Preproposal statement of inquiry was filed as WSR 06-07-111.
Title of Rule and Other Identifying Information: New chapter 230-15 WAC.
Hearing Location(s): Red Lion Hotel, 2300 Evergreen Park Drive, Olympia, WA 98502, (360) 943-4000, on March 9, 2007, at 9:30 a.m.
Date of Intended Adoption: March 9, 2007.
Submit Written Comments to: Susan Arland, Rules Coordinator, P.O. Box 42400, Olympia, WA 98504, e-mail Susana@wsgc.wa.gov, fax (360) 486-3625, by March 1, 2007.
Assistance for Persons with Disabilities: Contact Shirley Corbett by March 1, 2007, TTY (360) 486-3637 or (360) 486-3447.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The gambling commission is rewriting its rules manual using plain English techniques. The rules manual has been divided into sections and is being rewritten a section at a time. Attached are rules relating to card games. These rules are written in plain talk and now numbered as chapter 230-15 WAC. Any changes to rules that are more than a rewrite to plain English, sustentative changes, are explained below.
Directors have for a number of years delegated those decision-making duties to the deputy director, assistant directors, administrators, supervisors, special agents, and staff. In several of the rules the director or director's designee approves or takes an action. We have reevaluated the rules with these director delegations with director day and made policy decisions about which of them require the director to become involved and which may be delegated to commission staff.
Current Rule WAC 230-40-010 Rules of play in all card games. New Rule WAC 230-15-030 Authorized nonhouse-banked card games, 230-15-035 Requirements for authorized card games, 230-15-040 Authorizing new games or changing game rules, and 230-15-045 Withdrawing approved card game.
Current Rule WAC 230-40-050 Fees for nonhouse-banked card games -- Assessment and collection -- Maximum fees. New Rule WAC 230-15-075 Card game fees for nonhouse-banked card games.
Current Rule WAC 230-40-070 Licensee to furnish all cards, chips and other services. New Rule WAC 230-15-100 Providing cards and chips in card rooms.
Current Rule WAC 230-40-400 Hours for card games -- Procedures for changing hours. New Rule WAC 230-15-025 Hours of play.
Current Rule WAC 230-40-505 Rules of play for social card games--Display -- Availability for review. New Rule WAC 230-15-065 Enforcement of card game rules of play and 230-15-485 Standards for electronic facsimiles of cards.
Current Rule WAC 230-40-600 Authorization procedures for player-supported jackpots. New Rule WAC 230-15-365 Getting approval for player-supported jackpots.
Current Rule WAC 230-40-801 Interruption of card games -- Preoperational review and evaluation required -- Procedures -- House-banking. New Rule WAC 230-15-545 Interruption of card games for more than seven days.
Current Rule WAC 230-40-805 Progressive jackpot prizes--Procedures -- Restrictions -- House-banking. New Rule WAC 230-15-710 Permanently removing a progressive jackpot or a portion of a progressive jackpot from play.
Current Rule WAC 230-40-810 House-banked card games -- Odds based wagers -- Prizes -- Restrictions -- Procedures. New Rule WAC 230-15-490 Limiting payouts for odds-based wagers.
Current Rule WAC 230-40-823 Financial audits and reviews required -- House-banking. New Rule WAC 230-15-740 Preparing required financial statements.
Current Rule WAC 230-40-865 Distributing chips and coins to tables -- Requests and fills -- House-banking. New Rule WAC 230-15-510 Transferring chips and coin to the gambling tables.
Current Rule WAC 230-40-870 Removing chips and coins from tables -- Requests and credits -- House-banking. New Rule WAC 230-15-530 Completing the credit process.
Current Rule WAC 230-40-895 Key control -- House-banking. New Rule WAC 230-15-635 Electronic key control systems.
When a business is licensed, the business is given a packet of forms which it uses to administer the card room. Some of these forms must be used; others are model forms which the licensee may convert to their own use. Much of the information in the "laundry lists" in the rules is repeated verbatim on the application and administration forms. Repeating it in the rule is unnecessary.
The new rules remove these "laundry lists" to simplify the process of filling out the records. Card game licensees no longer have to look up the rule to ensure that they are properly completing their records; instead, they can complete the form in their card room packet and know that they have completed the records correctly. Many of the rules in current chapter 230-40 WAC are "laundry lists" that repeat verbatim the information that is required of licensees on agency forms. Staff is recommending removing the detailed lists of required information included in the WAC rules and adding the phrase, "in the format we require."
Current Rules: WAC 230-40-010 Rules of play for all card games, 230-40-052 Daily records -- Card games, 230-08-160 Semiannual activity reports by operators of social and public card rooms, 230-40-800 Operating rules for house-banked card games, 230-40-830 Cashier's cage -- Requirements -- House-banking, 230-40-845 Procedures for exchange of checks submitted by gaming patrons at cashier's cage, 230-40-870 Removing chips and coins from tables -- Requests and credits -- House-banking, and 230-40-875 Closing gaming tables -- House-banking.
The current rule defines "guest" by referring to the liquor control board's authorized guest card. We propose changing this rule to align it with our definition of "full and regular membership" in a charitable or nonprofit organization which is set out in the new licensing rules at WAC 230-03-140. We removed that reference to guest and added our own definition because the liquor control board no longer issues guest cards.
WAC 230-02-420 Social card room and 230-02-430 Guest. New Rule WAC 230-15-015 "Charitable and nonprofit social card room" and "guest" defined.
Licensees are already complying with the requirements for cash on hand. This change would make that compliance mandatory and align the rules with the actual practice of agents and licensees. We propose relocating this rule into the "general card room rules" section of the chapter instead of having it only in the house-banked card room rules section. We suggest this change because the minimum cash on hand requirements should be a requirement for all card game licensees, not just house-banked licensees.
WAC 230-40-833 Cashier's bank and minimum bankroll -- House-banking. New Rule WAC 230-15-050 Minimum cash on hand requirements.
We put in these priorities to explain the precedence when resolving disputes. The original rule states that the applicability of rules of play is determined by these priorities and lists the four priorities. We changed the language of the rule to emphasize that the order of priority is how we will enforce rules of play.
WAC 230-40-505 Rules of play for social card games -- Display -- Availability for review. WAC 230-15-065 Enforcement of card game rules of play.
We propose removing this rule entirely. No game rules would allow licensees to change the method of wagering in the middle of a hand or game, so we felt the rule was unnecessary. We also have alternative ways to enforce this concept: We would not approve a game in the future that allowed wagering methods to change in mid-hand or mid-game.
WAC 230-40-140 Change in method of wagering prohibited.
When the rule was passed in 2000, we tried to leave the regulation broad so that we could allow for possible changes in method. No one has submitted a request for another method of collection. If one were submitted, it would require a rule change. There are no standards to determine what method of collection the director should allow. Going through the rules change process is a better method to evaluate any new collection methods. We took out a sentence that stated that the director could authorize alternative methods of collection. We have not authorized an alternative method of collection beyond a period of time, per hand, or rake fee.
WAC 230-40-050 Fees for nonhouse-banked card games -- Assessment and collection -- Maximum fees. WAC 230-15-080 Authorized fees and authorized methods of collection.
We propose including Class B and Class C charitable or nonprofit card game licensees in this rule because these classes were inadvertently left out of the original rule. All card game licensees, except for Class D, must provide cards and chips and may not charge players for these.
WAC 230-40-070 Licensee to furnish all cards, chips and other services. WAC 230-15-100 Providing cards and chips in card rooms.
We propose removing "that business day" from the text because there's no practical way to enforce the rule unless we search everyone leaving the premises. There was a typographical error in the packet last month and the words we meant to be stricken were left in. I corrected that mistake with this packet's version.
WAC 230-40-080 Person not to bring their own cards or chips. WAC 230-15-105 Only authorized cards or chips may be used.
We propose including subsection (6) stating that licensees must "count each transaction for the purchase of chips as a separate transaction; for example, do not allow a player's check to be altered after it is exchanged for chips." We want to emphasize that checks, once received by the cashier, cannot be altered. Players must write a second check if they want to buy more chips later, instead of altering a check already received at the cashier's cage. We are clarifying original rule language about separate transactions for each purchase.
WAC 230-40-070 Licensee to furnish all cards, chips and other services. WAC 230-15-150 Selling and redeeming chips.
We propose removing this rule entirely because this rule was combined with rules covering the licensing of card room employees and now appears in WAC 230-03-265 of the licensing chapter.
WAC 230-02-415 Card room employee defined.
When the house-banked card game license was introduced in 2000, we stopped enforcing the requirement for employers to post these photos because of safety and privacy concerns of card room employee licensees. It is also impractical to require licensees to post the photos of eighty to ninety employees. We propose removing the requirement that photos of card room employees be posted in the card room. Licensees must, however, have photos of the employees on site and available for inspection.
WAC 230-40-450 Pictures to be posted with employee licenses. WAC 230-15-170 Photos of card room employees required.
We are proposing a change to the amount of time within which staff must receive notice of a card room employee terminating employment. The original rule required licensees report to us "not later than 5 p.m. on the seventh day" after the card room employee terminates employment. We have changed that to "within ten days of the employee terminating."
We have attempted in other rules to standardize the timing of reporting by requiring notice within thirty days, or when thirty days is not reasonable, ten days. In this case, thirty days is not a reasonable amount of time because field staff needs to know who is working in a particular location at a given time.
The change is less restrictive than the previous rule and provides a reasonable amount of time for the licensee to respond. Seven days have been the standard since the rules were passed in 2000.
WAC 230-04-142 Notification to the commission upon beginning, terminating, or changing employment -- Public card room employees. WAC 230-15-175 Reporting card room employees no longer working.
In the original rule, we required licensees to notify local law enforcement of cheating immediately. In the new rule, we have added that licensees must also report cheating to us within three days. This change matches the current field requirements.
WAC 230-40-250 Licensee to prevent cheating in card games. WAC 230-15-185 Preventing cheating in card games.
We propose removing this rule entirely. Licensees may now give away food and nonalcoholic drinks without charge now according to WAC 230-06-035 (formerly WAC 230-12-050) which the commission passed earlier as part of the rules simplification project.
WAC 230-40-315 No food or drink sales on time basis in card room.
We are proposing to change the requirement for when monthly records must be printed or backed up in a permanent form from "on a periodic basis" to a less ambiguous length of time: Once per month.
WAC 230-08-010 Monthly records and 230-40-052 Daily records -- Card games. WAC 230-15-190 Preparing card room records.
Licensees routinely use a sign up log to determine which players will participate in a tournament. Licensees often have more players signed up than they have seats in the tournament. A licensee may use a drawing to determine who will be allowed to play. However, after the tournament has begun, licensees may not use a drawing to fill an extra seat. We are proposing the addition of a rule interpretation language that states, "After the tournament has begun, card game licensees must not conduct a drawing to decide who will fill an extra seat." Addressing rule interpretations was a goal of the rules simplification project. Our goal is to write clearer WACs and eliminate the need for rule interpretations.
WAC 230-40-050 Fees for nonhouse-banked games and 230-40-055 Card tournaments for fee and prizes -- Reporting requirements. WAC 230-15-225 Tournament rules and prizes.
We are proposing the addition of a rule interpretation that states that owners of card rooms may hold tournaments that restrict entry to certain groups as long as they post all the restrictions on entry in the tournament rules. Addressing rule interpretations was a goal of the rules simplification project. Our goal is to replace all rule interpretations with clearer WACs.
WAC 230-40-055 Card tournaments for fee and prizes -- Reporting requirements. Customer appreciation. WAC 230-15-235 Exclusive tournament entry as customer appreciation.
The original rule was passed in 1974 and, in many cases, rules like this one repeat the language of the statute. We propose removing portions of this rule entirely because this restriction is in RCW 9.46.0351; therefore, we do not need to repeat it in the WAC.
WAC 230-40-500 Unlicensed charitable and nonprofit card games -- Authority -- House rules to be developed and posted.
