RULES AND REGULATIONS
PENNSYLVANIA GAMING CONTROL BOARD
[ 58 PA. CODE CHS. 523 AND 603a ]
Table Game Equipment
[42 Pa.B. 2649]
[Saturday, May 12, 2012]The Pennsylvania Gaming Control Board (Board), under the 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. §§ 13A02(1) and (5) and 13A25(b) (relating to regulatory authority; and table game accounting controls and audit protocols), rescinds Chapter 523 and adopts Chapter 603a (relating to table game equipment) to read as set forth in Annex A.
Purpose of the Final-Form Rulemaking
Under 4 Pa.C.S. § 13A03 (relating to temporary table game regulations), the Board adopted temporary regulations in Chapter 523. With this final-form rulemaking, the Board is replacing the temporary regulations with the permanent regulations in Chapter 603a.
Explanation of Chapter 603a
Chapter 603a contains standards and procedures regarding the equipment necessary to conduct table games at a licensed facility.
Section 603a.1 (relating to definitions) adds definitions for a number of terms used in this chapter.
Section 603a.2 (relating to gaming chips; physical characteristics applicable to all gaming chips, issuance and use, promotional nongaming chips) sets forth the general design requirements for all gaming chips and the process for the review of the designs by the Bureau of Gaming Operations (BGO) and approval by the Executive Director.
Sections 603a.3, 603a.4, 603a.6 and 603a.7 establish the detailed specifications for each type of chip utilized in gaming.
Sections 603a.5 and 603a.8 (relating to Roulette chips; permitted uses, inventory and impressment; and additional sets of gaming chips; removal from active use) address the use of Roulette chips, the related inventory requirements and the requirements for back-up sets of value and Roulette chips.
Section 603a.9 (relating to plaques; issuance and use, denominations and physical characteristics) contains the requirements for the design and use of plaques.
Sections 603a.10 and 603a.11 (relating to permissible wagering; exchange and redemption of gaming chips and plaques; and receipt of gaming chips or plaques from a manufacturer or supplier; inventory, security, storage and destruction of chips and plaques) specify the types of permissible wagering instruments and the procedures for the redemption of chips and plaques as well as the requirements for the receipt, storage, distribution, inventory and destruction of chips and plaques.
Sections 603a.12, 603a.13, 603a.15, 603a.16, 603a.18 and 603a.19 set forth the requirements for the physical characteristics, storage, inspection and removal from use of dice, cards and Pai Gow tiles.
Sections 603a.14 and 603a.17 (relating to Sic Bo shaker security procedures; and dealing shoes; automated card shuffling devices) establish the minimum requirements for Sic Bo dice shakers, card dealing shoes and automated card shufflers.
Comment and Response Summary
Notice of proposed rulemaking was published at 41 Pa.B. 238 (January 8, 2011). During the comment period, the Board received comments from Chester Downs and Marina (Harrah's), Greenwood Gaming and Entertainment (Parx), Shuffle Master, The United States Playing Card Company (USPC) and a joint comment from SugarHouse HSP Gaming (SugarHouse) and Holdings Acquisition (Rivers). Additionally, on March 9, 2011, the Board received comments from the Independent Regulatory Review Commission (IRRC) on the proposed rulemaking.
General Comments
Detailed Explanation
IRRC commented that the regulations on table game equipment are very descriptive. IRRC requested that the Board provide a more detailed explanation for each section, how it was developed and why it is needed.
Prior to the passage of the act of January 7, 2010 (P. L. 1, No. 1) (Act 1), Board staff began the process of evaluating the requirements for table games. Board staff conducted onsite inspections of table game facilities in another gaming jurisdiction and reviewed the gaming regulations from Missouri, Mississippi, New Jersey and Michigan prior to promulgating temporary regulations on table games. The Board believes that the requirements in the final-form rulemaking reflect standards in the gaming industry, are consistent with the requirements and objectives of 4 Pa.C.S. Part II (relating to gaming) and are necessary for the protection of the public and the integrity of gaming.
§ 603a.2—General requirements for gaming and nongaming chips
This section contains the general requirements for gaming chips, which are the instruments used to wager at all table games, except the fully automated tables, within a licensed facility. The specific requirements for each type of gaming chip (value, Roulette, tournament or Poker rake) are listed in the subsequent sections.
Facilities are required to submit design schematics for each type of gaming and nongaming chip utilized to ensure that chips from each licensed facility are sufficiently dissimilar and contain the necessary security features.
§ 603a.3—Value chips
The requirements for value chips are necessary as value chips are casino currency, a cash equivalent, and their use in gaming is a component of the calculation for determining the gross table game revenue to the facility and thus the Commonwealth.
The denominations specified in subsection (a) are denominations used in the industry. If an operator would like to use an alternative denomination of value chip, such as the $2 value chip that was added to the temporary regulations at the request of a certificate holder, the operator need only submit an updated design schematic depicting the new denomination chip.
Standardizing the color of value chips is, in part, a patron protection issue. A patron should have some assurance that when playing a black chip at one facility, that it has the same value as a black chip in another facility. The colors selected by the Board are also consistent with those used throughout the industry, so a black chip in this Commonwealth that has a cash value of $100, also has a cash value of $100 in other gaming jurisdictions.
Edge spots are a security feature which makes the chips more difficult to counterfeit. They also aid dealers and cage cashiers in recognizing chips that don't belong when stacked together and assist surveillance in determining which chips were played by each patron and which chips were paid or collected by the dealer, which is necessary in resolving patron disputes or in determining if theft occurred and the value of the theft.
Edge spots are also necessary to aid in distinguishing the same denomination value chip used by each certificate holder as an operator's outstanding value chips represent the facility's debt owed to patrons in legal possession of those chips. The use of an issuing facility's value chips at another facility also affects both facilities' unredeemed chip liability.
