PROPOSED RULEMAKING
[ 58 PA. CODE CH. 465a ]
Jackpot and Credit Meter Payouts
[39 Pa.B. 5022]
[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) and (5) and 1322 (relating to regulatory authority of the Board; and slot machine accounting controls and audits), proposes to amend Chapter 465a to read as set forth in Annex A.
Purpose of the Proposed Rulemaking
The proposed rulemaking contains a comprehensive rewrite of the Board jackpot payout regulations. It also expands the scope of these regulations to cover credit meter payouts as well as jackpot payouts.
Explanation of Amendments to Chapter 465a
Since the adoption of amendments to the Board's regulations governing jackpot payouts in October of 2008, the Board has been discussing the need for additional revisions with slot machine licensees. The slot machine licensees argued that portions of the Board's regulations were not needed given the technological advances in slot monitoring systems and that greater flexibility was needed to improve the operational efficiency of jackpot payouts.
Based on the Board's analysis of the slot machine licensees' comments, a review of the technical advances in slot monitoring systems and the Board's experience gained through the oversight of slot machine licensees' current operations, the Board agrees that further amendments are in order.
First, the Board has expanded the scope of § 465a.26 (relating to jackpot and credit meter payouts) to include credit meter payouts as well as jackpot payouts. Credit meter payouts are the payment of the value of the credits on a slot machine. Usually, when a patron is done at a slot machine, they will cash out and receive a gaming voucher for the remaining balance on the slot machine. However, sometimes a voucher will not print because of a jam in the slot machine's printer or the printer may be out of paper. At other times, a slot machine may lock up with credits still on the slot machine. For example, slot machines may lock up when there is a power failure at the licensed facility. Whatever the cause, when this occurs, the slot attendants at the licensed facility use the existing jackpot payment procedures to pay the patron the value of the credits on the slot machine. Therefore, the Board has added credit meter payouts to this section of the Board's regulations.
More specifically, subsection (a) has been amended by adding credit meter payouts and by deleting unnecessary language pertaining to pouch payments which are addressed in subsection (b)(7) and (8).
In subsection (b)(1), the requirement that both a manual and electronic jackpot/credit meter payout slip be prepared has been amended to delete the requirement for a manual form. Given the technical capabilities of today's slot monitoring systems and the verification requirements that will remain in this rulemaking, there simply is no need for the redundant manual form. Eliminating the requirement for the manual form will significantly reduce the workload of slot attendants related to jackpot and credit meter payouts and will result in quicker payments to patrons.
The existing requirement in subsection (b)(2) has been relocated to subsection (b)(6).
In subsection (b), former paragraphs (3), (4) and (5), which have been renumbered as paragraphs (2), (3) and (4), have been amended to give slot machine licensees greater flexibility as to who they may designate to act as a witness for jackpot or credit meter payouts of various amounts. This will allow slot machine licensees to make more efficient utilization of their personnel and reduce the potential for delays that could occur if there is a large volume of payouts and only a limited number of individuals who can act as a witness. Also, these revisions make it clear that no witness is required for jackpot or credit meter payouts of less than $1,200.
Former paragraph (6) has been deleted because it does not reflect current practices or recognize advances in technology. Many slot machine licensees allow slot attendants to directly pay jackpots below a certain level from funds that the slot attendant carries in his payment wallet. This eliminates the need for the attendant to go to the cashiers' cage to get the cash to pay a jackpot or credit meter payout. Additionally, some slot machine licensees have installed automated jackpot payout machines on their gaming floors which allow a slot attendant to process a jackpot and receive the cash to pay the patron without going to the cashiers' cage.
Former subsection (b)(7) has also been deleted. Because the Board is no longer requiring the use of the two-part manual jackpot payout slips, a provision listing the items that must be on that form is no longer needed.
Former subsection (b)(8), which is now subsection (b)(5), has been amended to slightly revise and clarify the listing of items that will be required to be printed on the electronically generated jackpot/credit meter payout slips.
As previously noted, subsection (b)(6) now contains the provision that was formerly in subsection (b)(2).
