PENNSYLVANIA GAMING CONTROL BOARD
[ 58 PA. CODE CHS. 461a, 524, 528,
529, 605a, 613a AND 615a ]
Table Game Devices (Editor's Note: This final-form rulemaking replaces the defective final-form rulemaking published at 42 Pa.B. 2675 (May 12, 2012). The document published at 42 Pa.B. 2675 did not contain amendments to Chapter 461a. The defective version of the final-form rulemaking was approved by the Office of Attorney General on February 3, 2012. The Office of Attorney General rescinded approval on June 8, 2012. See 42 Pa.B. 3595 (June 23, 2012). The Office of Attorney General approved this final-form rulemaking on June 19, 2012. The Independent Regulatory Review Commission, the House Gaming Oversight Committee and the Senate Community, Economic and Recreational Development Committee approved this final-form rulemaking as stated in the Regulatory Review section of this preamble.)
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 (2), 1317.2, 1319, 1319.1 and 1341A, rescinds Chapters 524, 528 and 529, amends Chapter 461a (relating to slot machine and table game device testing and control) and adds Chapters 605a, 613a and 615a (relating to electronic gaming tables; gaming related gaming service providers; and conditional table game device licenses) 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 initially adopted temporary regulations in Chapters 524, 528 and 529. With this final-form rulemaking, the Board is replacing the temporary regulations in Chapter 524 with the permanent regulations in Chapter 605a, the temporary regulations in Chapter 528 with the permanent regulations in Chapter 613a and the temporary regulations in Chapter 529 with the permanent regulations in Chapter 615a.
Explanation of Chapter 605a
Section 605a.1 (relating to definitions) provides definitions of ''electronic wagering system'' and ''game account'' that are applicable to the chapter. These definitions mirror the definitions in 4 Pa.C.S. Part II (relating to gaming) or reflect commonly used terms in the gaming industry.
Section 605a.2 (relating to electronic wagering systems) sets forth the requirements for electronic wagering systems. An electronic wagering system allows players to place wagers electronically on some form of display and adds winnings or deducts losses automatically. This section specifies the minimum requirements for these systems and requires that they be tested by the Bureau of Gaming Laboratory Operations (Bureau) and approved prior to use in the licensed facility.
Section 605a.3 (relating to procedures for buying in to and cashing out of a table game using an electronic wagering system) provides the procedures whereby a player may ''buy in to'' a table game, which is how the player purchases credits that can be used to play the game, and the procedures for ''cashing out'' of the game, which is how the player receives any funds remaining in his gaming account when he is ready to leave the game.
Section 605a.4 (relating to electronic gaming tables) contains the requirements for electronic gaming tables. An electronic gaming table uses an electronic wagering system, but still requires a dealer or boxperson to conduct the game. This section includes the technical requirements for the tables, the meters the tables must have and the requirement that the tables be tested by the Bureau and approved prior to use.
Section 605a.5 (relating to fully automated electronic gaming tables) contains the requirements for fully automated electronic gaming tables. The difference between an electronic gaming table and a fully automated electronic gaming table is that a fully automated electronic gaming table operates without a dealer, boxperson or any other employee of the certificate holder. This section is structured in the same manner as § 605a.4 and contains the technical requirements of the tables, the meters these tables must have and the requirement that the tables be tested by the Bureau and approved prior to use.
Section 605a.6 (relating to integrated live Roulette wheels used on fully automated electronic gaming tables) contains the specific statistical requirements that the Roulette wheels used on fully automated electronic gaming tables must meet regarding the randomness of the resulting spins and the actions that are to occur if the roulette wheel does not satisfy the statistical test.
Section 605a.7 (relating to progressive table game systems) sets forth meter requirements for progressive table game systems, requires Bureau testing and approval of progressive jackpots offered and limits the circumstances under which a progressive jackpot may be turned back to a lesser amount. These provisions are similar to Chapter 461a governing progressive jackpots offered on slot machines.
Explanation of Chapter 613a
Chapter 613a sets forth the certification process for gaming related gaming service providers. A gaming related gaming service provider is a class of gaming service provider that provides new table games or side wagers, game variations or similar innovations for which they have typically received or applied for a patent. Although these entities and individuals provide the table games and side wagers played in the licensed facility, they are not otherwise required to be licensed as a manufacturer or supplier. The Board is therefore creating a classification of gaming service provider for these individuals and entities.
Included in Chapter 613a are provisions regarding the following: which entities or individuals are considered gaming related gaming service providers; the application and renewal process; the qualification process for key individuals who own or are employed by the gaming related gaming service provider; gaming related gaming service provider responsibilities; the gaming related gaming service provider list; permission to conduct business prior to certification; requirements regarding using a gaming related gaming service provider; and certificate holders' duty to investigate. These requirements mirror the application and qualification requirements of all certified gaming service providers in Chapter 437a (relating to gaming service provider certification and registration).
Explanation of Chapter 615a
Chapter 615a establishes the requirements regarding the issuance of a conditional table game device license to entities that have applied for a table game device manufacturer, manufacturer designee or supplier license.
As part of the act of January 7, 2010 (P. L. 1, No. 1) (Act 1), entities that want to manufacture or supply table game devices are required to obtain a table game device manufacturer or supplier license. For entities that are not currently licensed, this will require the entities to file a manufacturer, manufacturer designee or supplier license application with the Board.
Typically, these applications can take 1 year or more to process due to the extensive background investigations that are required. The Board may therefore issue a conditional license to a table game device manufacturer, manufacturer designee or supplier applicant that meets the requirements in § 615a.1 (relating to table game devices, conditional licenses). More specifically, these applicants will have to do the following: submit a complete application; be licensed in good standing in a jurisdiction that has licensing standards which provide similar safeguards to those in this Commonwealth; have an expression of interest in acquiring the equipment they manufacture or supply from a certificate holder or a manufacturer, manufacturer designee or supplier licensee; have successfully completed a preliminary screening, including the applicant's criminal history; and have paid the applicable application and licensing fees. To date, the Board has determined that Ontario, New Jersey, Nevada, Mississippi and Louisiana have licensing standards that are equivalent to the Commonwealth's standards.
Table game device manufacturer, manufacturer designee or supplier applicants that meet these requirements will be able to provide table game devices while the review of their license application continues. If, however, as part of the continuing investigation, the Office of Enforcement Counsel issues a Notice of Recommendation of Denial, the Bureau of Licensing may rescind the conditional license. If this occurs, the Bureau of Licensing will notify the conditional licensee and all certificate holders that the conditional licensee is no longer authorized to provide table game devices in this Commonwealth. This notice will be sent by registered mail and will contain a date after which the applicant will no longer be permitted to provide table game devices.
Comment and Response Summary
Notice of proposed rulemaking was published at 41 Pa.B. 605 (January 29, 2011). During the comment period, the Board received comments from the Independent Regulatory Review Commission (IRRC).
General Comments
In §§ 605a.2(c) and (e), 605a.4(b), 605a.7(b) and (c) and 604a.7(d)(3), IRRC requested that the final-form rulemaking contain procedures for the Bureau's testing and approval of electronic wagering systems, electronic gaming tables and progressive table game systems. A cross reference to the provisions for testing and approval in § 461a.4 (relating to submission for testing and approval) was added in these sections and is the same process currently used for the testing and approval of slot machines and associated equipment.
Instead of updating Chapter 461a in a future rulemaking to specifically include table game devices that are required to be submitted to the Bureau for testing and subsequent approval and to reduce confusion to the regulated community, the Board added amendments to Chapter 461a to the final-form rulemaking to include table game devices and gaming related services.
Amendments to Chapter 461a reflect that the Bureau, after completion of testing, reports its findings to the Board's Executive Director for approval. The Board previously delegated authority to the Executive Director to approve slot machines, table game device and gaming related services. Changing the references in Chapter 461a from the Board to the Executive Director codifies that delegation of authority.
Section 461a.4(c) addresses the six types of table game devices and associated equipment that are required to be submitted to the Bureau for testing. Additionally, the requirements for submission of gaming related services to the Bureau for testing was added in § 461a.4(g)(10).
Chapter 605a
In § 605a.2(d)(3)(ii), (6) and (7)(vii) and (viii), IRRC had questions regarding the Poker rake and Poker revenue and requested that a definition be added to the final-form rulemaking. The final-form rulemaking contains a cross reference to § 637a.17 (relating to Poker revenue) regarding Poker revenue and the collection of the Poker rake.
