PROPOSED RULEMAKING
PENNSYLVANIA GAMING CONTROL BOARD
[ 58 PA. CODE CHS. 435a, 461a, 463a, 465a AND 501a ]
Employees; Slot Machines; Accounting and Internal Controls; and Compulsive and Problem Gambling
[39 Pa.B. 5018]
[Saturday, August 22, 2009]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(3), (5) and (7), 1321 and 1322 (relating to regulatory authority of the Board; additional licenses and permits and approval of agreements; and slot machine accounting controls and audits), proposes to amend Chapters 435a, 461a, 463a, 465a and 501a to read as set forth in Annex A.
Purpose of the Proposed Rulemaking
The proposed rulemaking contains a number of amendments that are designed to clarify various reporting requirements, add some additional flexibility and conform the Board's regulations to industry practice.
Explanation of Amendments to Chapters 435a, 461a, 463a, 465a and 501a
In § 435a.1 (relating to general provisions), subsection (i) has been amended by adding the phrase ''of a slot machine licensee'' after ''employee'' to clarify that the bar on wagering at a licensed facility does not apply to employees of vendors who work at the licensed facility if the employees are not required to obtain a gaming permit or nongaming registration.
Subsection (m) in § 461a.4 (relating to submission for testing and approval), has been amended to require that the notification of any known or suspected defect or malfunction in any slot machine or associated equipment be made to the Bureau of Gaming Laboratory Operations and the casino compliance representatives at the licensed facility instead of to the ''Board.'' Similarly, the Bureau of Gaming Laboratory Operations, not the Board, will provide the direction to the slot machine licensee regarding the continued operation of the slot machine or associated equipment.
A similar amendment has been made in subsection (o) in § 461a.8 (relating to gaming vouchers) which will require that the notification of any malfunction in a gaming voucher system be provided to the Bureau of Gaming Laboratory Operations and the casino compliance representatives at the licensed facility within 24 hours of the malfunction instead of being provided to the Board.
Sections 461a.7(y), 461a.10(b) and 461a.22(b) (relating to slot machine minimum design standards; automated gaming voucher and coupon redemption machines; and automated jackpot payout machines), have been amended to allow the Bureau of Gaming Operations to approve alternate sizes for the signs that are required on the top and front of these machines. This will allow slot machine licensees some additional flexibility concerning the signs to accommodate the particular location or design of these machines.
In § 461a.25 (relating to disputes), the phrase ''concerning the payment of alleged winnings'' has been deleted to broaden the application of this provision to any dispute between a patron and a slot machine licensee. This change recognizes the fact that the Board's casino compliance representatives work with patrons and the slot machine licensees to resolve a wide range of potential disputes.
In § 463a.5 (relating to slot machine master list), subsection (a) has been amended to replace ''Office'' with ''Bureau'' to reflect the name change from the Office of Gaming Operations to the Bureau of Gaming Operations.
In § 465a.2 (relating to internal control systems and audit protocols), a new subsection (a)(9) has been added which requires slot machine licensees to include procedures to ensure that their employees comply with the requirements in Chapter 435a (relating to employees) in their internal controls. This provision has been added to clarify that the slot machine licensees are expected to be proactive about having their employees comply with the various reporting requirements.
In § 465a.8 (relating to licensed facility), subsection (c) has been amended to allow the Bureau of Gaming Operations to designate additional doors which must be alarmed instead of just the emergency exits from the gaming floor. Because the design of each licensed facility is unique, this is needed to ensure both patron safety and for security reasons.
In § 465a.9 (relating to surveillance system; surveillance department control; surveillance department restrictions), subsection (c)(5)(iv) has been amended to require slot machine licensees to include photographs of individuals who are on the self-exclusion list in surveillance system's photo library. Most, if not all, of the slot machine licensees already do this so that their employees will be able to identify self-excluded individuals and prevent them from engaging in any gaming activities. Additionally, subsection (e)(7) has been amended to require that surveillance recordings be made of the entrances and exits to the main bank, vault and satellite cages in addition to the gaming floor, cashiers' cage and count room to monitor access to these sensitive areas.
In § 465a.15 (relating to cashiers' cage), subsection (c) has been revised to incorporate provisions for the use of computerized access systems for the double entry and exit system. As this technology has improved, more slot machine licensees are shifting away from keys and implementing electronic access systems.