We propose removing this rule entirely because posting a fee schedule is handled in the section on house rules and does not need to be repeated here.
WAC 230-40-050 Fees for nonhouse-banked card games--Assessment and collection--Maximum fees.
In October 2004, a rule change was erroneously made to WAC 230-40-625. We are using this opportunity to correct the use of multiplex and quad recording devices in required surveillance. We have combined the surveillance requirements for both Class F and house-banked licensees into one section and merged most of the rules. This particular rule change makes consistent the requirements for when and where licensees may use multiplex and quad recording devices. The current WAC 230-40-625 states that multiplexing and quad recording devices may not be used in required surveillance, when in actuality, they may be used on certain required areas.
WAC 230-40-625 Closed circuit television system--Class F card rooms and 230-40-825 Closed circuit television system -- House-banking. WAC 230-15-300 Using multiplex and quad recording devices in required surveillance.
We have combined the surveillance requirements for both Class F and house-banked licensees into one section and merged most of the rules. This particular rule change requires that licensees keep a surveillance room sign-in log to document anyone entering or leaving the surveillance room. The previous rule required an employee sign-in log. Informally, a visitor's sign-in log was used in the surveillance room as well. We are combining both logs to improve consistency and accuracy of the log.
WAC 230-40-625 Closed circuit television system--Class F card rooms and 230-40-825 Closed circuit television system -- House-banking. WAC 230-15-325 Surveillance room sign-in log.
We are proposing the removal of subsection (1)(e) of the current rule which includes requirements that security and surveillance be established in the internal controls. We also added subsection (3), "Licensees and all card room employees must follow the internal controls at all times." Class F card game licensees are not required to have a separate security department and surveillance requirements for Class F licensees are covered in other rules. Repeating these requirements here is redundant. The additional requirement for Class F licensees and card room employees to follow internal controls adds to the consistency of enforcement for card game licensees.
WAC 230-40-615 Nonhouse-banked card games -- Administrative and accounting control structure -- Organization. WAC 230-15-335 Internal controls.
We propose removing this section of the rule entirely. The restrictions contained in this section are covered in other rules.
WAC 230-40-830 Cashier's cage -- Requirements -- House-banking.
We are suggesting a change to the final section of this rule. It formerly said, "This assessment shall be separately collected using the rake method." We have changed it to say, "Licensees must use either the chip rack or drop box method to collect these funds." Rake is a type of fee; chip rack or drop box are the collection methods. We are attempting to clarify the terms we use in the card game rules and this change uses those rules in a more consistent manner.
WAC 230-40-610 Player-supported jackpots -- Restrictions -- Manner of conducting -- Approval. WAC 230-15-385 Collecting funds for a player-supported jackpot.
The restrictions contained in this section are covered in other rules.
WAC 230-40-610(9) Player-supported jackpots -- Restrictions -- Manner of conducting -- Approval.
We have changed subsection (1) to state that the bank used for player supported jackpots has to be in Washington state. We also define "Washington state depository" as "Washington state bank, mutual savings bank, or credit union" in all the new rules.
In subsection (6), we addressed a rule interpretation from June 24, 2005, about transferring funds before the end of the month, and in subsection (7), we added a definition of reconcile.
The first change introduces new terminology that will be used from now on in the rules concerning banking institutions. In subsection (6) we are clarifying the rule as the RSP charter calls for. The change to subsection (7) clarifies and codifies the definition of reconcile.
WAC 230-40-608 Deposit requirements -- Player-supported jackpot funds. WAC 230-15-400 Accounting for player-supported jackpot funds.
This rule was initially passed to make certain that a winning hand was kept on premises for a reasonable amount of time. Licensees could ask for release or could be given a release by commission agents.
In the field, however, we found that the release has not been requested and we have never given one, so we're making the change.
We have changed the old rule language: "The winning hand and remaining deck shall be maintained on the premises as part of daily card room records for a period of seven days, unless released by a commission agent" to "Licensees must keep the winning hand and remaining deck on the business premises for seven gambling days." As a practical manner, agents never release licensees from keeping the winning hand and deck.
WAC 230-40-610 Player-supported jackpots -- Restrictions -- Manner of conducting -- Approval. WAC 230-15-405 Paying out prizes on a player-supported jackpot.
In this rule, we added the phrase "prize fund custodian" to subsections (2) and (3) of the text. Because of the important restrictions on owners and card room employees playing in player-supported jackpots set out in this rule, we're certain that prize fund custodians are also meant to be restricted.
WAC 230-40-610 Player-supported jackpots -- Restrictions -- Manner of conducting -- Approval. WAC 230-15-410 Owners, prize fund custodians, and card room employees participating in player-supported jackpots.
Previously, we had no instructions about what licensees must do if a taxing authority seized all or part of a player-supported jackpot to cover unpaid gambling or other taxes. Adding this rule interpretation brings the rule in line with current practice about tax seizure. An existing rule interpretation concerning taxing authorities seizing player-supported jackpot funds was written into this rule.
WAC 230-40-610(10) Player-supported jackpots -- Restrictions--Manner of conducting -- Approval. WAC 230-15-415 Removing a player-supported jackpot from play.
Most times, disputes over player-supported jackpots are resolved without the need for the director to be involved. We wish to give the director the discretion to decide when he or she needs to become involved. A director has only been involved in one resolution in nearly seven years. The new rule reads, "Staff will investigate complaints involving PSJ disputes and the director may issue a written decision which is final." We have changed this portion of the rule to allow the director to decide whether or not to become involved in resolving disputes in player supported jackpots, whereas before the director was obligated to issue a written decision in any dispute in a player-supported jackpot.
WAC 230-40-610 Player-supported jackpots -- Restrictions -- Manner of conducting -- Approval. WAC 230-15-420 Resolving disputes over player-supported jackpots.
Several of our rules require that licensees make internal controls and other records available to us or to other law enforcement agencies at any time they are requested, but we never had a requirement that the licensee have a copy of the internal controls on site. The addition of this requirement for internal controls will prevent many misunderstandings about internal controls, both between agents and licensees and between licensees and their employees. We require card room employees to know the internal controls concerning their specific functions. If the licensee has to have a copy of the internal controls on site, employees can easily see what their role in maintaining the internal controls is. We are proposing adding a requirement that licensees have a copy of their internal controls on-site at their business premises at all times. The requirement was implied before, but not stated outright. We also added that licensees must follow all the restrictions contained in the Gambling Act. Again, the requirement was implied before, but not stated outright. One goal of the rules simplification project was to repeal rules which repeated the statute and place the emphasis on the statute as our enforcement guideline. These changes reinforce the connection we hope to make with the statute and the WAC rules.
WAC 230-15-425 Internal controls.
We are proposing rewriting this rule to include an existing rule interpretation. We are attempting to clarify and strengthen the rule by adding in the requirement that surveillance personnel must report any suspicious or illegal acts they see while operating camera and monitors. The security department will now be responsible for "destroying damaged chips."
The accounting department will now be responsible for "control[ing] processes in the count room and cashier's cage." Previously, the requirement to detect and report cheating or other illegal activity was on the surveillance department manager. We have moved that responsibility to the person performing the surveillance.
Both destroying chips and controlling the count room processes have been part of the implied duties of those two departments. We are clarifying what has been the case in the field.
WAC 230-40-815 Administrative and accounting control structure -- Organization -- House-banking. WAC 230-15-430 Internal control requirements.
Commission rules require that card game licensees submit a changed version of the licensee's complete internal controls if the licensee wished to change a game being offered in their card room. Special agents would review the entire internal controls and go out to the card room to do a review before allowing the change to occur. We are proposing rewriting this rule to include an existing rule interpretation. The rule interpretation allows licensees to submit a changed version of their internal controls and receive a verbal approval for the change from their agent while continuing to operate.
With the addition of the rule interpretation to the rule, licensees may now change out games simply by submitting the change to the card game internal controls in writing and getting a verbal approval from the special agent. Special agents then will complete a review of the new game on their next visit to the card room.
WAC 230-40-815 Administrative and accounting control structure -- Organization -- House-banking. WAC 230-15-440 Modifying internal controls and changing card games offered.
We propose removing the definition of chief executive officer or chief operating officer entirely. Licensees recommended that we remove this definition because the term has largely fallen out of use among licensees. Most card game licensees now employ "general managers" to handle the daily gambling and other operations of the card room.
WAC 230-40-554 Chief executive officer or chief operations officer defined.
We propose removing this rule entirely because the requirements for posting house rules are covered in a number of other rules.
WAC 230-40-800 Operating rules for house-banked card games.
We added the word "coin" into subsections (2) and (3) of this rule. The word was inadvertently left out of the original rule.
WAC 230-40-865 Distributing chips and coins to tables -- Requests and fills -- House-banking. WAC 230-15-510 Transferring chips and coin to the gambling tables.
Licensees asked us to review the restrictions on when accounting had to perform the comparisons and reviews of the count. The accounting department at most businesses works a regular 8:00-5:00 day, but the licensees were required to have one accounting person come in over the weekend to check the hard copies of credit and fill slips. We felt that as long as the review was done as soon as accounting returned to work the next business week, we could allow them to postpone it. We removed the words "each day" from subsection (1)(e) of this rule to make it consistent with the change to WAC 230-15-625 which will allow accounting to postpone reviewing the counts that occur when the accounting department is not at work.
WAC 230-40-865 Distributing chips and coins to tables -- Requests and fills -- House-banking. WAC 230-15-520 Requirements for fill/credit slips.
We propose removing this rule entirely because the requirements are covered in a number of other rules.
WAC 230-40-860(2) Table inventories and procedures for opening tables for house-banked card games.
The current rule requires us to perform a PORE every time a licensee is closed for more than seven days. Current enforcement practice, however, allows agents some discretion about whether a PORE is necessary. For instance, if a licensee decides to close for a week or two during a slow period in order to perform some remodeling, agents do not need to perform a PORE before that licensee reopens. We propose changing this rule to remove the imperative for staff to perform a preoperational review and evaluation (PORE) any time licensees are closed for seven days or more. This change will align the rule with current enforcement practice.
WAC 230-40-801 Interruption of card games -- Preoperational review and evaluation required -- Procedures -- House-banking. WAC 230-15-545 Interruption of card games for more than seven days.
Licensees asked us to review the restrictions on who would review the imprest bank because the accounting supervisor is not always present to perform the review. Accounting department personnel, however, are the usual designees to perform the review. We propose changing the rule to match current practice in the card rooms.
WAC 230-40-833 Cashier's bank and minimum bankroll -- House-banking. WAC 230-15-570 Cashier's cage bank requirements.
We changed the word "taped" to "recorded" in this rule because many licensees now use digital recording devices which use a hard-drive or other media for surveillance video storage, not tapes. "Taped" implies that the licensee must be using analog recording devices. "Recorded" allows for both analog and digital recording.
WAC 230-40-840 Drop boxes -- House-banking -- Drop box collection method. WAC 230-15-600 Storing drop boxes on closed gambling tables.
We have rewritten this rule to include an existing rule interpretation. We are attempting to clarify and strengthen the rule by adding in the requirements about who can serve on a count team.
WAC 230-40-885(5) Count procedures -- House-banking. WAC 230-15-610 Preparing to conduct a count.
The original rule stated that the count team must have the count verified by a cashier. We propose changing the rule to match current practice in the card rooms by changing the word "cashier" to "verifier." Many times, the count is verified by someone from the accounting department whose primary duties are not those of a cashier.
WAC 230-40-885(6) Count procedures -- House-banking. WAC 230-15-620 Concluding the count.
Licensees asked us to review the restrictions on when accounting had to perform the comparisons and reviews of the count. The accounting department at most businesses works a regular 8:00-5:00 day, but the licensees were required to have one accounting person come in over the weekend to check the hard copies of credit and fill slips in the whiz machine. We felt that as long as the review was done as soon as accounting returned to work the next working day, we could allow them to postpone it. We added an exception into subsection (2) which allows accounting departments to postpone reviewing the counts that occur when the accounting department is not at work.