In addition to edge spots, on higher denomination value chips, which are more frequently counterfeited than the lower denomination chips, the Board requires three additional measures intended to prevent counterfeiting. These additional security measures are designed and developed by the chip manufacturers and are specified on the schematics of chips that are submitted to the Board. Table game personnel are trained on what security features are on the chips, which makes counterfeit chips easier to recognize.
The size of the chips is a uniform diameter that is standard in the industry. Table inventory containers that hold the chips at each table and the racks in the cage are specifically designed to hold those sizes of chips.
The Board requires that design schematics be submitted by each facility in part to ensure that one property's value chips are sufficiently different from the same denomination value chips used at other facilities and to identify the security features that the facility/chip manufacturer have selected for use on the chip.
§§ 603a.4 and 603a.5—Roulette chips
In § 603a.4 (relating to Roulette chips; physical characteristics), the requirement that each table have a different symbol or insert on the chips is a theft prevention tool. Roulette chips do not have an assigned denomination. The chips at one table therefore need to be distinguishable from the same color Roulette chips used at another table so that the chips at one table aren't removed and cashed out for a higher value at another Roulette table.
Regarding the inventory requirement, operators typically do a visual inventory of Roulette chips at each table at least once a day to assess whether chips have gone missing, which is an indication that theft may have occurred at another table or is about to occur. Operators may temporarily remove a specific color Roulette chip from use at all Roulette tables if there is an indication that the specific color chip is missing or may utilize the backup set of Roulette chips which are required under § 603a.8.
A physical inventory is required every 3 months to assess the volume of chips missing since the last inventory was conducted. Other jurisdictions require a physical count once a month; however, since operators are doing soft counts regularly, the Board was inclined to allow a physical count be done once every 3 months.
§ 603a.6—Tournament chips
Tournament chips, which are typically used in Poker tournaments, have a value associated with the prize structure of the tournament. An inventory is required to be done on tournament chips to ensure that chips from a previous tournament are not introduced into a subsequent tournament which is a disadvantage to other Poker players who all entered in with same amount of chips.
§ 603a.7—Poker rake chips
Poker rake chips are not standard in the industry but were established in this Commonwealth as a convenience to the facilities.
The revenue to the facility for a nonbanking Poker game (a game not played against the house) is the Poker rake, or the fee collected from each pot. Drop boxes, where the rake is deposited, get filled with an abundance $1 value chips and therefore need to be collected and replaced with empty or ''emergency'' drop boxes. Additional facility staff is required to conduct an emergency drop (drop procedures are addressed in § 465a.18 (relating to transportation of slot cash storage boxes and table game drop boxes to and from the gaming floor; storage)). To eliminate or reduce the need to conduct an emergency drop, the Board added the option of utilizing a Poker rake chip. Instead of dropping four $1 value chips into the drop box, the dealer can collect the $1 chips, drop a single $4 Poker rake chip into the drop box and place the four $1 value chips back into the table inventory container. Facilities are not obligated to use Poker rake chips.
§ 603a.8—Additional sets of chips
The Board requires backup sets for the more commonly used and counterfeited $100 and $500 value chips. This is required because if a facility begins receiving counterfeit value chips and there is no backup set, there is not an available remedy to a facility to expeditiously swap out the denominations of value chips that are more frequently used.
Properties that utilize RFID chips, however, may not be required to have a backup set of value chips. RFID chips contain a device in the chip which when placed on a sensor verifies that the chip is a valid value chip. Counterfeit chips are more quickly identified at the table since the RFID sensor does not read a counterfeit chip as a valid value chip at that facility.
§ 603a.9—Plaques
The requirements regarding plaques are necessary as plaques are a cash equivalent and their use in gaming is a component of the calculation for determining the gross table game revenue to the facility and thus the Commonwealth. Because they have such a high dollar value, plaques are designed to be larger wagering instruments, distinguished from value chips. The serial number, which is required to appear on the plaque, is intended to prevent counterfeiting and theft. If a patron attempts to redeem a plaque, the facility will verify that the plaque is valid and had been issued to a patron by checking the serial number. Conversely, if plaques have been stolen, a facility can flag the serial numbers in their accounting system, preventing a high-dollar loss to the property.
§ 603a.10—Use of gaming chips
Section 603a.10 provides the basic guidelines for the use of chips and plaques in the licensed facility. Subsection (b) is required because chips that are not in active use cannot be played at the tables. If there are incidents of counterfeiting and theft, chips may have been removed from active use and their redemption at the cage would be required to verify the validity of the value chips or plaques by checking the additional security features (anticounterfeiting measures) on the value chips or plaques.
The provision prohibiting certificate holders from redeeming chips from any nonpatron source is intended to prevent money laundering.
The redemption of Roulette chips is limited to only the table in which the patron bought in. This is required because Roulette chips do not have assigned denominations. Their value is associated with their marker button at each table. For example, a patron who bought in for $100 would have 20 Roulette chips worth $5 each. Another patron at the same table could buy in for $1,000 which would make each of the 20 chips worth $50. Cashing out the same color Roulette chips at other tables affects the table win and may also constitute patron theft if a patron buys in at one table, at $5 a chip for example, and cashes out at another table for $50 a chip.
The Board also limits the redemption of value chips and plaques to only those chips that are issued by the certificate holder except in very limited circumstances. Although a few other jurisdictions do allow for acceptance of other facility's chips, the Board decided not to allow the practice in this Commonwealth. There are several reasons for this requirement. Because the facilities are spread throughout this Commonwealth, unlike other jurisdictions where the facilities are centrally located, operators are not familiar with the chips from every other property and their security features. Allowing properties to cash each other's value chips puts all properties at greater risk of receiving counterfeit chips. Additionally, accepting another facility's chips has accounting implications and affects both properties' unredeemed liability.