In § 605a.2(d)(7), which addresses the reports that the electronic wagering system must be capable of generating, IRRC requested specificity regarding who the reports are to be submitted to and what the certificate holder is required to do with the reports. For clarity, the final-form rulemaking requires that the system be capable of generating the reports in subsection (d)(7)(i)—(xii) but does not require that they be submitted to the Board or the Department of Revenue (Department). The information in subsection (d)(7)(i)—(xii) is used by the certificate holder in its revenue audit to determine the total win on the table, the hold percentage and the tax that is owed to the Commonwealth. Board staff and the Department may request these reports during an audit to verify meters or the total win on the machines and the taxes collected. The reports may also assist the certificate holder, Board staff and the Pennsylvania State Police in determining if there was theft or cheating in the play or the revenue count on the electronic gaming table.
In §§ 605a.4(g) and 605a.5(d)(12), which specify the meters that the electronic gaming table or fully automated electronic gaming table are required to have, IRRC was concerned that the catch-all provisions in §§ 605a.4(g)(8) and 605a.5(d)(12) did not provide the regulated community with a clear standard.
This catch-all language is consistent with the meter requirements in § 461a.7 (relating to slot machine minimum design standards) and was included because meters are the only way to ascertain the gross table game revenue on an electronic gaming table and therefore the tax owed to the Commonwealth. As technology rapidly changes in the gaming industry, the Bureau and the Department need a mechanism to require additional meters if the meters currently required are inadequate to determine gross table game revenue. Because it takes a minimum of 6 months to promulgate a regulation, use of the technical standards is the only way the Board can develop new standards for these new products in a timely manner.
The technical standards are not intended to be permanent rules. As a technology matures, it is the Board's intention to initiate proposed rulemakings which will bring the applicable technical standards into the body of the Board's regulations.
Technical standards are used extensively in other gaming jurisdictions for the same reason the Board is proposing to use them here, which is to promote rapid approval of new games, technology and equipment. Without technical standards, manufacturers would face long delays before they could offer their products in this Commonwealth. Additionally, certificate holders would not be able to offer the newest games or take advantage of new systems or equipment as quickly as their competitors in other states. In an industry as competitive as gaming, not using technical standards would result in loss of revenue to not only the licensees but also the Commonwealth.
Chapter 613a
In Chapter 613a, IRRC asked why the Board created the term ''gaming related gaming service provider'' instead of using the term ''gaming service provider.''
The Board created this class of gaming service provider because these entities and individuals provide new table games, side wagers and variations (gaming related services) but are not otherwise required to be licensed as a manufacturer or supplier. The monetary thresholds currently applicable to gaming service providers are impractical for gaming related gaming service providers since the annual lease amounts paid by the certificate holders would not necessitate, in most instances, the gaming related gaming service provider to be certified or even register with the Board. To protect the integrity of gaming, the Board determined that all gaming service providers that provide a gaming related service should be certified based on the nature of the product supplied to the certificate holder.
For clarity, the definitions of ''gaming related gaming service provider'' and a ''gaming related service'' were added in § 613a.1(a) (relating to definitions; general requirements). The language that was deleted from this section was incorporated into the definitions. The application requirement was then moved to subsection (b).
In § 613a.2(a) (relating to gaming related gaming service provider certification applications), IRRC asked why the certificate holder was required to submit the documentation and fee for the gaming related gaming service provider.
The requirement in the temporary and proposed regulations was similar to the sponsored gaming service provider application procedures which required that the application be submitted by a licensee that intended to utilize the good or service that the gaming service provider was supplying. The certificate holder did not pay the fee but only submitted the information on behalf of the gaming service provider.
When table games were implemented, to ensure that the Board prioritized its resources and focused on only those companies that offered a product that a certificate holder intended to use, gaming related gaming service provider applications were required to be submitted by the certificate holder that intended to use the gaming related service. This requirement is no longer necessary and was therefore eliminated in the final-form rulemaking.
Also in subsection (a)(1), IRRC recommended that the language allowing the Board to direct that a different number of applications be submitted be deleted in the final-form rulemaking. The language allowing the Board to direct an alternative number of applications was included in the proposed rulemaking because the Bureau of Licensing contemplated more online applications in the future which would eliminate the need for an original and one copy to be submitted in paper form. At this time, however, paper applications for gaming related gaming service providers are still required.
In § 613a.6 (relating to gaming related gaming service provider list), IRRC suggested that the final-form rulemaking state where the list of certified gaming related gaming service providers may be found. Language was added specifying that the list may be found on the Board's web site.
In § 613a.7 (relating to requirements for use of a gaming related gaming service provider), as suggested, the definition of a ''gaming related service'' was added in § 613a.1(a). In subsection (a)(1), similar to the procedures for the Bureau's testing and approval of electronic wagering systems in § 605a.2, gaming related gaming service providers will also submit their gaming related service to the Bureau for review and approval in accordance with § 461a.4(g)(10). As previously discussed, § 461a.4 was updated and included in this final-form rulemaking to specifically incorporate gaming related services in the submission and approval process.
In subsection (a)(4), the cross reference to the application fee for gaming related gaming service provider certification was included in the final-form rulemaking as suggested by IRRC.
In § 613a.8 (relating to permission to conduct business prior to certification), IRRC requested that the Board explain how the practice of authorizing an applicant to do business prior to certification protects the integrity of gaming.
Interim authorization was contemplated under 4 Pa.C.S. § 1317.2(e) (relating to gaming service provider). To be eligible for interim authorization, the gaming related gaming service provider shall submit its application which is initially reviewed by the Bureau of Licensing. Prior to being added to the authorization list, the gaming related gaming service provider undergoes a review for Federal and State tax clearance as well as an initial review of all individuals who are required to be qualified. Also, the certificate holder that intends to utilize the gaming related gaming service provider's goods or services is required to conduct due diligence on the gaming related gaming service provider and submit a statement with the application affirming that the certificate holder believes that the applicant meets the qualification requirements. Lastly, if the applicant's suitability is in question or the applicant no longer cooperates in the application or investigation process, the Bureau of Licensing will rescind interim authorization.
If a gaming related gaming service provider has received interim authorization and the Bureau of Investigations and Enforcement (BIE) discovers derogatory information relating to an applicant's suitability during the BIE's investigation, the gaming related gaming service provider's interim authorization may be immediately rescinded pending the Board's decision regarding the gaming related gaming service provider's application. All of the following procedures were designed to ensure the integrity of gaming pending the BIE's complete investigation.
If the Office of Enforcement Counsel recommends that the gaming related gaming service provider's application be denied, the gaming related service may no longer be utilized in the licensed facility after the date specified in the Bureau of Licensing's Notice of Rescission. This requirement was added in § 613a.8(b)(2).
As of September 2011, a total of six gaming related gaming service providers have applied for certification. Four are on the authorized list and two are pending but are not yet authorized to provide a gaming related service to a certificate holder.
Chapter 615a
IRRC had similar concerns regarding how the practice of issuing a conditional table game device license to a manufacturer or supplier adequately protects the integrity of gaming.
To be eligible for a conditional license, an applicant shall be a certified gaming service provider in this Commonwealth or be licensed in good standing in another gaming jurisdiction in the United States or Canada that the Board has determined has similar licensing standards that are as comprehensive and thorough and provide similar safeguards as those in 4 Pa.C.S. Part II. The Board has determined that several gaming jurisdictions have similar standards, including Ontario, New Jersey, Nevada, Mississippi and Louisiana. Additionally, like gaming related gaming service providers, the applicant shall pass an initial application review, undergo a review for Federal and State tax clearance as well as an initial criminal history review of all individuals who are required to be licensed. These safeguards ensure that the integrity of gaming is protected in this Commonwealth.
As of September 2011, there were nine table game device manufacturers and manufacturer designees that were awarded conditional licenses of which three have already been fully investigated and licensed by the Board. None of the conditional licenses have been revoked.
IRRC also requested that a definition of ''table game device'' be included in this chapter. A table game device is a statutorily defined term in 4 Pa.C.S. § 1103 (relating to definitions) and includes gaming tables, cards, dice, chips, shufflers, tiles, dominoes, wheels, drop boxes or any mechanical, electrical or computerized contrivance, terminal, machine or other device, apparatus, equipment or supplies used to conduct a table game. The statutory definition is included in Chapter 601a (relating to general table game provisions), which contains the definitions applicable to the chapters in Subpart K (relating to table games).
IRRC also requested that the final-form rulemaking contain some specificity regarding the fee the manufacturer, manufacturer designee or supplier is required to pay in accordance with § 615a.1(b). In the final-form rulemaking, reference to the application fee was added in subsection (b)(1) and the reference to the licensing fee, as posted on the Board's web site, was added in subsection (b)(5).
Additional Revisions
Throughout Chapter 605a, the language regarding the testing and approval process for electronic wagering systems was amended. The language in the proposed rulemaking stated that the Bureau tests and approves electronic wagering systems; however, while the Bureau does do the testing, the Board's Executive Director approves the systems for use. The updated language more accurately reflects current agency practice and is consistent with the process in § 461a.4.
