RULES AND REGULATIONS
Title 58—RECREATION
PENNSYLVANIA GAMING CONTROL BOARD
[ 58 PA. CODE CHS. 801—803 ]
Interactive Gaming; Temporary Regulations
[48 Pa.B. 21]
[Saturday, January 6, 2018]The Pennsylvania Gaming Control Board (Board), under the general authority in 4 Pa.C.S. § 13B03(b) (relating to regulations) and the specific authority in 4 Pa.C.S. § 1202(b)(30) (relating to general and specific powers), adds the relevant terms associated with interactive gaming implementation in this Commonwealth and delineates the petition and application requirements for interactive gaming certificates and interactive gaming operators to read set forth in Annex A.
Purpose of this Temporary Rulemaking
This temporary rulemaking defines the relevant terms associated with interactive gaming implementation in this Commonwealth and delineates the petition and application requirements for interactive gaming certificates and interactive gaming operators.
Explanation of Chapters 801—803
Chapters 801—803 (relating to general interactive gaming provisions—temporary regulations; interactive gaming certificates—temporary regulations; and interactive gaming operators—temporary regulations) provide definitions of the terms associated with interactive gaming implementation in this Commonwealth and delineate the petition and application requirements for interactive gaming certificates and interactive gaming operators.
Affected Parties
This temporary rulemaking provides interested parties information relative to the entities who may participate in interactive gaming in this Commonwealth and the petition and application processes for some of those parties.
Fiscal Impact
Commonwealth
The Board does not expect that this temporary rulemaking will have fiscal impact on the Board or any other Commonwealth agency. Petitions for interactive gaming certificates and applications for interactive gaming operator licenses will be reviewed by existing Board staff.
Political subdivisions
This temporary rulemaking will not have direct fiscal impact on political subdivisions of this Commonwealth. Host municipalities and counties benefit from the local share funding that is mandated by the act of January 7, 2010 (P.L. 1, No. 1).
Private sector
This temporary rulemaking defines the relevant terms associated with interactive gaming implementation in this Commonwealth and delineates the petition and application requirements for interactive gaming certificates and interactive gaming operators. It is anticipated that this temporary rulemaking will have an impact only on those individuals seeking to acquire these certificates or licenses, the impact being for licensing costs which will be recouped through proceeds from the provision of interactive gaming.
General public
This temporary rulemaking will not have direct fiscal impact on the general public.
Paperwork Requirements
Individuals eligible for an interactive gaming certificate will have to file a petition with the Board seeking approval to conduct this activity. The contents of the petition are set forth in Annex A.
Individuals eligible for an interactive gaming operator license shall file an application to participate in these activities in this Commonwealth. These applications will be made available on the Board's public web site at a later date.
Effective Date
This temporary rulemaking will become effective upon publication in the Pennsylvania Bulletin and expire 2 years after publication.
Public Comments
While this temporary rulemaking will be effective upon publication, the Board is seeking comments from the public and affected parties as to how these temporary regulations might be improved. Interested persons are invited to submit written comments, suggestions or objections regarding this temporary rulemaking within 30 days after the date of publication in the Pennsylvania Bulletin to Laura R. Burd, Senior Counsel, Pennsylvania Gaming Control Board, P.O. Box 69060, Harrisburg, PA 17106-9060, lburd@pa.gov, Attention: Public Comment on Regulation # 125-209.
Contact Person
The contact person for questions about this temporary rulemaking is Laura R. Burd, Senior Counsel, (717) 346-8300, lburd@pa.gov.
Regulatory Review
Under 4 Pa.C.S. § 13B03, the Board has the authority to promulgate temporary regulations to facilitate the prompt implementation of interactive gaming in this Commonwealth. The temporary regulations adopted by the Board are not subject to sections 201—205 of the act of July 31, 1968 (P.L. 769, No. 240) (45 P.S. §§ 1201—1205), known as the Commonwealth Documents Law, the Regulatory Review Act (71 P.S. §§ 745.1—745.14) and section 204(b) of the Commonwealth Attorneys Act (71 P.S. § 732-204(b)). Under 4 Pa.C.S. § 13B03(c), these temporary regulations expire 2 years after publication in the Pennsylvania Bulletin.
Findings
The Board finds that:
(1) Under 4 Pa.C.S. § 13B03, these temporary regulations are exempt from the Regulatory Review Act, sections 201—205 of the Commonwealth Documents Law and section 204(b) of the Commonwealth Attorneys Act.
(2) The adoption of the temporary regulations is necessary and appropriate for the administration and enforcement of 4 Pa.C.S. Part II (relating to Pennsylvania Race Horse Development and Gaming Act).
Order
The Board, acting under 4 Pa.C.S. Part II, orders that:
(1) The regulations of the Board, 58 Pa. Code, are amended by adding §§ 801.1—801.4, 802.1—802.3 and 803.1—803.3 to read as set forth in Annex A.