§ 603a.11—Inventory control requirements for chips and plaques
Section 603a.11 addresses the inventory control requirements for the acceptance and movement of chips and plaques. Wagering in the licensed facility is conducted with chips, plaques or an electronic version thereof and their use in gaming directly impacts the revenues of the facility and thus the Commonwealth.
Value chips and plaques are a cash equivalent and an asset of the licensee. The finance department at each facility is tasked with safeguarding those assets and maintaining reliable financial records, accounts and reports. The only way to establish and maintain reliable financial records is to establish a system of inventory controls.
The inventory controls in this final-form rulemaking require the participation of two different departments for the acceptance of gaming chips from the manufacturer and for gaining access to storage areas where chips are held. This segregation of duties reduces the likelihood of collusion and theft as it is more difficult for a person to perpetuate a fraud and also have the means of concealing the fraud if two persons from two different departments are involved.
Tight controls are also required for the destruction of chips and plaques since chips and plaques that are scheduled to be destroyed are retired from the facility's records and are no longer considered an asset of the licensee. Reintroduction of those chips or plaques skews the licensee's outstanding liability.
§§ 603a.12, 603a.15 and 603a.18—Physical characteristics of cards, dice and tiles
The requirements for the physical characteristics of cards, dice and tiles in the final-form rulemaking are consistent with the standards in the industry and are intended to reduce the likelihood of theft, cheating and collusion, protect patrons participating in table games and safeguard the revenues to the facility and thus the Commonwealth.
Logos, for instance, break up the design on the backs of the cards so the eye, and surveillance, can more easily detect if cards are not being dealt from the top of the deck, which is an indication of cheating, theft and dealer collusion with a player.
Cheating at a table game affects not only the operator but other patrons participating in the game. For example, if a pair of weighted dice are introduced into a Craps game, those weighted dice are more likely to roll a specific combination of numbers, which skews the randomness of the roll. That provides a wagering advantage to a patron who is aware that the dice are weighted but is a disadvantage to the certificate holder who pays out for winning wagers and to every other player at the table who didn't wager on the specific combination of numbers.
Logos, colors, symbols and serial numbers are game protection/security features that are intended to make unapproved table game equipment more difficult to introduce into a game and easier to detect. The standards specified also provide a basis of comparison when approved equipment has been tampered with.
§§ 603a.13, 603a.16 and 603a.19—Inventory control requirements for cards, dice and tiles
The requirements in these sections are designed to ensure that equipment used in table games is accounted for from the time it is brought into the licensed facility until the time it is destroyed or canceled. This is necessary, for audit and investigation purposes, to reconstruct the trail of every person who had access to or took possession of the equipment. An audit trail may also be necessary in cases of criminal prosecution for cheating and theft.
Inventory control requirements for table game equipment are also a game protection issue. Equipment that is removed from a facility, which has not been canceled, has value.
A deck of cards, for instance, that has been taken from a facility can have a drastic impact on table game revenue if reintroduced, with the participation of a dealer, into a game. If a player knows which card or cards are coming out of the dealing shoe, the player can wager accordingly at a significant loss to the facility and thus the Commonwealth.
The inventory controls in this final-form rulemaking also require the participation of two different departments for the acceptance of equipment from the manufacturer and for gaining access to storage areas where the equipment is held. This ensures segregation of duties and reduces the likelihood of collusion and theft as it is more difficult for a person to perpetuate a fraud and also have the means of concealing the fraud if two persons from two different departments are involved.
§ 603a.14—Sic Bo shakers
The requirements of Sic Bo shakers in § 603a.14 are also necessary for game protection. The roll of the dice in Sic Bo determines the winners. Operators are therefore required to store Sic Bo shakers in secure locations and inspect the shakers prior to their use in gaming to ensure that the shakers haven't been tampered with. Like weighted dice introduced in Craps, a Sic Bo shaker that has been tampered with may affect the randomness of the roll of the dice and thus the winners of the game.
§ 603a.17—Dealing shoes
Cards that are shown to a player by moving a card upward in the dealing shoe before the card is dealt or hiding high-value cards below the base plate of a dealing shoe until dealt to a specific player all provide an unfair advantage to a particular player or group of players. The design specifications for dealing shoes are intended to prevent cheating and theft and this type of dealer collusion.
Approval Process
IRRC commented that most of the sections require that the operators obtain approval for equipment from the BGO but do not specify how that approval is obtained. IRRC suggested adding the submission and approval process or a cross reference to where the process may be found.
In the final-form rulemaking, the Board amended the requirements to state that the operators submit information to the BGO for Executive Director approval. Additionally, throughout the final-form rulemaking, the cross reference to the submission and approval process in § 601a.10 (relating to approval of table game layouts, signage and equipment) was added.
Supervisory Levels
Throughout this final-form rulemaking, certain actions are required to be performed by an assistant table game shift manager or above or pit managers or above. SugarHouse/Rivers commented that lowering the supervisory level required, so the assistant table game shift manager functions may be done by a pit manager and pit manager functions may be done by floorpersons, will provide additional flexibility and since each of these persons are credentialed at the same level, the integrity of gaming will not be compromised.
This is a key control and accountability issue not a credentialing issue. Reducing the level of supervisor required increases the number of persons who have access to secure areas where inventory is controlled and maintained. The Board believes that assistant table game shift managers or above are the only persons who should have access to table game equipment storage areas as they are the ones responsible for table game equipment in the licensed facility. Additionally, pit managers are tasked with securing table game equipment in the locked pit stand for use during the gaming day. This was done in part to ensure that floorpersons, who are the first level supervisors, are consistently watching the play at the tables, which would not be possible if the floorpersons are leaving their assigned games to access the pit stands. Additionally, the Board has a mechanism in place for the approval of alternative staffing plans in § 465a.35(h) (relating to personnel assigned to the operation and conduct of table games).
