Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 06 - Racing Commission
Rule 006.06.19-012 - CGR 12 Manufacturers, Distributors, Operators of Inter-Casino Linked Systems, Gaming Devices, New Games, Inter-Casino Linked Systems, On-Line Slot Metering Systems, Cashless Wagering Systems, Mobile Gaming Systems, Interactive Gaming Systems and Associated Equipment
Universal Citation: AR Admin Rules 006.06.19-012
Current through Register Vol. 49, No. 9, September, 2024
12.010 Definitions.
As used in this Rule, unless the context otherwise requires:
1. "Assume responsibility"
means to acquire complete control over, or ownership of, a gaming device,
cashless wagering system, mobile gaming system or interactive gaming
system.
2. "Cashless wagering
system" means the collective hardware, software, communications technology, and
other associated equipment used to facilitate wagering on any game or gaming
device including mobile gaming systems and interactive gaming systems with
other than chips or legal tender of the United States. The term does not
include any race and sports computerized bookmaking system that accepts
pari-mutuel wagers, or any other race and sports book systems that do not
accept wagering instruments, wagering credits or process electronic money
transfers. Associated equipment such as redemption kiosks may also be used to
act as promotion kiosks and automated teller machines.
3. "Commission" means the Arkansas Racing
Commission or the Commission's designee.
4. "Control program" means any software,
source language or executable code which affects the result of a wager by
determining win or loss. The term includes, but is not limited to, software,
source language or executable code associated with the:
(a) Random number generation
process;
(b) Mapping of random
numbers to game elements to determine game outcome;
(c) Evaluation of the randomly selected game
elements to determine win or loss;
(d) Payment of winning wagers;
(e) Game recall;
(f) Game accounting including the reporting
of meter and log information to on-line slot metering system;
(g) Monetary transactions conducted with
associated equipment;
(h) Software
verification and authentication functions which are specifically designed and
intended for use in a gaming device;
(i) Monitoring and generation of game tilts
or error conditions; and
(j) Game
operating systems which are specifically designed and intended for use in a
gaming device.
[] The term does not include software used for artistic attributes of a game including graphics, sound and animation providing entertainment unless such elements are material to game play because they are necessary for the player to understand the game or game outcome.
5. "Distribution" or
"distribute" means the sale, offering for sale, lease, offering for lease,
licensing or other offer of any gaming device, cashless wagering system, mobile
gaming system or interactive gaming system for use or play in
Arkansas.
6. "Distributor" means a
person who operates, carries on, conducts or maintains any form of
distribution.
7. "Distributor of
associated equipment" is any person that sells, offers to sell, leases, offers
to lease, licenses, markets, offers, or otherwise offers associated equipment
in Arkansas for use by licensees.
8. "Equipment associated with interactive
gaming" means any equipment or mechanical, electromechanical or electronic
contrivance, component or machine used remotely or directly in connection with
gaming or mobile gaming, any game, race book or sports pool that would not
otherwise be classified as a gaming device, including dice, playing cards,
links which connect to progressive slot machines, equipment which affects the
proper reporting of gross revenue, computerized systems of betting at a race
book or sports pool, computerized systems for monitoring slot machines and
devices for weighing or counting money; or a computerized system for
recordation of sales for use in an area subject to tax.
9. "Game of chance" means a game in which
randomness determines all outcomes of the game as determined over a period of
continuous play.
10. "Game of
skill" means a game in which the skill of the player, rather than chance, is
the dominant factor in affecting the outcome of the game as determined over a
period of continuous play.
11.
"Game outcome" is the final result of the wager.
12. "Game variation" means a change or
alteration in a game or gambling game that affects the manner or mode of play
of an approved game. This includes, but is not limited to, the addition or
removal of wagering opportunities or a change in the theoretical hold
percentage of the game.
13. "Gaming
session" means the period of time commencing when a player initiates a game or
series of games on a gaming device by committing a wager and ending at the time
of a final game outcome for that game or series of games.
14. "Hybrid game" means a game in which a
combination of the skill of the player and chance affects the outcome of the
game as determined over a period of continuous play.