Subsection (b)(7), which was formerly subsection (b)(9), sets forth the requirements that will govern the payment of jackpot or credit meter payouts that are made directly from a slot attendant's impress funds. In the existing regulation, a detailed process was set forth, specifying each step in the payment process. However, the Board believes that that process was overly prescriptive and did not give slot machine licensees the flexibility to establish procedures to meet their individual needs. Accordingly, the Board has deleted these requirements and will allow the slot machine licensees to establish their own procedures as part of their internal controls which will be submitted to the Board for approval. What has been added to this subsection is the list of items that must be included on the manual jackpot/credit meter payout slip that must be completed by the slot attendant.
Similarly, the Board is deleting the current subsection (b)(11) which contains a detailed process for the payment of jackpots that are not made from a slot attendant's impress funds. While many of the slot machine licensees use these procedures, the Board believes that keeping these procedures in the Board's regulations is overly prescriptive and does not give slot machine licensees the flexibility to establish their own procedures. Instead the Board will allow slot machine licensees to establish their payment procedures as part of their internal controls.
Subsection (b)(9) and (10), which was subsection (b)(12) and (13), contains minor clarity changes and in subsection (b)(10), an explicit requirement that an override is required whenever the amount of a jackpot or credit meter payout does not match the amount sent to the slot monitoring system has been added.
Subsection (b)(11) and (12) add new requirements that slot machine licensees must include procedures for processing voided jackpot/credit meter payout slips and for processing unclaimed taxable jackpots in their internal controls. Additionally, slot machine licensees' procedures for processing unclaimed jackpot or credit meter payouts must include notice to the Board's casino compliance representatives.
Former subsection (b)(14) has been deleted because the procedures related to the internal controls for system overrides are addressed in new subsection (b)(10).
Subsection (b)(13), formerly subsection (b)(15), has been revised to include the list of items that must appear on the three-part manual jackpot or credit meter payout forms that are to be used when the slot machine licensee's slot monitoring system is down. This list is essentially the same as the list of items that must be on the two-part electronic and two part manual jackpot or credit meter payout forms in subsection (b)(5) and (7), but these forms must have preprinted serial numbers to provide an audit trail. Additionally the language of this section has been amended to allow equivalent alternatives to using jackpot payout books. This would include the use of ''wiz'' machines that are currently used by some of the slot machine licensees.
In subsection (b)(14), which was formerly subsection (b)(16), revisions have been made to give slot machine licensees additional operating flexibility. More specifically, slot machine licensees will be able to assign control of the keys to the cabinets where manual jackpot payout books or their equivalent are stored to either the security department or the finance department and employees who have a greater level of authority than a slot supervisor will also be allowed to sign out the jackpot payout books or their equivalent.
Existing paragraphs (17)--(20) and (21) have all been deleted. These paragraphs contained detailed provisions governing the use of and procedures related to the manual jackpot payout books discussed previously. Again, the Board believes that slot machine licensees should be permitted to tailor their procedures to reflect their particular operations. Accordingly, slot machine licensees will be required to include these procedures in their internal controls.
Finally, subsection (b)(15), which was subsection (b)(22), has been revised to clarify that the notice to surveillance of jackpots or credit meter payout above a certain threshold is to be provided verbally. The threshold for providing this notice has also been increased from $1,200 to $5,000. Because of the large number of jackpots between $1,200 and $5,000, this requirement was imposing an unreasonable burden on both slot attendants and surveillance personnel. Increasing the threshold will allow the surveillance department to devote more time to its other surveillance duties.
Affected Parties
Slot machine licensees will benefit from the elimination of redundant reporting requirements and the greater operating flexibility provided by the revisions in this rulemaking. Patrons should experience faster payments of jackpot and credit meter payouts.
Fiscal Impact
Commonwealth
This proposed rulemaking will have no significant fiscal impact on the Board or other Commonwealth agencies.
Political Subdivisions
This proposed rulemaking will have no fiscal impact on political subdivisions of the Commonwealth.
Private Sector
Slot machine licensees will experience significant cost savings because the revised jackpot and credit meter payout procedures will require fewer forms, provide greater flexibility and eliminate some of the current requirements that are redundant and no longer needed.
General Public
This proposed rulemaking will have no fiscal impact on the general public.
Paperwork requirements
This proposed rulemaking eliminates the requirement that slot machine licensees fill out manual jackpot payout slips in addition to the electronic jackpot payout slips.
Effective Date
The proposed rulemaking will become effective 30 days after 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 No. 125-105.
