§ 465a.11. Slot machine licensee’s organization; jobs compendium.
(a) Slot machine licensees’ systems of internal controls must, in accordance with sections 1322 and 13A25(c) of the act (relating to slot machine accounting controls and audits; and table game accounting controls and audit protocols) and § 465a.2 (relating to internal control systems and audit protocols), include organization charts depicting segregation of functions and responsibilities and descriptions of the duties and responsibilities for each position shown on each organization chart. Slot machine licensees shall be permitted, except as otherwise provided in this section, to tailor organizational structures to meet the needs or policies of a particular management philosophy. A slot machine licensee’s organization charts must provide for:
(1) A system of personnel and chain of command which permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility.
(2) The segregation of incompatible functions, duties and responsibilities so that no employee is in a position to both commit an error or perpetrate a fraud and to conceal the error or fraud in the normal course of the employee’s duties.
(3) The performance of all functions, duties and responsibilities in accordance with sound financial practices by qualified personnel.
(4) The areas of responsibility which are not so extensive as to be impractical for an individual to monitor.
(5) A chief executive officer. For the purposes of this section, a ‘‘chief executive officer’’ means the individual located at the licensed facility who is ultimately responsible for the daily conduct of the slot machine licensee’s gaming business regardless of the form of business association of the slot machine licensee or the particular title which that individual or any other individual holds. A slot machine licensee’s organization chart may also include an assistant chief executive officer who is responsible for the daily conduct of the slot machine licensee’s gaming business during the chief executive officer’s absence. However, the assistant chief executive officer may not be the department head of one of the departments required under subsection (b). Each supervisor of a department required under subsection (b) shall report directly to the chief executive officer or assistant chief executive officer of the slot machine licensee regarding administrative matters and daily operations. The slot machine licensee’s organization charts must designate which positions, in the absence of the chief executive officer and the assistant chief executive officer, shall be designated as having responsibility for the daily conduct of the slot machine licensee’s gaming business.
(b) A slot machine licensee’s system of internal controls must also include, at a minimum, the following departments and supervisory positions, each of which must be categorized as mandatory and must cooperate with, yet perform independently of, other mandatory departments and supervisory positions of the slot machine licensee. Notwithstanding the foregoing, a department or supervisor that is not required or authorized by this section may operate under or in conjunction with a mandatory department or supervisor provided the organizational structure is consistent with the standards contained within the act and subsection (a). Mandatory departments and supervisory positions are:
(1) A surveillance department supervised by an individual located at the licensed facility who functions, for regulatory purposes, as the director of surveillance. The director of surveillance shall be subject to the reporting requirements specified in subsection (c) and shall be licensed as a key employee. The surveillance department shall be responsible for the following:
(i) The clandestine surveillance of the operation of, and gaming conducted at, slot machines and table games.
(ii) The clandestine surveillance of the operation of automated bill breaker, gaming voucher, coupon redemption and jackpot payout machines.
(iii) The clandestine surveillance of the operation of the main cage, Poker room cage and any satellite cage.
(iv) The video recording of activities in the count room and the video recording of movements of cash, slot cash storage boxes and table game drop boxes.
(v) The clandestine surveillance of areas used for the storage of gaming chips, plaques, cards, dice, Sic Bo shakers, Roulette balls, Pai Gow tiles and other equipment used to conduct table games.
(vi) The detection of cheating, theft, embezzlement and other illegal activities within the licensed facility.
(vii) The detection of the presence of any individual who may or is required to be excluded or ejected from the licensed facility under section 1514 or 1515 of the act (relating to regulation requiring exclusion or ejection of certain persons; and repeat offenders excludable from licensed gaming facility) and Chapters 511a and 513a (relating to persons required to be excluded; and underage gaming), or is self excluded from the gaming floor and gaming activities at all licensed facilities under section 1516 of the act (relating to list of persons self-excluded from gaming activities) and Chapter 503a (relating to casino self-exclusion).
(viii) The video recording of those locations, individuals, activities or transactions required under § 465a.9(e) (relating to surveillance system; surveillance department control; surveillance department restrictions) and of any illegal and unusual activities monitored by the surveillance department.
(ix) The provision of immediate notice to supervisors designated in the internal controls, the casino compliance representatives and the Pennsylvania State Police at the licensed facility upon detecting, and also upon commencing video recording of, an individual who is engaging in or attempting to engage in, or who is suspected of cheating, theft, embezzlement, a violation of this part or other illegal activities, including an individual who is required to be excluded or ejected from the licensed facility under section 1514 of the act, who may or is required to be excluded or ejected from the licensed facility under section 1514 or 1515 of the act and Chapter 511a or 513a or is self-excluded from the gaming floor and gaming activities at all licensed facilities under section 1516 of the act and Chapter 503a.
