RULES AND REGULATIONS
Title 58--RECREATION
PENNSYLVANIA GAMING CONTROL BOARD
[58 PA. CODE CHS. 461, 461a,
461b, 463 AND 463a]
Slot Machine Testing and Control; Possession of Slot Machines
[37 Pa.B. 3381]
[Saturday, July 21, 2007]The Pennsylvania Gaming Control Board (Board), under its general authority in 4 Pa.C.S. § 1202(b)(30) (relating to general and specific powers) and the specific authority in 4 Pa.C.S. §§ 1207 and 1320 (relating to regulatory authority of board; and slot machine testing and certification standards), adopts Chapters 461a and 463a (relating to slot machine testing and control; and possession of slot machines) and rescinds Chapters 461 and 463 to read as set forth in Annex A.
Purpose of the Final-Form Rulemaking
Under 4 Pa.C.S. § 1203 (relating to temporary regulations), the Board initially adopted Chapter 461 at 35 Pa.B. 4045 (July 16, 2005) and Chapter 463 at 35 Pa.B. 6619 (December 3, 2005). Under 4 Pa.C.S. § 1203(b), the temporary regulations expired on July 5, 2007.
The Board is adopting Chapters 461a and 463a to replace the Board's temporary regulations with the permanent regulations.
Explanation of Chapters 461a and 463a
This final-form rulemaking replaces the temporary regulations in Chapters 461 and 463. Permanent regulations are needed because the temporary regulations expired on July 5, 2007.
Section 461a.1 (relating to definitions) contains definitions of terms used in Subpart E (relating to slot machines and associated equipment). Section 461a.2 (relating to protocol requirements) requires that slot machines be required to communicate with the Department of Revenue's (Department) central control computer.
Section 461a.3 (relating to testing and approval generally) sets forth requirements in 4 Pa.C.S. § 1320 that slot machines used in this Commonwealth must be approved by the Board and specifies testing options. This section also requires manufacturers to pay the costs related to the testing and approval of their products.
Section 461a.4 (relating to submission for testing and approval) provides a list of equipment that must be submitted for testing and what must be submitted if a manufacturer elects to use the abbreviated testing and approval process or when the Board will conduct the full review. It also addresses the use of trial periods, emergency modifications to prevent cheating or malfunctions and requires notice to the Board from slot machine licensees of known or suspected malfunctions.
Section 461a.5 (relating to slot machine conversions) requires that accurate records be kept of conversions and that the Board be given notice prior to conversions.
Section 461a.6 (relating to revocations and additional conditions) states that an approval may be revoked or conditions added if the Board determines that the equipment, device or software is not in compliance with the act or Board regulations or that it is not compatible the central control computer.
Section 461a.7 (relating to slot machine minimum design standards) contains detailed design standards that slot machines must meet. It addresses items including payout percentages, required meters, tower lights, reporting errors, communication with the central control computer, payout of jackpots, seating and entry authorization logs.
Section 461a.8 (relating to gaming vouchers) contains the design standards gaming voucher systems must meet. It requires establishment of a system of internal controls for the issuance and redemption of gaming vouchers including how payment will be made if the gaming voucher system is down. It also specifies reporting requirements, accounting procedures for gaming vouchers and how malfunctions and modifications are to be handled.
Section 461a.9 (relating to coupons) requires security measures to permit verification of the coupon, information that must be on the coupons and the development of internal controls governing the use of coupons.
Section 461a.10 (relating to automated gaming voucher and coupon redemption machines) establishes the requirements for the use of gaming voucher and coupon redemption machines. These requirements include the capability to check the validity of gaming vouchers and coupons by reconciling them with the gaming voucher and coupon systems, locking systems on the redemption machines, restrictions on access to currency cassettes, protection against transaction or data loss due to power loss, detection and recording of errors and transaction histories and the production of various reports.
Section 461a.11 (relating to automated gaming voucher and coupon redemption machines: accounting controls) requires slot machine licensees to develop internal controls governing the distribution of currency to and removal of currency, gaming vouchers or coupons from automated gaming voucher and coupon redemption machines.
Section 461a.12 (relating to progressive slot machines) covers the types of meters that are required, key control, probability of winning, approvals required from the Board, transfers of jackpots, removal of slot machines offering progressive jackpots and recordkeeping.
Section 461a.13 (relating to wide area progressive systems) contains provisions governing wide area progressive systems which link progressive slot machines at multiple licensed facilities. It lists the items that must be in the slot system agreement governing the operation of the wide area progressive system, who may act as the slot system operator and requirements for the computer monitoring room for the wide area progressive system.