WAC 230-40-885(7) Count procedures -- House-banking. WAC 230-15-625 Accounting department review of the count.
The original rule has become outdated because of changes in technology. We have rewritten this rule to include combinations to combination lock boxes. We are attempting to address the several different types of lockboxes licensees have available to them.
WAC 230-40-895(2&4) [(2) and (4)] Key control -- House-banking. WAC 230-15-640 Keeping individual key control boxes for departments.
At licensees' suggestion, we have rewritten this rule to include the word "canceled" in describing decks of cards store[d] by the security department. "Canceled" is the word that licensees use when discussing decks of cards that are taken out of play for various reasons and will be marked, drilled, or otherwise defaced so that they cannot be reintroduced into play. Not all card decks are destroyed. Some are canceled and sold or given away. We wanted to align the WAC vocabulary with the usual terms used. There are no regulatory concerns about the process of storing cards waiting to be canceled or destroyed.
WAC 230-40-895(2) Key control -- House-banking. WAC 230-15-655 Keys for the security department.
At licensees' suggestion, we have rewritten this rule to include the words "cards, or other items of evidentiary value" in the description of what items are held in the storage lockers or cabinets of the surveillance department. This change makes clear that items of evidentiary value remain with the surveillance department until agents are able to recover them. This change will improve the "chain of evidence" when we receive tapes from licensees.
WAC 230-40-895(2) Key control -- House-banking. WAC 230-15-665 Keys for the surveillance department.
We have rewritten this rule adding the phrases "general manager" and "other authorized person(s)" to the requirements regarding access to the master key control box. This change allows persons other than the direct owner access to the keys during the everyday operation of the card room. This change is made to increase consistency in our use of terms.
We have also changed subsection (2) to state, "Keys in this key control box must include:" This change of "may" to "must" in second section resolves a conflict between subsections (2)(e) and (4)(c) in the current rule.
WAC 230-40-895(2&4) [(2) and (4)] Key control -- House-banking. WAC 230-15-670 Keeping a master key control box.
In working with this rule we made three changes:
We combined the concepts of removal and discontinuance in the original rule, using the term "removal" throughout the rule. The original rule used both "discontinuance" and "removal" which was confusing.
We included a rule interpretation of the WAC which states that the disbursement of a progressive jackpot by tournament is not intended to be a money-making proposition for the licensee; therefore, the tournament must be free of charge.
The rule interpretation also stated that the prize may be offered on a different house-banked game with a progressive jackpot, but licensees have requested that we not restrict the game to one that has a progressive jackpot. We saw no regulatory concerns with making this change, so the new rule states that the prize may be offered on any other house-banked card game.
WAC 230-40-805 Progressive jackpot prizes -- Procedures -- Restrictions -- House-banking. WAC 230-15-710 Permanently removing a progressive jackpot or a portion of a progressive jackpot from play.
Previously, we had no instructions about what licensees must do if a taxing authority seized all or part of a progressive jackpot to cover unpaid gambling or other taxes. Adding this rule interpretation brings the rule in line with current practice about tax seizure. An existing rule interpretation concerning taxing authorities seizing all or a portion of progressive jackpot funds was written into this rule. Tax authorities may seize moneys if back taxes are owed. We then require the licensee to stop operating the jackpot until the licensee has returned the prize money to the progressive jackpot account.
WAC 230-40-805 Progressive jackpot prizes -- Procedures -- Restrictions -- House-banking. WAC 230-15-715 Tax authorities seizing all, or a portion, of a progressive jackpot.
In subsection (3), we added a definition of reconcile.
WAC 230-40-808 Deposit requirements for prizes -- House-banking. WAC 230-15-720 Deposit and reconciliation requirements for progressive jackpot prizes.
We corrected some terminology used in this rule, adding generally accepted accounting standards (GAAS) instead of generally accepted accounting principles (GAAP) in one section and standards for accounting and review services (SSARS) in another. The current version of this rule was passed at the August commission meeting and will be effective January 1, 2007. The rules simplification project version, if passed, will not be effective until January 1, 2008.
WAC 230-40-823 Financial audits and reviews required -- House-banking. WAC 230-15-740 Preparing required financial statements.
Statutory Authority for Adoption: RCW 9.46.070.
Statute Being Implemented: Not applicable.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Washington state gambling commission, governmental.
Name of Agency Personnel Responsible for Drafting: Susan Arland, Rules Coordinator, Lacey, (360) 486-3466; Implementation: Rick Day, Director, Lacey, (360) 486-3446; and Enforcement: Sharon Reese, Deputy Director, Lacey, (360) 486-3452.
No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement has not been prepared pursuant to RCW 19.85.025, and/or the proposed rule change clarifies language of rules without changing the effect.
A cost-benefit analysis is not required under RCW 34.05.328. The Washington state gambling commission is not an agency that is statutorily required to prepare a cost-benefit analysis under RCW 34.05.328.
November 29, 2006
CARD GAME RULES
(1) Have the food and/or drink business being commercially stimulated open to the public; and
(2) For Class E, Class F, or house-banked card rooms, have a licensed card room employee on duty and in the card room area.
"Guests" means persons who are not members of a bona fide charitable or nonprofit organization, but who are allowed to use the facilities of the organization to play card games when accompanied by a regular member of the organization sponsoring the guest. Charitable and nonprofit organizations must not charge guests a fee to play that exceeds the maximum fee set by the commission.
(2) Licensees may request, in writing, different hours of operation. Once the request is received, we will consult with the local law enforcement agency having jurisdiction over the licensee's business and with other state agencies involved in regulation of the business. We may allow licensees to adjust closing hours, but licensees must:
(a) Open the food and/or drink business being stimulated to the public for business any time licensees are conducting card games; and
(b) Have a licensed card room employee on duty and in the licensed card room area at all times during the hours of operation of a Class E, Class F, or house-banked card room; and
(c) Observe a four-hour period of closure at the end of each business day before beginning the next period of operation; and
(d) Comply with any other terms and conditions we require.
(3) We may deny the request for extended hours or revoke hours already approved if the local law enforcement agency or a state agency objects or if we determine that the licensee has violated any provisions of chapter 9.46 RCW, any other commission rule, or any of the terms set forth in subsection (1) of this section. Licensees or others must submit, in writing, all objections to changing a licensee's operating hours or requests to revoke an approved operating schedule.
(4) We allow the licensee an opportunity for a brief adjudicative proceeding (BAP) before denying or revoking the licensee's authorization for extended card room hours. An administrative law judge hears the BAP, under the provisions of Title 230 WAC and chapter 34.05 RCW.
(f) Panguingue (Pan);
(g) Pitch; and
(h) Bid Whist.
(2) Card game licensees must operate these games in the manner explained in the most current version of The New Complete Hoyle, Revised or Hoyle's Modern Encyclopedia of Card Games, or similar authoritative book on card games we have approved. Card game licensees may make immaterial modifications to the games.
(a) Be played with standard playing cards or with electronic card facsimiles approved by the director or the director's designee; and
(b) Offer no more than two separate games with a single hand of cards. We consider bonus features and progressive jackpots separate games. If a player does not have to place a separate wager to participate, we do not consider it a separate game. An example of this is an "envy" or "share the wealth" pay out when another player achieves a specific hand; and
(c) Not allow side bets between players.
(2) Card game licensees may use more than one deck of cards for a specific game. They also may remove cards to comply with rules of a specific game, such as Pinochle or Spanish 21.
(3) Players must:
(a) Compete against all other players on an equal basis for nonhouse-banked games or against the house for house-banked games. All players must compete solely as a player in the card game; and
(b) Receive their own hand of cards and be responsible for decisions regarding such hand, such as whether to fold, discard, draw additional cards, or raise the wager; and
(c) Not place wagers on any other player's or the house's hand or make side wagers with other players, except for:
(i) An insurance wager placed in the game of Blackjack; or
(ii) An "envy" or "share the wealth" wager which allows a player to receive a prize if another player wins a jackpot or odds-based wager; or
(iii) A tip wager made on behalf of a dealer.
(4) A player's win or loss must be determined during the course of play of a single card game.
(1) Card game licensees must submit:
(a) Requests for authorizing new card games in the format we require; and
(b) Changes to an existing card game in writing.
(2) The director or the director's designee will notify the licensee in writing if the request is denied. The notification will include reasons for the denial and provide the licensee all information necessary to file a petition to the commission for rule making.
(1) The director or the director's designee will give licensees written notice and an opportunity to object to the decision. If a licensee files an objection in writing, an administrative law judge will review the decision.
(2) The director or the director's designee will provide written notice to impacted licensees after a final decision is made.
(2) Except for the restrictions on player-supported jackpot pay outs in WAC 230-15-405 and progressive jackpot pay outs in WAC 230-15-690, licensees may pay prizes by check if sufficient funds are available on deposit.
(3) Failure to keep funds to cash in chips, pay prizes, or redeem gambling related checks is prima facie evidence of fraud.
(1) Up to seven players or areas for wagering at any table in house-banked card games.
(2) Up to ten players at any table in nonhouse-banked card games.
(1) Prominently post:
(a) Wagering limits for each type of game, including the ante; and
(b) Prize pay outs and any prize-related restrictions; and
(c) All fees to play; and
(d) Policies on employees being allowed to play; and
(e) Procedures for resolving player disputes; and
(2) Prominently post any general rules, or a sign stating that these rules are available immediately on request. These rules must include, at least:
(a) Rules of play; and
(b) Methods of making wagers; and
(c) Procedures for misdeals; and
(d) Procedures for betting irregularities; and
(e) Procedures for splitting pots; and
(f) Any rules that may restrict a player's right to win a hand, pot, or jackpot prize; and
(3) Post at the gambling table any aggregate limits, procedures, or restrictions that differ from the general rules of play that have been posted.
(1) First priority: Rules explained in Title 230 WAC; and
(2) Second priority: Rules explained by a licensed manufacturer of a patented game that we have approved; and
(3) Third priority: Rules explained in the most current version of The New Complete Hoyle, Revised or Hoyle's Modern Encyclopedia of Card Games, or a similar authoritative book on card games which we have approved; and
(4) Fourth priority: House rules card game licensees have developed and we have approved.
(2) Card game licensees must not require players to pay for or purchase any other goods or services as a condition of playing cards; and
(3) Card game licensees may collect an admission fee when providing entertainment, as long as they charge all patrons the fee.
(1) Not charge, directly or indirectly, fees more than those fees in WAC 230-15-080. Nonprofit or charitable card game licensees may charge their usual membership fee to belong to the organization;
(2) Keep all fees collected separate from all other chips and cash until they are recorded in the daily card room records and then deposit the fees in the cashier's cage (if applicable). All chips and cash in the cashier's cage must be kept separate from all other moneys located on the licensed premises while card games are conducted; and
(3) Keep and record card game fees separately from all other fees and have the records available for audit by commission staff, local law enforcement, and taxing authorities.
|Authorized types of fees||Licensees authorized to use the fee types||Authorized methods of collection||Maximum amount to collect|
|(1)||Period of time -||Class A, B, C, E, F||Direct collection;
Chip rack - only allowed if licensed for three or fewer tables;
|Not more than ten dollars per hour, per player.|
|(a)||Licensees must collect the fee at least once per hour at times the licensee chooses, for example, at thirty minute increments; and|
|(b)||Licensees must record all fees immediately after collection; or|
|(2)||Per hand played -||Class F and house-banked||Drop box;
Chip rack - only allowed if licensed for three or fewer tables.
|Not more than one dollar per hand, per player.|
|(a)||Players must place fees charged on a per-hand basis in a designated area of the table and dealers must collect them before dealing the first round of cards; and|
|(b)||After collecting the fees, dealers must deposit all chips or coins in either the drop box or chip rack ; or|
|(3)||Rake -||Class F and house-banked||Drop box;
Chip rack - only allowed if licensed for three or fewer tables.
|Not more than five dollars per hand or ten percent of the total wagers for a hand, whichever is less.|
|(a)||Dealers must collect fees charged on the amounts wagered during the play of the hand and place the fees in a designated area of the table; and|
|(b)||Once dealers accumulate the maximum fee for a hand, they must spread the chips or coins to allow players and the surveillance system to view the amount collected. After spreading the chips or coins, the dealer deposits them in either the drop box or chip rack.|
(2) Drop box - Licensees must locate the drop box opening in a place that is isolated from the pot area and in plain view of all players and the surveillance system. Licensees must have:
(a) A licensed dealer; and
(b) A table with a designated area for each type of fee removed from the pot; and
(c) A separate drop box for each type of fee.