(x) The clandestine surveillance of any slot computer system or equipment designated for coverage by the Board in conjunction with the approval of a slot machine system, including a slot monitoring system, electronic gaming table system, casino management system, wide area progressive system, gaming voucher system and any communication equipment with the central control computer.
(xi) The installation, maintenance and repair of the surveillance system equipment used by the surveillance department.
(xii) The submission of a surveillance staffing plan as part of the slot machine licensee’s internal controls detailing the minimum staffing and the manner in which the responsibilities of this subsection shall be met.
(2) An internal audit department supervised by an individual located at the licensed facility who functions, for regulatory purposes, as the director of internal audit. The director of internal audit shall be subject to the reporting requirements specified in subsection (c) and licensed as a key employee.
(3) An information technology department supervised by an individual located at the licensed facility who functions, for regulatory purposes, as the information technology director. The information technology director shall be licensed as a key employee and be responsible for the quality, reliability and accuracy of all slot computer systems used by the slot machine licensee regardless of whether data, software or systems are located within or outside the licensed facility. The information technology director shall further be responsible for the security and physical integrity of, and the accountability and maintenance of, the following:
(i) Access codes and other security controls used to insure limited access to computer software and the system wide reliability of data.
(ii) Computer tapes, disks or other electronic storage media containing data relevant to the slot machine licensee’s operations.
(iii) Computer hardware, communications equipment and software used in the conduct of the slot machine licensee’s operations.
(iv) The computerized slot monitoring system utilized by the slot machine licensee. The information technology director shall ensure that:
(A) Slot machines, electronic wagering terminals and fully automated electronic gaming tables located on the gaming floor are connected electronically to the slot machine licensee’s computerized slot monitoring system and to the Commonwealth’s central control computer in accordance with section 1323 of the act (relating to central control computer system).
(B) The security features of the computerized slot monitoring system prohibit, at a minimum, the deletion, creation or modification of any data unless a permanent record is created that sets forth:
(I) The original information.
(II) Modifications to the original information.
(III) The identity of the employee making the modification.
(IV) The identity of each employee authorizing the modification, if applicable.
(C) Computerized jackpot payout systems utilized by the slot machine licensee are configured to require that any modification of $100 or more to the original amount recorded on a computerized jackpot payout or system override is authorized by two slot operations department employees, one of whom is in a position of greater authority than the individual preparing the jackpot payout.
(D) Procedures and controls are in place that define and limit interaction between both the slot operations department and finance department and the computerized slot monitoring system including access to system menus, the establishment of slot machine, electronic wagering terminal and fully automated electronic gaming table profile parameters, and the ability of each department to access, delete, create or modify information contained in the slot monitoring system.
(4) Except as provided in paragraphs (8) and (9), a slot operations department supervised by an individual located at the licensed facility who functions, for regulatory purposes, as the director of slot operations. The director of slot operations shall be licensed as a key employee and be responsible for the operation of, and conduct of gaming at, slot machines and fully automated electronic gaming tables within the licensed facility.
(5) A security department supervised by an individual located at the licensed facility who functions, for regulatory purposes, as the director of security. The director of the security department shall be licensed as a key employee and be responsible for the overall security of the licensed facility including the following:
(i) The physical safety of individuals.
(ii) The physical safeguarding of assets.
(iii) The protection of the property of both the patron and the slot machine licensee from illegal activity.
(iv) The design, implementation and enforcement of a system for the issuance of temporary access credentials.
(v) The recording of any unusual incidents within the licensed facility in which the security department is involved. Each incident shall be recorded by security department personnel in a book with bound numbered pages that cannot be readily removed or be maintained in an electronic format which has an audit function that prevents modification of information after the information has been entered into the system. The log shall be stored and retained in accordance with § 465a.6 (relating to retention, storage and destruction of books, records and documents). The following information shall be recorded:
(A) The assignment number of the incident.
(B) The date and time.
(C) The nature of the incident.
(D) The individuals involved in the incident.
(E) The security department employees assigned to cover the incident.
(vi) The identification and removal of any individual who is required to be excluded or ejected from the licensed facility under section 1514 of the act, who may be excluded or ejected from the licensed facility under section 1515 of the act or is self excluded from the gaming floor and gaming activities at all licensed facilities under section 1516 of the act.
(vii) The performance of the duties and responsibilities required under the system of internal controls submitted and approved under § 465a.2.
(viii) The provision of immediate notice to the Pennsylvania State Police upon detecting the presence in the licensed facility of an individual possessing a weapon in violation of § 465a.13 (relating to possession of weapons within a licensed facility).