Sections 461a.14--461a.16 (relating to slot monitoring systems; casino management systems; and player tracking systems) permit the use of these systems and require them to comply with the act and the Board's regulations and technical standards.
Section 461a.17 (relating to external bonusing systems) allows the use of external bonusing systems and sets limits on the payout percentages that can be used with these systems.
Section 461a.18 (relating to cashless funds transfer systems) permits the use of cashless funds transfer systems if the slot machine licensee has established a system of internal controls which include the items listed in this section. It also requires a patron access control system, reporting requirements and written notice to the Slot Lab of adjustments to the amount of credit transferred to a slot machine using this system.
Section 461a.19 (relating to remote system access) establishes the requirements for remote access to various systems by licensed manufacturers.
Sections 461a.20 and 461a.21 (relating to server supported slot systems; and server based slot systems) define what server supported and server based slot systems are and require that these systems be tested and approved by the Board prior to their use. These sections also require the development of internal controls addressing the integrity, security and control of these systems.
Section 461a.22 (relating to automated jackpot payout machines) allows for the use of automated jackpot payout machines to pay jackpots not paid by a slot machine. This section requires compliance with Board standards and the development and approval of internal controls governing the payout of jackpots and distribution of funds to these machines.
Section 461a.23 (relating to slot machines and associated equipment utilizing alterable storage media) defines what is considered to be alterable storage media and requires it to comply with Board standards.
Section 461a.24 (relating to waivers) specifies when the Board may waive a requirement of this subpart and describes how a waiver may be requested by a manufacturer or slot machine licensee.
Section 461a.25 (relating to disputes) sets forth the responsibilities of slot machine licensees when a patron dispute arises concerning payment of alleged winnings. It also requires slot machine licensees to notify the Board in writing if the dispute is not resolved within 7 days.
Section 461a.26 (relating to testing and software installation on the live gaming floor) requires 72 hour advanced notice to the Slot Lab prior to the testing or installation of new software on the live gaming floor. It also sets forth the information that must be provided in the notice.
Section 463a.1 (relating to possession of slot machines generally) outlines who may possess slot machines in this Commonwealth, for what purpose and how Board approval may be requested.
Section 463a.2 (relating to transportation of slot machines into, within and out of this Commonwealth) sets forth the information that must be submitted to the Bureau of Gaming Laboratory Operations when slot machines are moved into, out of or within this Commonwealth.
Section 463a.3 (relating to slot machine location) requires the location of each slot machine on a gaming floor to be identified by number and that the numbered location appear on the Slot Machine Master List.
Section 463a.4 (relating to connection to the central control computer system) requires each slot machine on the gaming floor to be connected to the central control computer system as required by 4 Pa.C.S. § 1323 (relating to central control computer system).
Section 463a.5 (relating to slot machine master list) requires slot machine applicants and licensees to maintain a Slot Machine Master List and specifies the information that must be in the list. It also requires maintenance of a slot machine movement log and specifies the information that must be included in this log. Finally, it requires anyone other than slot machine applicants or licensees who is authorized to possess slot machines to also submit a Slot Machine Master list within 3 days of receipt of slot machines and monthly updates thereafter.
Section 463a.6 (relating to notice to the central computer system) requires slot machine licensees to report the placement, movement and removal of slot machines to the Department to insure accurate recording of meter information.
Section 463a.7 (relating to off premises storage of slot machines) sets forth the process for slot machine licensees to request permission to store slot machines in a location off the premises of the licensed facility and the information that must be included in a request.
Comment and Response Summary
Notice of proposed rulemaking was published at 36 Pa.B. 6517 (October 28, 2006).
The Board received comments on the proposed rulemaking from the Independent Regulatory Review Commission (IRRC). Those comments were reviewed by the Board and are discussed in detail as follows.
IRRC requested that the Board provide additional information pertaining to the need for the regulations and the fiscal impact in the preamble and Regulatory Analysis Form. Additional information has been included. However, the Board notes that because gaming is new to this Commonwealth and licenses have just been issued, the fiscal information available is somewhat limited.
IRRC also urged the Board to review a number of phrases which it thought were vague. These phrases were in Appendix A of IRRC's comments.
The Board reviewed Appendix A and, as suggested by IRRC, deleted phrases such as ''when applicable,'' ''in a manner approved by the Board'' and ''in a manner prescribed by the Board.''