(3) Chip rack - Licensees using the chip rack method must:
(a) Have a licensed dealer; and
(b) Use a game lay-out with a designated area for player fees; and
(c) Use a chip rack separated into sections for each type of fee collected (example: Time fee collected and fee to enter player-supported jackpot); and
(d) Ensure that dealers temporarily store and control fees in the chip rack until the floor supervisor collects the fees; and
(e) Ensure that the licensed card room employee responsible for that area of the card room removes all chips collected as fees from the dealers' chip racks at least every four hours; and
(f) Have licensed card room employees count chips and coins in the presence of players and immediately record the totals on the record in a format we require; and
(g) Have the dealer and floor supervisor who remove the chips and coin each initial the commission record verifying its accuracy.
(1) A box lock - A lock that secures the contents; and
(2) A table lock - A separate lock securing the drop box to the gambling table. Card game licensees must key this lock differently from the lock securing the contents of the drop box; and
(3) An opening - An opening through which currency, coin, chips, forms, records, and documents can be inserted into the drop box; and
(4) A label - A permanent number clearly visible which corresponds to a permanent number on the gambling table to which the box is attached. The shift during which the box was used must also be included if drop boxes are removed from tables more than once during an operating day. Card game licensees may keep emergency drop boxes if the box has the word "emergency" permanently on it, and, when it is put into use, licensees temporarily mark it with the number of the gambling table.
(2) Card game licensees must not charge additional fees to players for chips and cards except as allowed under WAC 230-15-110.
(2) Other than chips purchased from the licensed card room, no one may bring any wagering chip or chips into a licensed card room to introduce or use in authorized card games.
(a) Include the house name or logo; and
(b) Denote the chip value; and
(c) Be made by a licensed manufacturer; and
(d) Be purchased from a licensed manufacturer or distributor.
(2) Class D licensees are exempt from subsection (1) of this section.
(3) Card game licensees must:
(a) Safeguard all chips in their possession; and
(b) Not allow any other person to buy or sell chips for use in card games on their premises.
(4) Class A, B, C, and E licensees with five or fewer tables may use chips without a house name or logo if the chips are identifiable as belonging to the licensee and they prominently post values of the chips in the card room.
(a) Supply cards of conventional size and design to maximize the integrity of the card games; and
(b) Safeguard all cards; and
(c) Not allow cards that have been modified or marked in any manner.
(2) For Class E, Class F, and house-banked games, the cards must:
(a) Be made by a licensed manufacturer; and
(b) Be purchased from a licensed manufacturer or distributor.
(3) House-banked licensees must use cards with the house name or logo.
(2) In addition, Class D licensees may charge a fee for every deck supplied to a table.
(3) The fee must not be greater than the licensee's actual cost for the deck.
(4) At the time licensees introduce new decks, they must collect the fee in cash directly from the player requesting the deck or the players of the game.
(1) After the shuffle, the dealer must offer the cards to a player for a cut. After this initial offer of a cut, the dealer may require any player who asks for a cut to pay a maximum of one dollar; and
(2) Dealers must:
(a) Not cut the cards more than twice during each hand or game; and
(b) Place all the fees for cutting the cards into the pot for that hand or game.
(1) The deal must pass from player to player; and
(2) A player may not deal another game until all of the players at the table have had their turn to deal. Players may voluntarily waive their right to deal any particular hand.
(1) Poker -
(a) There must be no more than five betting rounds in any one game; and
(b) There must be no more than four wagers in any betting round, for example, the initial wager plus three raises; and
(c) The maximum amount of a single wager must not exceed twenty-five dollars;
(2) Games based on achieving a specific number of points - Each point must not exceed five cents in value;
(3) Ante - No more than the maximum wager allowed for the first betting round for any game, except for Panguingue (Pan). The ante may, by house rule:
(a) Be made by one or more players, but the total ante may not exceed the maximum wager allowed for the first betting round; and
(b) Be used as part of a player's wager; and
(4) Panguingue (Pan) - The maximum value of a chip must not exceed ten dollars. An ante must not exceed one chip. We prohibit doubling of conditions. Players going out may collect no more than two chips from each participating player.
(2) A player may make a single wager for each decision before the dealer deals or reveals additional cards. For Blackjack, the player may place an additional wager for doubling down or splitting pairs.
(3) Bonus wagers for progressive jackpots must not exceed one dollar.
(1) Players may use half dollars or quarters in house-banked card games;
(2) Players may use dimes and nickels in Pai Gow poker.
(a) Sell chips and redeem chips at the same value; and
(b) Sell chips for cash at gambling tables; and
(c) Keep all funds from selling chips separate and apart from all other money received; and
(d) Not extend credit to a person purchasing chips, including to card room employees playing cards; and
(2) Licensees may accept checks, if the checks meet the requirements of WAC 230-06-005. They must:
(a) Deposit any check no later than the second banking day after they received the check. Checks deposited to an armored car service within two banking days meet this requirement; and
(b) Count each transaction for the purchase of chips as a separate transaction. (Example: They must not allow a player's check to be altered after it is exchanged for chips.)
(2) If card game licensees do not use a guarantee service or choose not to use their guarantee service to preapprove a particular check, licensees must:
(a) Keep records of all NSF checks in the format we require and make the records available to the cashier; and
(b) Prohibit persons who submitted NSF checks from submitting additional checks until the person pays the amount owed in full; and
(c) Have all NSF checks returned directly to them and control the checks.
(3) Card game licensees may immediately redeposit a check that was NSF if they have sufficient reason to believe the check will be honored the second time.
(a) May provide a dealer in any card game; and
(b) Must have a dealer for all house-banked card games, card games operated with a player-supported jackpot, or card games authorized to charge per-hand fees or take a rake.
(2) Dealers must not play in the games while dealing and must have no financial interest in the outcome of the games, except that we allow tip wagers.
(1) Allow a representative to sit in on a card game on their behalf for any purpose; or
(2) Act as a representative on anyone's behalf; or
(3) Allow anyone to assist any player in the game in a manner which gives that player an advantage over other players.
(2) If card game licensees find someone cheating, they must:
(a) Contact the local law enforcement agency immediately in urgent situations; and
(b) Report it to us within three business days.
GENERAL RECORDS AND RECORDKEEPING FOR CARD ROOMS
(2) Licensees must print, or back up in a permanent form, all the data kept in computer data bases monthly.
(1) Keep the daily records of card room operations for at least three years;
(2) Have the past six months of daily card room records on the premises of the card room and available for inspection; and
(3) Make records older than six months available within forty-eight hours if we, local law enforcement, or taxing authorities request the records.
(1) Licensees must complete the report in the format we require; and
(2) We must receive the completed report, or the report must be postmarked, no later than thirty days after the end of the reporting period; and
(3) The highest ranking executive officer or designee must sign the report. If someone other than the licensee or an employee prepares the report, the preparer must print his or her name and phone number on the report; and
(4) Licensees must report activities for:
January 1 through June 30; and
July 1 through December 31; and
(5) Licensees must submit a report for any period of time their license was valid. If licensees do not renew, they must submit a report for the period between the previous semiannual report they filed and the date their license expired.
(2) Class D licensees must obtain a card tournament license to charge a fee or buy-in for a card tournament.
(a) Not charge more than one hundred dollars per player for an entry fee; and
(b) Collect all entry fees before the start of play.
(2) The entry fee must include all the separate fees for various phases and events of the tournament, for food and drink, and for promotional material.
(3) Card game licensees may award prizes in excess of entry fees collected.
(4) Card game licensees may require a minimum buy-in of chips. The buy-in may be a single or multiple buy-in, but the total per player may not exceed four hundred dollars per tournament.
(5) Card game licensees must:
(a) Keep a record of the buy-ins for each player in the format we require; and
(b) Return all buy-ins to the players in cash or merchandise prizes.
(6) We do not consider buy-ins gross gambling receipts.
(2) If a future tournament is identical, no approval is needed. Only notify us ten days in advance of the tournament.
(a) All rules, prizes, and conditions of the tournament; and
(b) The tournament fee; and
(c) Entry and buy-in requirements; and
(d) A description of all of the goods and services they will provide as a part of the tournament.
(2) Licensees must initially provide all tournament entrants with the same number of chips or points and the same opportunity for rebuys.
(3) If there are more players than spots available in the tournament, card game licensees may conduct a drawing to determine which players participate. If there is a fee to enter the tournament, card game licensees must collect it after the drawing has occurred.
(4) After the tournament has begun, card game licensees must not conduct a drawing to decide who will fill an extra seat.
(2) If card game licensees prepare and provide food and drink as a part of the entry fee, they may treat the fair market value of the food and drink as commercial stimulant sales and not include it as gross gambling receipts.
(3) The fair market value of the food and drink must not exceed twenty-five dollars per player or fifty percent of the entry fee, whichever is more. Card game licensees must support these amounts with records.
(4) When determining adjusted net gambling receipts from the entry fees, card game licensees may deduct:
(a) Cost of promotional items; and
(b) Cost of merchandise prizes awarded; and
(c) Cost of merchandise prizes and cash awarded in customer appreciation tournaments; and
(d) Cash prizes awarded, excluding buy-ins.
(2) On the daily control sheet for the first day of a tournament, card game licensees must include the total gross gambling receipts and attach the record of participants.
(3) Licensees must attach the tournament records to the daily card room records for the date they awarded the majority of the prizes in the tournament.
ADDITIONAL RULES FOR CHARITABLE AND NONPROFIT CARD GAMES
(1) General rules of play;
(2) Hours of play;
(3) Portions of the premises to be used for the games; and
(4) The restriction that only their full and regular members may play in the games.
SURVEILLANCE REQUIREMENTS FOR CLASS F AND HOUSE-BANKED CARD GAME LICENSEES
(1) Operating gambling tables; or
(2) Storing drop boxes or chip trays on the gambling tables; or
(3) Transporting drop boxes; or
(4) Counting drop box contents.
(a) Operating player-supported jackpots; or
(b) Assessing fees on amounts wagered (rake method).
(2) Class F licensees must have a CCTV that views:
(a) All gambling at each table including, at least, the:
(i) Cards; and
(ii) Wagers; and
(iii) Chip tray; and
(iv) Drop box openings; and
(v) Table number; and
(vi) Players; and
(vii) Dealers; and
(b) When the count is being conducted, at least, the:
(i) Count table; and
(ii) Floor; and
(iii) Drop boxes; and
(iv) Drop box storage shelves/cabinets.
(1) Each table, including:
(a) Cards; and
(b) Wagers; and
(c) Chip tray; and
(d) Drop box openings; and
(e) Table number; and
(f) Card shoe; and
(g) Shuffling devices; and
(h) Players; and
(i) Dealers; and
(2) The designated gambling areas; and
(3) The cashier's cage, including:
(a) Outside entrance; and
(b) Fill/credit dispenser; and
(c) Customer transactions; and
(d) Cash and chip drawers; and
(e) Vault/safe; and
(f) Storage cabinets; and
(g) Fill or credit transactions; and
(h) Floor; and
(4) The count room, including:
(a) The audio; and
(b) Count table; and
(c) Floor; and
(d) Counting devices; and
(e) Trolley; and
(f) Drop boxes; and
(g) Storage shelves/cabinets; and
(h) Entrance and exit; and
(5) The movement of cash, gambling chips, and drop boxes; and
(6) Entrances and exits to the card room.