(ix) The provision of immediate notice to supervisors designated in the internal controls and the casino compliance representatives and the Pennsylvania State Police at the licensed facility upon detecting any individual who is engaging in or attempting to engage in, or who is suspected of cheating, theft, embezzlement, a violation of this part or other illegal activities.
(x) The provision of immediate notice to supervisors designated in the internal controls and the casino compliance representatives and the Pennsylvania State Police at the licensed facility upon detecting any individual who is required to be excluded or ejected from the licensed facility under section 1514 or 1515 of the act and Chapter 511a or 513a or is self-excluded from the gaming floor and gaming activities at all licensed facilities under section 1516 of the act and Chapter 503a.
(6) A finance department supervised by an individual located at the licensed facility who functions, for regulatory purposes, as the director of finance. The director of finance shall be licensed as a key employee and responsible for all finance functions including the preparation and control of records and data, the control of stored data, the control of unused forms, the accounting for and comparison of operational data and forms, and the control and supervision of the inventory of gaming chips, the issuance of credit, the main cage, Poker room cage, satellite cages and the count room. The employees responsible for the issuance of credit shall be in a reporting line to the director of finance. The supervisor of the cage shall, on all shifts, be permitted as a gaming employee.
(7) Except as provided in paragraphs (8) and (9), a certificate holder shall have a table games department supervised by an individual located at the licensed facility who functions, for regulatory purposes, as the director of table games. The director of table games shall be licensed as a key employee and responsible for all table game functions including the inventory of table game equipment.
(8) In lieu of separate slot and table games departments, a slot machine licensee may elect to have a gaming department supervised by an individual located at the licensed facility who functions, for regulatory purposes, as the director of gaming. The director of gaming shall be licensed as a key employee and responsible for the overall operation and conduct of gaming at slot machines and table games within the licensed facility. A slot machine licensee may also elect to have a director of table games and a director of slot operations who report to the director of gaming.
(9) Unless otherwise specified by the certificate holder, for the conduct of gaming on electronic wagering terminals and hybrid gaming tables, the slot operations department shall supervise the electronic wagering terminals and the table games department shall supervise the conduct of gaming at hybrid gaming tables as provided in paragraphs (4) and (7).
(c) The supervisors of the surveillance and internal audit departments required under subsection (b) shall report directly to one of the following persons or entities regarding matters of policy, purpose, responsibility and authority, which persons or entities shall also control the hiring, termination and salary of each supervisor:
(1) The independent audit committee of the slot machine licensee’s board of directors.
(2) The independent audit committee of the board of directors of any holding or intermediary company of the slot machine licensee which has authority to direct the operations of the slot machine licensee.
(3) The senior surveillance or internal audit executives of any holding or intermediate company included in paragraph (2) if the most senior executive in the reporting line reports directly to the independent audit committee of the board of directors of the holding or intermediary company.
(4) For slot machine licensees or holding companies that are not corporate entities, the noncorporate equivalent of any of the persons or entities listed in paragraphs (1)—(3).
(5) An independent audit committee or other individuals designated by the Board in the slot machine licensee’s Statement of Conditions under § 423a.6 (relating to license, permit, registration and certification issuance and statement of conditions).
(d) The slot machine licensee’s personnel shall be trained in all policies, procedures and internal controls relevant to each employee’s individual function. Special instructional programs shall be developed by the slot machine licensee in addition to any on-the-job instruction sufficient to enable all members of the departments required under this section to be thoroughly conversant in, and knowledgeable of, the required manner of performance of all transactions relating to their functions.
(e) Notwithstanding other provisions to the contrary, a slot machine licensee may designate and assign more than one individual to serve jointly as the supervisor of a department required under this section. Each individual approved to serve as a joint supervisor of a mandatory department shall be located at the licensed facility and shall be individually and jointly accountable and responsible for the operations of that department.
(f) In the event of a vacancy in the chief executive officer position or any mandatory department supervisory position required under subsection (b), the following apply:
(1) The slot machine licensee shall notify the Board within 5 days from the date of vacancy. The notice must be in writing and indicate the following information:
(i) The vacant position.
(ii) The date on which the position will become or became vacant.
(iii) The date on which it is anticipated that the vacancy will be filled on a permanent basis.
(2) The slot machine licensee shall designate an individual to assume the duties and responsibilities of the vacant position within 30 days after the date of vacancy. The individual may assume the duties and responsibilities of the vacant position on a temporary basis, provided that:
(i) The individual does not also function as the department supervisor for any other mandatory department required under this section.
(ii) The individual’s areas of responsibility will not be so extensive as to be impractical for one individual to monitor.
(iii) The position shall be filled on a permanent basis within 120 days of the original date of vacancy.