The Board has not deleted ''additional documentation requested by the Board,'' which appears in several sections. While the Board attempted to provide comprehensive guidance to manufacturers as to what information the Board needs to evaluate their products, there will be times when the Board will need additional information from a manufacturer. This is particularly true when new products are submitted. However, the Board added language to make it clear that the additional information requested must relate to the product that is being reviewed.
Most of the phrases referring to ''approved by the Board'' have also been deleted; they were intended to refer back to the approval process in §§ 461a.3 and 461a.4 and are not needed. For other approvals, the Board added cross-references to the specific sections where the approval process is specified or added an approval process in the section.
IRRC also questioned the incorporation of technical standards, which are not contained in these regulations, as binding requirements. Use of '' . . . this approach would allow an agency or department to bypass the formal regulatory review process . . . .''
Use of binding technical standards to supplement the Board's regulations is not an attempt by the Board to bypass the regulatory review process. It is merely intended as a means by which the Board can keep pace with changes in gaming technology.
Due to the dynamic nature of the industry, new games and new equipment are constantly being brought to market. Because it takes a minimum of 6 months to promulgate a regulation, use of the technical standards is the only way the Board can develop new standards for these new products in a timely manner.
The technical standards are not intended to be permanent rules. As a technology matures, it is the Board's intention to initiate proposed rulemakings which will bring the applicable technical standards into the regulations. The Board is also examining the possibility incorporating National standards, such as those developed by the Gaming Standards Association, as an alternative to Pennsylvania-specific technical standards.
Technical standards are used extensively in other gaming jurisdictions for the same reason the Board is proposing to use them here, which is to promote rapid approval of new games and equipment. Without technical standards, manufacturers would face long delays before they could offer their products in this Commonwealth and slot machine licensees would not be able to offer the newest games or take advantage of new systems or equipment as quickly as competitors in other states. In an industry as competitive as gaming, not using technical standards would result in significant loss of revenue to slot machine licensees and the Commonwealth.
For these reasons, the Board retained the references to technical standards in this final-form rulemaking. However, the Board added references to specific existing technical standards in several sections to add clarity. When technical standards have not yet been developed, the Board added the phrase ''and published in the Pennsylvania Bulletin and posted on the Board's website.'' This will insure that the regulated public has access to all of the standards that the Board is using to evaluate new products.
IRRC had concerns with the definitions of ''conversion'' and ''player tracking system.'' They asked if ''conversion'' also applied to associated equipment and suggested the last sentence in the definition of ''player tracking system'' be deleted.
Use of the term ''conversion'' in the industry is restricted to slot machines only. Accordingly, the definition has not been revised to include associated equipment.
Concerning the definition of ''player tracking system,'' it was not the Board's intent that the last sentence be a substantive provision. It was intended to include both general and individual systems within the scope of the term. Therefore, the definition has been amended to clarify this fact.
Concerning § 461a.3, IRRC suggested that the Board provide more detail on how the costs of testing and approval of slot machines would be calculated.
The Board agreed with this suggestion and amended subsections (d) and (e) to clarify that the general costs will be billed to manufacturers quarterly based on the proportion of products reviewed and specific costs will be based on the time required to conduct the review of each product.
In § 461a.4, IRRC noted that ''periodically,'' which appeared in subsections (e) and (f), is vague and should be deleted.
The Board agreed with IRRC and ''periodically'' has been deleted in both subsections. Additionally, subsection (f) was amended to require an attestation that the product was properly and completely tested by the manufacturer prior to its submission to the Board.
In § 461a.12(m), IRRC asked what the basis was for the $1,200 threshold.
The threshold for Federal withholding is $1,200. However, after further consideration, the Board does not believe this provision is needed. Therefore, subsections (m) and (n) have been deleted.
In § 461a.24, IRRC recommended that the procedures for requesting a waiver be included in the regulations.
The Board concurred with this recommendation and revised this section to address IRRC's concern and to provide greater clarity of the waiver process. Subsection (a) outlines the circumstances when the Board, on its own initiative, may waive a requirement and subsection (b) outlines how a manufacturer may request a waiver.
In § 461a.25, IRRC suggested that in disputes over alleged winnings, patrons be given written notice of how they may contact the Board.
The Board agreed with this suggestion and amended subsection (a) to require the slot machine licensee to provide the patron with a Patron Dispute/Complaint Form and Instructions for Submitting a Patron Dispute/Complaint.