(2) These temporary regulations will be posted on the Board's web site.
(3) These temporary regulations are subject to amendment as deemed necessary by the Board.
(4) The Chairperson of the Board has certified this order and Annex A and shall deposit them with the Legislative Reference Bureau as required by law.
(5) These temporary regulations are effective upon publication in the Pennsylvania Bulletin and expire 2 years after publication.
DAVID M. BARASCH,
ChairpersonFiscal Note: 125-209. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart L. INTERACTIVE GAMING Chap.
801. GENERAL INTERACTIVE GAMING PROVISIONS—TEMPORARY REGULATIONS 802. INTERACTIVE GAMING CERTIFICATES—TEMPORARY REGULATIONS 803. INTERACTIVE GAMING OPERATORS—TEMPORARY REGULATIONS
CHAPTER 801. GENERAL INTERACTIVE GAMING PROVISIONS—TEMPORARY REGULATIONS Sec.
801.1. Scope. 801.2. Definitions. 801.3. Certificate or license required. 801.4. Initial and renewal certificate and license fees. § 801.1. Scope.
The purpose of this subpart is to govern the operation of interactive gaming. The act and the Board's regulations promulgated thereunder otherwise apply when not in conflict with this subpart.
§ 801.2. Definitions.
The following words and terms, when used in this subpart, have the following meanings, unless the context clearly indicates otherwise:
Airport authority—Any of the following:
(i) The governing body of a municipal authority organized and incorporated to oversee the operations of a qualified airport under 53 Pa.C.S. §§ 5601—5623 (relating to Municipality Authorities Act).
(ii) A city of the first class that regulates the use and control of a qualified airport located partially in a county of the first class and partially in a county contiguous to a county of the first class.
Airport gaming area—A location within a qualified airport area approved by the airport authority and the Board for the conduct of interactive gaming through the use of multiuse computing devices by eligible passengers.
Associated equipment—Any equipment or mechanical, electromechanical or electronic contrivance, component or machine used in connection with interactive gaming, including equipment which affects the proper reporting and counting of gross interactive gaming revenue, computerized systems for controlling and monitoring interactive games, including interactive gaming devices necessary for the operation of interactive games as approved by the Board.
Authorized interactive game—An interactive game approved by regulation of the Board to be suitable for interactive gaming offered by an interactive gaming certificateholder or an interactive gaming operator on behalf of an interactive gaming certificateholder in accordance with sections 13B01—13B63 of the act (relating to interactive gaming). The term includes an interactive game approved by regulation of the Board to be suitable for interactive gaming through use of a multiuse computing device.
Cash equivalent—An asset that is readily convertible to cash, including any of the following:
(i) Chips or tokens.
(ii) Travelers checks.
(iii) Foreign currency and coin.
(iv) Certified checks, cashier's checks and money orders.
(v) Personal checks or drafts.
(vi) A negotiable instrument applied against credit extended by a certificateholder, an interactive gaming certificateholder, an interactive gaming operator or a financial institution.
(vii) A prepaid access instrument.
(viii) Any other instrument or representation of value that the Board deems a cash equivalent.
Cheat—
(i) To defraud or steal from any player, interactive gaming certificateholder, interactive gaming operator or the Commonwealth while operating or playing an authorized interactive game, including causing, aiding, abetting or conspiring with another person to do so.
(ii) The term also means to alter or causing, aiding, abetting or conspiring with another person to alter the elements of chance, method of selection or criteria which determine:
(A) The result of an authorized interactive game.
(B) The amount or frequency of payment in an authorized interactive game.
(C) The value of a wagering instrument.
(D) The value of a wagering credit.
(iii) The term does not include altering an interactive gaming device or associated equipment for maintenance or repair with the approval of an interactive gaming certificateholder or interactive gaming operator.
Cheating device—A device, software or hardware used or possessed with the intent to be used to cheat during the operation or play of any authorized interactive game. The term also includes any device used to alter an authorized interactive game or interactive gaming device or associated equipment without the interactive gaming certificateholder's or interactive gaming operator's approval.
Communication technology—Any method used and the components employed to facilitate the transmission and receipt of information, including transmission and reception by systems using wire, wireless, cable, radio, microwave, light, fiber optics, satellite or computer data networks, including the Internet and intranets.
Concession operator—A person engaged in the sale or offering for sale of consumer goods or services to the public at a qualified airport, or authorized to conduct other commercial activities related to passenger services at a qualified airport, in accordance with the terms and conditions of an agreement or contract with an airport authority, government entity or other person.
Conduct of gaming—The licensed placement, operation and play of interactive games under this subpart, as authorized and approved by the Board. The term includes the licensed placement, operation and play of authorized interactive games through the use of multiuse computing devices at a qualified airport under sections 13B20—13B20.7 of the act (relating to multi-use computing devices).