(2) Class F and house-banked licensees must install, at least:
(a) Cameras in a manner that will prevent them from being obstructed, tampered with, or disabled; and
(b) Pan, tilt, zoom (PTZ) cameras behind a smoked dome, one-way mirror, or similar materials that conceal the camera from view; and
(c) One fixed camera focused over each gambling table, covering the entire table layout. In nonhouse-banked games, the fixed camera must focus over the dealer area, covering the chip rack, all drop box openings, and the community card area; and
(d) A sufficient number of fixed cameras and/or PTZ cameras to monitor players and dealers at each gambling table. The PTZ cameras must be:
(i) Permanently programmed; and
(ii) Capable of viewing each patron and dealer at each gambling position at least once every five minutes; and
(e) A sufficient number of fixed cameras and/or PTZ cameras in the count area or count room; and
(f) Fixed cameras and/or PTZ cameras in any other location deemed necessary.
(4) In addition, house-banked card game licensees must:
(a) Install a sufficient number of video monitors in their CCTV system to simultaneously view multiple gambling tables, the cashier's cage, and count room activities;
(b) Install a sufficient number of fixed cameras and/or PTZ cameras in the cage(s); and
(c) Install a sufficient number of PTZ cameras having the ability to determine the card and chip values for winning hands.
(1) Record images at a rate of at least twenty frames per second on standard VHS format; and
(2) Reflect accurately the time and date of the video recording. Licensees using multiple time and date generators must synchronize them to the same time and date.
(1) Record all images on a hard drive; and
(2) Lock so that access to the erase and reformat functions and system data files is restricted to persons authorized in the internal controls; and
(3) Provide uninterrupted recording of surveillance, during playback or copying. Licensees may use motion-activated recording; and
(4) Be capable of copying original images maintaining the original native format; and
(5) Be stored at a rate of not less than twenty-five images per second; and
(6) Record images at a minimum resolution of 320 x 240 and display during playback at a minimum resolution of 640 x 480; and
(7) Store images in a format that is readable by our computer equipment; and
(8) Store images in a format that we can verify and authenticate; and
(9) Include the accurate time and date the video was originally recorded on the recorded images; and
(10) Be equipped with an uninterruptible power source to allow a proper system shutdown.
(a) Multiplexing or quad recording devices on entrances and exits to the card room; and
(b) Quad recording devices to record the movement of drop boxes between tables and the count room.
(2) "Multiplex recording" means combining multiple video inputs into a single signal by cycling through the separate video inputs with the view rotating among different cameras in a predetermined order, recording each video input sequentially in the cycle. Multiplex recording does not provide continuous recording of each video input because the amount of time lapse in the cycle depends on the number of video inputs.
(3) "Quad recording" means four separate video inputs that record continuously and combine into a single signal displayed on one monitor with a view of each video input.
(2) Licensees must:
(a) Make a copy of the entire recorded sequence of the activity; and
(b) Give the original recording to us or other law enforcement when requested; and
(c) Keep the copy for at least thirty days.
(2) Licensees may request a review by commission staff if the licensee feels circumstances warrant, for example, cheating has occurred.
(1) Control access to the surveillance room so that only surveillance department employees use the room. Owners or approved supervisory or management personnel may also enter the surveillance room to monitor activities; and
(2) Ensure that surveillance room entrances are not easily observed from the gambling floor; and
(3) Ensure that a surveillance employee is present in the room and monitoring activities using the equipment any time the card room is conducting gambling and during the count process. However, licensees may operate the surveillance room without staff for routine breaks that are less than thirty minutes per shift; and
(4) Ensure that any time a winning wager, a jackpot, or bonus pay out greater than one thousand dollars is won, they use pan-tilt-zoom (PTZ) cameras to verify:
(a) Winning hands; and
(b) Amounts of the wager; and
(c) Amounts of the pay out; and
(d) Players who won the prize.
(1) This log must be kept in the format we prescribe; and
(2) House-banked licensees' surveillance department must maintain the log.
ADDITIONAL RULES FOR CLASS F CARD GAMES
(1) The internal controls must require, at a minimum:
(a) Trained personnel; and
(b) Segregation of duties for all employees involved in the operation; and
(c) Fee collection and funds safeguarding procedures; and
(d) Playing card and chip inventory.
(2) Licensees must inform their card room employees of the internal controls related to the employees' respective areas of responsibility.
(3) Licensees and all card room employees must follow the internal controls at all times.
(2) Licensees must have two licensed card room employees in the card room at all times player-supported jackpots are in play or licensees are using the rake type of fee collection. One of the employees must be a floor supervisor.
(a) Conduct the count at a specific time that licensees have reported to us; and
(b) Count all fees at least once every twenty-four hours; and
(c) Have at least two card room employees count and record the amount on the count slip for each drop box; and
(d) Make an entry in the daily card room record for each type of fee collected at each table. Licensees must retain card room control slips for each table with the daily records.
(2) If Class F licensees using the drop box method do not have a secure location to conduct the count, they must meet the count room requirements of WAC 230-15-605.
(1) Only Class F or house-banked licensees may establish a prize fund to operate a PSJ for nonhouse-banked card games.
(2) In PSJs, licensees:
(a) Collect funds from the players' wagers (the pot) for a separate prize; and
(b) Act only as the custodian of the PSJ funds, including any interest earned on this money; and
(c) Maintain no legal right to the funds, except for administrative fees; and
(d) Must strictly account for all funds.
(2) To get a PSJ approved, licensees must make a written request, including, at least:
(a) A detailed description of the card game associated with the PSJ; and
(b) All rules of play; and
(c) All internal control procedures associated with the PSJ and accounting for funds and prizes; and
(d) The name of the prize fund custodian.
(3) Licensees must get our written approval before making any changes to the PSJ.
(2) A prize fund custodian may be an owner, partner, officer, or licensed individual named by the licensee.
(3) The custodian must have signature authority for prize fund bank accounts.
(1) How they will distribute player supported jackpot (PSJ) money if they discontinue the PSJ or stop operating the card game; and
(2) How a PSJ will be distributed if it is discontinued or the business closes; and
(3) Conditions under which prizes may be won; and
(4) Prize amount; and
(5) Cost to participate; and
(6) Administrative fees; and
(7) Any other conditions which may affect the outcome of the game.
(1) Provide up to five thousand dollars seed money from house funds to start a PSJ. Licensees must issue a check or make an electronic bank transfer from the licensee's business account for the seed money to the PSJ account to start the prize fund; and
(2) Licensees may replenish the PSJ as funds are depleted with up to five thousand dollars at a time; and
(3) Recover seed money by having the custodian issue a check or make an electronic bank transfer from the PSJ account to the licensee's business account.
(1) Must keep these funds separate from all other fees; and
(2) Must use either the chip rack or drop box method to collect these funds.
(1) Maintain a separate bank account in a bank, mutual savings bank, or credit union in Washington state for holding player-supported jackpot (PSJ) funds; and
(2) Deposit only funds from PSJs into the account; and
(3) Not make payouts from the PSJ funds until licensees have first deposited the funds in the PSJ account. However, licensees may pay out prizes won during the gambling day and deduct administrative expenses before licensees deposit the funds; and
(4) Deposit the PSJ funds into the PSJ account or with an armored car service within two banking days of the date of collection; and
(5) Identify all deposits of PSJ funds by the type of PSJ fund and date of collection. Licensees must keep the validated deposit receipts as a part of their required daily records; and
(6) Transfer the amount from the PSJ account to the cage or general account before the end of the month if PSJ prizes are paid from the cage or general account. The licensee must keep the transfer information as part of the written records; and
(7) Reconcile the account balance in their bank statement to the PSJ prize balance on their PSJ fund accrual record each month. "Reconcile" means the licensee must compare the two balances, resolve any differences, and document the comparison and the differences in writing. Licensees must keep the reconciliation as part of their records.
(2) Cash prizes of two thousand five hundred dollars or less must be paid in cash or chips; and
(3) Prizes not awarded in cash must be paid within twenty-four hours with a check that provides a duplicate copy; and
(4) Licensees must maintain a record of all prizes paid in the format we prescribe; and
(5) When a player wins a prize of five hundred dollars or more, in view of the surveillance camera, the dealer must:
(a) Display the value and suit of each card in the winning hand; and
(b) Count and put in numerical order by suit the remaining cards in the deck to confirm a complete deck; and
(6) Licensees must collect the hand and seal it with a copy of the prize record. Licensees must keep the winning hand and remaining deck on the business premises for seven days.
(2) Any prizes an owner, prize fund custodian, or on-duty employee may be entitled to under game rules must be divided equally among the other players at the table.
(3) Owners, prize fund custodians, and on-duty card room employees must turn their cards face up at the end of a game so that other players at the table and surveillance may observe their cards if:
(a) They are playing in a game with a PSJ; and
(b) The prize is not based on a predetermined hand, such as four of a kind; and
(c) There is a qualifying hand at the end of a game, such as a "bad beat" hand.
(4) Card room employees that are off duty may win PSJ prizes.
(2) If licensees stop operating card games or fail to maintain a valid card room license, they must immediately distribute all PSJ funds to the Washington State Council on Problem Gambling.
(3) If taxing authorities seize a PSJ account, the licensee must immediately stop offering the PSJ and collecting additional funds for the PSJ until all funds have been replaced in the PSJ account.
(a) Preserve the video recording, the winning hand and remaining deck, and all records for the game where the dispute occurred; and
(b) Document all information about the dispute, including:
(i) The names, addresses, and phone numbers of all players, card room staff, and any witnesses involved; and
(ii) The amount of the advertised PSJ; and
(iii) A full description of the circumstances surrounding the dispute; and
(c) Notify us within twenty-four hours.
(2) We will investigate complaints involving PSJ disputes and the director may issue a written decision which is final.
(3) During the course of dispute resolution, we may become the temporary custodian of any prize funds.
(4) Class F or house-banked licensees must not award or advertise the prize amount which is in dispute until it is resolved.
ADDITIONAL RULES FOR HOUSE-BANKED CARD GAMESInternal Controls for House-Banked Card Games
(a) Adopt internal controls in the format we require; and
(b) Ensure that all games are closely controlled and operated in accordance with gambling laws, our rules, and the house-banked card game licensee's internal controls (ICs); and
(c) Follow all ICs at all times; and
(d) Have all ICs available to us at all times at the licensed business premises; and
(e) Have the ICs available to card room employees for their individual functions; and
(f) Ensure that card room employees are knowledgeable in all accounting and internal control procedures for their individual functions and ensure that employees follow the ICs.
(2) Licensed card room employees must follow the internal control procedures for their individual functions.
General accountability requirements.
(1) House-banked card game licensees must have a system of internal controls including, at least:
(a) Accounting controls - Include the licensee's plan, procedures, and records concerned with the safeguarding of assets and the reliability of financial records. Licensees must design these controls to provide reasonable assurance that:
(i) Transactions are executed with management's general and specific authorization; and
(ii) Transactions are recorded so that financial statements are prepared in conformity with generally accepted accounting principles (GAAP), and so that accountability for assets is maintained; and
(iii) Access to assets is permitted only with management's authorization; and
(iv) Records are compared with existing assets at least annually and appropriate action is taken within five working days to correct any differences; and
(b) Administrative controls - Include, at least, the licensee's plan, procedures, and records outlining decision-making processes that lead to authorization of transactions. These must provide for:
(i) Competent personnel with an understanding of internal control procedures; and
(ii) Segregation of incompatible functions so that no employee is in a position to commit and conceal errors or wrongdoings in the normal course of his or her duties.
Designating a general manager.
(2) The owner, partners, or board of directors for the licensee must designate an individual with overall responsibility for the business, called the "general manager." The general manager may also perform the duties of a gambling operations department manager; and
Establish separate departments or functions.
(3) Licensees must establish separate departments or functions which must be independent from each other. At a minimum, these must include:
(c) Gambling; and
Surveillance department requirements.