In § 605a.1, the definitions of ''electronic gaming table,'' ''fully automated electronic gaming table'' and ''progressive table game system'' were deleted from this final-form rulemaking. These terms are used several times throughout Subpart K and were moved to § 601a.1 (relating to definitions), which contains the general definitions applicable to Subpart K.
Proposed § 605a.2(a) required that if an electronic wagering system was utilized, wagering had to be done using that system. The Board recently approved a side wager in Blackjack which utilizes an electronic wagering system for the placement of that side wager; however, not all wagers at that Blackjack table require the use of the electronic wagering system. Language was therefore added allowing for wagers or only those wagers that are specified in the rules of the game to be made utilizing the electronic wagering system.
In §§ 605a.2(b) and 605a.4(b), key control was modified allowing the slots department to have control of the key that accesses the fully automated electronic gaming tables. This was updated to allow flexibility since the fully automated machines are similar to slot machines and are typically serviced by slot tech department employees not table game department employees.
In §§ 613a.2(c) and 613a.7(2), language was deleted and replaced with the definition of ''gaming related service'' as defined in § 613a.1(a).
In § 613a.8(a)(2), an incorrect reference was updated and the language regarding the certificate holder submitting the application was deleted. Language was added requiring that prior to a gaming related gaming service provider receiving authorization to conduct business with a certificate holder, the gaming related gaming service provider's application must pass a preliminary review.
Subsection (a)(3) was updated to reflect that it is not the Bureau of Licensing that makes a determination regarding suitability but is informed if an applicant's suitability may be at issue.
Subsection (a)(5) was added which requires that the gaming related gaming service provider successfully pass a preliminary review of its criminal history prior to receiving authorization to conduct business with a certificate holder. This added language is consistent with current agency practice.
For clarity, in Chapter 615a, the term ''applicant'' was changed to ''conditional licensee'' in several instances. Also, in § 615a.1(a), the phrase ''prior to licensure'' was deleted because a conditional license is a type of license so the phrase is not applicable.
Affected Parties
With respect to Chapter 605a, slot machine licensees that elect to become certificate holders and decide to install electronic or fully automated gaming tables will be required to comply with this chapter. Additionally, manufacturers of electronic or fully automated gaming tables will be required to submit their tables to the Bureau for testing and will have to meet the design requirements in this chapter.
The Board will experience increased regulatory demands to review the tables submitted by manufacturers and review the procedures and inspect the tables installed at licensed facilities.
Regarding Chapter 613a, individuals and entities that want to become gaming related gaming services providers will have to complete a certification application and pay the applicable fees. To date, the Board has received six applications for certification from gaming related gaming service providers. Applications the Board receives will be reviewed and investigated by existing agency staff.
Regarding Chapter 615a, certificate holders will benefit from this final-form rulemaking because they will have more sources from whom they may obtain table game devices in a shorter period of time. Additionally, applicants for table game device manufacturer, manufacturer designee or supplier licenses will benefit from being able to offer their products in this Commonwealth within a shorter period of time without jeopardizing the integrity of gaming.
The Board has experienced increased regulatory demands resulting from the implementation of table games, including the review of electronic and fully automated tables, gaming related services and the review of additional applications from gaming related gaming service providers, table game device manufacturers, manufacturer designees and suppliers.
Fiscal Impact
Commonwealth. The Bureau experienced increased costs regarding the review of electronic gaming tables and gaming related services that manufacturers and gaming related gaming service providers have elected to offer for sale in this Commonwealth. These costs, however, will be recovered directly from manufacturers or gaming related gaming service providers as required under 4 Pa.C.S. Part II. The Board also anticipates that additional demands will be placed on existing staff regarding the inspection of these tables when they are installed in a licensed facility. However, because most certificate holders are not using many of these tables at this time, the Board does not expect it will need to hire additional personnel to meet these demands.
Additionally, the Board experienced increased costs related to the review of the applications for gaming related gaming service provider certification and for conditional table game device licenses for manufacturers, manufacturer designees and suppliers. However, the increased costs did not exceed the initial additional supplemental funding of approximately $2.1 million provided under Act 1.
Political subdivisions. This final-form rulemaking will not have a fiscal impact on political subdivisions of this Commonwealth. Host municipalities and counties will benefit from the local share funding mandated by Act 1.
Private sector. This final-form rulemaking will result in additional costs for certificate holders that elect to use electronic or fully automated electronic gaming tables because these tables are more expensive. However, these costs would be offset by reduced labor costs and increased speed of play.
Manufacturers of electronic gaming tables and providers of gaming related services will have to reimburse the Bureau for the costs incurred by the Bureau to complete its technical review of these gaming tables. It is anticipated that the manufacturers and gaming related gaming service providers will recover the costs as part of the prices they charge for these tables.
Applicants for a table game device manufacturer, manufacturer designee or supplier license and gaming related gaming service provider certification will have to complete the applicable existing Board license or certification application forms and pay the associated application, investigation, licensing or certification fees. There will not be additional forms required or fees imposed in connection with the conditional licenses for manufacturers, manufacturer designees and suppliers.
General public. This final-form rulemaking will not have fiscal impact on the general public.
Paperwork Requirements
This final-form rulemaking will require manufacturers and gaming related gaming service providers to submit their equipment, manuals and other technical information regarding the particular gaming related service, electronic or fully automated gaming table that they submit to the Bureau for approval.
With respect to manufacturer, manufacturer designee, supplier and gaming related gaming service provider applicants, they will be required to file the normal applications and related materials for a license or certification.
Effective Date
The 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 January 19, 2011, the Board submitted a copy of the proposed rulemaking, published at 41 Pa.B. 605, 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 11, 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 12, 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 §§ 524.1—524.7, 528.1—528.9, 529.1 and 529.2, by amending §§ 461a.3, 461a.4 and 461a.26 and by adding §§ 605a.1—605a.7, 613a.1—613a.9 and 615a.1 to read as set forth in Annex A.
(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. 626 (January 28, 2012).)
Fiscal Note: Fiscal Note 125-138 remains valid for the final adoption of the subject regulations.
Annex A
Title 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart E. SLOT MACHINES AND ASSOCIATED EQUIPMENT
CHAPTER 461a. SLOT MACHINE AND TABLE GAME DEVICE TESTING AND CONTROL § 461a.3. Testing and approval generally.
(a) In accordance with sections 1320 and 13A41 of the act (relating to slot machine testing and certification standards; and table game device and associated equipment testing and certification standards), slot machines, table game devices and associated equipment operated in this Commonwealth must be tested and approved in accordance with § 461a.4(g) (relating to submission for testing and approval).
(b) The general cost of establishment and operation of the Board's testing facility shall be paid by each manufacturer licensee and gaming related gaming service provider on a quarterly basis based upon each manufacturer's or gaming related gaming service provider's proportion of the total number of products reviewed.
(c) The Board will require payment of all costs for the testing and approval of slot machines, table game devices and associated equipment submitted by manufacturers or gaming related gaming service providers or installed at a licensed facility based on the actual direct costs incurred by the Board.
(d) The Board will require a manufacturer licensee or gaming related gaming service provider seeking approval of a slot machine, table game device or associated equipment to pay all costs of transportation, inspection and testing.
§ 461a.4. Submission for testing and approval.
(a) A slot machine, table game device or associated equipment identified in subsection (c) (collectively referred to as ''products'' or ''equipment, device or software''), or a modification thereto, may not be offered for sale, lease or distribution for ultimate use by a slot machine licensee in this Commonwealth unless a prototype identical in all mechanical, electrical, electronic and other respects has been tested by the Bureau of Gaming Laboratory Operations and approved by the Board's Executive Director.
(b) When an applicant for, or holder of, a slot machine license develops software or a system that is functionally equivalent to any of the slot systems or table game systems enumerated in subsection (c), that software or system shall be subject to the testing and approval process of this subpart to the same extent as if the software or system were developed by an applicant for, or holder of, a manufacturer license. Any reference in this subpart to the responsibilities of a manufacturer applies to an applicant for, or holder of, a slot machine license developing software or systems subject to testing and approval under this subpart.
(c) For the purposes of this section, slot machines, table game devices and associated equipment that shall be submitted for testing and approval include:
(1) Slot machines, including bill validators and printers.
(2) Slot monitoring systems, to the extent the systems interface with slot machines and related systems.
(3) Casino management systems, to the extent the systems interface with slot machines and related systems.
(4) Player tracking systems, to the extent the systems interface with slot machines and related systems.
(5) Progressive systems, including wide area progressive systems.
(6) Gaming voucher systems.
(7) External bonusing systems.
(8) Cashless funds transfer systems.