15. "Identifier" means any specific and
verifiable fact concerning a player or group of players which is based upon
objective criteria relating to the player or group of players, including,
without limitation:
(a) The frequency, value
or extent of predefined commercial activity;
(b) The subscription to or enrollment in
particular services;
(c) The use of
a particular technology concurrent with the play of a gaming device;
(d) The skill of the player;
(e) The skill of the player relative to the
skill of any other player participating in the same game;
(f) The degree of skill required by the game;
or
(g) Any combination of (a) to
(f), inclusive.
16.
"Independent contractor" means any person who:
(a) Is not an employee of a licensed
manufacturer; and
(b) Pursuant to
an agreement with a licensed manufacturer:
(1)
Designs, develops, programs, produces or composes a control program on behalf
of the licensed manufacturer; or
(2) Designs, develops, produces or composes
software, source language or executable code intended to be compiled into a
control program by the licensed manufacturer.
[] As used in this Rule "licensed manufacturer" includes any affiliate that is owned or controlled by or under common control with the licensee.
17. "Independent testing laboratory" means a
private laboratory that is registered by the Commission to inspect and certify
games, gaming devices, associated equipment, cashless wagering systems,
inter-casino linked systems, mobile gaming systems or interactive gaming
systems, and any components thereof and modifications thereto, and to perform
such other services as the Commission may request.
18. "Inter-casino linked system" means:
(a) A network of electronically interfaced
similar games which are located at two or more licensed gaming establishments
that are linked to:
(1) Conduct gaming
activities, contests or tournaments; or
(2) Facilitate participation in a common
progressive prize system, and the collective hardware, software, communications
technology and other associated equipment used in such system to link and
monitor games or devices located at two or more licensed gaming establishments,
including any associated equipment used to operate a multi-jurisdictional
progressive prize system.
(b) Systems that solely record a patron's
wagering activity among affiliated properties are not inter-casino linked
systems.
(c) The term
"multi-jurisdictional progressive prize system" means the collection of
hardware, software, communications technology and other associated equipment
used to link and monitor progressive slot machines or other games among
licensed gaming establishments in this state participating in an inter-casino
linked system and one or more lawfully operated gaming locations in other
jurisdictions that participate in a similar system for the purpose of
participation in a common progressive prize system.
19. "Inter-casino linked system modification"
means a change or alteration to an inter-casino linked system made by an
operator who has been previously approved by the Commission to operate that
system. With regard to inter-casino linked systems that link progressive payout
schedules, the term includes, but is not limited to:
(a) A change in a system name or theme;
or
(b) A change in gaming device
denomination.
20.
"Interactive gaming system" is a gaming device and means the collective
hardware, software, communications technology, and proprietary hardware and
software specifically designed or modified for, and intended for use in, the
conduct of interactive gaming. The core components of an interactive gaming
system, including servers and databases running the games on the interactive
gaming system and storing game and interactive gaming account information, must
be located in the State of Arkansas except as otherwise permitted by the
Commission.
21. "Manufacture"
means:
(a) To manufacture, produce, program,
design, control the design of or make modifications to a gaming device,
associated equipment, cashless wagering system, mobile gaming system or
interactive gaming system for use or play in Arkansas;
(b) To direct, control or assume
responsibility for the methods and processes used to design, develop, program,
assemble, produce, fabricate, compose and combine the components and other
tangible objects of any gaming device, associated equipment, cashless wagering
system, mobile gaming system or interactive gaming system for use or play in
Arkansas; or
(c) To assemble, or
control the assembly of, a gaming device, associated equipment, cashless
wagering system, mobile gaming system or interactive gaming system for use or
play in Arkansas.
22.
"Manufacturer" means a person who operates, carries on, conducts or maintains
any form of manufacture.
23.
"Manufacturer of associated equipment" is any person that manufactures,
assembles, or produces any associated equipment, including inter-casino linked
systems, for use in Arkansas by licensees.
24. "Manufacturer of equipment associated
with interactive gaming" means any person that manufactures, assembles, or
produces any equipment associated with interactive gaming.
25. "Mobile gaming system" or "system" means
a system that allows for the conduct of games through mobile communications
devices operated solely within a licensed gaming establishment by the use of
communications technology that allows a patron to bet or wager, and
corresponding information related to the display of the game, gaming outcomes
or other similar
26. "Mobile gaming
system modification" means any change or alteration to a mobile gaming system
made by a manufacturer from its approved configuration.