(4) The surveillance department manager must ensure that surveillance employees follow all requirements of the surveillance WACs, including, at least:
(a) Closely and clandestinely observing the operation of the card games, the cashier's cage, and count room; and
(b) Recording video and audio of the activities in the count room; and
(c) Monitoring for cheating, theft, embezzlement, and other illegal activities on the licensed premises; and
(d) Recording video of unusual or suspected illegal activities; and
(e) Notifying appropriate supervisors and us, within three working days, when they detect cheating, theft, embezzlement, or other illegal activities related to gambling; and
(f) Giving our agents or law enforcement personnel immediate access to the surveillance room; and
(g) Ensuring that each dealer is evaluated to determine if he or she follows all required dealer procedures set out in the house-banked card game licensee's approved internal controls; and
(h) Documenting procedures about how winning wagers, jackpots, or bonus pay outs will be verified; and
(i) Ensuring that all surveillance employees have demonstrated a knowledge of:
(i) Operating surveillance systems; and
(ii) Rules of play and procedures for the games being played; and
(iii) Overall procedures relating to the duties of all employees of the house-banked card room, including dealers, shift managers, floor supervisors, cage cashiers and count team members.
Security department requirements.
(5) The security department manager must ensure that security employees control:
(a) Transfer of cash and chips to and from the gambling tables, cage, and count room; and
(b) Dealing shoes and new and used cards, when not in use or when held in evidence; and
(c) Disposing of or destroying used cards, dealing shoes, and damaged chips when removed from service.
Gambling operations department requirements.
(6) The gambling operations department manager, or general manager, is responsible for house-banked card games and must ensure that:
(a) Dealers operate card games at assigned gambling tables; and
(b) Cards and dealing shoes are properly accounted for when in use on the gambling floor; and
(c) There is adequate supervision on the business premises.
Accounting department requirements.
(7) The accounting department must be supervised by a person who reports directly to the general manager. The accounting department must, at least:
(a) Implement and monitor accounting controls; and
(b) Control processes in the count room and cashier's cage; and
(c) Supervise the count room personnel and cashier's cage personnel; and
(d) Control the inventory of unused forms; and
(e) Reconcile the used and unused forms; and
(f) Prepare, control, and store records and data we require.
(2) Anyone who records a transaction and has access to the assets related to that transaction is in a position to commit and conceal errors or wrongdoings. (Examples: An employee who writes checks should not reconcile the bank account; an employee who transports funds should not have access to keys for locks securing the funds or to surveillance recordings of the transaction.)
(2) Licensees may change the card games they offer by submitting the change to their internal controls in writing and getting an initial verbal or written approval from us. Staff reviews and verifies the changes on their next visit to the card room.
Operating House-banked Card Games
(2) Licensees must not offer card games until they have met all of these requirements:
(a) Keep a separate bank account for progressive jackpot prizes and odds-based wager prizes. The account must be kept in a bank, mutual savings bank, or credit union located in Washington state; and
(b) Keep in the account an amount equal to all individual odds-based wager prizes offered which are greater than twenty-five thousand dollars and all progressive jackpot prize funds; and
(c) Use the highest wager they allow to calculate the individual odds-based wager prize amount and determine the deposit requirement; and
(d) Deposit at least weekly all funds accrued for progressive jackpot prizes.
(3) Licensees may limit pay outs by using table aggregates.
(4) If the prize bank account is reduced below the level required, licensees must immediately stop operating games until they are in compliance.
(5) A licensee's failure to keep funds as required in this rule is prima facie evidence of defrauding the public and a violation of RCW 9.46.190.
(2) Licensees must have two levels of supervision present on the business premises if more than ten tables are open.
(3) A card room employee may act as a dealer and a supervisor during the same shift as long as he or she does not sign forms as both the dealer and the supervisor.
(1) No employee directly concerned with management, supervision, accounting, security, or surveillance may solicit, accept or otherwise share any tip originating from any player or patron. Licensees may allow cage cashiers to accept tips.
(2) Each licensee must establish procedures necessary to ensure that the floor supervisor and surveillance observe dealers accepting tips. Procedures must include an overt display of tips received, such as tapping the table with the tip before placing it in the tip container.
(3) Cashier tip containers must be located outside the cage enclosure. The patron must directly deposit tips to the cashier into the tip container.
(4) Employees must retain or pool tips among employees as the licensee determines.
(5) Licensees must establish and implement procedures for the proper accounting of tips received by authorized card room employees. The licensee must fully document procedures in the internal controls and must describe in detail any methods used to allocate tips. Accounting and recording of tip income must be in sufficient detail to meet federal income tax requirements.
(a) Produces accurate facsimiles of one or more standard deck(s) of cards; and
(b) Randomly shuffles the cards before each round of play or shoe loading; and
(c) Contains a backup system that records and displays at least five previous rounds of play; and
(d) Meets the surveillance requirements for cards explained in WAC 250-15-280; and
(e) Contains security protocols which prevent unauthorized access; and
(f) Is designed to prevent the player from playing against the device; and
(g) Allows testing of the computer software; and
(h) Operates only under card room internal controls specific to each system; and
(i) Is tested by a licensed game testing laboratory for compliance with these requirements; and
(j) Meets any additional technical requirements we require.
(2) Card room employees must operate the system.
(3) The manufacturer must pay the costs of laboratory testing.
(2) Licensees may limit the pay out for odds-based wagers if we approve all pay out limits and their procedures for computing limits.
(3) Individual players' winnings must not be less than the higher of:
(a) The maximum wager allowed for the game times the highest odds offered up to fifty-to-one (50 to 1). For example: If the maximum wager is one hundred dollars ($100) and the odds are fifty-to-one (50 to 1); then the per player limit is five thousand dollars ($100 x 50 = $5,000); or
(b) The house minimum required wager for the game times the highest odds offered for any wager in the game. The "minimum required wager" means the least amount a player must wager in order to win. For example: If the minimum required wager is ten dollars ($10) and the maximum odds are one-thousand-to-one (1,000 to 1); then the per player limit is ten thousand dollars ($10 x 1,000 = $10,000).
(4) Table limits (aggregate pay out) must not be less than two times the individual player limit, as computed in subsection (3) of this section; and
(5) Licensees must clearly disclose all procedures for computing any per player or table limit (aggregate pay outs). This explanation must be available to players in a brochure or other printed material.
(1) A floor supervisor must unlock the table inventory container (chip tray) and take out the table inventory slip (opener); and
(2) The floor supervisor and the dealer assigned to the gambling table must:
(a) Count the contents of the chip tray; and
(b) Verify the count against the opener; and
(3) The dealer and the floor supervisor must then sign the opener, confirming the information on the opener is correct; and
(4) The dealer must immediately deposit the opener in the drop box attached to the gambling table; and
(5) If there is any discrepancy between the amount of gambling chips and coins counted and the amount of the chips and coins recorded on the opener:
(a) The floor supervisor must report immediately to the shift manager, if on duty or when the manager arrives; and
(b) The floor supervisor on duty must complete and sign a notification of error slip; and
(c) The dealer and security must verify and sign the notification of error slip; and
(d) Security must transport the duplicate of the notification of error slip to the accounting department or the cashier's cage; and
(e) The dealer must drop the original notification of error slip in the drop box attached to the gambling table; and
(f) The accounting department must keep a copy of the notification of error slip in a log in the format we require; and
(g) Licensees must notify us within twenty-four hours of errors of two hundred dollars or more, or if there is a pattern of shortages.
(2) Licensees must not add or remove chips or coins from the table inventory except:
(a) In exchange for cash from players; or
(b) To pay winning wagers and collect losing wagers made at the gambling table; or
(c) In exchange for chips received from a player having an equal total face value (known as "coloring up" or "coloring down"); or
(d) In compliance with fill and credit procedures.
(1) Spread the cash on the top of the gambling table so that the player, floor supervisor, and surveillance have a full view of the sale;
(2) Announce the amount loudly enough to be heard by the player and the floor supervisor assigned to the table;
(3) Have the floor supervisor verify all cash sales of one hundred dollars or more;
(4) Prove the denomination and the number of chips to the player, floor supervisor, and surveillance before giving the chips to the player. Licensees must include their method for proving chips in their internal controls; and
(5) After giving the chips to the player, immediately remove the cash from the table top and put it in the drop box attached to the table.
(1) All transfers of chips or coin must be to or from the cashier's cage.
(2) Chips or coin must not be transferred from one gambling table to another.
(3) All transfers of chips or coin must be made using requests for fill slips and fill slips or request for credit slips and credit slips.
(1) A two part form; and
(2) Completed in the format we require; and
(3) Secured so that only a floor supervisor has access to the slip.
(a) Control and account for each series of fill/credit slips they receive; and
(b) Ensure the fill/credit slip dispenser is secured in the cashier's cage; and
(c) Keep each series of fill/credit slips in a locked dispenser that will permit an individual fill/credit slip in the series and its copies to be written on simultaneously while still located in the dispenser, and will discharge the original and duplicate while the triplicate remains in a continuous, unbroken form in the dispenser; and
(d) Use the forms in consecutive order and account for all forms; and
(e) Assign an accounting department employee to be responsible for controlling and accounting for the unused supply of fill/credit slips, placing fill/credit slips in the dispensers, and removing the triplicate copy from the dispensers. Only the accounting department employee may have access to the forms in the dispenser.
(2) If there is a paper jam, the licensee may allow a security department employee access to the dispenser to clear it.
Requesting a fill.
(1) A floor supervisor must prepare a request for fill slip to authorize the cage cashier to perform a fill for the distribution of chips or coin to gambling tables.
(2) The floor supervisor and security must sign the request for fill slip at the gambling table to which the chips or coin are to be delivered.
Transporting requests for fills.
(3) Security must transport the completed original request for fill slip directly to the cashier's cage.
(4) The dealer must place the duplicate copy of the request for fill slip face up on the gambling table. It must remain there until the chips or coin are received.
Filling a request.
(5) The cashier must prepare a fill slip when a request for fill slip is received.
(6) The cashier must sign the fill slip when finished preparing the fill.
(7) A security department employee must compare and verify the request for fill slip to the fill slip and the amount of the fill. Security must sign the fill slip.
(8) Security must transport the chips, coin, and the original and duplicate of the fill slip to the gambling table.
(9) The cashier retains the original of the request for fill slip.
Receiving the fill.
(10) On receiving chips or coin, the dealer verifies the amount of the fill and signs the fill slip.
(11) The floor supervisor verifies the amount of the fill and signs the fill slip.
(12) After the dealer and floor supervisor sign the fill slip, security must observe that the dealer immediately places the duplicate fill slip and the duplicate request for fill slip in the drop box attached to the gambling table.
(13) Security must return the original fill slip to the cashier.
(14) The cashier must attach the request for fill slip to the original fill slip.
(15) If an error is made on a fill slip, the cage cashier must write "VOID" on the original and duplicate of the slip, and sign the slip.
(16) At the end of the day or shift, the cage cashier must forward all slips to either:
(a) The count team for agreement with the duplicate of the fill slip and duplicate of the request for fill slip removed from the drop box. After the count, all fill slips and request for fill slips must be forwarded directly to the accounting department for agreement with the triplicate of the fill slip; or
(b) The accounting department for agreement with the duplicate fill slip and duplicate of the request for fill slip removed from the drop box and the triplicate of the fill slip.
(1) The floor supervisor must prepare a request for credit to authorize the cage to prepare a credit slip for removing gambling chips and coin to the cashier's cage.
(2) The floor supervisor and a security employee must sign the request for credit slip at the gambling table from which the gambling chips and coin are being removed.
Transporting requests for credit.
(3) A security department employee transports the original of the request for credit and the gambling chips or coin removed from the gambling table directly to the cashier's cage.
(4) The dealer must place the duplicate copy face up on the gambling table. The request for credit must not be removed until a credit slip is received from the cashier's cage.
Filling a request for credit.
(5) The cashier must prepare a credit slip in the format we require whenever gambling chips or coin are removed from the gambling tables to the cashier's cage.