§ 603a.1—Definitions
Parx commented that defining a nonvalue chip as ''Roulette chip'' unnecessarily limits the facility's ability to use nonvalue chips at other games including Sic Bo (in Chapter 625a) and Big Six Wheel (in Chapter 619a). Parx suggested changing the term back to ''nonvalue chip,'' which is how it appeared in the temporary regulations. Parx provided similar comments to §§ 603a.4, 603a.5 and 603a.10.
The Board specifically designated that nonvalue chips be used in the game of Roulette. Unlike Roulette tables, Sic Bo and Big Six Wheel tables are not designed to have both an inventory of value chips and nonvalue chips on the table. Therefore, if an operator wished to offer Sic Bo or Big Six Wheel using nonvalue chips, the facility can file a petition with the Board explaining how wagering would be conducted on these tables ensuring that each player had a different symbol nonvalue chip, how the nonvalue chips would be secured on the table, how the nonvalue chips used at Big Six Wheel or Sic Bo would be distinguished from the nonvalue chips used in Roulette and how the facility would ensure that the nonvalue chips from Roulette do not end up on a Sic Bo or Big Six table or vice versa. This is particularly important since the movement of nonvalue chips from one table to another compromises the integrity of the game and the revenues to the facility and thus the Commonwealth.
IRRC commented that the term ''anticounterfeiting measure'' is used throughout the chapter and recommended adding a definition. The regulated community, chip manufacturers in particular, develop their own anticounterfeiting measures which they select and specify on their design schematics that are submitted to the BGO. While the Board appreciates the suggestion, the Board is not inclined to specify what anticounterfeiting measures are or which ones are selected for use on the chips utilized in the licensed facilities.
IRRC also suggested that the Board define the terms ''impressment'' and ''plaque.'' The Board added the definitions of the terms ''impressment'' and ''impress,'' both of which are used in § 603a.5. The definition of ''plaque,'' which is used throughout Subpart K (relating table games), was included in Chapter 601a (relating to general table game provisions), which contains the definitions applicable to the chapters on table games.
§ 603a.3—Value chips; denominations and physical characteristics
Subsection (c) specifies the color for each denomination of value chip. Parx commented that the $1 white chips have the potential of looking dirty over time and requested the flexibility to use off-white chips instead.
When the temporary regulations were promulgated, each chip manufacturer submitted sample color disk sets to the BGO. Based on the colors that were submitted in the sample sets, the Board decided that it was not necessary to specify the permissible color spectrums or hues for each denomination of value chip but left it to the discretion of the operator to select a shade. Several operators did submit design schematics with off-white $1 chips which were subsequently approved for use by the Board's Executive Director.
In subsection (d)(3), which requires that the value chip contain the city in which the facility is located, Parx requested to use the county instead of the city. The Board agrees and has added that the facility may use either the county or city on the value chips.
Subsection (j) requires that value chips with a denomination of $1,000 or more be 1 11/16 inch. Parx commented that the larger chips are more difficult to handle and don't fit in standard table inventory containers. Parx therefore requested that the requirement for larger chips be increased to any chip over $5,000. The Board agrees and now allows the $1,000 chip to be either 1 9/16 inch or 1 11/16 inch.
Subsection (k) requires that value chips over $25 contain at least three anticounterfeiting measures. Harrah's requested to require only two anticounterfeiting measures on chips over $25.
It is more difficult to counterfeit chips that have multiple security features. It has been the Board's experience to date that three anticounterfeiting measures, which is the requirement in other gaming jurisdictions as well, are necessary on higher denomination value chips as they are more frequently counterfeited; however, the Board believes that the monetary threshold can be raised from $25 to $100. The final-form rulemaking requires $25 chips to have only one anticounterfeiting measure instead of three, which is consistent with the number of anticounterfeiting measures required for lower denominations of value chips.
§ 603a.5—Roulette chips; permitted uses, inventory and impressment
In subsection (a), a certificate holder or employee thereof may not allow a patron to remove Roulette chips from the Roulette table at which they were issued. SugarHouse/Rivers stated that the operator cannot guarantee that Roulette chips wouldn't be removed from the table and suggested adding the word ''knowingly.'' The Board has adopted the suggested language.
Subsection (c) requires that the Roulette inventory or impressment be done once every month. Parx believes that since both tournament chips and Roulette chips have no cash value, the impressment requirements for Roulette chips should more closely match that of the tournament chips. Additionally, Harrah's believes that an impressment once a quarter should be sufficient.
The Board is aware of and commends the operators for conducting an inventory assessment on a per shift or pre- gaming day basis to ensure that the Roulette chips on each gaming table are present, as chips removed from one table that are played and cashed in at another table compromises the integrity of the game and the revenues to the facility and thus the Commonwealth. The Board has therefore adopted the suggestions, in part. The physical inventory (impressment) must now be conducted once every 3 months instead of once a month.
While the Board does agree that both tournament chips and Roulette chips have no cash value, they are different in that Roulette chips do not have a stated denomination and are more frequently taken by patrons for use at other tables and exchanged for greater amounts. Tournament chips are what their stated denomination says they are but only have a value associated with a specific prize structure for a tournament. For example, the winner of a tournament may have 100,000 in tournament chips which equates to a top prize for that tournament of $10,000. The Board is therefore still requiring that a physical inventory be done on the Roulette chips but only every 3 months. The Board also deleted the specific impressment procedure which may now be conducted in accordance with the certificate holder's internal controls.
