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PA Bulletin, Doc. No. 08-396

PENNSYLVANIA GAMING CONTROL BOARD

[ 58 PA. CODE CHS. 401a, 435a, 439a, 441a, 461a, 461b, 463a AND 465a ]

[38 Pa.B. 1151]
[Saturday, March 8, 2008]

Preliminary Provisions; Employees; Junket Enterprises; Slot Machine Licenses; Slot Machine Testing and Control; Possession of Slot Machines; and Accounting and Internal Controls

   The Pennsylvania Gaming Control Board (Board), under its general authority in 4 Pa.C.S. § 1202(b)(30) (relating to general and specific powers) and the specific authority in 4 Pa.C.S. §§ 1207, 1311, 1321, 1322 and 1522 proposes to amend Chapters 401a, 435a, 439a, 441a, 461a, 461b, 463a and 465a to read as set forth in Annex A.

Purpose of the Proposed Rulemaking

   This proposed rulemaking is intended to reflect organizational changes, require the display of Board credentials, add new slot machine design standards, delete a technical standard that is outdated, make a number of changes to existing accounting and internal control requirements, revise the jackpot payout procedures and expand the provisions related to merchandise jackpots.

Explanation of Amendments to Chapters 401a, 439a, 461a and 465a

   Throughout this proposed rulemaking, references to the Board have been replaced with more specific references to the bureau or office that is involved.

   In § 401a.3 (relating to definitions), the definition of ''BCCIC'' is being deleted because that Bureau of Corporate Compliance and Internal Controls no longer exists.

   In § 435a.6(c) (relating to Board credentials), the requirement that a slot machine licensee's employees carry their Board credential has been changed to require that the Board credential be displayed.

   In Chapter 439a (relating to junket enterprises), references to the Bureau of Corporate Compliance and Internal Controls have been replaced with references to the Office of Gaming Operations.

   Section 441a.19 (relating to notice of employee misconduct and offenses) is being amended to require slot machine licensees to notify the Bureau of Licensing of the resignation of any key employee. This will provide the Board with an opportunity to conduct an exit interview with the key employee.

   In Chapter 461a (relating to to slot machince testing certification and control), the Board has made a number of changes. In § 461a.1 (relating to definitions) the definition of ''asset number'' has been expanded to include associated equipment and the definition of ''merchandise jackpot'' has been revised to correspond to changes to § 461a.28 (relating to merchandise jackpots) which will require slot machine licensees to offer a cash payment in lieu of the merchandise.

   In § 461a.7 (relating to slot machine minimum design standards), the Board has amended subsection (b)(3) to conform with the change made to § 461a.28 discussed previously. Additionally, a new standard related to the service button on slot machines has been added. It requires that the service button be easily accessible to the patron playing the slot machine and that activating the service button trigger a signal on the tower light that is consistent with the technical standards in § 461b.2 (relating to slot machine tower lights and error conditions).

   The third change in § 461a.7 moves a requirement that was in the technical standards in § 461b.1 (relating to slot machine minimum design standards) into the regulations. This standard requires that slot machines be configured to use any noncashable credits available for play before it uses any cashable credits. Because the Board is moving this requirement into the regulations, the technical standard in § 461b.1 will be deleted.

   The final change in § 461a.7 requires labels on slot machines containing the asset number and gaming floor location. Similar requirements have also been added to §§ 461a.10 and 461a.22 (relating to automated gaming voucher and coupon redemption machines; and automated jackpot payout machines).

   In § 461a.16 (relating to player tracking systems), a provision is proposed to prohibit slot machine licensees from having anyone under 21 years of age in a player tracking system. Since these individuals can not participate in gaming, they should not be participating in any player programs. A new subsection (c) has also been added which requires anyone who has access to the information contained in the player tracking system must hold a key employee license or occupation permit. This is being done to protect the personal information of individuals who elect to participate in any player programs.