(6) The cashier must compare the request for credit to the chips or coin and sign the credit slip.
(7) A security department employee must compare and verify the request for credit to the credit slip and sign the credit slip.
(8) Security must transport the credit slip to the gambling table.
(9) The cashier retains the original of the request for credit.
Receiving the credit.
(10) On receiving the credit slip, the dealer and the floor supervisor verify the amount of the credit and sign the credit slip.
(11) After the dealer and floor supervisor sign the credit slip, the security employee must observe that the dealer immediately places the duplicate credit slip and the request for credit in the drop box attached to the gambling table from which the gambling chips or coin were removed.
(12) The security department employee must return the original credit slip to the cashier's cage. The cage cashiers must keep together and control the original of the credit slip and request for credit.
(13) If an error is made on the credit slip, the cage cashier must write "VOID" on the original and duplicate of the slip and sign the slip.
(14) At the end of the day or shift, the cage cashier must forward all slips to either:
(a) The count team for agreement with the duplicate of the credit slip and duplicate of the request for credit removed from the drop box. After the count, all credit slips and request for credit must be forwarded to the accounting department for agreement with the triplicate; or
(b) The accounting department for agreement with the duplicate credit slip and duplicate request for credit removed from the drop box and the triplicate.
(1) The floor supervisor and the dealer assigned to the gambling table must count the gambling chips and coins. The surveillance department must monitor and record the entire count and closure process.
(2) The floor supervisor assigned to the gambling table must record the chips and coins counted on a table inventory slip.
(3) Licensees must use consecutively prenumbered three-part forms for table inventory slips. Table inventory slips must be in the format we require and have three parts:
(a) The original (the closer); and
(b) The duplicate (the opener); and
(c) The triplicate (which is transported by security to accounting).
(4) The floor supervisor and the dealer assigned to the gambling table must sign the table inventory slip, confirming the information recorded at the time of closing.
(5) After both the dealer and floor supervisor have signed the closer, the dealer must deposit the closer in the drop box attached to the table. If there are chips and coin remaining at the table, the dealer must place the opener face up in the chip tray, arranged so that it is clearly visible. Then the floor supervisor must lock the clear chip tray cover. The chip trays must be under recorded surveillance at all times.
(6) A security department employee must take the triplicate of the table inventory slip to the accounting department.
(7) If an error is made on the closer, the preparer must write "VOID" on all copies of the form and forward them to the accounting department.
(8) If the locked chip trays are transported to the cashier's cage at the end of each gambling day, a cage cashier must determine that all locked chip trays have been returned to the cage and are adequately secured.
(1) Notify us within three days of the interruption; and
(2) Include the reason for the interruption; and
(3) Include the estimated date card games will resume.
(2) The PORE determines whether:
(a) The licensee has an organizational structure that can support their proposed accounting and administrative controls; and
(b) Internal accounting and administrative controls ensure that the licensee closely controls the gambling activities and accurately records financial information; and
(c) The licensee has enough trained staff; and
(d) The physical layout of the card room and supporting functions can handle the proposed accounting and administrative controls.
Cashier's Cages in House-banked Card Rooms
(a) Locate on, or immediately adjacent to, the gambling floor a physical structure to house the cashier and act as a cashier's cage; and
(b) Design, construct, and operate the cashier's cage to provide maximum security and accountability for funds.
(2) The cage must include, at a minimum:
(a) An enclosed structure with openings through which gambling chips, checks, cash, records, documents, and other such items can be passed;
(b) Manually triggered silent alarm systems connected directly to the surveillance room(s) of the closed circuit television system or an alarm monitoring agency; and
(c) A locked door, which the surveillance department monitors access to with closed circuit television.
(a) Maintain the cage inventory including currency, coin, player checks, gambling chips, forms, documents, and records normally associated with the operation of a cage; and
(b) Receive gambling chips, cash, checks, and other cash equivalents from players in exchange for currency or coin or for check consolidations, total or partial redemptions, or substitutions; and
(c) Receive cash or chips from the count room; and
(d) Perform functions necessary to ensure accurate accountability of funds and chips consistent with these requirements, including, at least:
(i) Reconciling the total closing inventory with the total opening inventory; and
(ii) Receiving request for fill slips in exchange for issuing fill slips and requested coin or chips; and
(iii) Receiving chips or coins removed from gambling tables in exchange for issuing a credit slip; and
(iv) Receiving documents with signatures that ensure the effective segregation of duties; and
(v) Counting and recording the face value of each cage inventory item on a cashier's count sheet, along with the total opening and closing inventories, at the end of each of their outgoing shifts; and
(vi) Signing, at their incoming and outgoing shift, the cashier's count sheet and the cage inventory count sheet, attesting to accuracy of the count; and
(vii) Preparing the overall cage reconciliation and accounting records; and
(viii) Forwarding, at the conclusion of the daily gambling activity, copies of the cashier's count sheet, cage inventory count sheet, and related documents to the accounting department for reconciling the agreement of opening and closing inventories, notification of error slips, and the agreement of amounts on other forms, records, and documents recording transactions.
(2) Licensees may sell merchandise items out of the cashier's cage as long as they have a separate bank and receipting system for the sale and accounting of these items.
(a) Authorized to enter the cage; and
(b) Who have the combination, keys, or the mechanism to open the locks to the entrance of the cage; and
(c) Who have the ability to operate the alarm systems.
(2) Licensees must keep a sign-in log in the format we require of all persons accessing the cashier's cage.
(2) The accounting department must review expenditures and replenishments.
(3) Licensees who have demonstrated the ability to operate cage activities properly may request our approval to operate on a float basis. "Float basis" means the cage may adjust cash inventory as necessary.
(a) Licensees may only accept checks from players at the cashier's cage; and
(b) Before cashing the check, the cage cashier must examine the player's identification to confirm the player's identity; and
(c) The cage cashier must:
(i) Endorse the check "for deposit only" to the licensee's bank account; and
(ii) Initial the check; and
(iii) Date and time stamp the check; and
(iv) Verify that the player is not listed on the daily returned check report. If licensees use a check guarantee and collection service, the licensee may disregard this subsection; and
(v) Exchange the check for currency and coin in the amount for which the check is drawn, minus any applicable fees; and
(vi) Forward all player checks to the main bank cashier.
(2) Before accepting a traveler's check from a player, the cage cashier must:
(a) Require the player to countersign the traveler's check in the cashier's presence; and
(b) Compare the countersignature with the original signature on the traveler's check; and
(c) Examine the traveler's check for any signs of tampering, forgery, or alteration; and
(d) Perform any other procedures that the issuer of the traveler's check requires in order to indemnify the acceptor against loss.
(3) Licensees must deposit all checks received into their bank account, within two banking days after receipt. Checks deposited to an armored car service within two banking days meet this requirement.
Drop Boxes in House-banked Card Rooms
(2) The dealer or the floor supervisor must deposit these items in the drop box.
(2) If drop boxes are removed from gambling tables at times other than the close of the gambling day, the persons removing drop boxes must remove them during a shift change. These persons must prepare a table inventory slip as required in WAC 230-15-535, and the incoming and outgoing supervisors must verify the inventory and sign the table inventory slip.
(3) Count team members may pull and transport the drop boxes to the count room for the count process if:
(a) The gambling operation is closed; and
(b) The card room entrances/exits are locked; and
(c) Security supervises the transport.
Count Requirements in House-banked Card Rooms
(2) Licensees must design and construct the count room to provide maximum security for the materials housed there and for the activities conducted there. The count room must be fully enclosed with only one entry. Licensees must also have:
(a) A door with at least one lock securing the count room door. The security department must keep and control the key or combination to the door. If a double locking system is used, the gambling operation department must keep the key to the second lock; and
(b) A sign-out procedure for all authorized keys used for the count process; and
(c) An alarm device connected to the entrance of the count room so that opening the door signals the surveillance employees monitoring the closed circuit television system.
(3) In the count room, licensees must have:
(a) A table of clear glass or similar material with a base that does not obstruct viewing for the emptying, counting, and recording of the contents of the drop boxes (the "count"); and
(b) Closed circuit television cameras and microphones that capture effective and detailed video and audio monitoring of the entire count process; and
(c) A sign posted in the count room or at the entrance that states audio recordings are occurring within the count room at all times.
(4) Licensees must keep a count room sign-in log in the format we require.
(2) Licensees must accurately count and record the contents of drop boxes to ensure the proper accountability of all gambling chips, coin, and currency. The count must be done at least once each gambling day.
(3) If a cage cashier completes the opener, closer, fills, and credits portions of the master game report, the cashier sends the original master game report to the count team for completion. The cage cashier must immediately send a copy directly to the accounting department.
(4) A count team member must notify the surveillance room observer that the count is about to begin. The surveillance employee must then make a video and audio recording of the entire count process.
(5) Before opening drop boxes, the count team must lock the door to the count room. Licensees must permit no person to enter or leave the count room, except for a normal work break or an emergency, until the count team has completed the entire counting, recording, and verification process for the contents of drop boxes.
(2) As each drop box is placed on the count table, a count team member must announce the game, table number, and shift, if applicable, loudly enough to be heard by all persons present and to be recorded by the audio recording equipment; and
(3) A count team member must empty the contents onto the count table; and
(4) Immediately after the contents are emptied onto the count table, a count team member must display the inside of the drop box to the closed circuit television camera, and show it to at least one other count team member to confirm that all contents of the drop box have been removed. A count team member must then lock the drop box and place it in the drop box storage area; and
(5) Count team member(s) must separate the contents of each drop box into separate stacks on the count table by denominations of coin, chips, and currency and by type of form, record, or document; and
(6) At least two count team members must count, either manually or mechanically, each denomination of coin, chips, and currency separately. Count team members must place individual bills and coins of the same denomination on the count table in full view of the closed circuit television cameras, and at least one other count team member must observe and confirm the accuracy of the count orally or in writing; and
(7) As the contents of each drop box are counted, a member of the count team must record the total amount of coin, chips, and currency counted (the drop) on the master games report; and
(8) If a cage cashier has recorded the opener, closer, fill slips, and credit slips on the master game report before the count, a count team member must compare the series numbers and totals recorded on the master game report to the fill slips, credit slips, and table inventory slips removed from the drop boxes, confirm the accuracy of the totals, and must record, by game and shift, the totals we require on the master game report. Otherwise, the count team must complete all required information on the master game report; and
(9) The accounting department may complete the win/loss portions of the master game report independently from the count team if this is properly documented in the approved internal controls.
(2) In the presence of the count team and before looking at the master game report, the verifier must recount the cash, either manually or mechanically.
(3) The verifier must sign the master game report verifying that the cash count is accurate.
(4) Each count team member must sign the report attesting to the accuracy of the information recorded.
(5) After the report is signed, the original master game report must be taken directly to the accounting department, along with the request for fills, the fill slips, the requests for credit, the credit slips, and the table inventory slips removed from drop boxes. The cage cashiers must not be allowed access to any of these records.
(a) Have a card room employee with no recording responsibilities compare a sample of originals and copies of the day's master game report, requests for fill, fill slips, requests for credit, credit slips and table inventory slips for agreement with each other and, if applicable, to triplicates or stored data; and
(b) Review a sample for the appropriate number and propriety of signatures; and
(c) Account for the originals and copies by series numbers, if applicable; and
(d) Test for proper calculation, summarization, and recording; and
(e) Subsequently record in monthly records; and
(f) Keep and control the originals and copies.
(2) The accounting department must report discrepancies immediately to us for investigation.
(3) If the accounting department does not work on weekends or federal or state holidays, they must complete these reviews on the next day that they work.
Securing House-banked Card Room Keys
(1) Licensees must install and keep key control boxes that, at least:
(a) Are constructed of metal with a minimum of one keylock mechanism. We permit coded key boxes or combination key boxes; and
(b) Are attached to a permanent structure without the hardware used to attach the key box being visible; and
(c) Are tamper proof; and
(d) Store keys so that they are identifiable, have identification labels, and are displayed in numeric or alphabetic order; and
(2) Licensees may decide the location of key control boxes, but the location must not allow an individual to gain access to a restricted area that he or she would not otherwise be authorized to enter.