(9) Machines performing gaming voucher, coupon or jackpot payout transactions.
(10) Coupon systems, to the extent the systems interface with slot machines and related systems.
(11) Other related systems.
(12) Table game devices including:
(i) Electronic gaming tables as described in § 605a.4 (relating to electronic gaming tables).
(ii) Fully automated electronic gaming tables as described in § 605a.5 (relating to fully automated electronic gaming tables).
(iii) Progressive table game systems as described in § 605a.7 (relating to progressive table game systems).
(iv) Automated card shuffling devices as described in § 603a.17 (relating to dealing shoes; automated card shuffling devices).
(v) Electronic dealing shoes as described in § 603a.17.
(vi) Electronic wagering systems as described in § 605a.2 (relating to electronic wagering systems).
(d) Slot machine prototypes, table game device prototypes and associated equipment prototypes, and modifications thereto, which are subject to testing and approval under this section will be evaluated by the Bureau of Gaming Laboratory Operations for overall operational integrity and compliance with the act, this subpart and technical standards adopted by the Board as published in the Pennsylvania Bulletin and posted on the Board's web site. In addition, with regard to any slot machine, fully automated electronic gaming table or modification thereto, the Bureau of Gaming Laboratory Operations will test for compatibility and compliance with the central control computer and protocol specifications approved by the Department including the ability to communicate with the central control computer for the purpose of transmitting auditing program information, real time information retrieval and activation and disabling of slot machines.
(e) The Bureau of Gaming Laboratory Operations may prescribe a standard product submission checklist, together with supplemental product specific submission checklists for completion by an applicant for, or holder of, a manufacturer license, to facilitate the examination and analysis of a prototype or modification.
(f) The Board may require the chief engineer of the applicant for, or holder of, a manufacturer license or the engineer in charge of the division of the manufacturer responsible for producing the product submitted to attest that the product was properly and completely tested by the manufacturer prior to its submission to the Bureau of Gaming Laboratory Operations.
(g) When an applicant for, or holder of, a manufacturer license seeks Board approval of a slot machine prototype, table game device prototype, as described in subsection (c)(12), associated equipment prototype, or any modification thereto, the manufacturer shall submit to the Bureau of Gaming Laboratory Operations the following:
(1) A prototype of the equipment, device or software accompanied by a written request for testing and approval. The manufacturer shall transport the equipment, device or software at its own expense and deliver it to the Bureau of Gaming Laboratory Operations in accordance with instructions provided.
(2) Certifications required under subsection (f) providing assurances from the manufacturer that the product was properly and completely tested and emulated by the manufacturer prior to its submission to the Bureau of Gaming Laboratory Operations and that the product, device or software complies with the act, this subpart and technical standards adopted by the Board as published in the Pennsylvania Bulletin and posted on the Board's web site, including applicable requirements related to the central control computer.
(3) An executed copy of a current product submission checklist, and any product specific supplemental submission checklists applicable to the submitted equipment, device or software.
(4) A complete, comprehensive and technically accurate description of the equipment, device or software, accompanied by applicable diagrams, schematics and specifications, together with documentation with regard to the manner in which the product was tested and emulated by the manufacturer prior to its submission to the Bureau of Gaming Laboratory Operations.
(5) Any hardware, software and other equipment, inclusive of technical support and maintenance applicable thereto, required by the Bureau of Gaming Laboratory Operations to conduct the testing and approval process contemplated by the act, this subpart and technical standards adopted by the Board as published in the Pennsylvania Bulletin and posted on the Board's web site. The testing equipment and services required by this paragraph shall be provided at no cost to the Board.
(6) In the case of a slot machine prototype or table game device prototype, the following additional information:
(i) A copy of all executable software, including data and graphics information, on electronically readable, unalterable media.
(ii) A copy of all source code for programs that cannot be reasonably demonstrated to have any use other than in a slot machine or electronic gaming table, on electronically readable, unalterable media.
(iii) A copy of all graphical images displayed on the slot machine or table game device, including reel strips, rules, instructions and paytables.
(iv) A mathematical explanation of the theoretical return to the player, listing all assumptions, all steps in the formula from the first principles through to the final results of all calculations including bonus pays and, when a game requires or permits player skill in the theoretical derivations of the payout return, the source of strategy.
(v) Hardware block diagrams of the major subsystems.
(vi) A complete set of schematics for all subsystems.
(vii) A wiring harness connection diagram.
(viii) A technical and an operator manual.
(ix) A description of security methodologies incorporated into the design of the slot machine table game device, including, when applicable, encryption methodology for all alterable media, auto-authentication of software and recovery capability of the slot machine or table game device for power interruption.
(x) For meters required by this subpart or technical standards adopted by the Board as published in the Pennsylvania Bulletin and posted on the Board's web site, a cross reference of product meters to the required meters, if necessary.
(xi) A description of tower light functions indicating the corresponding condition.
(xii) A description of error conditions and the corresponding action required by the operator.
(xiii) A description of the use and function of available dip switch settings or configurable options.
(xiv) A description of the pseudo random number generator or generators used to determine game outcome, including a detailed explanation of operational methodology, and a description of the manner by which the pseudo random number generator and random number selection process is impervious to outside influences, interference from electro-magnetic, electrostatic and radio frequencies, and influence from ancillary equipment by means of data communications. Test results in support of representations shall be submitted. For the purposes of this section, ''game outcome'' means the results of a wager.
(xv) Specialized hardware, software or testing equipment, inclusive of technical support and maintenance, needed to complete the evaluation, which may include an emulator for a specified microprocessor, PCs, extender cables for CPU boards, target reel strips and door defeats. The testing equipment and services required by this paragraph shall be provided at no cost to the Board.
(xvi) A compiler, or reasonable access to a compiler, for the purpose of building applicable code modules.
(xvii) Program storage media including EPROMs, EEPROMs and any type of alterable media for slot machine or table game device software.
(xviii) Technical specifications for any microprocessor or microcontroller.
(xix) A complete, comprehensive and technically accurate description of the manner in which the slot machine or fully automated electronic gaming table was tested for compatibility and compliance with the central control computer and protocol specifications approved by the Department including the ability to communicate with the central control computer for the purpose of transmitting auditing program information, real time information retrieval and activation and disabling of slot machines or fully automated electronic gaming tables.
(xx) Additional documentation requested by the Bureau of Gaming Laboratory Operations relating to the slot machine or table game device.
(7) In the case of a modification to a slot machine or table game device prototype, including a change in theme, the following additional information:
(i) A complete, comprehensive and technically accurate description of the proposed modification to the slot machine or table game device prototype, accompanied by applicable diagrams, schematics and specifications.
(ii) When a change in theme is involved, a copy of the graphical images displayed on the slot machine or table game device including reel strips, rules, instructions and paytables.
(iii) When a change in the manner in which the theoretical payout percentage is achieved is involved, a mathematical explanation of the theoretical return to the player, listing all assumptions, all steps in the formula from the first principles through to the final results of all calculations including bonus pays and, when a game requires or permits player skill in the theoretical derivations of the payout return, the source of strategy.
(iv) A complete, comprehensive and technically accurate description of the manner in which the slot machine or fully automated electronic gaming table was tested for compatibility and compliance with the central control computer and protocol specifications approved by the Department including the ability to communicate with the central control computer for the purpose of transmitting auditing program information, real time information retrieval and activation and disabling of slot machines or fully automated electronic gaming tables.
(v) Additional documentation requested by the Bureau of Gaming Laboratory Operations relating to the modification of the slot machine or table game device.
(8) In the case of a slot monitoring system, casino management system, player tracking system, wide area progressive system, gaming voucher system, external bonusing system, cashless funds transfer system, automated gaming voucher, coupon redemption or jackpot payout machine, coupon system, table game device or any other equipment or system required to be tested and approved under subsection (c):
(i) A technical and an operator manual.
(ii) A description of security methodologies incorporated into the design of the system to include, when applicable, password protection, encryption methodology and its application, auto-authentication, network redundancy, back-up and recovery procedures.
(iii) A complete schematic or network diagram of the system's major components accompanied by a description of each component's functionality and a software object report. The description must disclose the functions performed by each component.
(iv) A description of the data flow, in narrative and in schematic form, including specifics with regard to data cabling and, when appropriate, communications methodology for multisite applications.
(v) A list of computer operating systems and third party software incorporated into the system together with a description of their interoperability.
(vi) System software and hardware installation procedures.
(vii) A list of available system reports.
(viii) When applicable, features for each system which may include patron and employee card functions, promotions, reconciliation procedures and patron services.
(ix) A description of the interoperability testing including test results for each submitted system's connection to, as applicable, slot machines, voucher, coupon redemption and jackpot payout machines, computerized systems for counting money, vouchers and coupons. This list must identify the tested products by manufacturer, model and software identification and version number.