In § 463a.6, IRRC suggested that this section be deleted because it is the responsibility of the Department to establish its reporting requirements.
The Board agreed that the Department has authority to establish its own reporting requirements. However, the Board, under its general authority, can also establish reporting requirements. The purpose of this section was simply to require that notice be given to the Department and to provide a basis for the Board to initiate an enforcement action against a slot machine licensee who fails to provide this notice. To clarify the Board's intent, this section has been amended accordingly.
IRRC also suggested that the Board add definitions for 27 terms and phrases that are used in these chapters.
Definitions have been added for 21 of these terms. Rather than adding definitions, the terms ''high-boy,'' ''pay table,'' ''progressive rate'' and ''promotional program'' have been deleted and replaced with clarifying language. Additionally, the definition of ''double up'' is already in § 461a.1, so the Board does not believe a definition of ''double up games'' is necessary. Similarly, the term ''Slot Machine Master List'' is described extensively in § 463a.5, so no definition is needed.
Finally, IRRC suggested that the references to temporary regulations be deleted.
The Board discussed this issue with the Legislative Reference Bureau (LRB) prior to the publication of this final-form rulemaking and this is how the LRB has instructed the Board to reference other chapters. The Board will update these citations as permanent regulations are finalized.
Additional Amendments
In addition to the previous amendments, the Board made some additional revisions.
Throughout the chapters, ''slot accounting department'' has been changed to ''finance department.'' ''Finance department'' is the more commonly used term in the industry for this department.
New § 461a.26 addresses testing and installation of new software on a live gaming floor. Before either of these can occur, the slot machine licensee will be required to provide specific information regarding the testing or software installation at least 72 hours in advance.
In § 463a.1, subsections (c) and (d) have been added. These subsections contain the process the Board will use to accept and review requests to possess slot machines from entities other than slot machine licensees.
Additionally, § 463a.7 has been added to establish provisions governing the off premises storage of slot machines. This section sets forth the process for requesting permission for off premises storage, the information that must be provided to the Board and requires an inspection of the storage location before the Board will act on the request.
Finally, the numbering of the statement of policy in Chapter 461a (relating to technical standards--statement of policy) will be changed to Chapter 461b (§§ 461b.1--461b.5).
Affected Parties
This final-form rulemaking imposes performance standards that slot machines and associated equipment will have to meet before manufacturers can offer their products for sale and use in this Commonwealth. Suppliers, manufacturer designees and slot machine licensees also will be affected because they can only sell or purchase products that have been tested and approved for use in this Commonwealth.
Fiscal Impact
Commonwealth. Most of the Commonwealth's costs associated with this final-form rulemaking will be incurred by the Board's Gaming Laboratory Operations Bureau, which is responsible for testing slot machines and associated equipment and tracking the location and movement of slot machines.
The Department will also experience some cost regarding the testing of slot machines for compliance and compatibility with the central control computer system.
Law enforcement agencies authorized by the Board to possess slot machines will experience some reporting costs.
Political subdivisions. This final-form rulemaking will have no significant fiscal impact on political subdivisions of this Commonwealth.
Private sector. Manufacturers will experience significant costs associated with the testing and approval of their products by the Board. The Board is charging manufacturers based upon the time required for the testing of various types of equipment. Therefore, the costs incurred by an individual manufacturer will be a function of the number of products it submits for testing. Costs for the Gaming Laboratory that are not covered by fees will be assessed on all manufacturers as required by 4 Pa.C.S. § 1320(b).
Manufacturers, suppliers, manufacturer designees and slot machine licensees will experience some costs associated with the submission of reports prior to the transportation of slot machines and submission of monthly reports specifying the location and other data for all slot machines in their possession.
Educational institutions and others authorized by the Board to possess slot machines will experience some reporting costs.
General public. This final-form rulemaking will have no fiscal impact on the general public.
Paperwork Requirements
This final-form rulemaking requires manufacturers to provide extensive documentation in the form of operating manuals, wiring diagrams, and the like, needed to test their equipment.
Manufacturers, suppliers, manufacturer designees and slot machine licensees will be required to complete and submit reports prior to the transportation of slot machines and will have to submit monthly reports specifying the location and other data for all slot machines in their possession.
Educational institutions and law enforcement agencies authorized to possess slot machines will also have to submit monthly reports specifying the location and other data for all slot machines in their possession.
Effective Date
The final-form rulemaking will become effective upon publication in the Pennsylvania Bulletin.