(3) If licensees locate key boxes in restricted areas, persons who are not authorized to enter those areas must give their key to the key box to an authorized person. The authorized person must then only open the key box in the presence of the unauthorized person or while under camera coverage.
(a) Gambling operations;
(c) Security; and
(2) Licensees must:
(a) Document in their approved written internal controls how they will keep the keys or combinations to each key control box secure; and
(b) Limit access to key control boxes to the licensed card room employee(s) responsible for the overall supervision or management of the department for which the box is kept. The employee(s) must keep this key or combination in their possession while gambling is being conducted; and
(c) Keep any duplicate keys to the key control boxes in the master key control box.
(1) Each pit podium; and
(2) Drawers and other locking cabinets located in each designated gambling area podium; and
(3) Remove the cover from the chip trays; and
(4) The second lock on the enclosed storage cabinet or trolley used to store or transport all drop boxes removed from the gambling tables; and
(5) All jackpot pay out boxes included with authorized card games; and
(6) All control boxes used to maintain authorized card games; and
(7) Other areas included in the approved internal controls.
(1) The lock to the count room door; and
(2) Unlock the lock that secures the drop boxes to the gambling table; and
(3) The first lock on the enclosed storage cabinet or trolley used to store or transport all drop boxes; and
(4) The storage cabinet(s) or other secure facility used to store the card inventory including decks not yet placed in play and decks removed from play and waiting to be canceled or destroyed; and
(5) The main entry or access door of the card room; and
(6) Other areas included in the approved internal controls.
(a) The lock securing the contents of the drop boxes; and
(b) The rear of the locked dispenser used to store the triplicate of the fill/credit slips in a continuous, unbroken form; and
(c) The door to the cashier's cage; and
(d) Reset the lock to the drop boxes; and
(e) Other areas included in the approved internal controls; and
(2) The cashier's cage key control box must include key(s) to:
(a) Each cashier's window drawer; and
(b) The chip drawer or fill bank; and
(c) The vault and/or the safe; and
(d) The door to the cashier's cage; and
(e) The front of the locked dispenser used to store the triplicate of the fill/credit slips in continuous, unbroken form; and
(f) The dealer tip boxes; and
(g) Other areas included in the approved internal controls.
(1) The surveillance room; and
(2) The storage cabinet(s) or locker(s) used to keep surveillance recordings, cards, or other items of evidentiary value or recordings documenting details of jackpot pay outs.
(2) Keys in this key control box may include:
(a) Extra keys for the department key boxes and restricted areas; and
(b) Other keys included in the licensee's approved internal controls.
Progressive Jackpot Prizes for House-banked Card Games
(1) To participate in a progressive jackpot, a player places a separate wager, part of which accrues to the progressively increasing prize.
(2) Manufacturer's game rules determine the winning patterns or combinations of cards.
(3) Licensees must offer a primary jackpot and may have a secondary or reserve jackpot prize.
(4) Licensees must adequately disclose to players the prizes available and how they are won.
(5) Licensees must ensure that they closely control progressive jackpot games and account for all the funds collected.
(1) Progressive jackpot funds must accrue according to the rules of the game; and
(2) At each gambling table, licensees must prominently post the amount of the progressive jackpot that players can win; and
(3) Licensees must record the beginning amount of each progressive jackpot offered, including explanations for any increases or decreases in the prize amount offered. Licensees must keep this documentation with the progressive jackpot records; and
(4) Licensees may establish a maximum limit on a progressive jackpot prize. If licensees establish a limit, they must make the amount equal to, or greater than, the amount of the jackpot when they imposed the limit. They must prominently post a notice of the limit at or near the game.
(2) For verified prizes over five thousand dollars, licensees must immediately pay out a minimum of five thousand dollars and pay the remaining balance within twenty-four hours by check. The player may request that the licensee pay up to the entire prize balance by check. Licensees must then issue a check for the entire prize balance within twenty-four hours.
(1) To reduce the jackpot and the advertised amount by the amount won; or
(2) To correct an amount displayed incorrectly because of malfunctioning equipment; or
(3) To correct the display when the amount displayed is greater than the predetermined maximum prize limit; or
(4) To reduce a reserve or secondary jackpot as long as they record the funds removed as gross receipts and properly documented that in their records; or
(5) To reduce a reserve or secondary jackpot to recover seed money that was not taken from gross receipts, if they properly document those funds in their records; or
(6) To reduce the jackpot by the dollar amount they paid for merchandise they award as prizes.
(1) Own the merchandise prizes and pay for them in full, without lien or interest of others, before they award the merchandise as prizes. If the winner has an option to receive a cash prize instead of the merchandise, licensees may enter into a contract to immediately purchase a merchandise prize after the winner chooses their option; and
(2) Disclose that they used a specific portion of the jackpot funds to buy merchandise to be awarded as prizes, as well as the specific merchandise prizes to be awarded; and
(3) Disclose the value of the merchandise they plan to award. This value must be accurate and verifiable; and
(4) Award the merchandise on the specific outcome of a game and include the outcome in the game rules; and
(5) Keep detailed records, including the purchase invoice, on premises and make them available for our review.
(1) The licensee submits a written request for removal with their reasons and we approve in writing; and
(2) The circumstances are beyond the licensee's control or there is other good cause leading to the disruption, for example, remodeling the card room; and
(3) The licensee notifies players of the disruption and the estimated date when the jackpot will continue.
(2) Licensees must:
(a) Submit a detailed distribution plan to us in writing and receive written approval before removing any progressive jackpot prizes from play;
(b) Prominently post a notice and the distribution plan, including if they plan to close the business, at least ten days before they begin the process of removing the jackpot and distributing the funds; and
(c) Distribute the funds in one or more of the following ways:
(i) Offering the prize on a different house-banked game; or
(ii) Offering the prize in an approved free tournament in which funds must be distributed within sixty days from the date of approval; or
(iii) Donating the money to the Washington State Council on Problem Gambling.
(2) Licensees must:
(a) Keep a record of all deposits; and
(b) For each progressive prize, identify the deposits by game name and number and dates of collection; and
(c) Maintain validated deposit slips as part of their records.
(3) At the end of the month, licensees must:
(a) Reconcile the account balance with the bank statement to the progressive jackpot fund balances. "Reconcile" means the licensee must compare the two balances, resolve any differences, and document the comparison and the differences in writing; and
(b) Keep the reconciliation as part of their records.
Records and Recordkeeping for House-banked Card Games
Revenue, costs, and expenses.
(2) Licensees must keep legible, accurate, and complete records of all transactions relating to the revenues, costs, and expenses of the gambling operation. Licensees must keep these records in a format that ensures consistency, comparability, and effective disclosure of financial information.
(3) Licensees must keep an accounting system on a double entry method of accounting with transactions recorded on an accrual basis and in conformity with United States' Generally Accepted Accounting Principles (GAAP).
(4) Licensees must keep detailed, supporting, and subsidiary records including, at least:
(a) Records of all players' checks initially accepted, deposited, and returned as "uncollected," and ultimately written off as "uncollectible"; and
(b) Records of investments in property, including, at least, equipment used directly in connection with the gambling operation; and
(c) Records of amounts payable by the gambling operation; and
(d) Records which identify the purchase, receipt, and destruction of all cards and gambling chips used in wagering; and
(e) Records of services provided for the operation of gambling activities, for example, service provided by gambling service suppliers; and
(f) Master game reports that reflect drop and win amounts for each table, for each game. These records must cover at least each period for which the drop boxes are removed, or at the minimum, the period of each gambling day.
(5) Licensees must color code any form, record, or document that requires duplicate or triplicate copies.
(6) If forms, records, and documents are required to be inserted into a locked dispenser, the last copy must remain in a continuous unbroken form in the dispenser.
(7) All forms, records, documents, and stored data required to be kept and controlled must have the title printed on the item, such as "fill slip," "request for fill slip," "credit slip," "request for credit slip," or "reconciliation."
(8) Licensees must keep all records for a period of not less than three years. At least the last six months of gambling records must be available for inspection on the business premises.
(a) Employees' names;
(b) Gambling license numbers;
(c) Gambling license expiration dates; and
(d) Photocopies of all current employees' licenses.
(2) Licensees must keep copies of the applications of all employees who have applied for, but have not yet been issued, a license. The records must include:
(a) Temporary employment authorization;
(b) Documentation that the employee has made the required license or transfer fee payment; and
(c) Proof that the employee has followed the ten-day waiting period, if applicable.
(3) Licensees must notify us if a card room employee does not receive a license within sixty days of employment.
(1) The following definitions apply to all subsections of this rule:
(a) "Financial statements" means documents, including, at least: Balance sheet, statement of income, statement of retained earnings or changes in equity, statement of cash flows, and all required notes or disclosures.
(b) "Card room gross receipts" means all receipts from all house-banked and nonhouse-banked card games offered by the house-banked card room.
(c) "Independent" means there is no relationship that may influence a certified public accountant's impartiality and objectivity in rendering services.
Filing with the commission.
(2) House-banked card game licensees must submit financial statements covering all financial activities of the licensees' business premises for each business year within one hundred twenty days following the end of their business year.
(3) We may authorize a sixty-day extension if a licensee submits a written request explaining the need for the extension.
Audited financial statements - gross receipts of over three million dollars.
(4) Licensees with house-banked card game gross receipts of more than three million dollars for the business year must hire an independent, certified public accounting firm licensed by the Washington state board of accountancy to audit the licensee's financial statements according to Generally Accepted Auditing Standards (GAAS).
Reviewed financial statements - gross receipts of one to three million dollars.
(5) Licensees with house-banked card room gross receipts of one to three million dollars for the business year must hire an independent, certified public accounting firm licensed by the Washington state board of accountancy to review the licensee's financial statements according to the Statements on Standards for Accounting and Review Services (SSARS) or audit the licensee's financial statements according to GAAS.
Compiled financial statements - gross receipts of less than one million dollars.
(6) Licensees with house-banked card room gross receipts of less than one million dollars for the business year must hire an independent, certified public accounting firm licensed by the Washington state board of accountancy to compile the licensee's financial statements according to SSARS or audit the licensee's financial statements according to GAAS. This compilation must include all required notes or disclosures on an accrual basis of accounting.
Financial statement preparation.
(7) Licensees must prepare financial statements on a comparative basis. For the first year of operation only, licensees do not have to submit comparative financial statements. Licensees must report gross revenues from each licensed activity separate and apart from all other revenues.
(8) All financial statements must be prepared in accordance with the United States' Generally Accepted Accounting Principles (GAAP).
Consolidated financial statements.
(9) Commonly owned or operated business premises may present consolidated financial statements. Licensees must include consolidated schedules presenting separate financial statements for each licensed card room location.
Change in business year.
(10) Licensees must notify us in writing within thirty days if they change their business year. Licensees must submit financial statements covering the period from the end of the previous business year to the end of the new business year.
(1) The card must be prepared in the presence of a member of the accounting department, who must review a picture identification card and verify the signer's identity.
(2) Licensees must keep completed cards in a signature card file, sorted by department and listed alphabetically by name. Licensees must review and adjust the signature records as needed to reflect changes of personnel.
(3) Licensees must securely store signature cards in the accounting department.
(4) The cashier's cage must keep a copy of each signature card and cage personnel must use it to verify signatures.
(5) Licensees must retain the signature records for a period of at least one year after employment ends.
(2) By signing documents, records, and forms, signers are indicating that they:
(a) Have prepared them according to the requirements of the accounting system and internal controls; and/or
(b) Attest to the accuracy of the information recorded for which they are responsible.
(3) Signers must sign immediately next to, or above, the clearly printed or preprinted title on all forms, records, and documents.
(4) Signatures must, at least, be the signer's first initial and last name, for example, "B. Smith," and the signer's employee number.