(x) A narrative describing the method used to authenticate software.
(xi) All source code.
(xii) A complete, comprehensive and accurate description, accompanied by applicable diagrams, schematics and specifications, of the creation of a voucher and the redemption options available.
(xiii) A complete, comprehensive and technically accurate description, accompanied by applicable diagrams, schematics and specifications, of the creation of a coupon and the redemption options available.
(xiv) Any specialized hardware, software or other equipment, inclusive of technical support and maintenance applicable thereto, required by the Bureau of Gaming Laboratory Operations to conduct the testing and approval process contemplated by the act, this subpart and technical standards adopted by the Board as published in the Pennsylvania Bulletin and posted on the Board's web site. The testing equipment and services required by this paragraph shall be provided at no cost to the Board.
(xv) Additional documentation requested by the Board related to the equipment or system being tested.
(9) In the case of a modification to any of the systems identified in paragraph (8), the following additional information:
(i) A complete, comprehensive and technically accurate description of the proposed modification to the system, accompanied by applicable diagrams, schematics and specifications.
(ii) A brief narrative disclosing the purpose for the modification.
(iii) Additional documentation requested by the Bureau of Gaming Laboratory Operations relating to the modification.
(10) In the case of gaming related services, as described in § 613a.1 (relating to definitions; general requirements), which are submitted by an applicant for or holder of a manufacturer license or gaming related gaming service provider certification:
(i) A mathematical explanation of the theoretical return to the player, listing all assumptions, all steps in the formula from the first principles through to the final results of all calculations including bonus pays and, when a game requires or permits player skill in the theoretical derivations of the payout return, the source of the strategy.
(ii) A detailed description of the gaming related service including the rules of play and wagering that would be used for the new table game or feature.
(iii) The true odds, the payout odds and the house advantage for each wager.
(iv) A sketch or picture of the game layout, if any.
(v) Sketches or pictures of the equipment used to play the game.
(h) At the conclusion of testing of a prototype or modification by the Bureau of Gaming Laboratory Operations, but prior to a decision to approve a prototype or modification, the Board's Executive Director may require a trial period of scope and duration as he deems appropriate to assess the operation of the prototype or modification in a live gaming environment. The conduct of the trial period shall be subject to compliance by the licensed manufacturer, licensed manufacturer designee, applicable licensed suppliers, gaming related gaming service provider and the slot machine licensee with specific terms and conditions as may be required by the Board's Executive Director, which may include development and implementation of product specific accounting and internal controls, periodic data reporting to the Board's Executive Director and compliance with technical standards on trial periods or the prototype or modification adopted by the Board as published in the Pennsylvania Bulletin and posted on the Board's web site. The Board's Executive Director may authorize the receipt of compensation by a licensed manufacturer, licensed manufacturer designee, licensed supplier or gaming related gaming service provider during the trial period. The Board's Executive Director may order termination of the trial period if it determines that the licensed manufacturer, licensed manufacturer designee, applicable licensed suppliers, gaming related gaming service provider or the slot machine licensee conducting the trial period has not complied with the terms and conditions required by the Board's Executive Director or that the product is not performing as expected.
(i) At the conclusion of testing of a prototype or modification, the Bureau of Gaming Laboratory Operations will report to the Board's Executive Director the results of its testing. Upon receipt of the Bureau of Gaming Laboratory Operations' report, the Board's Executive Director will:
(1) Approve, approve with conditions or reject the submitted prototype or modification.
(2) Require additional testing or a trial period under subsection (h).
(j) The Board's Executive Director approval of a prototype or modification does not constitute a guarantee of the prototype's or modification's safety.
(k) A slot machine licensee is prohibited from installing in its licensed facility a slot machine, table game device or associated equipment, or modification thereto, that is required to be tested unless the equipment, device or software has been approved by the Board's Executive Director. A slot machine licensee may not modify, alter or tamper with an approved slot machine, table game device or associated equipment. A slot machine, table game device or associated equipment installed in a licensed facility in contravention of this requirement will be subject to seizure by the Board.
(l) Notwithstanding subsection (k), the Board's Executive Director may authorize installation of a modification to a slot machine prototype, table game device prototype or associated equipment prototype on an emergency basis to prevent cheating or malfunction, upon the written request of a licensed manufacturer. The request must expressly detail the name and employer of any persons to be involved in the installation of the modification and the manner in which it is to be effected. Within 15 days of receipt of any authorization to install an emergency modification, the manufacturer shall submit the modification for full testing and approval in accordance with this subpart.
(m) A slot machine licensee shall immediately notify the 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, table game device or associated equipment installed in its licensed facility. The slot machine licensee shall comply with instructions issued by the Bureau of Gaming Laboratory Operations with regard to the continued operation of the slot machine, table game device or associated equipment.
(n) Concurrent with the initial receipt of slot machines, a slot machine license shall file a slot machine master list as required by § 463a.5 (relating to slot machine master lists).
(o) The testing of equipment, devices or software under this subpart may require the dismantling of the product and testing that may result in damage to, or destruction of, one or more systems or components. Once submitted for testing, equipment, devices or software will not be returned to the manufacturer.
§ 461a.26. Testing and software installation on the live gaming floor.
(a) Prior to the testing of slot machines, table game devices as described in § 461a.4(c)(12) (relating to submission for testing and approval), associated equipment and displays on a live gaming floor during a slot machine licensee's normal hours of operation, the slot machine licensee shall notify the Bureau of Gaming Laboratory Operations and the Bureau of Casino Compliance in writing at least 72 hours prior to the test date and receive the required approvals from the Bureau of Gaming Laboratory Operations prior to beginning testing. The notification must include the following:
(1) A detailed narrative description of the type of testing to be conducted, including the reason for the testing, a list of individuals conducting the testing and the slot machine licensee's procedures for conducting the testing.
(2) The date, time and approximate duration of the testing.
(3) The model, slot machine location number and asset number of the slot machine or machines or table game device to be tested.
(4) The location within the licensed facility where the testing will occur.
(b) A slot machine licensee shall notify the Bureau of Gaming Laboratory Operations and the Bureau of Casino Compliance at least 72 hours prior to the installation of any new software or the installation of any change in previously approved software and receive the required approvals prior to the installation of:
(1) Automated gaming voucher and coupon redemption machines.
(2) Wide area progressive systems.
(3) Slot monitoring systems.
(4) Casino management systems.
(5) Player tracking systems.
(6) External bonusing systems.
(7) Cashless funds transfer systems.
(8) Server supported slot systems.
(9) Server based slot systems.
(10) Automated jackpot payout machines.
(11) Electronic gaming tables.
(12) Fully automated electronic gaming tables.
(13) Progressive table game systems.
(14) Electronic wagering systems.
(c) The notification required under subsection (b) must include:
(1) A description of the reasons for the new installation or change in previously approved software.
(2) A list of the current computer components, software identifications or versions that are to be modified or replaced.
(3) A list of the proposed computer components, software identifications or versions that will modify or replace the existing components or software.
(4) The method to be used to complete the proposed installation.
(5) The date and time that the proposed modification will be installed and the estimated time for completion.
(6) The name, title and employer of the persons performing the installation.
(7) The plan to handle disruptions, if any, to the gaming floor.
(8) The approximate length of time the gaming floor or systems will be disrupted.
(9) Plans for system backup prior to any proposed installation.
Subpart K. TABLE GAMES
CHAPTER 524. (Reserved) Sec.
524.1—524.7. (Reserved).
CHAPTER 528. (Reserved) Sec.
528.1—528.9. (Reserved).
CHAPTER 529. (Reserved) Sec.
529.1. (Reserved). 529.2. (Reserved).
CHAPTER 605a. ELECTRONIC GAMING TABLES Sec.
605a.1. Definitions. 605a.2. Electronic wagering systems. 605a.3. Procedures for buying in to and cashing out of a table game using an electronic wagering system. 605a.4. Electronic gaming tables. 605a.5. Fully automated electronic gaming tables. 605a.6. Integrated live Roulette wheels used on fully automated electronic gaming tables. 605a.7. Progressive table game systems. § 605a.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Electronic wagering system—A computer or server and any related hardware, software or other device that permits wagering to be conducted at a gaming table.
Game account—The funds that are available to a player for use at an electronic gaming table.
§ 605a.2. Electronic wagering systems.
(a) A certificate holder may conduct electronic wagering at a gaming table in accordance with this chapter. Electronic wagering at a gaming table shall be conducted through the use of an electronic wagering system. If an electronic wagering system is in use at a gaming table, wagers placed at that gaming table, or only those wagers that are specified in the rules of the game, shall be made using the electronic wagering system.
