09-09-054

WSR 09-09-054

PROPOSED RULES

GAMBLING COMMISSION

[ Filed April 10, 2009, 4:03 p.m. ]

     Original Notice.

     Preproposal statement of inquiry was filed as WSR 09-04-002.

     Title of Rule and Other Identifying Information: Amending WAC 230-15-455 Keeping funds to pay prizes, progressive jackpot prizes, and odds-based prizes.

     Hearing Location(s): Heathman Lodge, 7801 N.E. Greenwood Drive, Vancouver, WA 98662, [phone], on July 10, 2009, at 9:00 a.m.

     Date of Intended Adoption: July 10, 2009.

     Submit Written Comments to: Susan Arland, P.O. Box 42400, Olympia, WA 98504-2400, e-mail [e-mail], fax [phone], by July 1, 2009.

     Assistance for Persons with Disabilities: Contact Gail Grate, executive assistant, by July 1, 2009, TTY [phone] or [phone].

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The Recreational Gaming Association (RGA) requests that WAC 230-15-455 be amended to eliminate the requirement for house-banked card room licensees to maintain an amount equal to all individual odds-based wager prizes offered which are greater than $25,000 in a separate bank account. An "odds-based wager" means a wager where the player wins an amount over and above the amount he or she wagered if a fixed pattern or combination of cards occurs, for example, a royal flush, four aces, or a pair. Since the "odds-based wager" prize is incorporated in the minimum cash on hand calculation, there is no longer a need for these funds to be held in a separate bank account.

     The proposed change would allow house-banked licensees who offer more than one individual odds-based wager prize greater than $25,000 to keep an amount equal to the second highest odds-based wager prize in a bank, mutual savings bank, or credit union in Washington state or possess a verifiable line of credit from a Washington state financial institution.

     Reasons Supporting Proposal: See above.

     Statutory Authority for Adoption: RCW 9.46.070.

     Statute Being Implemented: Not applicable.

     Name of Proponent: Recreational Gaming Association, private.

     Name of Agency Personnel Responsible for Drafting: Susan Arland, Rules Coordinator, Lacey, [phone]; Implementation: Rick Day, Director, Lacey, [phone]; and Enforcement: Mark Harris, Assistant Director, Lacey, [phone].

     No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement has not been prepared pursuant to RCW 19.85.025 because the change would not impose additional costs on businesses.

     A cost-benefit analysis is not required under RCW 34.05.328. The Washington state gambling commission is not an agency that is statutorily required to prepare a cost-benefit analysis under RCW 34.05.328.

April 10, 2009

Susan Arland

Rules Coordinator

OTS-2279.1

AMENDATORY SECTION(Amending Order 608, filed 4/10/07, effective 1/1/08)

WAC 230-15-455   Keeping funds to pay prizes, progressive jackpot prizes, and odds-based wager prizes.   (1) House-banked card game licensees must ensure that they have sufficient funds available to pay prizes, progressive jackpot prizes and odds-based wager prizes. An "odds-based wager" means a wager where the player wins an amount over and above the amount he or she wagered if a fixed pattern or combination of cards occurs, for example, a royal flush, four aces, or a pair.

     (2) Licensees must not offer card games until they have met all of these requirements:

     (a) Progressive jackpot prizes.

     (i) Keep a separate bank account for progressive jackpot prizes ((and odds-based wager prizes)). The account must be kept in a bank, mutual savings bank, or credit union located in Washington state; ((and

     (b) Keep in the account an amount equal to all individual odds-based wager prizes offered which are greater than twenty-five thousand dollars and all progressive jackpot prize funds; and

     (c) Use the highest wager they allow to calculate the individual odds-based wager prize amount and determine the deposit requirement; and

     (d))) (ii) Deposit ((at least weekly)) all funds accrued for progressive jackpot prizes at least weekly; and

     (iii) If the prize bank account is reduced below the level required, licensees must immediately stop operating games until they are in compliance.

     (b) Odds-based wager prizes.

     (i) Licensees offering more than one individual odds-based wager prize greater than twenty-five thousand dollars must keep an amount equal to the second highest odds-based wager prize offered in a bank, mutual savings bank, or a credit union located in Washington state; or possess a verifiable line of credit from a Washington state financial institution for at least the amount required; and

     (ii) Use the highest wager they allow to calculate the individual odds-based wager prize amount to determine the amount for this requirement.

     (3) Licensees may limit pay outs by using table and/or individual player aggregates.

     (4) ((If the prize bank account is reduced below the level required, licensees must immediately stop operating games until they are in compliance.

     (5))) A licensee's failure to keep funds as required in this rule is prima facie evidence of defrauding the public and a violation of RCW 9.46.190.

[Statutory Authority: RCW 9.46.070. 07-09-033 (Order 608), § 230-15-455, filed 4/10/07, effective 1/1/08.]