Subsection (e) requires that discrepancies in the impressment of each Roulette table be reported to the onsite casino compliance representatives (CCR). Harrah's believes that it is unnecessary to report discrepancies by table. The Board disagrees. Each Roulette table has an impress with Roulette chips that contain a unique design, insert or symbol that are distinguished from the Roulette chips at every other Roulette table in the licensed facility. The inventory shall therefore be done by table.
§ 603a.6—Tournament chips
Subsection (b) requires the words ''Tournament'' and ''no cash value'' to be imprinted on each tournament chip. Harrah's commented that both are unnecessary. The Board believes that for patron protection, both are required. Patrons who may come in contact with a tournament chip would need to what it's used for and that despite the denomination that is imprinted on it, the chip does not have a value.
Subsection (d) requires that an inventory of the tournament chips be conducted after each tournament. Harrah's commented that because of the number of tournaments it does not make sense to require that an inventory be done after each tournament.
Tournament chips, which are typically used for Poker tournaments, have a value associated with the prize structure of the tournament. The introduction of chips from previous Poker tournaments into subsequent tournaments provides a disadvantage to other Poker players who all entered the tournament with same amount of chips.
Unlike Roulette chips, which operators typically perform a visual inventory at each table several times a day to assess whether chips are missing, there is not a similar inspection process done by operators during a tournament. The only way to assess whether chips are missing from a tournament is to conduct an inventory of those chips after the tournament. If chips are missing, and the inventory is performed only once every 3 months, there would not be an opportunity to investigate the circumstances as to why chips are missing as surveillance is only required to be maintained for a period of 7 days. The Board believes it is more cost effective to require an inventory be done after each tournament rather than require that surveillance be maintained for longer periods of time. The Board also does not believe this is an onerous burden as conducting an inventory of tournament chips typically takes less than 1 hour to perform. The Board did however amend the requirement by adding subsection (e) which states that only discrepancies in the inventory are now required to be reported to the onsite CCR.
§ 603a.8—Additional sets of gaming chips; removal from active use
Subsection (a) of the proposed rulemaking required each facility to obtain a backup set of chips for the $25, $100 and $500 value chips. Parx believes that the $25 denomination is too low to require a back-up set and recommends requiring back-up sets beginning at the $100 level. It has been the Board's experience to date that requiring a back-up set of $25 value chips is no longer necessary and will only require a back-up set for the $100 and $500 value chips. To reflect the change made in subsection (a), subsection (d)(1) was also increased to the $100 threshold.
IRRC commented that proposed subsections (c)—(f) address the procedures to be followed when counterfeit chips are discovered and suggested moving into another section. For organizational purposes, subsection (h) was moved into subsection (c). Subsection (c) was then moved into subsection (g). Final-form subsections (d)—(g) address the use of the additional/backup sets of chips which may be necessary not only when counterfeit chips are received, but also if a specific color and design of Roulette chip is missing from a table, or during the normal course of operations. Since this section addresses the use of the back-up sets, the subsections will remain in this section. The Board did, however, add language to the heading indicating that the section now addresses additional sets of gaming chips and their removal from active use.
§ 603a.10—Permissible wagering; exchange and redemption of gaming chips and plaques
Subsection (a) specified the permissible forms of wagering and limited it to gaming chips and plaques. Shuffle Master commented that the electronic wagering credits should be included in the list of wagers. The Board agrees and added electronic wagering credits, gaming vouchers and other wagering instruments approved by the Board.
Subsection (c)(2) requires that gaming chips and plaques be issued to patrons at the gaming table, the Poker room cage or by chip runners to patrons seated at a Poker table. Parx requested to issue value chips from the main cage or satellite cage.
There are several reasons why value chips should be issued at the table instead of the cage except for players buying in at a nonbanking Poker table. There is no purpose for a player who is playing a banked table game (playing against the house) to obtain chips from a cage cashier. It affects the accuracy of player rating if a facility does not know how much players bought in for, it is more difficult to identify discrepancies in the cashier's float and it may facilitate money laundering having that option available. The reason it is allowed in the Poker room is because unlike tables at banked games, the Poker tables do not have a drop box to secure cash received from the patron in exchange for chips. The dealer's inventory is stagnant so cash received from a player to buy into a Poker game is retained in the inventory in exchange for the value of chips that were paid to the patron. In the limited area of Poker, the Board therefore decided to allow the buy-in at the Poker cage or from a chip runner.
Subsection (h) allows the certificate holder to demand that a person in possession of a gaming chip surrender the gaming chip or plaque for redemption. IRRC asked under what circumstances a certificate holder would demand redemption and how the provision would be implemented if the patron didn't comply.
Gaming chips are the property of the certificate holder and are evidence of a debt that is owed to a person legally in possession of the gaming chip. The certificate holder therefore has the authority to demand that a patron redeem those gaming chips. There are several instances in which a facility may demand that gaming chips be redeemed including if the facility is replacing an existing set of chips with a new or back-up set or when a patron owes on an issued a Counter Check. Facilities may ask the patron to pay off the Counter Check with a portion of the chips in the patron's possession. There are no specific implementation procedures as this provision merely allows operators to demand that the chips be exchanged for the debt that is legally owed to the patron.
Subsection (o) requires operators to post a sign at each cage stating that the gaming chips or plaques issued by another licensed facility may not be used, exchanged or redeemed in this licensed facility. Harrah's does not believe it is necessary and recommends deleting this language. The Board believes that this is a patron protection issue and that patrons need to be notified that operators are not permitted to accept chips from other facilities. The cage was the most logical place to require the sign.