(b) An electronic wagering system must be a dedicated computer system. The computer or server controlling the system shall be under dual key control, with one key controlled by the finance department and the other key controlled by the table games department or the slot operations department if the computer or server is controlling a fully automated electronic gaming table.
(c) All aspects of an electronic wagering system, including the computer or server and any related hardware, software or related devices shall be tested by the Bureau of Gaming Laboratory Operations and approved in accordance with § 461a.4 (relating to submission for testing and approval) prior to use at any licensed facility in this Commonwealth.
(d) An electronic wagering system must:
(1) Credit funds to the game account of a player when a player buys in to a game at a particular gaming table and debit any remaining funds from the game account when a player cashes out of the game.
(2) Permit a player to wager from a game account, collect losing wagers from the game account and pay winning wagers by crediting the amount of the winnings and corresponding wager to the game account.
(3) In the game of Poker:
(i) Debit game accounts and increment pots for wagers placed, and distribute winning pots by crediting the game accounts of the winning players in the appropriate amounts.
(ii) Extract the rake from players or pots according to the rake procedures established in accordance with § 637a.17 (relating to Poker revenue) and debit the game accounts of players in the appropriate amounts.
(iii) Make each player's balance or table stakes visible to all players in the game.
(4) Depict the transactions described in paragraphs (1)—(3) through one or more electronic fund displays that are visible to each player and the dealer or boxperson.
(5) Disclose to each player at all times the current balance in the player's game account.
(6) Accurately report and audit the table game's win or loss or Poker revenue in accordance with § 637a.17.
(7) Be capable of generating reports setting forth, by gaming day, for each gaming table using the electronic wagering system:
(i) The total amount deposited into the game account of each player.
(ii) The total amount deposited into game accounts by all players.
(iii) The total amount credited to the game account of each player in payment of winnings.
(iv) The total amount credited to the game accounts of all players in payment of winnings.
(v) The total amount collected from each player as losing wagers.
(vi) The total amount collected from all players as losing wagers.
(vii) For Poker, if applicable, the total amount deducted from the game account of each player for collection of Poker rake time charges in accordance with § 637a.17.
(viii) For Poker, if applicable, the total amount collected from the accounts of all players for collection of Poker rake time charges in accordance with § 637a.17.
(ix) For Poker, if applicable, the total amount collected from Poker pots for collection of Poker rake in accordance with § 637a.17.
(x) The total amount withdrawn from game accounts by each player.
(xi) The total amount withdrawn from game accounts by all players.
(xii) The table game win or loss or Poker revenue.
(e) After installation, electronic wagering systems shall be inspected by the Bureau of Gaming Laboratory Operations in accordance with § 461a.4 prior to use at any licensed facility in this Commonwealth.
§ 605a.3. Procedures for buying in to and cashing out of a table game using an electronic wagering system.
(a) A player shall buy in to a table game using an electronic wagering system as follows:
(1) If the gaming table is equipped with a bill validator, a player shall buy in to the game by either:
(i) Inserting currency or, if the table game is a fully automated electronic gaming table, a gaming voucher, into the bill validator. The electronic wagering system must credit an equivalent amount of funds into the game account of the player, which must be displayed on the electronic fund display.
(ii) Presenting currency or value chips to the dealer or boxperson if the table game is not a fully automated electronic gaming table.
(2) If the gaming table is not equipped with a bill validator, a player shall buy in to the game by presenting currency or value chips to the dealer or boxperson.
(3) When a player presents currency or value chips to a dealer or boxperson, the dealer or boxperson shall credit an equivalent amount of funds to the game account of the player, which shall be registered on the electronic fund display and acknowledged by the player.
(b) A player shall cash out of a table game using an electronic wagering system as follows:
(1) If the gaming table is a fully automated electronic gaming table, by receiving a gaming voucher equal in value to the balance in the game account of the player.
(2) If the gaming table is not a fully automated electronic gaming table, by receiving value chips from the dealer or boxperson from the table inventory container equal in value to the balance in the game account of the player.
(3) If the gaming table is not a fully automated electronic gaming table, after cashing out the player, the dealer or boxperson shall zero out the amount on the electronic fund display of the player.
§ 605a.4. Electronic gaming tables.
(a) An electronic gaming table must comply with the requirements in § 605a.2 (relating to electronic wagering systems).
(b) An electronic gaming table system must contain a dedicated computer system. The computer or server controlling the system shall be under dual key control, with one key controlled by the finance department and the other key controlled by the table games department or the slot operations department if the computer or server is controlling a fully automated electronic gaming table. All aspects of an electronic gaming table system, including the computer or server and related hardware, software or related devices shall be tested by the Bureau of Gaming Laboratory Operations and approved in accordance with § 461a.4 (relating to submission for testing and approval), for compliance with the requirements of this section, prior to use at any licensed facility in this Commonwealth.
(c) An electronic gaming table must have the capacity to allow the Bureau of Gaming Laboratory Operations to verify all relevant control software for authenticity.
(d) A certificate holder using an electronic gaming table system shall include in its internal controls, at a minimum:
(1) Procedures to ensure the physical security of the computer or server and related hardware, software and other devices.
(2) Procedures to ensure the integrity and security of all sensitive data and software.
(3) Procedures to ensure that access to sensitive data and software is limited to appropriate personnel only.
(4) Procedures to ensure the logging of the events and the availability of records to permit an effective audit of the conduct of the system and the reporting of revenue.
(e) An electronic gaming table must have the ability to authenticate the transmission of data between the various components of the electronic gaming table system.
(f) An electronic gaming table system must display a signal clearly visible to the surveillance department whenever a door or cabinet at an electronic gaming table is open, whenever there is a malfunction in the operation of the electronic gaming table system, or any component thereof, including whenever a printer or currency jam occurs.
(g) An electronic gaming table that is not a fully automated electronic gaming table must be equipped with the following meters, when applicable:
(1) Coin in. A meter that accumulates the total value of all wagers.
(2) Coin out. A meter that accumulates the total value of all amounts directly paid by the electronic gaming table as a result of winning wagers. This meter may not record amounts awarded as the result of a progressive payout.
(3) Attendant paid jackpots. A meter that accumulates the total value of credits paid by an attendant resulting from a single winning outcome, the amount of which is not capable of being paid by the electronic gaming table. This meter may not record amounts awarded as the result of a progressive payout.
(4) Attendant paid cancelled credits. A meter that accumulates the total value of all amounts paid by an attendant resulting from a player initiated cash-out that exceeds the physical or configured capability of the electronic gaming table.
(5) Bill in. A meter that accumulates the total value of currency accepted. The electronic gaming table must also have a specific meter for each denomination.
(6) Electronic gaming table paid progressive payout. For electronic gaming tables offering a progressive payout, a meter that accumulates the total value of credits paid as a result of progressive awards paid directly by the electronic gaming table.
(7) Attendant paid progressive payout. For electronic gaming tables offering a progressive payout, a meter that accumulates the total value of credits paid by an attendant as a result of progressive awards that are not capable of being paid by the electronic gaming table.
(8) Additional meters. Other meters required by technical standards adopted by the Board as published in the Pennsylvania Bulletin and posted on the Board's web site.
§ 605a.5. Fully automated electronic gaming tables.
(a) A fully automated electronic gaming table must comply with the comprehensive protocol specifications required under section 1324 of the act (relating to protocol information) that are necessary to enable the fully automated electronic gaming table to communicate with the Department's central control computer system, for the purpose of transmitting auditing program information, real time information retrieval and fully automated table electronic game activation and disabling.
(b) A fully automated electronic gaming table must have installed software or hardware that distinguishes the fully automated electronic gaming table from a slot machine as defined by the act.
(c) A fully automated electronic gaming table must have the capability to accept currency or gaming vouchers and to issue a gaming voucher to a player for any winnings.
(d) A fully automated electronic gaming table must be equipped with the following meters, where applicable:
(1) Coin in. A meter that accumulates the total value of all wagers.
(2) Coin out. A meter that accumulates the total value of all amounts directly paid by the fully automated electronic gaming table as a result of winning wagers. This meter may not record amounts awarded as the result of a progressive payout.
(3) Attendant paid jackpots. A meter that accumulates the total value of credits paid by an attendant resulting from a single winning outcome, the amount of which is not capable of being paid by the fully automated electronic gaming table. This meter may not record amounts awarded as the result of a progressive payout.
(4) Attendant paid cancelled credits. A meter that accumulates the total value of all amounts paid by an attendant resulting from a player initiated cash-out that exceeds the physical or configured capability of the fully automated electronic gaming table.
(5) Bill in. A meter that accumulates the total value of currency accepted. The fully automated electronic gaming table must also have a specific meter for each denomination.
(6) Voucher in—cashable/value. A meter that accumulates the total value of cashable gaming vouchers accepted by the fully automated electronic gaming table.