   The last revision to Chapter 461a is in § 461a.25 (relating to disputes). This section, which sets forth the process for addressing patron disputes, is being revised to match the process that is currently being used. When a disputes arises which can not be resolved by the slot machine licensee, the slot machine licensee will notify the casino enforcement agents at the licensed facility. A casino enforcement agent will attempt to resolve the dispute, and if unsuccessful, will assist the patron in filing a complaint. When complaints are filed, the Bureau of Investigations and Enforcement (BIE) will conduct an investigation.

   In Chapter 463a (relating to possession of slot machines), a number of changes have been made to further clarify how certain requests are to be filed and what bureaus should receive copies of various filings. In § 463a.1 (relating to possession of slot machines generally), subsection (c) has been revised to require requests to possess slot machines to be filed as a petition. Additionally, a new subsection (e) has been added requiring anyone authorized to possess slot machines under subsection (d) to obtain Board approval for the offsite storage of the slot machines.

   Section 463a.2 (relating to transportation of slot machines into, within and out of this Commonwealth) is proposed to be amended to require that the notice that is sent to the Bureau of Gaming Laboratory Operations when a slot machine is going to be moved, also be sent the Office of Gaming Operations.

   In § 463a.5 (relating to slot machine master list), subsection (a) is proposed to be amended to require a copy of the slot machine master list to be filed with the Office of Gaming Operations as well as the Bureau of Gaming Laboratory Operations.

   In § 463a.7 (relating to off premises storage of slot machines), subsection (b) is proposed to be amended to require requests for off premises storage of slot machines to be filed as a petition under § 493a.4 (relating to petitions generally).

   In Chapter 465a (relating to accounting and internal controls), numerous proposed changes have been made concerning where filings should be made, eliminating unnecessary filings, clarifying various requirements and adding new procedures.

   In § 465a.2 (relating to internal control systems and audit protocols), references to the Board, the Bureau of Corporate Compliance and Internal Controls and BCCIC are proposed to be replaced with the Office of Gaming Operations which is now responsible for these functions. In subsection (f), provisions will be added to clarify that requests for changes to a slot machine licensee's internal controls are to be filed using an Amendment and Waiver Request Form. Also, subsection (j) is proposed to be revised to require retention of a paper copy of required attestations for 5 years.

   In § 465a.3 (relating to forms, records and documents), the reference to the ''Bureau'' has been deleted. The Board does not need to routinely receive copies of these occurrences.

   In § 465a.4 (relating to standard financial and statistical reports), subsections (a) and (b) have been deleted. The Board has determined that these required filings are duplicative or unnecessary for the Board to monitor the financial integrity of slot machine licensees.

   In § 465a.5 (relating to annual audit; other reports; suspicious activity and currency transaction reporting), references to the Bureau of Corporate Compliance and Internal Controls, BCCIC and Board have been replaced with the Bureau of Licensing throughout this section except in subsections (k) and (m) where Board is replaced with BIE and in subsection (n) where Board is replaced with the Office of Gaming Operations. In subsections (d) and (e), the phrase ''independent certified public accountant or'' has been added to be consistent with the language used in subsection (a).

   In subsections (d), (g) and (h), only one copy of the specified reports will have to be filed, instead of two or three copies.

   In § 465a.7 (relating to complimentary services or items), ''Board'' has been replaced with ''BIE'' in subsection (e).

   In § 465a.8 (relating to licensed facility), ''or floor'' has been added to subsection (d)(2) and ''facilitating'' has been replaced with ''providing'' in subsection (d)(6).

   In § 465a.9 (relating to surveillance system; surveillance department control; surveillance department restrictions), a number of editorial changes have been made. In subsection (a), a general requirement that the surveillance system must be in compliance with 18 Pa.C.S. Chapter 57 (relating to Wiretapping and Electronic Surveillance Control Act) has been added.

   In subsection (b), the phrase ''upon request'' has been deleted because it is not necessary.

   In subsection (c)(4), the requirement for audio surveillance capability in the count room has been revised to require that it be in conformance with 4 Pa.C.S. § 1522 (relating to interception of oral communications). Additionally, the phrase ''and elsewhere in the licensed facility as required by the Board'' in subsection (c)(5) has been deleted. This language is not needed because all of the activities that require surveillance are covered in paragraph (1).