In § 465a.16 (relating to accounting controls for the cashiers' cage) three changes have been made. First, the term ''slot cashier'' has been replaced with ''cage cashier'' in various subsections, since ''cage cashier'' is the more generally used term. Next, the issuance of gaming vouchers has been added as a function of cage cashiers. At some of the licensed facilities, patrons may request the cage cashier to issue a gaming voucher instead of cash as a matter of convenience. Lastly, the responsibility for the issuance, receipt and reconciliation of cash and gaming vouchers to and from automated bill breaker, automated gaming voucher and coupon redemption and automated jackpot payout machines, and preparation of related documentation has been moved from the list of responsibilities of cage cashiers to the list of responsibilities of main bank cashiers. This reflects current practice in the licensed facilities.
In § 465a.31 (relating to gaming day), the general language stating that the gaming day will be uniform and determined by the Board has been replaced with the actual time being used, which is 6 a.m. to 5:59.59 a.m.
In § 501a.5 (relating to signage requirements), subsection (a)(2) has been amended by replacing the requirement that the gambling problem toll free assistance message be posted within 50 feet of each ATM, cash dispensing or change machine in each facility with the requirement that the message be above or below the cash dispensing opening on all ATMs, automated gaming voucher and coupon redemption machines and any other machine that dispenses cash to patrons in the licensed facility. Having the information posted within 50 feet was not an effective way to provide this information to patrons.
Affected Parties
Slot machine licensees will be required to comply with the revised requirements contained in this rulemaking.
Fiscal Impact
Commonwealth
This proposed rulemaking will have no fiscal impact on the Board or other Commonwealth agencies.
Political Subdivisions
This proposed rulemaking will have no fiscal impact on political subdivisions of this Commonwealth.
Private Sector
Slot machine licensees may incur some slight costs to comply with the revised requirements. However, because most of these revisions simply clarify existing requirements or reflect current practices, the Board does not anticipate that slot machine licensees will experience any significant expense.
General Public
This proposed rulemaking will have no fiscal impact on the general public.
Paperwork requirements
This proposed rulemaking will not create or eliminate any paperwork requirements for slot machine licensees or the Board.
Effective Date
The proposed rulemaking will become effective upon final-form publication in the Pennsylvania Bulletin.
Public Comments
Interested persons are invited to submit written comments, suggestions or objections regarding the proposed rulemaking, within 30 days after the date of publication in the Pennsylvania Bulletin to Richard Sandusky, Director of Regulatory Review, Pennsylvania Gaming Control Board, P. O. Box 69060, Harrisburg, PA 17106-9060, Attention: Public Comment on Regulation #125-103.
Contact Person
The contact person for questions about this proposed rulemaking is Richard Sandusky, Director of Regulatory Review at (717) 214-8111.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on August 10, 2009, the Board submitted a copy of this proposed rulemaking and a copy of the Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Gaming Oversight Committee and the Senate Community, Economic and Recreational Development Committee. A copy of this material is available to the public upon request and is available on the Board's web site at www.pgcb.state.pa.us.
Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.
GREGORY C. FAJT,
ChairpersonFiscal Note: 125-103. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
CHAPTER 435A. EMPLOYEES
Subpart B. LICENSING, PERMITTING, CERTIFICATION AND REGISTRATION § 435a.1. General provisions.
* * * * * (i) A registrant or employee of a slot machine licensee who is not required to obtain a license or permit may not wager at the licensed facility in which the registrant or employee is employed.
* * * * *
Subpart E. SLOT MACHINES AND ASSOCIATED EQUIPMENT
CHAPTER 461a. SLOT MACHINE TESTING AND CONTROL § 461a.4. Submission for testing and approval.
* * * * * (m) A slot machine licensee shall immediately notify the [Board] Bureau of Gaming Laboratory Operations and the casino compliance representatives at the licensed facility of any known or suspected defect or malfunction in any slot machine or associated equipment installed in its licensed facility. The slot machine licensee shall comply with instructions issued by the [Board] Bureau of Gaming Laboratory Operations with regard to the continued operation of the slot machine or associated equipment.
* * * * * § 461a.7. Slot machine minimum design standards.
* * * * * (y) A slot machine on the gaming floor must have a label on the top of the slot machine and on the front of the slot machine near the bill validator that displays the asset number and the gaming floor plan location number of the slot machine. The labels must have white lettering on a black background or other color combination approved by the [Office] Bureau of Gaming Operations, may not be easily removed and must be easily visible to the surveillance department. The label on the top of the slot machine must be at least 1.5 inches by 5.5 inches and the label on the front of the slot machine must be a least 1 inch by 2.5 inches or other sizes approved by the Bureau of Gaming Operations.