27. "Modification" means a change or
alteration in a gaming device previously approved by the Commission for use or
play in Arkansas that affects the manner or mode of play of the device. The
term includes a change to control programs and, except as provided in
paragraphs (c) and (d) of this subsection, in the theoretical hold percentage.
The term does not include:
(a) Replacement of
one component with another, pre-approved component;
(b) The rebuilding of a previously approved
device with pre-approved components;
(c) A change in the theoretical hold
percentage of a mechanical or electro-mechanical device, provided that the
device as changed meets the standards of these Rules;
(d) A change in the theoretical hold
percentage of an electronic device which is the result of a top award jackpot
or bonus jackpot payment which is paid directly by an attendant and which is
not accounted for by the device; or
(e) A change to software used for artistic
attributes of a game, including graphics, sound and animation providing
entertainment unless such elements are material to game play because they are
necessary for the player to understand the game or game outcome.
28. "On-line slot metering system"
means the collective hardware, software and other associated equipment used to
monitor, accumulate, and record meter information from gaming devices within a
licensed establishment.
29.
"Operator" means, except as otherwise provided, any person or entity holding a
license to operate:
(a) An inter-casino linked
system or mobile gaming system in Arkansas;
(b) A Casino gaming operation that operates
an inter-casino linked system of affiliates; or
(c) An inter-casino linked system under the
preceding paragraphs (a) or (b) of this section which system also is linked to
or otherwise incorporates a multi-jurisdictional progressive prize
system.
30. "Private
residence" means a noncommercial structure used by a natural person as a place
of abode and which is not used for a commercial purpose.
31. "Proprietary hardware and software" means
hardware or software specifically designed for use in a gaming device including
a mobile gaming system and interactive gaming system.
32. "Randomness" is the observed
unpredictability and absence of pattern in a set of elements or events that
have definite probabilities of occurrence.
33. "Rules of play" means those features of a
game necessary for a reasonable person to understand how a game is played
including, but not limited to, the following:
(a) Help screens;
(b) Award cards; and
(c) Pay-line information.
The term does not include those inherent features of a game that a reasonable person should know or understand prior to initiating the game.
34.
"Skill" means the knowledge, dexterity or any other ability or expertise of a
natural person.
35. "Theme" means a
concept, subject matter and methodology of design.
12.015 Policy. Gaming devices and associated equipment that incorporate innovative, alternative and advanced technology are beneficial to and in the best interests of the State of Arkansas and it is the policy of the Commission to encourage the development and deployment of such technologies by manufacturers, distributors and gaming establishments Arkansas.
12.0215 Determination of suitability.
1.
A person is not subject to licensing in connection with activities performed as
an independent contractor provided that a person who is licensed under the
provisions of this section assumes responsibility for the design, development,
programming, production or composition of the control program
Arkansas.
2. An independent
contractor may be required by the Commission, upon recommendation of the
Commission, to file an application for a finding of suitability to be an
independent contractor for a licensed manufacturer.
3. The Commission shall give written notice
to the independent contractor of its decision to require the filing of an
application for a finding of suitability. Unless otherwise stated by the
Commission in its written notice, an independent contractor who has been
ordered to file an application for a finding of suitability to be an
independent contractor may continue to perform under a contract with a
manufacturer unless and until the Commission finds the independent contractor
unsuitable.
4. If the Commission
finds an independent contractor to be unsuitable:
(a) All licensed manufacturers shall, upon
written notification, immediately terminate any existing relationships, direct
or indirect, with such independent contractor;
(b) No new gaming device with a control
program that contains software, source language, or executable code created in
whole or in part by the unsuitable independent contractor shall be approved;
and
(c) Any previously approved
gaming device with a control program that contains software, source language,
or executable code created in whole or in part by the independent contractor is
subject to revocation of its approval if the reasons for the finding of
unsuitability also apply to that gaming device.
5. Failure of a licensed manufacturer to
terminate any association or agreement with an independent contractor after
receiving notice of the determination of unsuitability constitutes an
unsuitable method of operation.
6.
The Commission retains jurisdiction to determine the suitability of an
independent contractor regardless of whether or not the independent contractor
has any active agreements with licensed manufacturers or is otherwise no longer
functioning as an independent contractor.