Contest—An authorized interactive game competition among players for cash, cash equivalents or prizes.
Eligible passenger—An individual 21 years of age or older who has cleared security check points with a valid airline boarding pass for travel from one destination to another.
Gaming employee—An employee of any of the following who the Board determines, after a review of the work to be performed, requires a gaming employee permit for the protection of the integrity of interactive gaming operations in this Commonwealth:
(i) An interactive gaming certificateholder or interactive gaming operator licensee.
(ii) An interactive gaming manufacturer licensee or interactive gaming supplier licensee.
(iii) An interactive service provider.
(iv) Any other person as determined by the Board.
Gaming-related restricted area—A room or area of a licensed facility which is specifically designated by the Board as restricted or by the interactive gaming certificateholder or interactive gaming operator as restricted in its Board-approved internal controls.
Gaming school—An educational institution approved by the Department of Education as an accredited college or university, community college, Pennsylvania private licensed school or its equivalent and whose curriculum guidelines are approved by the Department of Labor and Industry to provide education and job training related to employment opportunities associated with interactive games, including interactive gaming devices and associated equipment maintenance and repair.
Gross interactive airport gaming revenue—
(i) Revenue is the total of all cash or cash equivalent wagers paid by an eligible passenger to an interactive gaming certificateholder at a qualified airport through the use of multiuse computing devices in consideration for the play of authorized interactive games at a qualified airport through the use of multiuse computing devices, including cash received as entry fees for contests or tournaments, minus:
(A) The total of cash or cash equivalents paid out to an eligible passenger as winnings.
(B) The actual cost paid by the interactive gaming certificateholder at a qualified airport through the use of multiuse computing devices for personal property distributed to a player as a result of playing an authorized interactive game. This clause does not include travel expenses, food, refreshments, lodging or services.
(ii) Amounts deposited with an interactive gaming certificateholder for purposes of interactive gaming at a qualified airport through the use of multiuse computing devices and amounts taken in fraudulent acts perpetrated against an interactive gaming certificateholder for which the interactive gaming certificateholder is not reimbursed and may not be considered to have been paid to the interactive gaming certificateholder for purposes of calculating gross interactive airport gaming revenue.
Gross interactive gaming revenue—
(i) The total of all cash or cash equivalent wagers paid by registered players to an interactive gaming certificateholder in consideration for the play of authorized interactive games, including cash received as entry fees for contests or tournaments, minus:
(A) The total of cash or cash equivalents paid out to registered players as winnings.
(B) The actual cost paid by the interactive gaming certificateholder for any personal property distributed to a player as a result of playing an authorized interactive game. This clause does not include travel expenses, food, refreshments, lodging or services.
(ii) Amounts deposited with an interactive gaming certificateholder for purposes of interactive gaming and amounts taken in fraudulent acts perpetrated against an interactive gaming certificateholder for which the interactive gaming certificateholder is not reimbursed may not be considered to have been paid to the interactive gaming certificateholder for purposes of calculating gross interactive gaming revenue.
Interactive game—
(i) A gambling game offered through the use of communications technology that allows a person utilizing money, checks, electronic checks, electronic transfers of money, credit cards or any other instrumentality to transmit electronic information to assist in the placement of a bet or wager and corresponding information related to the display of the game, game outcomes or other similar information.
(ii) The term does not include any of the following:
(A) A lottery game or Internet instant game as defined in the State Lottery Law (72 P.S. §§ 3761-101—3761-2103).
(B) Lottery under 4 Pa.C.S. §§ 501—505 (relating to lottery).
(C) A nongambling game that does not otherwise require a license under the laws of the Commonwealth.
(D) A fantasy contest under 4 Pa.C.S. §§ 301—342 (relating to fantasy contests).
Interactive gaming—The placing of wagers with an interactive gaming certificateholder or interactive gaming operator using a computer network of Federal and non-Federal interoperable packet switched data networks through which an interactive gaming certificateholder may offer authorized interactive games to registered players. The term includes the placing of wagers through the use of a multiuse computing device.
Interactive gaming account—The formal electronic system implemented by an interactive gaming certificate- holder to record the balance of a registered player's debits, credits and other financial activity related to interactive gaming.
Interactive gaming account agreement—An agreement entered into between an interactive gaming certificate- holder and a registered player which governs the terms and conditions of the registered player's interactive gaming account and the use of the Internet for purposes of placing wagers on authorized interactive games operated by an interactive gaming certificateholder or interactive gaming operator.
Interactive gaming agreement—An agreement entered into by or between an interactive gaming certificateholder and an interactive gaming operator related to the offering or operation of interactive gaming or an interactive gaming system by the interactive gaming operator on behalf of the interactive gaming certificateholder. The term includes an interactive gaming agreement entered into between an interactive gaming certificateholder and an interactive gaming operator for the conduct of interactive gaming through the use of multiuse computing devices at a qualified airport in accordance with sections 13B01—13B63 of the act.
