WSR 08-15-066



[ Filed July 14, 2008, 4:40 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 08-06-011.

Title of Rule and Other Identifying Information: New sections WAC 230-06-150 Defining "gross gambling receipts," 230-06-155 Defining "gross sales," 230-06-160 Defining "net gambling receipts," 230-06-165 Defining "net gambling income," 230-06-170 Defining "net win," 230-06-175 Defining "cost" and 230-03-052 Resident agent to be appointed by out-of-state applicants and licensees; and amending WAC 230-13-169 Annual activity reports for commercial amusement game licensees.

Hearing Location(s): Inn at Gig Harbor, 3211 56th Street N.W., Gig Harbor, WA 98335, (253) 858-1111, on September 12, 2008, at 9:30 a.m.

Date of Intended Adoption: September 12, 2008.

Submit Written Comments to: Susan Arland, P.O. Box 42400, Olympia, WA 98504-2400, e-mail, fax (360) 486-3625, by September 1, 2008.

Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by September 1, 2008, TTY (360) 486-3637 or (360) 486-3453.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: In these first six rules we are adding back definitions. These definitions are used for the activity reports that the commission requires. We are adding back in the rule requiring all out-of-state applicants and licensees to appoint a resident agent within the state. This rule mistakenly says commercial amusement game licensees must report twice per year when activity reports are actually only required once per year.

Reasons Supporting Proposal: See above.

Statutory Authority for Adoption: RCW 9.46.070.

Statute Being Implemented: Not applicable.

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: Mark Harris, Assistant Director, Lacey, (360) 486-3579.

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 because the change would not impose additional costs on businesses.

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.

July 15 [14], 2008

Susan Arland

Rules Coordinator


WAC 230-03-052   Resident agent to be appointed by out-of-state applicants and licensees.   (1) All applicants and licensees that do not have a business office or licensed premises within Washington state must appoint a resident agent for receiving and accepting service of process and other communications from us.

(2) The resident agent must be:

(a) A natural person who is a resident living in Washington state; and

(b) At least eighteen years old.

(3) The resident agent's name, business address, and home address must be filed with us.



WAC 230-06-150   Defining "gross gambling receipts."   (1) "Gross gambling receipts" means the amount due to any operator of a gambling activity for:

(a) Purchasing chances to play a punch board or pull-tab series; and

(b) Purchasing chances to enter a raffle; and

(c) Fees or purchase of cards to participate in bingo games; and

(d) Fees to participate in an amusement game, including rent or lease payments paid to licensees or franchisers for allowing operation of an amusement game on their premises; and

(e) "Net win" from a house-banked card game; and

(f) Tournament entry fees; and

(g) Administrative fees from player-supported jackpots; and

(h) Fees to participate in a nonhouse-banked card game (for example, time, rake, or per hand fee).

(2) The amount must be stated in U.S. currency.

(3) The value must be before any deductions for prizes or other expenses.

(4) "Gross gambling receipts" does not include fees from players to enter player-supported jackpots. However, any portion of wagers deducted for any purpose other than increasing current prizes or repayment of amounts used to seed prizes are "gross gambling receipts."


WAC 230-06-155   Defining "gross sales."   (1) "Gross sales" means the amount received for all nongambling goods and services sold or occurring on the premises.

(2) The amount must be stated in U.S. currency minus any sales taxes or discounts.

(3) Income received from sales made on behalf of others or in partnership with third parties, commission income, or income splitting schemes, must be recorded at the net amount realized.


WAC 230-06-160   Defining "net gambling receipts."   "Net gambling receipts" means all gross gambling receipts from any gambling activity minus:

(1) The value for cash prizes; and

(2) The actual cost of any merchandise prizes that were awarded.


WAC 230-06-165   Defining "net gambling income."   (1) "Net gambling income" means net gambling receipts minus all other expenses related to the operation of a licensed activity paid out during the same reporting period.

(2) Expenses must be reported on the accrual basis if the records are normally maintained on that basis.


WAC 230-06-170   Defining "net win."   "Net win" means gross wagers received from gambling activities or fund-raising events minus the:

(1) Amount paid to players for winning wagers; and

(2) Accrual of prizes for progressive jackpot contests; and

(3) Repayment of amounts used to seed guaranteed progressive jackpot prizes.


WAC 230-06-175   Defining "cost."   (1) "Cost" means the amount paid or owed by the purchaser, for any gambling or nongambling product or service, at the time of the transaction and documented on the sales receipt/transfer document.

(2) "Cost" does not include:

(a) Sales taxes paid by the purchaser; or

(b) Any markup or value added by the purchaser.



AMENDATORY SECTION(Amending Order 617, filed 10/22/07, effective 1/1/08)

WAC 230-13-169   Annual activity reports for commercial amusement game licensees.   Commercial amusement game licensees must submit an annual activity report to ((the commission. The activity reports must be)) us in the format we require and must:

(1) Cover the ((periods:

(a) January 1 through June 30; and

(b) July 1 through December 31)) license year of one calendar year or less; and

(2) Be received at our administrative office or postmarked no later than thirty days following the end of the reporting period; and

(3) Be signed by the licensee's highest ranking executive officer or a designee. If someone other than the commercial amusement game licensee or its employee prepares the report, then it must provide the preparer's name and business telephone number; and

(4) ((Be filed even if they do not renew their license. They must file a report for the period between the previous report filed and the expiration date of the license)) Submit a report for any period of time their license was valid, even if they had no activity or did not renew their license; and

(5) Complete the report according to the instructions furnished with the report.

[Statutory Authority: RCW 9.46.070. 07-21-116 (Order 617), 230-13-169, filed 10/22/07, effective 1/1/08.]

Washington State Code Reviser's Office