 230-20-230 Free games for winners -- Restrictions, and 230-40-897 Card game promotions -- Procedures -- Restrictions.

Purpose: There has been a general prohibition against licensees giving credit, loans or gifts to persons participating in gambling activities. Over the years, the commission has granted specific exceptions to this general prohibition.

Statutory Authority for Adoption: RCW 9.46.070.

Summary: This rules package contains a new rule, which sets forth the parameters licensees must follow when offering promotions in conjunction with gambling activities; therefore staff will no longer need to review individual promotions.

The new rule addresses promotions for both commercial and charitable/nonprofit licensees. Gambling promotions will be limited to only persons playing in a licensed gambling activity and each promotional item cannot exceed $500 in actual cost. Promotions cannot be combined with promotional contests of chance in any way.

Because this rule sets the parameters for all promotions, the various rules granting exceptions to the general prohibition are up for repeal or amendment to remove references to promotions.

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: West Coast Grand Hotel at the Park, 303 West North River Drive, Spokane, WA 99202, (509) 326-8000, on May 10, 2002, at 9:30 a.m.

Assistance for Persons with Disabilities: Contact Shirley Corbett by May 1, 2002, 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 May 1, 2002.

Date of Intended Adoption: May 10, 2002.

March 19, 2002

Susan Arland

Rules Coordinator

OTS-5554.1


NEW SECTION
WAC 230-12-045   Promotions for gambling activities -- Conditions -- Restrictions.   Licensees may conduct promotions connected with authorized gambling activities under the following conditions and restrictions:


Conditions.


(1) The following conditions apply to promotions:

(a) All players must have an equal opportunity to participate;

(b) A promotion may provide an initial opportunity to engage in a gambling activity for free or at a discount; and

(c) All rules or restrictions governing the promotions shall be conspicuously displayed in the gaming area and referred to on any promotions coupon or advertisement.


Restrictions.


(2) The following restrictions apply to promotions:

(a) Any promotions offered to an individual player shall not exceed five hundred dollars in actual cost, per item;

(b) Promotions shall not consist of schemes in which the prize is additional opportunities to engage in gambling activities; and

(c) Gambling promotions shall not be combined in any way with promotional contests of chance, as defined in RCW 9.46.0356.

[]



AMENDATORY SECTION [(Amending Order 383, filed 4/14/00)]WAC 230-40-800   Operating rules for house-banked card games.   Licensees that operate house-banked card games shall establish rules and procedures governing each specific house-banked card game played at their premises. The following restrictions and procedures apply:

(1) House-banked card games shall not be operated prior to approval as set forth in WAC 230-40-010;

(2) All house-banked card games shall be dealt from a dealing shoe or an approved shuffling device;

(3) The licensee shall submit all rules governing the game to commission staff for approval. All requests shall be in writing and include at least the following:

(a) Rules of play, including those specified by the manufacturer or supplier;

(b) Any administrative or accounting controls applicable to specific games;

(c) All specifications provided by the equipment manufacturer or supplier applicable to gaming equipment utilized in the game;

(d) Physical characteristics of the following:

(i) Cards (including procedures for receipt and storage);

(ii) Gaming chips used to play the game;

(iii) All gaming tables and layouts;

(iv) Dealing shoes;

(v) Card shuffling devices;

(vi) Card peeking devices;

(vii) Bill changer devices; and

(viii) Such other equipment as may be required for use in otherwise authorized games;

(4) Rules for each authorized game, shall include at least the following:

(a) Procedures of play;

(b) Minimum and maximum permissible wagers;

(c) Shuffling, cutting, and dealing techniques, as applicable;

(d) Dealer take and pay procedures;

(e) Payout odds on each form of wager, including any factors affecting payments to the player, such as maximum player or aggregate prize restrictions; and

(f) Procedures to be followed on occurrence of irregularities, including examples of irregularities applicable to each game;

(5) A summary of playing procedures and rules of play for each game shall be visibly displayed in the gaming area. If the procedures or restrictions are game specific, they shall be displayed at each gaming table at which the game is played((;

(6) Full details on all promotions, schemes or other means used to promote card games operated in card rooms which offer house-banked card games must be submitted to commission staff and be approved prior to implementing)).

[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), 230-40-800, filed 4/14/00, effective 5/15/00.]