Contact Person
The contact person for questions about this final-form rulemaking is Richard Sandusky, Director of Regulatory Review, (717) 214-8111.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on September 27, 2006, the Board submitted a copy of the notice of proposed rulemaking, published at 36 Pa.B. 6517, to IRRC and the Chairpersons of the House Tourism and Recreational Development Committee and the Senate Committee on Rules and Executive Nominations for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC and the Committees were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Board has considered all comments from IRRC, the House and Senate Committees and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on June 6, 2007, the final-form rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on June 7, 2007, and approved the final-form rulemaking.
Findings
The Board finds that:
(1) Public notice of intention to adopt these chapters was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) The final-form rulemaking is necessary and appropriate for the administration and enforcement of 4 Pa.C.S. Part II (relating to gaming).
Order
The Board, acting under 4 Pa.C.S. Part II, orders that:
(a) The regulations of the Board, 58 Pa. Code, are amended by deleting §§ 461.1--461.24 and 463.1--463.6 and by adding final regulations in §§ 461a.1--461a.26 and 463a.1--463a.7 to read as set forth in Annex A.
(Editor's Note: The addition of §§ 461a.26 and 463a.7 was not included in the proposed rulemaking published at 36 Pa.B. 6517.)
(b) The statement of policy in §§ 461a.1--461a.5 is renumbered as §§ 461b.1--461b.5.
(c) The Chairperson of the Board shall certify this order and Annex A and deposit them with the LRB as required by law.
(d) This order shall take effect upon publication in the Pennsylvania Bulletin.
THOMAS A. DECKER,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 37 Pa.B. 2909 (June 23, 2007).)
Fiscal Note: Fiscal Note 125-48 remains valid for the final adoption of the subject regulations.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart E. SLOT MACHINES AND ASSOCIATED EQUIPMENT
CHAPTER 461. (Reserved) §§ 461.1--461.24. (Reserved).
CHAPTER 461a. SLOT MACHINE TESTING AND CONTROL Sec.
461a.1. Definitions. 461a.2. Protocol requirements. 461a.3. Testing and approval generally. 461a.4. Submission for testing and approval. 461a.5. Slot machine conversions. 461a.6. Revocations and additional conditions. 461a.7. Slot machine minimum design standards. 461a.8. Gaming vouchers. 461a.9. Coupons. 461a.10. Automated gaming voucher and coupon redemption machines. 461a.11. Automated gaming voucher and coupon redemption machines: accounting controls. 461a.12. Progressive slot machines. 461a.13. Wide area progressive systems. 461a.14. Slot monitoring systems. 461a.15. Casino management systems. 461a.16. Player tracking systems. 461a.17. External bonusing systems. 461a.18. Cashless funds transfer systems. 461a.19. Remote system access. 461a.20. Server supported slot systems. 461a.21. Server based slot systems. 461a.22. Automated jackpot payout machines. 461a.23. Slot machines and associated equipment utilizing alterable storage media. 461a.24 Waivers. 461a.25. Disputes. 461a.26. Testing and software installation on the live gaming floor. § 461a.1. Definitions.
The following words and terms, when used in this subpart, have the following meanings, unless the context clearly indicates otherwise:
Asset number--A unique number assigned to a slot machine by a slot machine licensee for the purpose of tracking the slot machine while owned by the slot machine licensee.
Automated jackpot payout machine--The collective hardware, software, communications technology and other ancillary equipment used to facilitate the payment of a jackpot that is not totally and automatically paid directly from a slot machine.
Bonus award--An award of cash or credits to a randomly selected player that is not generated by the slot machine.
Cashless funds transfer system--The collective hardware, software, communications technology and other ancillary equipment used to facilitate the electronic transfer of cashable or noncashable credits to a patron at a slot machine.
Casino management system--The collective hardware, software, communications technology and other ancillary equipment used to collect, monitor, interpret, analyze, report and audit data with regard to activity at slot machines, inclusive of slot machine level accounting transactions, player tracking and productivity analysis.
Common carrier--An entity that transports persons or goods, and offers its services to the general public.
Conversion--A change or alteration to a slot machine that does not affect the manner or mode of play or operation of the slot machine.
Coupon--An instrument issued by a slot machine licensee under which cashable or noncashable slot machine credits are provided directly or indirectly to a patron with or without regard to the identity of the patron or the patron's level of gaming activity.
