§ 465a.26. Jackpot and credit meter payouts.
(a) Prior to commencing gaming operations, a slot machine licensee shall establish a comprehensive system of internal controls addressing jackpot and credit meter payouts that are not paid directly from a slot machine, electronic wagering terminal or fully automated electronic gaming table. The internal controls shall be submitted to and approved by the Board under § 465a.2 (relating to internal control systems and audit protocols).
(b) The internal control procedures must, at a minimum, include:
(1) The use of a two-part electronically generated jackpot/credit meter payout slip created by a slot attendant or slot supervisor or higher slot operations department employee, verifying the winning wager or winning combination of characters or a code corresponding to the winning combination of characters on the slot machine, electronic wagering terminal or fully automated electronic gaming table and the amount of the jackpot or credit meter payout based on the observed winning wager or winning combinations.
(2) A requirement that if the jackpot or credit meter payout on a slot machine is equal to or between $1,200 and $9,999.99, a security department member or a slot operations department member other than the preparer shall sign the jackpot/credit meter payout slip verifying the winning combination of characters or a code corresponding to the winning combination of characters on the slot machine, the amount of the jackpot or credit meter payout and the payment of the jackpot or credit meter payout to the patron. Notwithstanding the forgoing, if the licensee’s slot or casino management system can independently verify a jackpot or credit meter payout, only the preparer is required to sign the jackpot/credit meter payout slip for payouts less than or equal to $4,999.99 provided that the slot machine licensee’s internal control reflect the following:
(i) If the slot machine licensee’s slot or casino management system or the central control computer system are not fully operational, or when overrides or adjustments are required, two individuals shall verify a jackpot or credit meter payout that is equal to or between $1,200 and $9,999.99 as specified in this paragraph.
(ii) Jackpot payouts that are equal to or greater than $1,200 shall be accompanied by the issuance of a W-2G Form.
(3) A requirement that if the jackpot or credit meter payout is equal to or between $10,000 and $24,999.99 on a slot machine, or between $5,000 and $24,999.99 on a fully automated electronic gaming table or electronic wagering terminal, a security department member, a slot supervisor or other employee holding the same or greater level of authority than a slot supervisor shall sign the jackpot/credit meter payout slip verifying the winning wager or winning combination of characters or a code corresponding to the winning combination of characters on the slot machine, electronic wagering terminal or fully automated electronic gaming table, the amount of the jackpot or credit meter payout, and the payment of the jackpot or credit meter payout to the patron. If the two-part electronically generated jackpot/credit meter payout slip required under paragraph (1) is created by a slot supervisor or higher slot operations department employee, the verification required by this paragraph may be completed by a slot attendant, security department member, a slot supervisor or other employee holding the same or greater level of authority as a slot supervisor.
(4) A requirement that if the jackpot or credit meter payout on a slot machine, electronic wagering terminal or fully automated electronic gaming table is $25,000 or more, a slot supervisor or other employee holding the same or greater level of authority as a slot supervisor shall sign the jackpot/credit meter payout slip verifying the winning wager or winning combination of characters or a code corresponding to the winning combination of characters on the slot machine, electronic wagering terminal or fully automated electronic gaming table, the amount of the jackpot or credit meter payout, and the payment of the jackpot or credit meter payout to the patron. If the two-part electronically generated jackpot/credit meter payout slip required under paragraph (1) is created by a slot supervisor or higher slot operations department employee, the verification required by this paragraph may be completed by a slot attendant, security department member, a slot supervisor or other employee holding the same or greater level of authority as a slot supervisor.
(5) A requirement that the following information be on all two-part electronically generated jackpot/credit meter payout slips:
(i) The date and time of the jackpot or credit meter payout.
(ii) The asset number of the slot machine, electronic wagering terminal or fully automated electronic gaming table on which the jackpot or credit meter payout was registered.
(iii) The winning wager or winning combination of characters constituting the jackpot or a code corresponding to the winning combination of characters constituting the jackpot.
(iv) The type of win (that is, progressive, jackpot or credit meter payout).
(v) The amount that is to be paid to the winning patron. This amount may, at the slot machine licensee’s discretion, be rounded up to the nearest whole dollar.
(vi) A unique number generated by the slot monitoring system.
(vii) The signature or, if the slot accounting system has approved controls for access to the system, the electronic authorization of the preparer.
(viii) The signature or, if the slot accounting system has appropriate controls for access, the electronic authorization of the witness when the amount is equal to or greater than $1,200, except as provided in paragraph (2).