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

OTS-5543.1


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

WAC 230-12-050   Extension of credit, loans, or gifts prohibited -- Limited exception.   No licensee, member or employee thereof shall extend credit, make a loan, or grant a gift to any person playing in an authorized gambling activity, or which enables a person to play in an authorized gambling activity.


Gifts prohibited - Exceptions.


(1) Licensees shall not offer gifts in conjunction with gambling activities, with the following exceptions:

(a) Promotions are allowed as authorized by WAC 230-12-045;

(b) Free or discounted food, drink or merchandise may be provided under the following conditions:

(i) The actual cost of any individual item may not exceed five hundred dollars;

(ii) The merchandise shall not be traded back to the licensee for cash or be used to further participate in an authorized gambling activity;

(c) For each individual gift with an actual cost over one hundred dollars, charitable and nonprofit organizations shall prepare and maintain a written record with the following information:

(i) How the recipients of the gifts were selected;

(ii) The number of gifts awarded; and

(iii) The total cost of each gift given.


Credit and loans prohibited - Exceptions.


(2)
The consideration required to participate in the gambling activity shall be collected in full, by cash, check, or electronic point-of-sale bank transfer, prior to participation((: Provided, That this prohibition shall not apply to the following situations)), with the following exceptions:


Punch boards/pull-tabs.


(((1))) (a) The consideration paid for the opportunity to play a punch board or pull-tab series may be collected immediately after the play is completed only when such consideration is ten dollars or less;


Charitable/nonprofit organization's billing system for members.


(((2))) (b) When a bona fide charitable or bona fide nonprofit organization conducting any of the activities authorized by chapter 9.46 RCW or commission rules has a regular billing system for all of the activities of its members with such organization, such billing system may be utilized in connection with the playing of any of the activities authorized hereunder if:

(((a))) (i) The playing of such activity is limited to regular members of such organization who have become regular members prior to the commencement of such activity and whose qualifications for membership were not dependent upon, or in any way related to, the playing of such activity; and

(((b))) (ii) The ((commission)) director has given its prior written consent to the use of such billing system in connection with the conduct of activities authorized under these rules.


Raffle tickets purchased with credit cards.


(((3))) (c) Charitable or nonprofit organizations utilizing credit cards, issued by a state and/or federally regulated financial institution, for payment to participate in raffles((; and


Promotional gifts.


(4) Promotional gifts detailed below:

(a) The providing of free or discounted food, drink, or merchandise to card players at a public card room;

(b) Promotional activities conducted as a part of bingo games and authorized by WAC 230-20-125;

(c) Performances as authorized by WAC 230-20-111;

(d) Free play for card playing as authorized by WAC 230-40-050(7);

(e) "Free roll" or customer appreciation tournaments as authorized by WAC 230-40-055(2); and

(f) Promotional game cards meeting the standards of WAC 230-46-070(1).


Food and drink to bingo players.


(5) Free or discounted food or nonalcoholic drink to bingo players
)).

[Statutory Authority: RCW 9.46.070. 00-09-052 (Order 383), 230-12-050, filed 4/14/00, effective 5/15/00; 00-07-140 (Order 381), 230-12-050, filed 3/22/00, effective 7/1/00. Statutory Authority: RCW 9.46.070, 9.46.0209, 9.46.0237, 9.46.0205 and 9.46.075. 96-24-008 (Order 303), 230-12-050, filed 11/21/96, effective 12/22/96. Statutory Authority: RCW 9.46.070. 94-13-099 (Order 253), 230-12-050, filed 6/15/94, effective 7/16/94. Statutory Authority: RCW 9.46.070 (11), (14) and 9.46.0218 [9.46.0281]. 89-05-024 (Order 186), 230-12-050, filed 2/13/89; Order 51, 230-12-050, filed 4/30/76; Order 15, 230-12-050, filed 4/17/74; Order 5, 230-12-050, filed 12/19/73.]

OTS-5420.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-02-145 Promotional marketing gifts.

OTS-5421.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-20-111 Promotional activities -- Performances as gifts -- Advance approval required.

OTS-5422.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-20-125 Discounts and promotional gifts -- Authorized -- Limits.

OTS-5423.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-20-230 Free games for winners -- Restrictions.

OTS-4809.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 230-40-897 Card game promotions -- Procedures -- Restrictions.

Washington State Code Reviser's Office