§ 461a.8. Gaming vouchers.
* * * * * (o) A gaming voucher system must be configured to alert a slot machine licensee to any malfunction. Following a malfunction of a system, a slot machine licensee shall notify the [Board] Bureau of Gaming Laboratory Operations and the casino compliance representatives at the licensed facility within 24 hours of the malfunction and may not utilize the system until the malfunction has been successfully eliminated. Notwithstanding the foregoing, the [Board] Bureau of Gaming Laboratory Operations may permit a slot machine licensee to utilize the system prior to its being successfully restored, for a period not to exceed 72 hours, provided that:
* * * * * § 461a.10. Automated gaming voucher and coupon redemption machines.
* * * * * (b) Automated gaming voucher and coupon redemption machines may be located on or proximate to the gaming floor of a licensed facility and must be subject to surveillance coverage under § 465a.9 (relating to surveillance system; surveillance department control; surveillance department restrictions). Each automated gaming voucher and coupon redemption machine must have a label on the top of the automated gaming voucher and coupon redemption machine and on the front of the automated gaming voucher and coupon redemption machine that displays the asset number of the automated gaming voucher and coupon redemption machine. The labels must have white lettering on a black background or other color combination approved by the [Office] Bureau of Gaming Operations and may not be easily removed. The label on the top of the automated gaming voucher and coupon redemption machine must be at least 1.5 inches by 5.5 inches and the label on the front of the automated gaming voucher and coupon redemption machine must be at least 1 inch by 2.5 inches or other sizes approved by the Bureau of Gaming Operations.
* * * * * § 461a.22. Automated jackpot payout machines.
* * * * * (b) An automated jackpot payout machine must have a label on the top of the automated jackpot payout machine and on the front of the automated jackpot payout machine that displays the asset number of the automated jackpot payout machine. The labels must have white lettering on a black background or other color combination approved by the [Office] Bureau of Gaming Operations, may not be easily removed and must be easily visible to the surveillance department. The label on the top of the automated jackpot payout machine must be at least 1.5 inches by 5.5 inches and the label on the front of the automated jackpot payout machine must be at least 1 inch by 2.5 inches or other sizes approved by the Bureau of Gaming Operations.
* * * * * § 461a.25. Disputes.
(a) If a dispute arises with a patron [concerning payment of alleged winnings], the slot machine licensee shall attempt to resolve the dispute. If the dispute can not be resolved, the slot machine licensee shall notify the casino compliance representatives at the licensed facility who will attempt to resolve the dispute. If the dispute is not resolved, the casino compliance representative will provide the patron with a Board Patron Dispute/Complaint Form and Instructions for Submitting a Patron Dispute/Complaint and assist the patron in completing the Board Patron Dispute/Complaint Form.
* * * * *
CHAPTER 463a. POSSESSION OF SLOT MACHINES § 463a.5. Slot machine master lists.
(a) Prior to the commencement of operations at a licensed facility, a slot machine licensee shall file the following with the Bureau of Gaming Laboratory Operations and the [Office] Bureau of Gaming Operations, in an electronic format approved by the Bureau of Gaming Laboratory Operations:
* * * * *
CHAPTER 465a. ACCOUNTING AND INTERNAL CONTROLS § 465a.2. Internal control systems and audit protocols.
(a) An applicant for, or holder of, a slot machine license shall submit to the Board and the Department a written description of its initial system of administrative and accounting procedures, including its internal control systems and audit protocols (collectively referred to as its ''internal controls'') at least 90 days before gaming operations are to commence. A written system of internal controls must include:
* * * * * (9) Procedures to ensure that the slot machine licensee's employees comply with Chapter 435a (relating to employees).
(10) Other items the Board may request in writing to be included in the internal controls.
* * * * * § 465a.8. Licensed facility.
* * * * * (c) Emergency exits from the gaming floor and any other doors designated by the Bureau of Gaming Operations must be equipped with an audible alarm system that produces a loud, distinguishable warning sound, discernable in the vicinity of the exit, whenever the emergency door is opened. The alarm system shall be designed to require deactivation and reset by means of a key. The key is to be maintained by the security department.
* * * * * § 465a.9. Surveillance system; surveillance department control; surveillance department restrictions.