(3) Within 5 days of filling a vacancy under paragraph (2), the slot machine licensee shall notify the Board thereof. The notice must be in writing and indicate the following:
(i) The position.
(ii) The name of the individual designated.
(iii) The date that the vacancy was filled.
(iv) An indication of whether the position has been filled on a temporary or permanent basis.
(4) The notices required in this subsection shall be directed to the Bureau of Licensing.
(g) Each slot machine licensee shall prepare and maintain a jobs compendium consistent with the requirements of this section detailing job descriptions and lines of authority for all personnel employed by the slot machine licensee. The jobs compendium shall be submitted to the Board for approval as part of the slot machine licensee’s internal controls required under § 465a.2 at least 90 days prior to the commencement of slot or table game operations. The Board will review the jobs compendium to determine whether the job descriptions and the organizational charts contained therein conform to the licensing, permitting and registration requirements and chain-of-command and segregation of duties requirements of the act and the Board’s regulations as part of the Board’s review of the slot machine licensee’s internal controls required under § 465a.2.
(h) A jobs compendium must include the following sections:
(1) An alphabetical table of contents listing the position title, job code and the page number on which the corresponding job description may be found.
(2) An organizational chart for each department or division, including all positions and illustrating by position title, the direct and indirect lines of authority within the department or division. Each page of an organizational chart must specify the following:
(i) The date the organizational chart was approved.
(ii) The effective date of the previously submitted organizational chart that the revised organizational chart supersedes.
(iii) A unique title or other identifying designation for that organizational chart.
(3) Job descriptions of each employee position that accurately correspond to a position title listed in the organizational charts and in the alphabetical table of contents. Each job description must be contained on a separate page, organized by departments or divisions, and include, at a minimum, the following:
(i) The job title and corresponding department.
(ii) Job duties and responsibilities.
(iii) Detailed descriptions of experience or educational requirements.
(iv) The type of Board-issued credential required under the act and the Board’s regulations for each employee job description.
(v) The date of submission of each employee job description and the date of any prior job description it supersedes.
(vi) The access code that will be assigned to the employee job description for the access badge required under § 465a.12 (relating to access badges and temporary access credentials).
(i) Any proposed amendment to a previously approved jobs compendium, including any amendment to an organizational chart, which involves the departments listed in subsection (b) shall be submitted as an amendment to the slot machine licensee’s internal controls in accordance with § 465a.2.
(j) For departments that are not listed in subsection (b), unless otherwise directed by the Board, a slot machine licensee will not be required to submit amendments to its jobs compendium for approval. Instead, the certificate holder will be required to notify the Bureau of Licensing by the end of the business day on the date of implementation for newly created positions or changes to job descriptions and tables of organizations. The notification must include properly formatted job descriptions and organization charts for the affected departments. After the notification has been submitted, the Bureau of Licensing may require changes to the job descriptions and organizational charts to ensure compliance with licensing, permitting or registration requirements.
(k) Each slot machine licensee shall maintain on its premises a complete, updated copy of its jobs compendium, in a written or electronic form, which shall be made available for review upon request of the Board, the Department or the Pennsylvania State Police.
(l) This section may not be construed so as to limit a slot machine licensee’s discretion in utilizing a particular job title for any position in its jobs compendium.
(m) If the proposed amendment to a previously approved jobs compendium requiring submission and approval under subsection (i) requires immediate implementation due to emergent circumstances, business necessity, or if the scope of the proposed amendment is determined by the Bureau of Gaming Operations to be minor, the slot machine licensee may request expedited review of the amendment and interim approval by the Bureau of Gaming Operations, pending a full review and approval by the Executive Director.
Authority The provisions of this § 465a.11 amended under 4 Pa.C.S. § § 1202(b)(30), 1207, 1322, 13A02(1)—(6), 13A25, 13A27, 13A62(a), 1516(a) and (b), 1602, 1604 and 1608.
Source The provisions of this § 465a.11 amended October 10, 2008, effective October 11, 2008, 38 Pa.B. 5652; amended December 12, 2008, effective December 13, 2008, 38 Pa.B. 6749; amended May 11, 2012, effective May 12, 2012, 42 Pa.B. 2585; amended December 15, 2017, effective December 16, 2017, 47 Pa.B. 7563; amended November 1, 2019, effective November 2, 2019, 49 Pa.B. 6676; amended May 28, 2021, effective May 29, 2021, 51 Pa.B. 2966. Immediately preceding text appears at serial pages (398823) to (398831).
Cross References This section cited in 58 Pa. Code § 465a.2 (relating to internal control systems and audit protocols); and 58 Pa. Code § 465a.9 (relating to surveillance system; surveillance department control; surveillance department restrictions).
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