Coupon system--The collective hardware, software, communications technology and other ancillary equipment used to facilitate the issuance of coupons, the acceptance of a coupon by a slot machine or its redemption at an automated coupon redemption machine, cashiers' cage or other locations.
Currency cassette--A container that holds banknotes that are available for dispensing.
Double-up--An optional wager on a slot machine in which the player has a mathematically equal probability of winning or losing the wager.
Educational institution--A facility that teaches and certifies students in slot machine design, operation, repair or servicing.
External bonusing system--The collective hardware, software, communications technology and other ancillary equipment used in conjunction with slot machines to deliver randomly selected player incentives (bonus awards) to active slot machine players and to effect the accurate metering of the bonus award event on the slot machine.
Finance department--The department that is responsible for the management of the financial and accounting activities relating to slot machines being utilized on an approved gaming floor.
Gaming day--A period of time not to exceed 24 hours corresponding to the beginning and ending times of gaming activities for the purpose of accounting reports and determination by the central control computer system of gross terminal revenue.
Gaming voucher--An instrument that upon insertion into a slot machine bill validator entitles the patron inserting the gaming voucher to cashable or noncashable credits on a slot machine corresponding to the value printed on the gaming voucher.
Gaming voucher system--The collective hardware, software, communications technology and other ancillary equipment used to facilitate the issuance of gaming vouchers and the redemption of gaming vouchers by slot machines, automated gaming voucher redemption machines, the cashiers' cage or in other locations.
Hand pay--The payment of credits that are not totally and automatically paid directly from a slot machine.
Manufacturer's par sheet--A document supplied by the manufacturer that shows payable information including, but not limited to, theoretical payout percentage, winning combinations, awards and reel strips.
Modification--A change or alteration in a slot machine or associated equipment that affects the manner or mode of play or operation of the slot machine or associated equipment.
(i) The term includes a change to control or graphics programs and to the theoretical hold percentage.
(ii) In the case of slot machines, the term does not include:
(A) A conversion.
(B) Replacement of one approved component with an identical component.
(iii) In the case of a wide area progressive system, the term includes a change in:
(A) A system name or theme.
(B) The odds to win the progressive payout.
(C) The reset amount.
(D) The rate at which a progressive award increases.
(E) The wager necessary to win the progressive payout.
Paytables--A selectable part of a slot machine program that contains slot machine characteristics including, but not limited to, the theoretical payback percentage, reel strips and awards.
Player tracking system--The collective hardware, software, communications technology and other ancillary equipment used to collect, monitor, interpret, analyze, authorize, report and audit data with regard to player activity generally or on an individual basis at slot machines.
Progressive awards--The award to be paid out when the event in the progressive game that triggered the award occurs.
Progressive payout--A slot machine payout that increases in a monetary amount based on the amounts wagered in a progressive system.
Pseudo random number generator--Software or hardware, or both, that ensures the randomness of slot machine outcomes.
Randomness--The observed unpredictability and absence of pattern in a set of elements or events that have definite probabilities of occurrence.
Reel strips--Components of a slot machine which display symbols.
Related systems--Systems which interface with slot machines or slot monitoring systems.
Remote system access--Connectivity to casino systems from outside the slot machine licensee's network.
Reset amount--The award value that a progressive award will revert to after the progressive award is paid out.
Skill--The application of intelligence and specific knowledge to achieve the best result when a slot machine offers a choice of options during game play.
Slot Lab--The Bureau of Gaming Laboratory Operations of the Board.
Slot machine bill validator--A component, made up of software and hardware that accepts and reads instruments such as bills, vouchers and coupons, into gaming devices such as slot machines and automated gaming voucher and coupon redemption machines.
Slot monitoring system--The collective hardware, software, communications technology and other ancillary equipment used to collect, monitor, interpret, analyze, authorize, report and audit data with regard to activity at slot machines, inclusive of slot machine meter readings, error conditions, slot machine security, accounting, player tracking and productivity analysis.
Slot operations department--The department that is responsible for all operations in any area of the licensed facility where slot machines are kept.
Slot system operator--The persons designated in a slot system agreement as being responsible for the operation and administration of a wide area progressive system.
Strategy choice--A particular play option on a slot machine that requires the use of skill to consistently achieve the best result.
Theme--A concept, subject matter and methodology of design of a slot machine.
Theoretical payout percentage--The aggregate awards expected to be paid out over one cycle of the game divided by the total number of combinations in the cycle of the game.
Wager--Placing at risk in a slot machine a coin, bill, ticket, gaming voucher, coupon or similar object or, upon payment of any consideration, including the use of cashless funds transfer systems and external bonusing systems.