(7) Voucher in—cashable/count. A meter that accumulates the total number of cashable gaming vouchers accepted by the fully automated electronic gaming table.
(8) Voucher out—cashable/value. A meter that accumulates the total value of cashable gaming vouchers issued by the fully automated electronic gaming table.
(9) Voucher out—cashable/count. A meter that accumulates the total number of cashable gaming vouchers accepted by the fully automated electronic gaming table.
(10) Fully automated electronic gaming table paid progressive payout. For fully automated electronic gaming tables offering a progressive payout, a meter that accumulates the total value of credits paid as a result of progressive awards paid directly by the fully automated electronic gaming table.
(11) Attendant paid progressive payout. For fully automated electronic gaming tables offering a progressive payout, a meter that accumulates the total value of credits paid by an attendant as a result of progressive awards that are not capable of being paid by the fully automated electronic gaming table.
(12) Additional meters. Other meters required by technical standards adopted by the Board as published in the Pennsylvania Bulletin and posted on the Board's web site.
§ 605a.6. Integrated live Roulette wheels used on fully automated electronic gaming tables.
(a) A fully automated electronic gaming table with an integrated live Roulette wheel must randomize the method by which the outcome is determined. This includes, but is not limited to the speed at which the ball is ejected onto the wheel and the speed at which the wheel rotates.
(b) A fully automated electronic gaming table with an integrated live Roulette wheel must be capable of determining if the wheel meets a 95% confidence limit using a standard chi-squared test for goodness of fit. The calculation must be made based on the following criteria:
(1) Ten thousand outcomes have been generated.
(2) A new calculation must be made for each 10,000 subsequent outcomes.
(3) The calculation must consider only the most recent 10,000 outcomes.
(c) A fully automated electronic gaming table with an integrated live Roulette wheel must be capable of displaying a visual notification, clearable by an attendant, if at any time the live Roulette wheel has failed the chi-squared test for goodness of fit under subsection (b).
(d) A fully automated electronic gaming table with an integrated live Roulette wheel must be capable of disabling play in the event that the wheel has failed to meet the 95% confidence limit for goodness of fit test required under subsection (b) for two consecutive testing periods. Attendant interaction shall be required before enabling the table for play.
(e) A fully automated electronic gaming table with an integrated live Roulette wheel must be capable of providing a report that shows the results of the last chi-squared test as well as the previous 9 chi-squared tests. The report must contain the following:
(1) The time and date the test was performed.
(2) The table ID or any comparable identifier.
(3) The number of games used to perform the test.
(4) The outcome of the test.
§ 605a.7. Progressive table game systems.
(a) Each progressive fully automated electronic gaming table, electronic gaming table or live table game must have:
(1) A progressive meter visible from the front of the gaming table, which may increase in value based upon wagers, that advises the players of the amount which can be won if the player receives the corresponding outcome.
(2) A meter that accumulates the total value of credits paid as a result of progressive awards paid directly by a fully automated electronic gaming table or electronic gaming table.
(3) A meter that accumulates the total value of credits paid as a result of progressive awards paid directly by an attendant as a result of progressive awards that are not capable of being paid by a fully automated electronic gaming table or electronic gaming table.
(4) A cumulative progressive payout meter that continuously and automatically records the total value of progressive jackpots paid directly by a fully automated electronic gaming table, electronic gaming table, or attendant.
(5) A key and keyed switch to reset the progressive meter or meters or other reset mechanism.
(6) A key locking the compartment housing the progressive meter or meters or other means by which to preclude unauthorized alterations to the progressive meters. The key or alternative security method must be different than the key or reset mechanism in paragraph (5).
(b) A table game that offers a progressive jackpot may not be placed on the gaming floor until the certificate holder or, if applicable, the progressive system operator, has submitted the following to the Bureau of Gaming Laboratory Operations for review and approval, in accordance with § 461a.4 (relating to submission for testing and approval):
(1) The initial and reset amounts at which the progressive meter or meters will be set.
(2) The proposed system for controlling the keys and applicable logical access controls to the table games.
(3) The proposed rate of progression for each progressive jackpot.
(4) The proposed limit for the progressive jackpot, if any.
(c) A table game that offers either a new progressive jackpot or a modification of an existing progressive jackpot may not be made available for play by the public until the table game has been tested by the Bureau of Gaming Laboratory Operations and approved in accordance with § 461a.4.
(d) Progressive meters may not be turned back to a lesser amount unless one of the following occurs:
(1) The amount indicated has been actually paid to a winning patron.
(2) The progressive jackpot amount won by the patron has been recorded in accordance with a system of internal controls approved under § 465a.2 (relating to internal control systems and audit protocols).
(3) The progressive jackpot has, upon approval in accordance with § 461a.4, been transferred to another progressive table game.
(4) The change is necessitated by a table game or meter malfunction, in which case, a written explanation shall be sent to the Bureau of Gaming Laboratory Operations.
CHAPTER 613a. GAMING RELATED GAMING SERVICE PROVIDERS Sec.
613a.1. Definitions; general requirements. 613a.2. Gaming related gaming service provider certification applications. 613a.3. Qualification of individuals and entities. 613a.4. Certification term and renewal. 613a.5. Certified gaming related gaming service provider responsibilities. 613a.6. Gaming related gaming service provider list. 613a.7. Requirements for use of a gaming related gaming service provider. 613a.8. Permission to conduct business prior to certification. 613a.9. Certificate holders' duty to investigate. § 613a.1. Definitions; general requirements.
(a) Definitions. The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
Gaming related gaming service provider—A gaming service provider that provides a gaming related service, is the owner of a patent or has a patent pending for a gaming related service.
Gaming related service—A new game, wager, game variation, side bet or similar innovation relating to a table game.
(b) Certification. A person seeking to provide a gaming related service to a certificate holder shall apply to the Board for certification as a gaming related gaming service provider.
§ 613a.2. Gaming related gaming service provider certification applications.
(a) A gaming related gaming service provider seeking certification shall submit:
(1) An original and one copy of a Gaming Related Gaming Service Provider Certification Application and Disclosure Information Form.
(2) The nonrefundable application fee posted on the Board's web site at www.pgcb.pa.gov.
(3) Applications and release authorizations for each individual required to be qualified under § 613a.3 (relating to qualification of individuals and entities).
(4) A written statement from a certificate holder, stating that the certificate holder intends to do business with the gaming related gaming service provider for the purpose of utilizing a gaming related service.
(b) In addition to the materials required under subsection (a), an applicant for gaming related gaming service provider certification shall:
(1) Promptly provide information requested by the Board relating to its application and cooperate with the Board in investigations, hearings, and enforcement and disciplinary actions.
(2) Comply with the general application requirements in Chapters 421a and 423a (relating to general provisions; and applications).
(c) A gaming related gaming service provider certification will not be issued until all fees and costs, including any Bureau of Gaming Laboratory Operations costs incurred in the review of the proposed gaming related service, have been paid.
§ 613a.3. Qualification of individuals and entities.
(a) The following individuals are required to submit a Pennsylvania Personal History Disclosure Form and be found qualified by the Board:
(1) Each officer and director of a certified gaming related gaming service provider or applicant for gaming related gaming service provider certification. For the purposes of this paragraph, the term ''officer'' means a president, chief executive officer, a chief financial officer and a chief operating officer and any person routinely performing corresponding functions with respect to an organization whether incorporated or unincorporated.
(2) Each individual who has a direct or indirect ownership or beneficial interest of 10% or more in the certified gaming related gaming service provider or applicant for gaming related gaming service provider certification. A certified gaming related gaming service provider or applicant for gaming related gaming service provider certification shall provide information or documentation requested by the Board necessary to determine compliance with this paragraph.
(3) Each salesperson of a certified gaming related gaming service provider or applicant for gaming related gaming service provider certification who solicits or will be soliciting business from, or has regular contact with, any representatives of a certificate holder.
(b) Each entity that directly owns 20% or more of the voting securities of a certified gaming related gaming service provider or applicant for gaming related gaming service provider certification shall be required to file a Gaming Service Provider Certification Form—Private Holding Company with the Board and be found qualified by the Board.
(c) The following persons may be required to submit a Gaming Service Provider Certification Form—Private Holding Company or a Pennsylvania Personal History Disclosure Form and be found qualified by the Board if the Board determines that the qualification of the person is necessary to protect the public interest or to enhance the integrity of gaming in this Commonwealth:
(1) An intermediary or holding company of a certified gaming related gaming service provider or applicant for gaming related gaming service provider certification not otherwise required to be qualified.
(2) An officer or director of an intermediary or holding company of a certified gaming related gaming service provider or applicant for gaming related gaming service provider certification.