Interactive gaming certificate—The authorization issued to a slot machine licensee by the Board authorizing the operation and conduct of interactive gaming by a slot machine licensee in accordance with sections 13B01—13B63 of the act.
Interactive gaming certificateholder—A slot machine licensee that has been granted authorization by the Board to operate interactive gaming in accordance with sections 13B01—13B63 of the act.
Interactive gaming device—The hardware, software and other technology, equipment or device of any kind as determined by the Board to be necessary for the conduct of authorized interactive games.
Interactive gaming license—A license issued to an interactive gaming operator by the Board under sections 13B01—13B63 of the act.
Interactive gaming manufacturer—
(i) A person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to an authorized interactive games for use or play of authorized interactive games in this Commonwealth for gaming purposes.
(ii) The term includes operators of live gaming studios.
(iii) The term does not include a person who manufactures, builds, rebuilds, fabricates, assembles, produces, programs, designs or otherwise makes modifications to multiuse computing devices used in connection with the conduct of interactive gaming at a qualified airport.
Interactive gaming manufacturer license—A license issued by the Board authorizing a manufacturer to manufacture or produce interactive gaming devices or associated equipment for use in this Commonwealth for gaming purposes. The term includes the operators of live gaming studios.
Interactive gaming operator—A person licensed by the Board to operate interactive gaming or an interactive gaming system, through the provision of an interactive gaming platform, on behalf of an interactive gaming certificateholder. The term includes a person that has received conditional authorization under section 13B14 of the act (relating to interactive gaming operators) for as long as the authorization is effective.
Interactive gaming platform—The combination of hardware and software or other technology designed and used to manage, conduct and record interactive games and the wagers associated with interactive games, as approved by the Board. The term includes emerging or new technology deployed to advance the conduct and operation of interactive gaming, as approved through regulation by the Board.
Interactive gaming reciprocal agreement—An agreement negotiated by the Board and approved by the Governor on behalf of the Commonwealth with the regulatory agency of one or more states or jurisdictions where interactive gaming is legally authorized which will permit the conduct of interactive gaming between interactive gaming certificateholders in this Commonwealth and gaming entities in the states or jurisdictions that are parties to the agreement.
Interactive gaming restricted area—A room or area, as approved by the Board, used by an interactive gaming certificateholder or interactive gaming operator to manage, control and operate interactive gaming, including, when approved by the Board, redundancy facilities and remote gaming server locations.
Interactive gaming service provider—A person that is not required to be licensed as a manufacturer, supplier, management company, gaming junket enterprise or a gaming service provider under this part who:
(i) Provides goods or services to an interactive gaming certificateholder or interactive gaming operator for the operation of interactive gaming.
(ii) Is determined to be an interactive service provider by the Board.
Interactive gaming skin or skins—The portal to an interactive gaming platform or interactive gaming web site through which authorized interactive games are made available by an interactive gaming certificateholder or interactive gaming operator to registered players in this Commonwealth or registered players in any other state or jurisdiction which has entered into an interactive gaming reciprocal agreement.
Interactive gaming supplier—
(i) A person who sells, leases, offers or otherwise provides, distributes or services an interactive gaming device or associated equipment for use or play of interactive games in this Commonwealth.
(ii) The term includes a person that sells, leases, offers or otherwise provides, distributes or services multiuse computing devices approved by the Board.
(iii) The term does not include the seller of a device that does not contain or operate interactive gaming software or systems or that has not been configured as a multiuse computing device at the time it is sold.
Interactive gaming supplier license—A license issued by the Board authorizing a supplier to provide products or services related to interactive gaming devices, including multiuse computing device or associated equipment, to interactive gaming certificateholders or interactive gaming operators for use in this Commonwealth for gaming purposes.
Interactive gaming system—The hardware, software and communications that comprise a type of server-based gaming system for the purpose of offering authorized interactive games.
Interactive gaming web site—The interactive gaming skin or skins through which an interactive gaming certificateholder or interactive gaming operator makes authorized interactive games available for play.
Key employee—
(i) All of the following:
(A) An individual who is employed in a director or department head capacity and who is empowered to make discretionary decisions that regulate interactive gaming operations, including the director of interactive gaming, director of interactive gaming system programs or other similar job classifications associated with interactive gaming.
(B) Persons who manage, control or administer interactive gaming or the bets and wagers associated with authorized interactive games.
(C) An employee who is not otherwise designated as a gaming employee and who supervises the operations of the interactive gaming department or to whom the interactive gaming department directors or interactive gaming department heads report and other positions not otherwise designated or defined under this part which the Board will determine based on detailed analyses of job descriptions as provided in the internal controls of the licensee as approved by the Board.