* * * * * (c) The surveillance system required in this section must include the following:
* * * * * (5) One or more monitoring rooms in the licensed facility which shall be staffed by employees of the slot machine licensee's surveillance department who shall at all times monitor the activities enumerated in paragraph (1). Each monitoring room shall be equipped with or serviced by:
* * * * * (iv) An updated photo library, consisting of photographs that are no more than 4 years old, of all current employees of the slot machine licensee[, which] and photographs of individuals who are on the Board's self-exclusion list. This photo library shall be available to the Board and the State Police.
* * * * * (e) A slot machine licensee's surveillance system must continuously record, during the times and in the manner indicated in this subsection, transmissions from cameras used to observe the following locations, persons, activities or transactions:
* * * * * (7) The entrances and exits to the licensed facility, the gaming floor, the main bank, the vault, the cashiers' cage and any satellite cages and the count room.
* * * * * § 465a.15. Cashiers' cage.
* * * * * (c) The cashiers' cage must be designed and constructed to provide maximum security for the materials housed therein and the activities performed therein. Its design and construction must include:
* * * * * (3) Separate manual locks on each door of the double door entry and exit system, the keys to which must be different from each other. If a Board-approved computerized access system is used, the manual locks on each door shall be designed to function when the computerized access system is not functioning.
(4) If a Board-approved computerized access system is used, access for the first door shall be controlled by the security department or surveillance department and access for the second door shall be controlled by the cashiers' cage.
* * * * * § 465a.16. Accounting controls for the cashiers' cage.
(a) The assets for which [slot] cage cashiers are responsible shall be maintained on an imprest basis. At the end of each shift, [slot] cage cashiers assigned to the outgoing shift shall record on a cashiers' count sheet the face value of each cage inventory item counted and the total of the opening and closing cage inventories and shall reconcile the total closing inventory with the total opening inventory. Each cashiers' count sheet shall be signed by the preparing cage cashier attesting to the accuracy of the information thereon.
(b) At the opening of every shift, in addition to the imprest funds normally maintained by [slot] cage cashiers, each slot machine licensee shall have in the cashiers' cage, a reserve cash bankroll sufficient to pay winning patrons.
(c) The cashiers' cage and any satellite cage shall be physically segregated by personnel and function as follows:
(1) [Slot] Cage cashiers shall operate with individual imprest inventories of cash and their functions include the following:
* * * * * (viii) The issuance of [cash to automated bill breaker, gaming voucher, coupon redemption and jackpot payout machines in exchange for proper documentation] gaming vouchers.
(2) Main bank cashier functions include the following:
(i) The receipt of cash, cash equivalents, gaming vouchers, jackpot payout slips and personal checks received for gaming purposes from [slot] cage cashiers in exchange for cash.
* * * * * (iii) The receipt of personal checks accepted for gaming purposes from [slot] cage cashiers for deposit.
* * * * * (vii) The receipt from [slot] cage cashiers of documentation with signatures thereon, required to be prepared for the segregation of functions in the cashiers' cage.
* * * * * (x) The issuance, receipt and reconciliation of cash and gaming vouchers to and from automated bill breaker, automated gaming voucher and coupon redemption and automated jackpot payout machines and preparation of related documentation.
(d) At the end of the gaming day a copy of the cage cashiers' count sheets and related documentation shall be forwarded to the accounting department for agreement of opening and closing inventories, agreement of amounts thereon to other forms, records and documents required by this subpart and recording of transactions.
§ 465a.31. Gaming day.
(a) The beginning and ending times of the gaming day will be [determined by the Board and will be uniform for all slot machine licensees for the purposes of determining gross terminal revenue] 6:00 a.m. to 5:59.59 a.m.
* * * * *
Subpart I. COMPULSIVE AND PROBLEM GAMBLING
CHAPTER 501a. COMPULSIVE AND PROBLEM GAMBLING REQUIREMENTS § 501a.5. Signage requirements.
(a) Under section 1509(c) of the act (relating to compulsive and problem gambling program), each slot machine licensee shall post signs that include a statement that is similar to the following: ''If you or someone you know has a gambling problem, help is available. Call (toll-free telephone number).'' The complete text of the sign shall be submitted for approval to the Director of OCPG utilizing the process contained in § 501a.2(g)(relating to compulsive and problem gambling plan). The signs shall be prominently posted at the following locations:
* * * * * (2) [Within 50 feet of each ATM, cash dispensing or change machine in each facility] Above or below the cash dispensing opening on all ATMs, automated gaming voucher and coupon redemption machines and other machines that dispense cash to patrons in the licensed facility.
* * * * *
[Pa.B. Doc. No. 09-1559. Filed for public inspection August 21, 2009, 9:00 a.m.]
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