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 12, 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: 125-105. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart E. SLOT MACHINES AND ASSOCIATED EQUIPMENT
CHAPTER 465a. ACCOUNTING AND INTERNAL CONTROLS § 465a.26. Jackpot and credit meter payouts.
(a) Prior to commencing gaming operations, a slot machine licensee shall establish a comprehensive system of internal controls addressing jackpot and credit meter payouts that are not paid directly from a slot machine. [The internal controls may include procedures by which a slot attendant, in the presence of a member of the security department or another member of the slot operations department, utilizes an imprest inventory of funds secured in a pouch or wallet to pay a jackpot of less than $1,200.] The internal controls shall be submitted to and approved by the Board under § 465a.2 (relating to internal control systems and audit protocols).
(b) The internal control procedures developed and implemented by the slot machine licensee under subsection (a) must, at a minimum, include:
(1) The use of a two-part [manual jackpot payout receipt and a two-part] electronically generated jackpot/credit meter payout slip created by a slot attendant or slot supervisor, [evidencing the observation by the slot attendant or slot supervisor of] verifying the winning combination of characters or a code corresponding to the winning combination of characters on the slot machine and [a determination as to] the [appropriate] amount of the jackpot or credit meter payout based on the observed winning combinations.
(2) [A requirement that the electronically generated jackpot payout slip not be susceptible to any changes or deletion from the slot computer system by any personnel after preparation.
(3)] A requirement that if the jackpot [range] or credit meter payout is between $1,200 [to] and $9,999.99, [the witness on the two-part manual jackpot payout receipt and the two-part electronically generated jackpot payout slip be a lead slot attendant or above] a security department member or a slot operations member other than the preparer, shall sign the jackpot/credit meter payout slip verifying the winning combination of characters or a code corresponding to the winning combination of characters on the slot machine, the amount of the jackpot or credit meter payout and the payment of the jackpot or credit meter payout to the patron.
[(4)] (3) A requirement that if the jackpot or credit meter payout is between $10,000 and $24,999.99, [the witness on the two-part manual jackpot payout receipt and the two-part electronically generated jackpot payout slip be a slot supervisor or above] a security department member, a slot supervisor or other employee holding the same or greater level of authority than a slot supervisor shall sign the jackpot/credit meter payout slip verifying the winning combination of characters or a code corresponding to the winning combination of characters on the slot machine, the amount of the jackpot or credit meter payout and the payment of the jackpot or credit meter payout to the patron.
[(5)] (4) A requirement that if the jackpot or credit meter payout amount is $25,000 or more, a slot shift manager or [above shall sign the manual jackpot payout receipt attesting that the winning combination of characters or a code corresponding to the winning combination of characters on the slot machine and the amount to be paid match those which appear on the two-part manual jackpot payout receipt. The two-part manual jackpot payout receipt shall then be immediately returned to the preparer] other employee holding the same or greater level of authority than a slot shift manager shall sign the jackpot/credit meter payout slip verifying the winning combination of characters or a code corresponding to the winning combination of characters on the slot machine, the amount of the jackpot or credit meter payout and the payment of the jackpot or credit meter payout to the patron.
[(6) A requirement that if the amount is $1,200 or more the slot attendant shall immediately transport the original of the manual jackpot payout receipt and the original of the electronically generated jackpot payout slip to the cashiers' cage.
(7) A requirement that the following information be on the two-part manual jackpot payout receipt:
(i) The date and time of the jackpot.
(ii) The asset number of the slot machine on which the jackpot was registered.
(iii) The winning combination of characters constituting the jackpot or a code corresponding to the winning combination of characters constituting the jackpot.
(iv) The amount of the jackpot payout.
(v) The method of payment requested by the patron (cash or slot licensee check).
(vi) The signature or identification code of the preparer.
(vii) The signature of the patron who received the jackpot payout.
(viii) If the slot machine or the progressive meter is reset prior to the patron being paid or if payment is made directly to the patron by a slot attendant, the following additional signatures or identification codes:
(A) The signature or identification code of a security department member or slot operations department member other than the preparer attesting to the winning combination of characters or a code corresponding to the winning combination of characters constituting the jackpot and the amount of the jackpot payout when the amount is below $1,200.
(B) The signature or identification code of a lead slot attendant or above attesting to the winning combination of characters or a code corresponding to the winning combination of characters constituting the jackpot and the amount of the jackpot payout when the jackpot amount is between $1,200 and $9,999.99.