(ii) All other gaming employees unless otherwise designated by the Board shall be classified as nonkey employees.
Licensed facility—
(i) The physical land-based location at which a licensed gaming entity is authorized to place and operate slot machines and, if authorized by the Board under sections 13A01—13A63 of the act (relating to table games), to conduct table games and, if authorized under sections 13B01—13B63 of the act, to conduct interactive gaming.
(ii) The term includes any of the following:
(A) An area of a licensed racetrack at which a slot machine licensee was previously authorized under section 1207(17) of the act (relating to regulatory authority of board) to operate slot machines prior to January 6, 2018.
(B) A Board-approved interim facility or temporary facility.
(C) An area of a hotel which the Board determines is suitable to conduct table games.
(D) An area of a licensed facility where casino simulcasting is conducted, as approved by the Board.
(iii) The term does not include a redundancy facility or an interactive gaming restricted area which is not located on the premises of a licensed facility as approved by the Board and which is maintained and operated by an interactive gaming certificateholder or interactive gaming operator in connection with interactive gaming or casino simulcasting. A license to conduct live thoroughbred or harness horse race meetings respectively with pari-mutuel wagering from the State Horse Racing Commission under 3 Pa.C.S. §§ 9301—9374 (relating to race horse industry reform).
Live gaming studio—A physical location that utilizes live video streaming technology to provide live casino games to a player's interactive gaming device or multiuse computing device that permits the player to participate in live streamed casino games, interact with gaming studio dealers and interact with fellow players.
Multiuse computing device—A computing device, including a tablet computer, that:
(i) Is located and accessible to eligible passengers only in an airport gaming area.
(ii) Allows an eligible passenger to play an authorized interactive game.
(iii) Communicates with a server that is in a location approved by the Board.
(iv) Is approved by the Board.
(v) Has the capability of being linked to and monitored by the Department's central control computer system, as applicable for any particular interactive game, in accordance with section 1323 of the act (relating to central control computer system).
(vi) Offers a player additional functions which includes Internet browsing, the capability of checking flight status, and ordering food or beverages.
Multistate agreement—The written agreement, approved by the Governor, between the Board and regulatory agencies in other states or jurisdictions for the operation of an interactive multistate wide-area progressive system.
Multistate wide-area progressive system—The linking of interactive games offered by interactive gaming certificateholders or interactive gaming operators in this Commonwealth with interactive games located in one or more states or jurisdictions whose regulatory agencies have entered into written agreements with the Board for the operation of the system.
Net terminal revenue—The net amount of the gross terminal revenue less the tax and assessments imposed by sections 1402, 1403, 1405 and 1407 of the act.
Non-peer-to-peer interactive game—An authorized interactive game in which the player does not compete against players and which is not a peer-to-peer interactive game.
Peer-to-peer interactive game—An authorized interactive game which is nonbanking, in which a player competes against one or more players and in which the interactive gaming certificateholder collects a rake.
Player—An individual wagering cash, a cash equivalent or other thing of value in the play or operation of an authorized interactive game, including during a contest or tournament, the play or operation of which may deliver or entitle the individual playing or operating the authorized interactive game to receive cash, a cash equivalent or other thing of value from another player or an interactive gaming certificateholder or interactive gaming operator.
Prepaid access instrument—A card, code, electronic serial number, mobile identification number, personal identification number or similar device that:
(i) Allows patron access to funds that have been paid in advance and can be retrieved or transferred through the use of the device.
(ii) Qualifies as an access device for purposes of regulations issued by the Board of Governors of the Federal Reserve System under 12 CFR Part 205 (relating to electronic fund transfers (Regulation E)).
(iii) Shall be distributed by a slot machine licensee or its affiliates to be considered a cash equivalent at the slot machine licensee's licensed facility or the location of the slot machine licensee's affiliates.
(iv) Shall be used in conjunction with an approved cashless wagering system or electronic credit system to transfer funds for gaming purposes.
Progressive payout—An interactive game wager payout that increases in a monetary amount based on the amounts wagered in a progressive system, including a multistate wide-area progressive interactive game system.
Progressive system—A computerized system linking interactive games offered by interactive gaming certificate- holders or interactive gaming operators in this Commonwealth and offering one or more common progressive payouts based on the amounts wagered. The term includes a multistate wide-area progressive system.
Qualified airport—A publicly owned commercial service airport.
Qualified gaming entity—A gaming entity licensed in a jurisdiction that has satisfied the requirements of this subpart and any other criteria established by the Board, including financial and character suitability requirements.
Redundancy facilities—Rooms or areas used by an interactive gaming certificateholder, an interactive gaming operator, or other licensed or authorized entity associated with the provision of interactive gaming for emergency backup, redundancy or secondary operations attendant to interactive gaming as approved by the Board.