(ix) The signature or identification code of the cashier providing the funds to the preparer, if applicable.
(6) A requirement that the two-part electronically generated jackpot/credit meter payout slip not be susceptible to any changes or deletion from the slot monitoring system by any personnel after preparation.
(7) A requirement that whenever a winning patron is paid directly by a slot attendant’s imprest fund, a two-part manual jackpot/credit meter payout slip is completed that contains the following information:
(i) The date and time of the jackpot or credit meter payout.
(ii) The asset number of the slot machine, electronic wagering terminal or fully automated electronic gaming table on which the jackpot or credit meter payout was registered.
(iii) The winning wager or winning combination of characters constituting the jackpot or a code corresponding to the winning combination of characters constituting the jackpot.
(iv) The type of win (that is, progressive, jackpot or credit meter payout).
(v) The amount paid to the winning patron. This amount may, at the slot machine licensee’s discretion, be rounded up to the nearest whole dollar.
(vi) The signature and Board-issued credential number of the preparer.
(vii) The signature and Board-issued credential number of the witness when the amount is equal to or greater than $1,200, except as provided in paragraph (2).
(8) When jackpot or credit meter payouts are made from slot attendants’ imprest funds, procedures for the replenishment of the imprest funds and the reconciliation process to be used by the slot attendants.
(9) A requirement that the slot machine licensee’s accounting department perform, at the conclusion of each gaming day, effective audit procedures over the issuance of jackpot and credit meter payouts including adequate comparisons to the slot monitoring system.
(10) Detailed procedures on the processing of all system overrides or adjustments to jackpot or credit meter payouts. All jackpot or credit meter payouts that do not match the payout amount electronically sent from the slot machine, electronic wagering terminal or fully automated electronic gaming table to the slot monitoring system require an override.
(11) Detailed procedures for the processing of all voided jackpot/credit meter payout slips.
(12) Detailed procedures for the processing of unclaimed taxable jackpot payouts. The procedures must include notice to the casino compliance representatives at the licensed facility when an unclaimed taxable jackpot payout or credit meter payout occurs.
(13) Back-up procedures that will be used when the slot monitoring system is offline or an electronic jackpot payout slip cannot be created, including the use of a three-part manual jackpot or credit meter payout book or equivalent. The three-part manual jackpot payout book or equivalent must contain preprinted, serial numbered three-part manual jackpot/credit meter payout slips that include the following information:
(i) Preprinted serial numbers.
(ii) The date and time of the jackpot or credit meter payout.
(iii) The asset number of the slot machine, electronic wagering terminal or fully automated electronic gaming table on which the jackpot or credit meter payout was registered.
(iv) The amount of the jackpot or credit meter payout.
(v) The method of payment requested by the patron.
(vi) The signature and Board-issued credential number of the preparer.
(vii) The signature and Board-issued credential number of the witness when the amount is equal to or greater than $1,200.
(14) A requirement that the unused manual jackpot payout books or equivalent be maintained in a secured locked cabinet, that the key to the cabinet be controlled by the security department or the finance department and that the manual jackpot payout books or equivalent can only be signed out by a slot supervisor or other employee holding a greater level of authority when the slot monitoring system is offline.
(15) A requirement that the surveillance department be verbally notified of all jackpot or credit meter payouts when the amount of the jackpot or credit meter payout is $5,000 or more. The surveillance department shall log all calls regarding jackpot or credit meter payouts in the surveillance log.
Authority The provisions of this § 465a.26 amended under 4 Pa.C.S. § § 1202(b)(15) and (30), 1207, 1212, 13A02(1)—(6), 13A25, 13A26(c), 13A62(a), 1322, 1509, 1516, 1518(a)(13) and 1602.
Source The provisions of this § 465a.26 amended October 10, 2008, effective October 11, 2008, 38 Pa.B. 5652; amended September 25, 2009, effective September 26, 2009, 39 Pa.B. 5562; amended January 15, 2010, effective February 16, 2010, 40 Pa.B. 416; amended May 11, 2012, effective May 12, 2012, 42 Pa.B. 2585; amended November 7, 2014, effective November 8, 2014, 44 Pa.B. 7057; amended December 15, 2017, effective December 16, 2017, 47 Pa.B. 7563. Immediately preceding text appears at serial pages (377549) to (377550) and (375121) to (375122).
Cross References This section cited in 58 Pa. Code § 465a.16 (relating to accounting controls for the cage); 58 Pa. Code § 465a.27 (relating to annuity jackpots); and 58 Pa. Code § 465a.28 (relating to merchandise jackpots).
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