Wide area progressive system--Linked progressive slot machines which are located at two or more licensed facilities.
§ 461a.2. Protocol requirements.
In accordance with section 1324 of the act (relating to protocol information), manufacturer licensees, manufacturer designee licensees and supplier licensees shall be required to enable all slot machines to communicate with the Department's central control computer for the purpose of transmitting auditing program information and activating and disabling slot machines.
§ 461a.3. Testing and approval generally.
(a) In accordance with section 1320 of the act (relating to slot machine testing and certification standards), the Board will determine the manner and scope in which slot machines and associated equipment are to be tested and approved prior to operation and use in a licensed facility in this Commonwealth.
(b) Slot machines and associated equipment operated in this Commonwealth must be approved by the Board.
(c) The Board has the authority to require one or more of the following procedures:
(1) An abbreviated testing and approval process in accordance with § 461a.4(g) (relating to submission for testing and approval).
(2) Testing and approval in accordance with § 461a.4(i).
(3) Utilize the services of a Board-approved private slot machine testing facility to conduct the testing until a slot machine testing facility is established by the Board.
(d) The general cost of establishment and operation of the Board's testing facility shall be paid by each manufacturer licensee on a quarterly basis based upon each manufacturer's proportion of the total number of products reviewed.
(e) The Board will require payment of all costs for the testing and approval of slot machines and associated equipment submitted by manufacturers or installed at a licensed facility based on the actual direct costs incurred by the Board.
(f) The Board will require a manufacturer licensee seeking approval of a slot machine or associated equipment to pay all costs of transportation, inspection and testing.
§ 461a.4. Submission for testing and approval.
(a) A slot machine or associated equipment identified in subsection (c) (collectively referred to as ''products'' or ''equipment, device or software''), or a modification thereto, may not be offered for sale, lease or distribution for ultimate use by a slot machine licensee in this Commonwealth unless a prototype identical in all mechanical, electrical, electronic and other respects has been tested and approved by the Board.
(b) When an applicant for, or holder of, a slot machine license develops software or a system that is functionally equivalent to any of the slot systems enumerated in subsection (c), that software or system shall be subject to the testing and approval process of this subpart to the same extent as if the software or system were developed by an applicant for, or holder of, a manufacturer license. Any reference in this subpart to the responsibilities of a manufacturer applies to an applicant for, or holder of, a slot machine license developing software or systems subject to testing and approval under this subpart.
(c) For the purposes of this section, slot machines and associated equipment that shall be submitted for testing and Board approval include:
(1) Slot machines, including bill validators and printers.
(2) Slot monitoring systems, to the extent the systems interface with slot machines and related systems.
(3) Casino management systems, to the extent the systems interface with slot machines and related systems.
(4) Player tracking systems, to the extent the systems interface with slot machines and related systems.
(5) Progressive systems, including wide area progressive systems.
(6) Gaming voucher systems.
(7) External bonusing systems.
(8) Cashless funds transfer systems.
(9) Machines performing gaming voucher, coupon or jackpot payout transactions.
(10) Coupon systems, to the extent the systems interface with slot machines and related systems.
(11) Other related systems.
(d) Slot machine prototypes and associated equipment prototypes, and modifications thereto, which are subject to testing and approval under this section will be evaluated by the Board for overall operational integrity and compliance with the act, this subpart and technical standards adopted by the Board and published in the Pennsylvania Bulletin and posted on the Board's website. In addition, with regard to any slot machine, or modification thereto, the Board will test for compatibility and compliance with the central control computer and protocol specifications approved by the Department including the ability to communicate with the central control computer for the purpose of transmitting auditing program information, real time information retrieval and activation and disabling of slot machines.
(e) The Board may prescribe a standard product submission checklist, together with supplemental product specific submission checklists for completion by an applicant for, or holder of, a manufacturer license, to facilitate the examination and analysis of a prototype or modification.
(f) The Board may require the chief engineer of the applicant for, or holder of, a manufacturer license or the engineer in charge of the division of the manufacturer responsible for producing the product submitted to attest that the product was properly and completely tested by the manufacturer prior to its submission to the Board.
(g) Notwithstanding the terms of subsection (d), the Board may utilize an abbreviated testing and approval process in accordance with section 1320 of the act (relating to slot machine testing and certification standards).