Registered player—An individual who has entered into an interactive gaming account agreement with an interactive gaming certificateholder.
State gaming receipts—Revenues and receipts required under this subpart to be paid into the State Gaming Fund, the Pennsylvania Race Horse Development Trust Fund and the Pennsylvania Gaming Economic Development and Tourism Fund, and all rights, existing on January 6, 2018, or coming into existence later, to receive revenues and receipts.
§ 801.3. Certificate or license required.
The Board will initiate formal procedures for the acceptance, consideration and final adjudication of petitions and applications by setting filing requirements and deadlines for interactive gaming certificates and interactive gaming operator licenses. The filing requirements and deadlines will be posted on the Board's public web site.
§ 801.4. Initial and renewal certificate and license fees.
Prior to the Board issuing an interactive gaming certificate or interactive gaming operator license or renewal thereof, the interactive gaming certificateholder or interactive gaming operator licensee shall pay the certificate or license fee.
CHAPTER 802. INTERACTIVE GAMING CERTIFICATES—TEMPORARY REGULATIONS Sec.
802.1. Interactive gaming certificate requirements. 802.2. Interactive gaming certificate petition and standards. 802.3. Interactive gaming certificate term and renewal. § 802.1. Interactive gaming certificate requirements.
(a) A slot machine licensee seeking to offer interactive gaming in this Commonwealth may petition the Board for an interactive gaming certificate.
(b) Three categories of interactive gaming are authorized in this Commonwealth:
(1) A peer-to-peer interactive game.
(2) A non-peer-to-peer interactive game which simulates slot machines.
(3) A non-peer-to-peer interactive game which simulates table games.
(c) A slot machine licensee seeking to offer interactive gaming in this Commonwealth shall adhere to all of the following time and eligibility restrictions:
(1) No later than 90 days after the date the Board begins accepting petitions under this chapter, a slot machine licensee may file a petition with the Board for an interactive gaming certificate. If the Board approves a petition for an interactive gaming certificate under this paragraph, the Board will authorize the interactive gaming certificateholder to offer any category of interactive gaming.
(2) Between 90 days and 120 days or more after the date the Board begins accepting petitions under this chapter, a slot machine licensee may file a petition with the Board for an interactive gaming certificate. If the Board approves a petition for an interactive gaming certificate under this paragraph, the Board will authorize the interactive gaming certificateholder to offer only the categories of interactive gaming identified in the slot machine licensee's petition filed under this chapter.
(3) One hundred twenty days after the date the Board begins accepting petitions under this chapter, a qualified gaming entity may file a petition with the Board for an interactive gaming certificate. If the Board approves a petition for an interactive gaming certificate under this paragraph, the Board will authorize the interactive gaming certificateholder to offer only the categories of interactive gaming identified in the slot machine licensee's petition under this chapter.
(4) A qualified gaming entity which files a petition for an interactive gaming certificate under paragraph (3) will be considered a slot machine licensee for the purposes of this chapter.
(5) A slot machine licensee who becomes licensed after January 6, 2018, shall have 90 days from the date of licensure and the Board's opening of the petition process to submit a petition with the Board for an interactive gaming certificate. If the Board approves a petition for an interactive gaming certificate under this paragraph, the Board will authorize the interactive gaming certificate- holder to offer any category of interactive gaming. After 90 days but before 120 days from the date of licensure and the Board's opening of the petition process, the slot machine licensee may file a petition with the Board for an interactive gaming certificate. If the Board approves a petition for an interactive gaming certificate under this paragraph, the Board will authorize the interactive gaming certificateholder to offer only the categories of interactive gaming identified in the slot machine licensee's petition filed under this chapter.
(d) An interactive gaming certificate issued under this subpart will list the categories of interactive games authorized under the interactive gaming certificate. An interactive gaming certificate which authorizes multiple categories of interactive games will count as an interactive gaming certificate in each category of interactive game authorized under this section.
§ 802.2. Interactive gaming certificate petition and standards.
(a) A petitioner for an interactive gaming certificate shall submit all of the following to the Board:
(1) The name, business address and contact information of the slot machine licensee applying for an interactive gaming certificate.
(2) The name, business address and contact information of any affiliate or other person that will be a party to an agreement with the interactive gaming certificate petitioner related to the operation of interactive gaming or an interactive gaming system on behalf of the interactive gaming certificate petitioner, including a person applying for an interactive gaming operator license.
(3) The name, business address, job title and a photograph of each principal and key employee of the interactive gaming certificate petitioner who will be involved in the conduct of interactive gaming, whether or not the principal or key employee is currently licensed by the Board.
(4) The name, business address, job title and a photograph of each principal and key employee of the interactive gaming operator, if any, who will conduct interactive gaming or an interactive gaming system on behalf of the interactive gaming certificate petitioner, whether or not the principal or key employee is currently licensed by the Board.