§ 603a.11—Receipt of gaming chips or plaques from a manufacturer or supplier; inventory, security, storage and destruction of chips and plaques
Subsection (c) lists the permissible locations for the placement of gaming chips and plaques that are not in active use. Harrah's would like the option of storing gaming chips and plaques in the Poker cage and would like that provision added to subsection (c)(2).
Adding the Poker cage to the regulation is unnecessary. If a licensed facility would like to store value chips or plaques in a location other than the main cage or the vault, the facility can obtain approval for the alternative location in accordance with subsection (c)(3).
In subsection (d), which prohibits the storage of value chips and plaques in the same area as table game equipment, IRRC asked why it was necessary to have these areas separated.
Value chips and plaques are a cash equivalent and are casino currency (an asset). The accounting/finance department is tasked with safeguarding those assets. Table game equipment, however, is controlled by operations. The assistant table game shift manager, for instance, obtains the necessary cards, dice, and the like from the storage areas on a daily basis. There are separate key control, access and reporting requirements for assets versus equipment. Operations personnel may not have access to areas that are controlled by finance, which would be necessary if equipment and casino currency were housed in the same locations, and vice versa.
In subsection (g), which requires that an inventory of value chips, Roulette chips and plaques be done on a monthly basis, Harrah's requested that the inventory be required only once every quarter. The Board agrees, in part. The inventory for Roulette chips may be conducted every 3 months; however, the inventory for value chips and plaques is still required to be done monthly for comparison purposes with the unredeemed chip liability that is computed and recorded at the end of each gaming day.
§ 603a.12—Dice; physical characteristics
Subsection (a) requires that the size of dice range from 0.750 and 0.775. USPC, a dice manufacturer, requested that the Board add a permissible tolerance of +/- 0.005. The Board is not opposed to allowing the variance described by USPC.
§ 603a.13—Dice; receipt, storage, inspection and removal from use
Subsection (k) requires security department employees who are picking up used equipment to sign each bag collected. Harrah's requested to use a summary list instead of signing each bag. Harrah's made similar requests for card and tile pickup in §§ 603a.16(o) and 603a.19(k) (relating to cards; receipt, storage, inspection and removal from use; and Pai Gow tiles; receipt, storage, inspection and removal from use).
The security department employee is required to sign every bag of used equipment received from the table. The signatures on the bag provide an audit and investigatory trail and may be necessary to prove chain of custody in instances of criminal prosecution. When cards, dice and tiles are collected from the table, they are transported to the inspection area where they are counted and examined to determine if any equipment was introduced or removed from the game, if equipment was marked, if dice were weighted, and the like. If the security officer only signs the summary sheet, there is no way to determine if the security officer actually took possession of the equipment and whether the equipment returned to the inspection area was the actual equipment removed from the table. Additionally, equipment is picked up from the gaming floor once each gaming day and the Board does not believe that it is an onerous burden to sign each bag collected.
Subsection (o) requires that dice be destroyed within 72 hours of collection unless retained by the Board. Parx requested to also have the option of retaining dice for more than 72 hours.
The language had already been included in the proposed rulemaking which states that other than those retained for Board or certificate holder inspection, dice shall be destroyed within 72 hours of collection.
Additionally, with respect to subsection (o), Harrah's requested 5 days instead of 3 days to destroy used cards, dice and tiles. IRRC inquired why 3 days was necessary and how the Board decided on 3 days.
The Board did review the destruction requirements which were also 3 days in another gaming jurisdiction. The destruction of used equipment is a game protection and storage issue as well as a surveillance issue. Destruction or cancellation is necessary to ensure that used equipment which has not been canceled is not removed from the licensed facility which could be reintroduced into a game for purposes of cheating which affects the integrity of the game as well as the revenue to the facility and thus the Commonwealth. Additionally, the storage areas for destruction are not large enough to accommodate used equipment held for long periods. Also, the retention periods for surveillance coverage on equipment destruction areas is only 7 days. Allowing for longer periods between destruction would necessitate retaining surveillance coverage for longer periods of time. The Board believes it is more cost effective to require that equipment be destroyed within a short duration of time rather than require that all surveillance recordings be retained for longer periods. Based on the Board's experience to date, however, the Board does not oppose amending the requirement to once every 5 days. Destruction of equipment has also been amended in §§ 603a.16(s) and 603a.19(q).
§ 603a.15—Cards; physical characteristics
Proposed subsection (g)(2) required that each package of cards contain a label that specifies the game for which the cards are to be used. Parx commented that requiring a label is inefficient since the contents of the package are the same. Harrah's provided a similar comment with respect to the label required under § 603a.16(u)(6)(iii) for cards that are preinspected and preshuffled.
The Board agrees and deleted the requirement that the cards contain a label identifying the game since most games utilize a 52-card deck. If, however, the certificate holder is using cards that are preinspected and preshuffled, in accordance with § 603a.16(u) and (v) and the package of cards contains more or less than 52 cards per deck (Spanish 21 has no 10s and Pai Gow Poker is played with jokers), a label containing the game type must be on the batch of cards.
In subsection (i), which pertains to the requirements for cards used in Poker, IRRC inquired whether the term referred to all types of Poker that are listed in the statutory definition. After the close of the comment period on this rulemaking, the Board adopted Chapter 637a (relating to Poker), which is specifically applicable to Poker.
§ 603a.16—Cards; receipt, storage, inspection and removal from use
Subsection (i) specifies a procedure to be followed if additional or missing cards are discovered during inspection by the dealer. Parx commented that these procedures are not applicable if a certificate holder is utilizing preinspected and preshuffled cards. The Board agrees and changed the language to state that the procedure is to be followed while the dealer is inspecting the cards, not after the cards have been inspected. Additional language regarding the use of preshuffled and preinspected cards is unnecessary to add in subsection (i) since subsection (h) contains an exception for preinspected and preshuffled cards.