   In subsection (c)(4)(ii), the word ''facilitate'' has been replaced with ''provide.''

   In subsections (h) and (i), the references to ''Bureau'' have been replaced with ''casino enforcement agents at the licensed facility'' and ''casino enforcement supervisor at the licensed facility'' respectively. This will provide clearer direction to the slot machine licensees as to who they should notify in these circumstances.

   In subsection (o), a reference to § 493a.4 (relating to petitions generally) has been added to clarify that a surveillance department employee shall file a petition when requesting an exemption from the 1-year restriction on accepting employment with another department at the licensed facility.

   In § 465a.11 (relating to slot machine licensee's organization), the references to ''Bureau'' in subsection (b)(1)(viii) and (5)(x) and (xi), have been replaced with ''casino enforcement agents . . . at the licensed facility'' and subsection (b)(5)(x) has been split into two subparagraphs, subparagraphs (x) and (xi).

   In subsection (c), a new option has been added for reporting by the supervisors of the surveillance and internal audit departments that reflects additional options the Board may select to provide oversight of a licensed facility's operations.

   In § 465a.12 (relating to access badges and temporary access credentials), ''licensed manufacturer designees'' were added to the list of entities that must be covered by a slot machine licensee's temporary access badge procedures.

   In § 465a.13 (relating to possession of deadly weapons within a licensed facility), the prohibition on deadly weapons has been expanded to include stun guns or other devices that could injure or incapacitate a person. This is intended to provide additional protection of patrons at licensed facilities.

   In § 465a.16 (relating to accounting controls for the cashiers' cage), the phrase ''and nongaming'' has been deleted from subsection (c)(1)(ii) and (2)(i) and (iii) to make these provisions consistent with the language used in § 465a.20 (relating to personal check cashing).

   In § 465a.18 (relating to transportation of slot cash storage boxes to and from bill validators; storage), the term ''Board'' has been replaced with ''Office of Gaming Operations'' in subsections (a) and (b). Additionally, a new subsection (f) has been added that requires the casino enforcement agents to be contacted prior to the commencement of the drop if the central control computer is not online and that a casino enforcement agent witness and certify the drop. This is intended to provide greater security for and integrity of the collection of the slot cash storage boxes.

   In § 465a.20, subsection (b)(6) is proposed to be amended to allow the amount of a check being cashed to be put in a customer deposit account as well as immediately being paid in cash to the patron. This will provide greater convenience and safety for patrons. A new subsection (f) has also been added requiring any slot machine licensee that charges a fee for cashing checks to comply with the Check Casher Licensing Act (63 P. S. §§ 2301--2334).

   In § 465a.23 (relating to customer deposits), subsections (a) and (b) are being revised to allow checks to be accepted for customer deposits consistent with the changes made to § 465a.20. The phrase ''subsequent use for gaming purposes'' has been replaced with the broader phrase ''subsequent use at the licensed facility'' again for the convenience of the patrons.

   In § 465a.25 (relating to counting and recording of slot cash storage boxes), the first reference to the ''Board'' in subsection (a) has been replaced with the ''Office of Gaming Operations'' and the second reference to the ''Board'' has been replaced with the ''Office of Gaming Operations and the casino enforcement supervisor at the licensed facility.'' Existing subsection (j) has been deleted; the Board does not need to routinely receive these reports. A new subsection (j) has been added which requires notice to and the presence of someone from BIE in the count room before the count commences when the central computer control system is down.

   Section 465a.26 (relating to jackpot payouts) has been totally rewritten. While many of the previous requirements remain, the procedures have been revised to provide greater flexibility as to who may verify the winning combination and to provide better accountability in the actual payment of the jackpots.

   In § 465a.27 (relating to annuity jackpots), the phrase ''a banking institution in this Commonwealth'' has been added to subsection (e)(1)(iii). This will allow trusts established to pay annuity jackpots to be placed with banks in addition to being maintained by a slot machine licensee or slot system operator.