(5) A statement identifying which categories of interactive games the interactive gaming certificate petitioner intends to offer:
(i) Peer-to-peer interactive games.
(ii) Non-peer-to-peer interactive games which simulate slot machines.
(iii) Non-peer-to-peer interactive games which simulate table games.
(6) An itemized list of the interactive games, including identifying the category of each interactive game for which authorization is being sought.
(7) The estimated number of full-time and part-time employment positions that will be created as a result of interactive gaming and the jurisdictions in which the positions will be located, including positions at the interactive gaming certificate petitioner's licensed facility or at any interactive gaming restricted area if an interactive gaming certificate is issued, and an updated hiring plan under section 1510(a) of the act (relating to labor hiring preferences) which outlines the interactive gaming certificate petitioners plan to promote the representation of diverse groups and Commonwealth residents in the employment positions.
(8) A brief description of the economic benefits expected to be realized by the Commonwealth if an interactive gaming certificate is issued.
(9) The details of any financing obtained or that will be obtained to fund an expansion or modification of the interactive gaming certificate petitioners licensed facility to accommodate interactive gaming and to otherwise fund the cost of commencing interactive gaming.
(10) Information and documentation concerning financial background and resources, as the Board may require, to establish by clear and convincing evidence the financial stability, integrity and responsibility of the interactive gaming certificate petitioner, and information or documentation concerning any person that will operate interactive gaming or an interactive gaming system on behalf of the interactive gaming certificate petitioner as an interactive gaming operator, as the Board may require. The interactive gaming agreement with a person is subject to the review and approval of the Board.
(11) Information and documentation, as the Board may require, to establish by clear and convincing evidence that the interactive gaming certificate petitioner has sufficient business ability and experience to conduct a successful interactive gaming operation. In making this determination, the Board may consider the results of the interactive gaming certificate petitioner's slot machine and table game operations, including financial information, employment data and capital investment.
(12) Information and documentation, as the Board may require, to establish by clear and convincing evidence that the interactive gaming certificate petitioner has or will have the financial ability to pay the interactive gaming authorization fee.
(13) Detailed site plans identifying the proposed interactive gaming restricted area where interactive gaming operations will be managed, administered or controlled as approved by the Board.
(14) A detailed description of all of the following:
(i) The interactive gaming certificate petitioner's initial system of internal and accounting controls applicable to interactive gaming.
(ii) The interactive gaming certificate petitioner's proposed standards to protect, with a reasonable degree of certainty, the privacy and security of its registered players.
(iii) How the interactive gaming certificate petitioner will facilitate compliance with the requirements in this chapter and section 802(a)(10)(b) of the Unlawful Internet Gambling Enforcement Act of 2006 (31 U.S.C.A. § 5362(10)(b)), including all of the following:
(A) Age, identity and location verification requirements.
(B) Appropriate data security standards to prevent unauthorized access by a person whose age, identity or location have not been verified or cannot be verified in accordance with this subpart and applicable regulations of the Board.
(C) Except as provided in sections 13B61—13B63 of the act (relating to miscellaneous provisions), the requirement that all wagers made in the conduct of interactive gaming be initiated and received or otherwise made exclusively in this Commonwealth.
(D) The interactive gaming certificate petitioner's proposed age, identity and location verification standards designed to block access to persons under 21 years of age and other persons excluded or prohibited from participating in interactive gaming under this chapter.
(E) The procedures the interactive gaming certificate petitioner will use to register individuals as registered players.
(F) The procedures the interactive gaming certificate petitioner will use to establish interactive gaming accounts for registered players.
(G) The interactive games and services the interactive gaming certificate petitioner proposes to offer to registered players.
(H) Documentation and information relating to known proposed contractors of the interactive gaming certificate petitioner and subcontractors of the contractors.
(15) The interactive gaming devices and associated equipment and interactive gaming system that the interactive gaming certificate petitioner plans to or will utilize to manage, administer or control its interactive gaming operations.
(16) Compliance certification of the interactive gaming certificate petitioner's proposed interactive gaming devices and associated equipment, including interactive gaming software and hardware, by a Board-approved gaming laboratory to ensure that the gaming software and hardware comply with this subpart and regulations of the Board.
(17) A detailed description of accounting systems, including accounting systems for all the following:
(i) Interactive gaming accounts.
(ii) Per hand charges, if applicable.
(iii) Transparency and reporting to the Board and the Department.
(iv) Distribution of revenue to the Commonwealth and winnings to registered players.
(v) Ongoing auditing and internal control compliance reviews.
(18) Detailed information on security systems to protect the interactive gaming skins or interactive gaming web site from internal and external breaches and threats.
(19) Any other information the Board may require.
(b) In addition to the materials required under subsection (a), the petitioner for an interactive gaming certificate shall show, by clear and convincing evidence, all the following:
(1) The petitioner's proposed conduct of interactive gaming complies in all respects with the requirements of this subpart and the Board's regulations.