(C) The signature or identification code of a slot shift supervisor or above attesting to the winning combination of characters or a code corresponding to the winning combination of characters constituting the jackpot and the amount of the jackpot payout when the jackpot amount is between $10,000 and $24,999.99.
(D) The signature or identification code of a slot shift manager or above attesting to the winning combination of characters or a code corresponding to the winning combination of characters constituting the jackpot and the amount of the jackpot payout when the jackpot amount is $25,000 or more.
(8)] (5) A requirement that the following information be on all two-part electronically generated jackpot/credit meter payout slips:
(i) The date [on which the jackpot occurred] and time of the jackpot or credit meter payout.
(ii) The asset number of the slot machine on which the jackpot or credit meter payout was registered.
* * * * * (iv) The type of win (that is, [Progressive or Jackpot] progressive, jackpot or credit meter payout).
* * * * * (vi) A unique number generated by the slot [computer] monitoring system.
* * * * * (viii) The signature or identification code of the witness [on the duplicate copy only], when the amount is equal to or greater than $1,200.
(ix) The signature or identification code of the cashier providing the funds to the preparer, if applicable.
(6) A requirement that the two-part electronically generated jackpot/credit meter payout slip not be susceptible to any changes or deletion from the slot monitoring system by any personnel after preparation.
[(9)] (7) A requirement that whenever a winning patron is paid directly by a slot attendant's imprest fund, [the following procedures shall be followed:
(i) A two-part electronic jackpot payout slip is generated and a two-part manual jackpot payout receipt is completed in accordance with paragraph (1).
(ii) Before payment is made to the winning patron, the manual jackpot payout receipt shall be signed by the patron in the presence of the slot attendant and a witness.
(iii) After the slot attendant determines that the required signatures verifying the winning combination of characters or a code corresponding to the winning combination of characters on the slot machine and the amount to be paid have been placed on the manual jackpot payout receipt, the slot attendant shall pay the winning patron in the presence of the witness.
(iv) Once payment has been made and all required signatures obtained, the slot operations department member or security department member witnessing the payment shall obtain the duplicate copy of the manual jackpot payout receipt and immediately deposit it into a locked accounting box.
(v) The slot attendant shall attach the original manual jackpot payout receipt to the original electronically generated jackpot payout slip and forward both forms, by the end of the slot attendant's shift, to the cashiers' cage for reimbursement. The duplicate of the electronically generated jackpot payout slip should be deposited into a locked accounting box immediately after obtaining the funds from the cashier's cage.] a two-part manual jackpot/credit meter payout slip is completed that contains the following information:
(i) The date and time of the jackpot or credit meter payout.
(ii) The asset number of the slot machine on which the jackpot or credit meter payout was registered.
(iii) The winning combination of characters constituting the jackpot or a code corresponding to the winning combination of characters constituting the jackpot.
(iv) The type of win (that is, progressive, jackpot or credit meter payout).
(v) The amount paid to the winning patron. This amount may, at the slot machine licensee's discretion, be rounded up to the nearest whole dollar.
(vi) The signature or identification code of the preparer.
(vii) The signature or identification code of the witness when the amount is equal to or greater than $1,200.
[(10)] (8) When jackpot or credit meter payouts are made from slot attendants' imprest funds, procedures for the replenishment of the imprest funds and the reconciliation process to be used by the slot attendants.
[(11) A requirement that the two-part manual jackpot payout receipt and the two-part electronically generated jackpot payout slip be distributed as follows:
(i) Both the original and duplicate of the manual jackpot payout receipt shall be handed to the witnessing slot operations department member or security department member by the preparer for verification and signature.
(ii) The duplicate of the manual jackpot payout receipt shall be presented to the winning patron who shall be required to present the duplicate to the witness before being paid the jackpot.
(iii) The original of the manual jackpot payout receipt shall be attached to the original electronically generated jackpot payout slip and forwarded to the cashiers' cage for payment of the funds.
(iv) The duplicate of the manual jackpot payout receipt shall be placed into a secured lock box for slot accounting by the witness.
(v) The duplicate of the electronically generated jackpot payout slip shall be placed inside a secured lock box for slot accounting by the generating slot attendant.
(12)] (9) A requirement that the slot machine licensee's accounting department perform, at the conclusion of each gaming day, effective audit procedures over the issuance of jackpot and credit meter payouts including adequate comparisons to [gaming voucher system data] the slot monitoring system.