   In § 465a.28 (relating to merchandise jackpots), the provisions governing merchandise jackpots have been expanded to provide additional guidance to the slot machine licensees. Provisions have been added specifying how a slot machine licensee is to determine the cash equivalent value of the merchandise and what supporting documentation a slot machine licensee is required to maintain. Slot machine licensees will also be required to offer optional cash payment that the winner may elect to receive in lieu of the merchandise being offered. The additions also provide that merchandise jackpots are considered winnings for the purpose of calculating gross terminal revenue and how the amount of the winnings is to be determined. Minimum requirements governing advertising of merchandise jackpots and technical requirements related to slot machines offering merchandise jackpots have also been included.

   In § 465a.29 (relating to automated teller machines), a new subsection (b) has been added that requires a label on the top and front of automated teller machines that displays a unique identification number of the automated teller machine. This will make it easier to identify individual automated teller machines and their location in the licensed facility.

   In § 465a.31 (relating to gaming day), subsection (c) is proposed to be revised to require that changes in a slot machine licensee's hours of operation be submitted as a change to the slot machine licensee's internal controls under the procedures outlined in § 465a.2(f).

Affected Parties

   Slot machine licensees will have to comply with the new design standards and labeling requirements for slot machines, and changes in the patron dispute process and the surveillance requirements. Slot machine licensees will also have to comply with the new jackpot payout procedures and will have clearer guidance on the payment of and how merchandise jackpots are to be administered.

Fiscal Impact

Commonwealth

   Because most of the revisions in this proposed rulemaking reflect current Board practice, there will be no significant costs or savings to the Board or other State agencies as a result of these revisions.

Political Subdivisions

   This proposed rulemaking will have no fiscal impact on political subdivisions of this Commonwealth.

Private Sector

   Slot machine licensees will experience some slight savings from reduced filing requirements and from being required to submit fewer copies of a number of reports. Slot machine licensees may experience some costs related to the new design standards and labeling requirements for slot machines and associated equipment. Additionally, slot machine licensees may experience some increased cost to comply with the new requirements related to merchandise jackpots.

General Public

   This proposed rulemaking will have no fiscal impact on the general public.

Paperwork requirements

   This proposed rulemaking eliminates the requirement that slot machine licensees file a report with the Board on patron disputes that are not resolved within 7 days. It also eliminates a number of financial reports that are not needed and reduces the number of copies slot machine licensees must submit. This proposed rulemaking will require more detailed filings of information related to merchandise jackpots.

Effective Date

   The proposed rulemaking will become effective upon final-form publication in the Pennsylvania Bulletin.

Public Comments

   Interested persons are invited to submit written comments, suggestions or objections regarding the proposed rulemaking, within 30 days after the date of publication in the Pennsylvania Bulletin to Paul Resch, Secretary, Pennsylvania Gaming Control Board, P. O. Box 69060, Harrisburg, PA 17106-9060, Attention: Public Comment on Regulation #125-79.

Contact Person

   The contact person for questions about this proposed rulemaking is Richard Sandusky, Director of Regulatory Review, at (717) 214-8111.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on February 21, 2008, the Board submitted a copy of this proposed rulemaking and a copy of the Regulatory Analysis Form to the Independent Regulatory Review Commission (Commission) and to the Chairpersons of the House Gaming Oversight Committee and the Senate Community, Economic and Recreational Development Committee. A copy of this material is available to the public upon request.

   Under section 5(g) of the Regulatory Review Act, the Commission may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.

MARY DIGIACOMO COLINS,   
Chairperson

   Fiscal Note: 125-79. No fiscal impact; (8) recommends adoption.

Annex A

TITLE 58. RECREATION

PART VII. GAMING CONTROL BOARD

Subpart A. GENERAL PROVISIONS

CHAPTER 401a. PRELIMINARY PROVISIONS

§ 401a.3. Definitions.

   The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:

*      *      *      *      *

   [BCCIC--The Bureau of Corporate Compliance and Internal Controls of the Board.]

*      *      *      *      *

Subpart B. LICENSING, REGISTERING, CERTIFYING AND PERMITTING

CHAPTER 435a. EMPLOYEES

§ 435a.6. Board credentials.