(3) An employee of a certified gaming related gaming service provider or applicant for gaming related gaming service provider certification.
(4) A person who holds any direct or indirect ownership or beneficial interest in a certified gaming related gaming service provider or applicant for gaming related gaming service provider certification, or has the right to any profits or distribution, directly or indirectly, from the certified gaming related gaming service provider or applicant for gaming related gaming service provider certification.
(5) A trustee of a trust that is required to be found qualified under this section.
(d) The Bureau of Licensing may issue a temporary credential to an individual who is required to be qualified by the Board under this section if:
(1) The individual's presence in the licensed facility is needed.
(2) The company with which the individual is associated is on the Authorized Gaming Related Gaming Service Provider List.
(e) The Bureau of Licensing will issue a permanent credential to an individual who has been found qualified under this section if the gaming related gaming service provider has been certified.
§ 613a.4. Certification term and renewal.
(a) Gaming related gaming service provider certifications, and renewals issued under this chapter will be valid for 4 years from the date of Board approval.
(b) A certified gaming related gaming service provider shall submit to the Board a completed renewal application and fee, as posted on the Board's web site, at least 60 days prior to the expiration of a certification.
(c) A certification for which a completed renewal application and fee has been received by the Board will continue in effect until the Board sends written notification to the holder of the certification that the Board has approved or denied the certification.
§ 613a.5. Certified gaming related gaming service provider responsibilities.
A holder of a gaming related gaming service provider certification shall have a continuing duty to:
(1) Provide information requested by the Board relating to licensing or regulation; cooperate with the Board in investigations, hearings, and enforcement and disciplinary actions; and comply with conditions, restrictions, requirements, orders and rulings of the Board in accordance with the act.
(2) Report a change in circumstances that may render the holder of a gaming related gaming service provider certification ineligible, unqualified or unsuitable to hold a certification under the standards and requirements of the act and of this part.
§ 613a.6. Gaming related gaming service provider list.
The Board will maintain and post on its web site a list of gaming related gaming service providers that are certified and have had their gaming related service reviewed by the Bureau of Gaming Laboratory Operations.
§ 613a.7. Requirements for use of a gaming related gaming service provider.
Prior to use of a gaming related service by a certificate holder the following must occur:
(1) The gaming related gaming service provider providing the gaming related service must submit its gaming related service to the Bureau of Gaming Laboratory Operations for review in accordance with § 461a.4 (relating to submission for testing and approval).
(2) The gaming related gaming service provider shall pay all Bureau of Gaming Laboratory Operations costs incurred in the review of the proposed gaming related service.
(3) The certificate holder shall make a written request to the Board's Executive Director and receive written approval for use of the new gaming related service in accordance with § 601a.3 (relating to request to offer a new table game or new feature for an existing table game).
(4) The gaming related gaming service provider shall pay the certification fee required under § 613a.2(a)(2) (relating to gaming related gaming service provider certification applications) and will either receive written authorization from the Bureau of Licensing to conduct business prior to certification or be certified.
§ 613a.8. Permission to conduct business prior to certification.
(a) Notwithstanding § 613a.1 (relating to definitions; general requirements), the Bureau of Licensing may authorize an applicant for gaming related gaming service provider certification to conduct business with a certificate holder prior to the certification of the gaming related gaming service provider if the following criteria are met:
(1) A completed Gaming Related Gaming Service Provider Certification Application and Disclosure Information Form has been filed in accordance with § 613a.2 (relating to gaming related gaming service provider certification applications) and passed a preliminary review.
(2) The certificate holder certifies that it has performed due diligence on the gaming related gaming service provider.
(3) The applicant for gaming related gaming service provider certification agrees, in writing, that the grant of permission to conduct business prior to certification does not create a right to continue to conduct business and that the Bureau of Licensing may rescind, at any time, the authorization granted under this section, with or without prior notice to the applicant, if the Bureau of Licensing is informed that the suitability of the applicant may be at issue or the applicant fails to cooperate in the application or investigatory process.
(4) The gaming related gaming service provider and the certificate holder have satisfied the requirements in § 613a.7 (relating to requirements for use of a gaming related gaming service provider).
(5) The gaming related gaming service provider has passed a preliminary review of its criminal history.
(b) If the Office of Enforcement Counsel issues a Notice of Recommendation for Denial to an applicant for gaming related gaming service provider certification, the Bureau of Licensing may rescind the permission granted to the applicant for gaming related gaming service provider certification to conduct business with a certificate holder under subsection (a). If the permission is rescinded:
(1) The applicant for gaming related gaming service provider certification shall cease conducting business with the certificate holder by the date specified in the notice of the rescission under subsection (c).
(2) The certificate holder shall cease utilizing the gaming related service from the applicant for gaming related gaming service provider certification by the date specified in the notice of the rescission under subsection (c).
(c) The Bureau of Licensing will notify the applicant for gaming related gaming service provider certification and the certificate holder by registered mail that permission to conduct business with the certificate holder, as authorized under subsection (a), has been rescinded and that the certificate holder shall cease conducting business with the applicant for gaming related gaming service provider certification by the date specified in the notice.
§ 613a.9. Certificate holders' duty to investigate.
(a) A certificate holder shall investigate the background and qualifications of the applicants for gaming related gaming service provider certification with whom it intends to have a contractual relationship or enter into an agreement.
(b) A certificate holder shall have an affirmative duty to avoid agreements or relationships with persons applying for gaming related gaming service provider certification whose background or association is injurious to the public health, safety, morals, good order and general welfare of the people of this Commonwealth, or who threaten the integrity of gaming in this Commonwealth.
(c) A certificate holder shall have a duty to inform the Board of an action by an applicant for or holder of a gaming related gaming service provider certification which the certificate holder believes would constitute a violation of the act or this part.
CHAPTER 615a. CONDITIONAL TABLE GAME DEVICE LICENSES Sec.
615a.1. Table game devices, conditional licenses. § 615a.1. Table game devices, conditional licenses.
(a) The Board may grant an applicant for a table game device manufacturer, manufacturer designee or supplier license a conditional license to conduct table game business in this Commonwealth.
(b) To be eligible to obtain a conditional table game device license, the applicant for a table game device manufacturer, manufacturer designee or supplier license shall:
(1) Submit a completed manufacturer, manufacturer designee or supplier license application, including the nonrefundable application fee as posted on the Board's web site at www.pgcb.pa.gov, and pass a preliminary review.
(2) Be certified as a gaming service provider in this Commonwealth or be licensed in good standing to manufacture or provide table game devices in another jurisdiction in the United States or Canada that the Board has determined has licensing standards that are as comprehensive and thorough and provide similar adequate safeguards as those required under the act.
(3) Submit a written statement from a slot machine licensee, manufacturer licensee, manufacturer designee licensee or supplier licensee that the slot machine licensee, manufacturer licensee, manufacturer designee licensee or supplier licensee intends to do business with the applicant for the purpose of purchasing, selling or marketing table game devices.
(4) Pass a preliminary review of the applicant's criminal history.
(5) Submit full payment of the licensing fee, as posted on the Board's web site, for the table game device manufacturer, manufacturer designee or supplier license prior to the issuance of the conditional license.
(c) An applicant for a table game device manufacturer, manufacturer designee or supplier license that has received a conditional license shall provide monthly transaction reports to the Bureau of Licensing by the 20th calendar day of the following month during the period of conditional licensure. The monthly transaction reports must include:
(1) The date table game devices were provided to a licensee.
(2) A description of the table game devices provided.
(3) The amount paid by the licensee for the table game devices.
(4) A copy of the invoice for the table game devices.
(d) If the Office of Enforcement Counsel issues a Notice of Recommendation for Denial to an applicant for a table game device manufacturer, manufacturer designee or supplier license that has received a conditional license, the Bureau of Licensing may rescind the conditional license. If the conditional license is rescinded, the conditional licensee shall cease conducting business by the date specified in the notice of the rescission sent to the conditional licensee by the Bureau of Licensing under subsection (e).
(e) When the Bureau of Licensing rescinds a conditional license, the Bureau of Licensing will notify the holder of the conditional license and all slot machine licensees, manufacturer licensees, manufacturer designee licensees and supplier licensees by registered mail that:
(1) Permission for the conditional licensee to conduct business under subsection (a) has been rescinded.
(2) Slot machine licensees, manufacturer licensees, manufacturer designee licensees and supplier licensees shall cease conducting business with the conditional licensee by the date specified in the notice.
(f) Pending a hearing on the Notice of Recommendation for Denial, the conditional licensee may not seek or conduct any new business in this Commonwealth and may only complete transactions that were commenced prior to the date specified in the notice of rescission.
[Pa.B. Doc. No. 12-1288. Filed for public inspection July 6, 2012, 9:00 a.m.]
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