(2) Age, identity and location verification requirements designed to block access to individuals under 21 years of age and persons otherwise excluded or prohibited from engaging in interactive gaming in accordance with this subpart, as approved by the Board, have been implemented by the slot machine licensee.
(3) The petitioner has implemented or will implement appropriate data security standards to prevent unauthorized access by a person whose age, identity and location has not been verified or cannot be verified in accordance with the Board's regulations.
(4) The petitioner has implemented or will implement appropriate standards to protect the privacy and security of registered players with a reasonable degree of certainty.
(5) The petitioner's initial system of internal and accounting controls applicable to interactive gaming, and the security and integrity of all financial transactions in connection with the system, complies with this chapter and the Board's regulations.
(6) The petitioner is in good standing with the Board.
(7) The petitioner agrees that the number of slot machines and table games in operation at its licensed facility as of January 6, 2018, will not be reduced as a result of interactive gaming.
(c) In determining whether a petitioner is suitable to be issued an interactive gaming certificate under this subpart, the Board will consider all of the following:
(1) The financial fitness, good character, honesty, integrity and responsibility of the petitioner.
(2) If all principals of the petitioner are eligible and suitable under the standards in section 1311.1 of the act (relating to licensing of principals).
(3) The integrity of financial backers.
(4) The suitability of the petitioner and the principals of the petitioner based on the satisfactory results of all of the following:
(i) The background investigation of the principals.
(ii) A current tax clearance review performed by the Department.
(iii) A current Unemployment Compensation Tax clearance review and a Workers Compensation Tax clearance review performed by the Department of Labor and Industry.
§ 802.3. Interactive gaming certificate term and renewal.
(a) An interactive gaming certificate and the renewal thereof is valid for 5 years from the date of approval of the petition by the Board.
(b) A renewal application for an interactive gaming certificate shall be filed at least 6 months prior to the expiration of the current certificate.
(c) An interactive gaming certificate for which a competed renewal application and fee has been received by the Board will continue in effect until acted upon by the Board.
CHAPTER 803. INTERACTIVE GAMING OPERATORS—TEMPORARY REGULATIONS Sec.
803.1. Interactive gaming operator requirements. 803.2. Interactive gaming operator application and standards. 803.3. Interactive gaming operator license term and renewal. § 803.1. Interactive gaming operator requirements.
(a) A person seeking to operate interactive gaming or an interactive gaming system on behalf of an interactive gaming certificateholder in this Commonwealth may apply with the Board for an interactive gaming operator license.
(b) The Board may issue conditional authorization to a person applying for an interactive gaming operator license until July 6, 2019.
(1) Conditional authorization issued under this subpart shall remain in effect until the earlier of the date occurring 12 months after the issuance of the authorization or the date upon which the Board makes a final determination on the person's application.
(i) The effectiveness of a conditional authorization may be extended by the Board not more than once, upon a showing of good cause.
(ii) Conditional authorization will allow an applicant for an interactive gaming operator license to engage in all of the functions of a licensed interactive gaming operator for the duration of the conditional authorization.
(2) A conditional authorization will not be issued unless:
(i) The applicant has submitted a complete application for an interactive gaming operator license to the Board.
(ii) The applicant agrees to pay or has paid the fee prescribed in section 13B51 of the act (relating to interactive gaming authorization fee) prior to the issuance of conditional authorization.
(iii) The Bureau has no objection to the issuance of a conditional authorization to the applicant.
§ 803.2. Interactive gaming operator application and standards.
An applicant for an interactive gaming operator license shall submit all of the following:
(1) An original and one copy of the Interactive Gaming Operator Application and Disclosure Information Form unless otherwise directed by the Board.
(2) The nonrefundable application fee posted on the Board's web site.
(3) A diversity plan as set forth in section 1325(b) of the act (relating to license or permit issuance) and Chapter 481a (relating to diversity).
(4) An application from every key employee under this chapter and principal under Chapter 433a (relating to principal licenses) as specified by the Interactive Gaming Operator Application and Disclosure Information Form.
(5) A sworn or affirmed statement that the applicant has developed and implemented internal safeguards and policies to prevent a violation of section 1513 of the act (relating to political influence) and a copy of the safeguards and policies.
§ 803.3. Interactive gaming operator license term and renewal.
(a) An interactive gaming operator license and the renewal thereof is valid for 5 years from the date of approval of the application by the Board.
(b) A renewal application for an interactive gaming operator license shall be filed at least 6 months prior to the expiration of the current certificate.
(c) An interactive gaming operator license for which a competed renewal application and fee has been received by the Board will continue in effect until acted upon by the Board, whichever occurs first.
[Pa.B. Doc. No. 18-7. Filed for public inspection January 5, 2018, 9:00 a.m.]
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