*      *      *      *      *

   (c)  A State employee [or employee of a slot machine licensee] required to obtain a Board credential shall carry the Board credential on his person at all times while engaged in the performance of his duties on the premises of a licensed facility. An individual who is not a State employee [or employee of a slot machine licensee], who is required to obtain a Board credential, shall display the Board credential on his person at all times while engaged in the performance of his duties on the premises of a licensed facility.

*      *      *      *      *

CHAPTER 439a. JUNKET ENTERPRISES

§ 439a.7. Junket schedules.

*      *      *      *      *

   (b)  A junket schedule shall be filed with the [Bureau of Corporate Compliance and Internal Controls] Office of Gaming Operations by a slot machine licensee by the 15th day of the month preceding the month in which the junket is scheduled. If a junket is arranged after the 15th day of the month preceding the arrival of the junket, an amended junket schedule shall be filed with the [Bureau of Corporate Compliance and Internal Controls] Office of Gaming Operations by the slot machine licensee by the close of the next business day.

*      *      *      *      *

§ 439a.8. Junket arrival reports.

*      *      *      *      *

   (b)  Junket arrival reports must:

*      *      *      *      *

   (2)  Include information required under § 439a.7 (relating to junket schedules) that has not been previously provided to the [Bureau of Corporate Compliance and Internal Controls] Office of Gaming Operations in a junket schedule pertaining to the particular junket, or an amendment thereto.

*      *      *      *      *

§ 439a.10. Monthly junket reports.

   (a)  Each slot machine licensee shall, on or before the 15th day of the month, prepare and file with the [Bureau of Corporate Compliance and Internal Controls] Office of Gaming Operations a monthly junket report listing the name and registration number of each person who performed the services of a junket representative during the preceding month.

*      *      *      *      *

§ 439a.11. Purchase of patron lists.

*      *      *      *      *

   (c)  The report required by subsection (a) shall be filed with the [Bureau of Corporate Compliance and Internal Controls] Office of Gaming Operations, no later than 7 days after the receipt of the list by the purchaser.

Subpart C. SLOT MACHINE LICENSING

CHAPTER 441a. SLOT MACHINE LICENSES

§ 441a.19. Notice of employee misconduct and offenses and employee resignations.

   (a)  A slot machine licensee or management company shall notify the [Board] Bureau of Licensing, within 5 days of the termination of an employee, of information surrounding the termination of the employee that could be cause for suspension or revocation of the employee's license, permit or registration or enforcement action related thereto.

*      *      *      *      *

   (d)  A slot machine licensee or management company shall notify the Bureau of Licensing within 5 days of the receipt of a resignation of any employee who holds a key employee license.

Subpart E. SLOT MACHINE TESTING, CERTIFICATION AND CONTROL

CHAPTER 461a. SLOT MACHINE TESTING AND CONTROL

§ 461a.1. Definitions.

   The following words and terms, when used in this subpart, have the following meanings, unless the context clearly indicates otherwise:

   Asset number--A unique number assigned to a slot machine or piece of associated equipment by a slot machine licensee for the purpose of tracking the slot machine or piece of associated equipment while owned by the slot machine licensee.

*      *      *      *      *

   Merchandise jackpot--A slot machine jackpot in the form of:

   (i)  [Merchandise or a thing of value.

   (ii)] A cash payout and a payout of merchandise or a thing of value.

   [(iii)] (ii)  An option to choose between a cash payout and a payout of merchandise or a thing of value.

*      *      *      *      *

§ 461a.7. Slot machine minimum design standards.

*      *      *      *      *

   (b)  The calculation of the theoretical payout percentage will not include:

*      *      *      *      *

   [(3) A payout of merchandise or anything of value when a cash equivalent award is not offered.]

*      *      *      *      *

   (x)  A slot machine must be equipped with a service button designed to allow the player of a slot machine to request assistance. The service button must:

   (1)  Be visible to and within easy reach of the player of the slot machine.

   (2)  Communicate directly or through the slot machine to the slot machine's tower light which will provide a signal that is in compliance with the technical standards on slot machine tower lights under § 461b.2 (relating to slot machine tower lights and error conditions).