(h) When an applicant for, or holder of, a manufacturer license seeks to utilize, during the applicable period, the abbreviated testing and approval process for a slot machine prototype, associated equipment prototype or any modification thereto, it shall submit to the Slot Lab the following:
(1) A prototype of the equipment, device or software accompanied by a written request for abbreviated testing and approval which identifies the jurisdiction within the United States upon which the applicant for, or holder of, a manufacturer license proposes the Board rely (''named jurisdiction''). The manufacturer shall transport the equipment device or software at its own expense and deliver it to the offices of the Slot Lab.
(2) A certification executed by the chief engineer of the applicant for, or holder of, a manufacturer license or the engineer in charge of the division of the manufacturer responsible for producing the equipment, device or software submitted (''professional'') asserting that:
(i) The specific prototype or modification is identical in all mechanical, electrical, electronic and other respects to one which has been tested and approved by the testing facility operated by the named jurisdiction or a private testing facility on behalf of the named jurisdiction.
(ii) The manufacturer is licensed and in good standing in the named jurisdiction and that the subject product has all regulatory approvals prerequisite to sale or distribution in the named jurisdiction.
(iii) In the professional's opinion, the testing standards of the named jurisdiction are comprehensive and thorough and provide similar adequate safeguards as those required by this subpart.
(iv) In the professional's opinion, the equipment, device or software complies with the act, this subpart and technical standards adopted by the Board and published in the Pennsylvania Bulletin and posted on the Board's website including requirements related to the central control computer.
(3) An executed copy of a current product submission checklist, and any product specific supplemental submission checklists applicable to the submitted equipment, device or software unless a substantially similar checklist was filed with the named jurisdiction and is included in the submission package required by paragraph (4).
(4) Copies of the submission package, and amendments thereto, filed with the named jurisdiction, copies of any correspondence, review letters or approvals issued by the testing facility operated by the named jurisdiction or a private testing facility on behalf of the named jurisdiction and, as applicable, a copy of the final regulatory approval issued by the named jurisdiction.
(5) A disclosure that lists any conditions or limitations placed by the named jurisdiction on the operation or placement of the equipment, device or software at the time of approval or subsequently thereafter.
(6) A complete, comprehensive and technically accurate description of the manner in which the slot machine was tested for compatibility and compliance with the central control computer and protocol specifications approved by the Department including the ability to communicate with the central control computer for the purpose of transmitting auditing program information, real time information retrieval and activation and disabling of slot machines.
(7) Any hardware, software and other equipment, inclusive of technical support and maintenance applicable thereto, required by the Slot Lab to conduct the abbreviated testing and approval process contemplated by the act, this subpart and technical standards adopted by the Board and published in the Pennsylvania Bulletin and posted on the Board's website. The testing equipment and services required by this paragraph shall be provided at no cost to the Board.
(8) Additional documentation requested by the Board which is necessary to evaluate the slot machine, associated equipment or modification thereto.
(i) When an applicant for, or holder of, a manufacturer license seeks Board approval of a slot machine prototype, associated equipment prototype, or any modification thereto for which the abbreviated testing process in subsection (g) is not applicable, it shall submit to the Slot Lab the following:
(1) A prototype of the equipment, device or software accompanied by a written request for testing and approval. The manufacturer shall transport the equipment, device or software at its own expense and deliver it to the offices of the Board's Slot Lab in accordance with instructions provided.
(2) Certifications required under subsection (f) providing assurances from the manufacturer that the product was properly and completely tested and emulated by the manufacturer prior to its submission to the Board and that the product, device or software complies with the act, this subpart and technical standards adopted by the Board and published in the Pennsylvania Bulletin and posted on the Board's website, including applicable requirements related to the central control computer.
(3) An executed copy of a current product submission checklist, and any product specific supplemental submission checklists applicable to the submitted equipment, device or software.
(4) A complete, comprehensive and technically accurate description of the equipment, device or software, accompanied by applicable diagrams, schematics and specifications, together with documentation with regard to the manner in which the product was tested and emulated by the manufacturer prior to its submission to the Board.
(5) Any hardware, software and other equipment, inclusive of technical support and maintenance applicable thereto, required by the Slot Lab to conduct the testing and approval process contemplated by the act, this subpart and technical standards adopted by the Board and published in the Pennsylvania Bulletin and posted on the Board's website. The testing equipment and services required by this paragraph shall be provided at no cost to the Board.
(6) In the case of a slot machine prototype, the following additional information:
(i) A copy of all executable software, including data and graphics information, on electronically readable, unalterable media.
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