Subsection (m) requires operators to remove decks of cards at any time during the day if there are indications of tampering or defects that might affect the integrity of the game or at the request of Board employees. Harrah's requested that the certificate holder's surveillance department be added to the list of persons that may request that cards be removed from the table.
Subsection (b) merely addresses when cards are required to be removed from the table. Operators, which would include the operator's surveillance department, always have the discretion to remove cards, dice and tiles at any time during the day, even if there are not indications of tampering or defects. The Board, therefore, does not believe it's necessary to add the suggested language to the final-form rulemaking.
§ 603a.17—Dealing shoes; automated card shuffling devices
Proposed subsection (c) addressed the requirements for Blackjack dealing shoes. Harrah's commented that the certificate holder should have the discretion on where to place the cover card within the stack. The Board agrees that there may be instances in which an operator would like to place the cover card further into the stack. The Board has therefore deleted the requirements for Blackjack dealing shoes in subsection (c) and renumbered the remaining subsections.
In proposed subsection (d) (final-form subsection (c)), addressing the requirements for dealing shoes used in Baccarat type games, Shuffle Master commented that several of the requirements for dealing shoes are inconsistent if an operator is utilizing an automated shuffler and dealing shoe. Shuffle Master suggested delineating between automated and manual dealing shoes. The Board agrees and has added that the requirements in the subsection are applicable to manual dealing shoes.
Proposed subsection (h) (final-form subsection (f)) prohibited automated shufflers from tracking certain information. Shuffle Master was concerned that several of their machines do track information for investigative purposes. IRRC inquired whether a certificate holder would be allowed to use the device and recommended specifying under what conditions the device could be used.
Subsection (f) was intended to prohibit the use of the enumerated information for the benefit of a player and was not intended to prohibit the gathering of information for investigatory purposes which may be helpful to the operators. The Board added qualifying language stating that the card shuffling device may not provide information that may be used to aid a patron in projecting the outcome of the game, and the like.
§ 603a.19—Pai Gow tiles; receipt, storage, inspection and removal from use
This section in the proposed rulemaking was numbered as § 603a.18. It has been renumbered in this final-form rulemaking as § 603a.19. Section 603a.18 (relating to Pai Gow tiles; physical characteristics) now contains the physical characteristics of the tiles which were moved from proposed § 621a.3 (relating to Pai Gow tiles; ranking of hands, pairs and tiles; value of the hand).
Subsection (g) requires that tiles be taken off the table if one tile is scratched during the course of play. Proposed subsection (n) prohibited the use of individual tiles from different sets to make a complete set for subsequent gaming. Parx commented that requiring sets to be destroyed when only one tile is damaged was costly and unnecessary. IRRC requested that the Board quantify the costs of replacing tiles and inquired whether the integrity of gaming would be compromised if only one damaged tile were destroyed and replaced instead of the entire set.
After Parx and IRRC submitted their comments on the proposed rulemaking, the Board amended the temporary regulations so that operators were no longer required to destroy entire sets when one tile was damaged during the course of play. Operators may currently create replacement and reconstructed sets of tiles. See temporary rulemaking 125-158 published at 41 Pa.B. 4949 (September 17, 2011). The Board did not receive comments from operators regarding the procedure in temporary rulemaking 125-158. The Board therefore included the procedure in the temporary chapter into this final-form rulemaking by adding subsection (o).
Additional Revisions
Throughout the final-form rulemaking, references to ''cashier's cage'' were amended to ''cage.'' Most facilities have one cage or a main cage and a satellite/Poker cage. Additionally, several references to the BGO were amended to the CCRs who are onsite in the licensed facility including the approval of pick-up times for equipment from the gaming floor and the submission of discrepancy reports for cards, dice and tiles.
In § 603a.1, several definitions were deleted. The terms that were deleted are used consistently throughout Subpart K and were therefore moved into Chapter 601a, which contains the definitions for terms that are used throughout the table game chapters.
Section 601a.2(b)(2) was amended reflecting that the Bureau of Casino Compliance reviews gaming chips in the licensed facility in accordance with § 601a.10(g) instead of the BGO.
The regulations required that gaming chip schematics be submitted to the BGO for Executive Director approval. A promotional chip, however, is a nongaming chip. Board staff reviewed schematics for chips, including nongaming chips, to ensure that they cannot be confused with gaming chips utilized in any licensed facility in this Commonwealth. Language was therefore added requiring that the schematic of the promotional chips also be submitted to BGO for approval.
In § 603a.3(e) (relating to value chips; denominations and physical characteristics), the Board deleted language requiring that a manufacturer show that a change to the characteristic utilized by a chip manufacturer will still be readily identifiable. If a manufacturer would like to choose a different design or characteristic, the manufacturer need only obtain approval from the Executive Director. For clarity, the unnecessary language in subsections (h) and (i) was deleted and the language in subsection (k) was amended.
Section 603a.4(b) was amended for clarity and to reflect the language in other sections of the chapter. Additionally, since gaming chips are required to be approved by the Executive Director, additional references to approvals, such as those in subsections (b)(4) and (c)(1), were deleted as unnecessary.
Section 603a.5(e) previously required certificate holders to submit a summary of the Roulette chip inventory. The Board amended the requirement so that only discrepancies are reported to the onsite CCRs. This requirement was amended for consistency with other reporting requirements found in several sections within the chapter.
In § 603a.8, the Board added an additional requirement for operators that elect to utilize RFID chips. In subsection (c), operators shall now provide in their petitions an approximate length of time it will take before all equipment and devices are installed so the RFID technology is operational in the licensed facility. The Board also deleted the requirements in proposed subsection (g) since the Board decided it was unnecessary to alphabetically designate an operator's chips or plaques. Additional references to the alpha designation were also deleted from this final-form rulemaking.