   (y)  A slot machine approved for use in a licensed facility must be configured to wager credits available for play in the following order:

   (1)  Noncashable credits.

   (2)  Cashable credits.

   (3)  A slot machine on the gaming floor must have a label on the top of the slot machine and on the front of the slot machine near the bill validator that displays the asset number and the gaming floor plan location number of the slot machine. The labels must have white lettering on a black background or other color combination approved by the Office of Gaming Operations or other color combination approved by the Office of Gaming Operations, may not be easily removed and must be easily visible to the surveillance department. The label on the top of the slot machine must be at least 1.5 inches by 5.5 inches and the label on the front of the slot machine must be at least 1 inch by 2.5 inches.

§ 461a.10. Automated gaming voucher and coupon redemption machines.

*      *      *      *      *

   (b)  Automated gaming voucher and coupon redemption machines may be located on or proximate to the gaming floor of a licensed facility and must be subject to surveillance coverage under § 465a.9 (relating to surveillance system; surveillance department control; surveillance department restrictions). Each automated gaming voucher and coupon redemption machine must have [imprinted, affixed or impressed on the outside of the machine a unique asset identification number] a label on the top of the automated gaming voucher and coupon redemption machine and on the front of the automated gaming voucher and coupon redemption machine that displays the asset number of the automated gaming voucher and coupon redemption machine. The labels must have white lettering on a black background or other color combination approved by the Office of Gaming Operations and may not be easily removed. The label on the top of the automated gaming voucher and coupon redemption machine must be at least 1.5 inches by 5.5 inches and the label on the front of the automated gaming voucher and coupon redemption machine must be at least 1 inch by 2.5 inches.

*      *      *      *      *

§ 461a.16. Player tracking systems.

*      *      *      *      *

   (b)  A player tracking system may not include individuals who are under 21 years of age.

   (c)  Employees of a slot machine licensee who can view, print or copy any of the information in the slot machine licensee's player tracking system shall be licensed as a key employee or hold an occupation permit. This subsection does not apply to employees of the slot machine licensee that are members of a corporate reservations department whose duties and responsibilities do not require the employee to be located within this Commonwealth.

   (d)  A player tracking system must comply with the act, this subpart and technical standards on player tracking systems adopted by the Board and published in the Pennsylvania Bulletin and posted on the Board's web site.

§ 461a.22. Automated jackpot payout machines.

*      *      *      *      *

   (b)  An automated jackpot payout machine must have a label on the top of the automated jackpot payout machine and on the front of the automated jackpot payout machine that displays the asset number of the automated jackpot payout machine. The labels must have white lettering on a black background or other color combination approved by the Office of Gaming Operations, may not be easily removed and must be easily visible to the surveillance department. The label on the top of the automated jackpot payout machine must be at least 1.5 inches by 5.5 inches and the label on the front of the automated jackpot payout machine must be at least 1 inch by 2.5 inches.

   (c)  An automated jackpot payout machine must comply with the act, this subpart and technical standards on automated jackpot payout machines adopted by the Board and published in the Pennsylvania Bulletin and posted on the Board's web site.

   [(c)] (d)  Prior to commencing use of an automated jackpot payout machine, a slot machine licensee shall establish a comprehensive system of internal controls addressing the payment of jackpot payouts utilizing an automated jackpot payout machine and the distribution of currency or coin, or both, to the machines. The internal controls shall be submitted to, and approved by the Board under § 465a.2 (relating to internal control systems and audit protocols).

§ 461a.25. Disputes.

   (a)  If a dispute arises with a patron concerning payment of alleged winnings, the slot machine licensee shall attempt to resolve the dispute. If the dispute can not be resolved, the slot machine licensee shall notify the casino enforcement agents at the licensed facility who will attempt to resolve the dispute. If the dispute is not resolved, the casino enforcement agent will provide the patron with a Board Patron Dispute/Complaint Form and Instructions for Submitting a Patron Dispute/Complaint and assist the patron in completing the Board Patron Dispute/Complaint Form.