[(13)] (10) Detailed procedures on the processing of all system overrides or adjustments [in regards] to jackpot or credit meter payouts. All jackpot or credit meter payouts that do not match the payout amount electronically sent from the slot machine to the slot monitoring system require an override.
(11) Detailed procedures for the processing of all voided jackpot/credit meter payout slips.
(12) Detailed procedures for the processing of unclaimed taxable jackpot payouts. The procedures must include notice to the casino compliance representatives at the licensed facility when an unclaimed taxable jackpot payout or credit meter payout occurs.
[(14) A requirement that any person that witnesses a jackpot payout may not be permitted to override the jackpot payout.
(15) A requirement] (13) Back-up procedures that will be used when the slot [computer] monitoring system is offline or an electronic jackpot payout slip can not be created, including the use of a three-part manual jackpot or credit meter payout book [shall be utilized] or equivalent. The three-part manual jackpot payout book or equivalent must contain preprinted, serial numbered three-part manual jackpot/credit meter payout slips that include [all of] the following information [that is required on the two-part manual jackpot payout receipt in accordance with paragraph (7).]:
(i) Preprinted serial numbers.
(ii) The date and time of the jackpot or credit meter payout.
(iii) The asset number of the slot machine on which the jackpot or credit meter payout was registered.
(iv) The amount of the jackpot or credit meter payout.
(v) The method of payment requested by the patron.
(vi) The signature or identification code of the preparer.
(vii) The signature or identification code of the witness when the amount is equal to or greater than $1,200.
[(16)] (14) A requirement that the unused manual jackpot payout books or equivalent be maintained in a secured locked cabinet, that the key to the cabinet be controlled by the security department or the finance department and that the manual jackpot payout books or equivalent can only be signed out by [the] a slot [shift manager] supervisor or other employee holding a greater level of authority when the slot [computer] monitoring system is offline.
[(17) A requirement that a slot machine licensee maintain a manual jackpot payout book log for each gaming day or portion thereof that the slot computer system is offline that includes the following information:
(i) The slot machine licensee's name preprinted on the top of the log.
(ii) The gaming day.
(iii) The signature and identification code of the slot attendant assigned the three-part manual jackpot payout book.
(iv) The date and time of issuance of the three-part manual jackpot payout book.
(v) The series of numbers preprinted on the three-part manual jackpot payout book.
(vi) The signature and identification code of the slot shift manager issuing the manual jackpot payout book.
(vii) The date and time the three-part manual jackpot payout book is returned.
(viii) The series of numbers preprinted on the three-part manual jackpot payout book that were completed by the slot attendant.
(ix) The signature and identification code of the slot shift manager receiving the returned manual jackpot payout book.
(18) A requirement that the three-part manual jackpot payout slips be distributed as follows:
(i) The original shall be given to the cashiers' cage to obtain the funds to pay the jackpot to the winning patron or to replenish the imprest funds of the slot attendant that paid the winning patron.
(ii) The second copy shall be retained by the witness of the payout. The witness shall immediately transport the second copy to a locked accounting box.
(iii) The third copy shall be maintained in the manual jackpot payout book. At the end of the slot attendant shift, the manual jackpot payout book shall be turned into the slot shift manager and the manual jackpot payout book log shall be completed.
(19) A requirement that the original manual jackpot payout book log be forwarded to the accounting department at the end of the gaming day and that the slot operations department retain a copy of the manual jackpot payout book log.
(20) A requirement that the manual jackpot payout books turned into the slot shift manager at the end of each slot attendant's shift be forwarded to the accounting department; that the accounting department ensure that all three copies of the manual jackpot payout slips contain the same information; and that any discrepancies between the three copies are researched, documented and reported.
(21) A requirement that the manual jackpot payout books are audited to the manual jackpot payout book log and that any discrepancies between the manual jackpot payout books and the manual jackpot payout book log are researched and documented.
(22)] (15) A requirement that the surveillance department [is] be verbally notified of all jackpot or credit meter payouts when the amount of the jackpot or credit meter payout is [$1,200] $5,000 or more. The surveillance department shall log all calls regarding jackpot or credit meter payouts in the surveillance log.
[Pa.B. Doc. No. 09-1560. Filed for public inspection August 21, 2009, 9:00 a.m.]
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.