Language in § 603a.10(f) was deleted as unnecessary and language in subsection (m) was amended for clarity.
Section 603a.11(c) was amended to include the cross reference to the approval process for storage areas in § 601a.10(f).
In § 603a.12 (relating to dice; physical characteristics), the Board added the requirements for dice that may be used in Sic Bo into new subsection (c). These dice, the specifications for which were added to the temporary table game regulations, are used in conjunction with an automated Sic Bo shaker.
Prior to the start of table games, operators submitted for approval design schematics for gaming chips, plaques, dice, tiles, cards, and the like. Subsection (d) was added to reflect the requirement and is consistent with the provisions on submission and approval of gaming chips.
Section 603a.13(e) (relating to dice; receipt, storage, inspection and removal from use) was amended for consistency with other sections within the chapter regarding the requirements for the envelopes or containers that transport equipment. In subsection (f), alternative 3 was deleted from the final-form rulemaking. Option 3 required inspection of dice in the approved storage area. Most card, dice and tile storage areas, however, are not large enough to accommodate the inspection of the equipment within the storage area. Additionally, none of the operators utilize this option for inspection and distribution of dice to the tables. The Board therefore believes that it is unnecessary to include this option in the final-form rulemaking. To reflect this deletion, the references in subsections (l) and (m) as well as § 603a.14(a) were also deleted.
In § 603a.14(b), the report requirements were updated to reflect the tampering report requirements in other sections of the chapter.
Final-form § 603a.15(j) (relating to cards; physical characteristics) requires the operator to submit as part of its internal controls the process it will use to rotate the four sets of cards in and out of play in Poker. This concept for rotating cards was moved from § 603a.16(d). The language in new subsection (k) was moved, in part, from subsection (f) and was amended for consistency with other sections on design schematics within the chapter.
The card inspection procedure in § 603a.16(h) was amended for clarity. The requirements in proposed subsection (k)(2) and (3) were essentially duplicative. Subsection (k)(2) was therefore deleted and the remaining parts renumbered in this final-form rulemaking. Subsection (l) was amended for clarity since equipment should be placed into bags when removed from active use, which may occur several times throughout the gaming day.
In § 603a.17, the Board deleted the provisions on Pai Gow Poker dealing shoes in proposed (e) as unnecessary. The remaining sections are renumbered. Additionally, if the operator is utilizing an automated card shuffling device, there are not applicable procedures that an operator is required to submit as part of its internal controls. The requirement in renumbered subsection (d) was deleted. Subsection (g) was amended for clarity and consistency with procedures for the reporting of tampering to the onsite CCR in other sections of the chapter.
Section 603a.18 was added to the final-form rulemaking to address the physical characteristics of tiles used in Pai Gow. These provisions were in Chapter 621a (relating to Pai Gow) in proposed rulemaking 125-149 published at 41 Pa.B. 2981 (June 11, 2011). Comments were not received on 125-149 relating to the physical characteristics of tiles.
The changes made to § 603a.19, other than those in new subsection (o), were made for clarity or consistency with the requirements in the other sections within the chapter.
Affected Parties
Slot machine licensees that elected to become certificate holders were required to purchase equipment which complied with the standards in the temporary rulemaking. Manufacturers of these items had to meet the specifications in this final-form rulemaking for products offered for sale in this Commonwealth.
The Board experienced increased regulatory demands associated with the testing, review and approval of the equipment covered by this final-form rulemaking.
Fiscal Impact
Commonwealth. The Board experienced increased costs regarding the testing, review and approval of the equipment covered by this final-form rulemaking and the review of the internal controls governing the storage and use of this equipment. The increased costs did not exceed the additional supplemental funding of approximately $2.1 million provided to the Board under Act 1.
Political subdivisions. This final-form rulemaking will not have fiscal impact on political subdivisions in this Commonwealth. Host municipalities and counties will benefit from the local share funding mandated by Act 1.
Private sector. This final-form rulemaking resulted in additional costs for slot machine licensees that elected to become certificate holders and operate table games. Prior to beginning table game operations, certificate holders were required to purchase equipment which met the standards in this final-form rulemaking. While the costs were significant, they are expected to be offset by the revenues generated from the operation of table games at the licensed facilities.
General public. This final-form rulemaking will not have fiscal impact on the general public.
Paperwork Requirements
This final-form rulemaking requires certificate holders to develop internal controls and inventory systems governing the use of table game equipment.
Effective Date
This final-form rulemaking will become effective upon publication in the Pennsylvania Bulletin.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on December 21, 2010, the Board submitted a copy of the proposed rulemaking, published at 41 Pa.B. 238, and a copy of the Regulatory Analysis Form to IRRC and to the House Gaming Oversight Committee and the Senate Community, Economic and Recreational Development Committee (Committees) for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC and the House and Senate 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 January 25, 2012, 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 January 26, 2012, and approved the final-form rulemaking.
Findings
The Board finds that:
(1) Public notice of intention to adopt these amendments 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.
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 §§ 523.1—523.18 and by adding §§ 603a.1—603a.19 to read as set forth in Annex A.
(Editor's Note: Final-form § 603a.18 was not included in the proposed rulemaking published at 41 Pa.B. 238. Proposed § 603.18 has been renumbered as final-form § 603a.19.)
(b) The Chairperson of the Board shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(c) This order shall take effect upon publication in the Pennsylvania Bulletin.
WILLIAM H. RYAN, Jr.,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 42 Pa.B. 915 (February 11, 2012).)
Fiscal Note: Fiscal Note 125-137 remains valid for the final adoption of the subject regulations.
[Continued on next Web Page]
No part of the information on this site may be reproduced for profit or sold for profit.This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