   (b)  When a [slot machine licensee refuses to pay winnings claimed by a patron and the patron and the slot machine licensee remain unable to resolve the dispute after 7 days, the slot machine licensee shall, on the next day, notify the Board in writing of the dispute in a manner and form the Board prescribes. The notice must identify the parties to the dispute and shall state the known relevant facts regarding the dispute] patron files a complaint, BIE will conduct an investigation of the complaint.

CHAPTER 461b. TECHNICAL STANDARDS--STATEMENT OF POLICY

§ 461b.1. [Slot machine minimum design standard] (Reserved).

   [(a)  Slot machine volatility shall be calculated based on a 95% confidence interval. Volatility calculations must utilize the following when calculating the lowest payout percentage available for each slot machine game:

   (1)  The aggregate variance is the sum of the probability of every winning combination multiplied by the square of the corresponding payout.

   (2)  The standard deviation is the square root of the difference between the aggregate variance of paragraph (1) and the square of the lowest payout percentage.

   (3)  The volatility index is 1.96 multiplied by the standard deviation calculated in paragraph (2).

   (4)  The approach percentage is the difference between the lowest payout percentage and 84.999%.

   (5)  The volatility, calculated as the number of plays to equal or exceed the minimum payout requirement of 85%, is the square of the quotient obtained when the volatility index found in paragraph (3) is divided by the approach percentage found in paragraph (4).

   (6)  The volatility calculated in paragraph (5) may not exceed 10,000,000 plays.

   (b)  Each slot machine approved for use in a licensed facility must be configured to wager credits available for play in the following order:

   (1)  Noncashable credits.

   (2)  Cashable credits.]

CHAPTER 463a. POSSESSION OF SLOT MACHINES

§ 463a.1. Possession of slot machines generally.

*      *      *      *      *

   (c)  Persons seeking to possess slot machines under subsection (b) shall submit a [written request] petition to the Board as required under § 493a.4 (relating to petitions generally). The petition to the Board [which] must contain:

*      *      *      *      *

   (e)  A person authorized to possess slot machines under subsection (d) that desires to store the slot machines at a location other than the location specified in subsection (c)(2) shall obtain approval from the Board prior to storing the slot machines at the other location.

§ 463a.2. Transportation of slot machines into, within and out of this Commonwealth.

   In furtherance of section 1511 of the act (relating to the declaration of exemption from Federal laws prohibiting slot machines), prior to the transport or movement of a slot machine into this Commonwealth, from one person authorized to possess slot machines under § 463a.1 (relating to possession of slot machines generally) to another person authorized within this Commonwealth or transport or movement out of this Commonwealth, the persons causing the slot machine to be transported or moved shall notify the Bureau of Gaming Laboratory Operations and the Office of Gaming Operations, in writing or in an electronic format approved by the Board. The notice shall be submitted no later than the day the slot machine is transported and include the following information:

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§ 463a.5. Slot machine master list.

   (a)  Prior to the commencement of operations at a licensed facility, an applicant for, or holder of, a slot machine license shall file with the Bureau of Gaming Laboratory Operations and the Office of Gaming Operations, in writing or in an electronic format approved by the Board, a complete list of slot machines possessed by the applicant or licensee on its gaming floor, in restricted areas off the gaming floor but within the licensed facility approved by the Board under § 465a.8(b) (relating to licensed facility), and in storage locations in this Commonwealth off the premises of the licensed facility approved by the Board under § 463a.7 (relating to off premises storage of slot machines). The list shall be denoted as a Slot Machine Master List.

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§ 463a.7. Off premises storage of slot machines.

   (a)  A slot machine licensee may not store slot machines off the premises of [the] a licensed facility without prior approval from the Board.

   (b)  A slot machine licensee seeking to store slot machines off the premises of [the] a licensed facility shall file a [written request] petition to the Board for off premise storage [with the Board] as required under § 493a.4 (relating to petitions generally). The [request] petition must include:

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   (3)  The [slot machine licensees'] plan to provide 24 hour, [seven] 7 day a week security at the storage facility.

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   (6)  The date that the slot machines are expected to be moved to [the] a licensed facility.

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