7. A failure on the part of an independent
contractor to submit an application for a finding of suitability within 30 days
after being demanded to do so by the Commission shall constitute grounds for a
finding of unsuitability of the independent contractor.
8. An independent contractor, or employee
thereof, is not considered a gaming employee in relation to any work conducted
designing, programming, producing or composing a control program within the
scope of an agreement entered into with a licensed manufacturer. An independent
contractor or employee thereof, is in no way exempt from being classified as a
gaming employee for such work performed outside the scope of an agreement with
a licensed manufacturer or for other work performed related to
gaming.
12.023 Manufacturer's agreements with independent contractors. Any agreement between a licensed manufacturer and an independent contractor shall provide for termination without continuing obligation of the licensed manufacturer in the event the independent contractor:
1. Refuses
to respond to information requests from the Commission;
2. Fails to file an application for a finding
of suitability as required by the Commission; or
3. Is found unsuitable by the
Commission.
12.024 Manufacturer's responsibilities for independent contractors. Each licensed manufacturer must:
1. Complete a
review of any software, source language or executable code designed, developed,
produced or composed by an independent contractor for compliance with all
applicable regulations and technical standards of the Commission and Commission
prior to submission to the Commission; and
2. As to such submission, maintain a record
of the general subject matter description of the software, source language or
executable code that was designed, developed, produced or composed by an
independent contractor, by contractor name.
[] Unless the Commission approves or requires otherwise in writing, such records shall be maintained for a minimum of five years from the date of the relevant submission and must be made available to the Commission upon request. Failure to keep and provide such records is an unsuitable method of operation.
12.025 Certain themes prohibited in association with gaming devices or slot machines.
1. A gaming device or gaming device
modification submitted for approval by a manufacturer or made available for
play by a licensee must not use a theme that:
(a) Is derived from or based on a product
that is currently and primarily intended or marketed for use by persons under
21 years of age, or
(b) Depicts a
subject or material that:
(1) Is
obscene;
(2) Offensively portrays
persons based on race, religion, national origin, gender, or sexual preference;
or
(3) Is otherwise contrary to
public policy of this state.
2. A manufacturer, licensee or other person
holding the intellectual property rights to a theme may, concurrent with or
independent of an application for approval of or modification to a gaming
device, file a request with the Commission, in such manner and using such forms
as the Commission may prescribe, for a determination as to whether subsection 1
prohibits use of the theme in connection with a gaming device.
(a) The request for determination must be
accompanied by a nonrefundable fee of [$500] for each separate theme.
(b) The requesting party shall articulate the
reasons that the theme is not prohibited by subsection 1 along with any
additional information it deems relevant to the determination. Information
submitted pursuant to this section is confidential;
3. Within 30 days of the submission of the
request for determination pursuant to subsection 2, the Commission shall
administratively approve, approve with modification or condition, or deny the
request for determination.
4. A
written request for withdrawal of the request for determination may be made by
the requesting party at any time prior to the Commission's final action on such
request. A request for withdrawal is effective upon delivery to the Commission
and is without prejudice.
12.030 Approval of gaming devices and the operation of new inter-casino linked systems; applications and procedures.
1. A manufacturer or
distributor shall not distribute a gaming device in Arkansas and a licensee
shall not offer a gaming device for play unless it has been approved by the
Commission or is offered for play pursuant to a field test ordered by the
Commission.
2. An operator of an
inter-casino linked system shall not install and operate a new inter-casino
linked system in Arkansas and a licensee shall not offer any gaming device or
game for play that is part of such a system unless operation of the
inter-casino linked system and all gaming devices or games that are part of or
connected to the inter-casino linked system have been approved by the
Commission or are offered for play pursuant to a field test ordered by the
Commission.
3. Applications for
approval of a new gaming device or to operate a new inter-casino linked system
shall be made and processed in such manner and using such forms as the
Commission may prescribe. Only licensed manufacturers may apply for approval of
a new gaming device. Only operators may apply for approval to operate a new
inter-casino linked system.
4. At
the Commission's request an applicant for a manufacturer's or inter-casino
linked system operator's license shall, or upon the Commission's prior approval
an applicant for a manufacturer's or operator's license may, apply for a
preliminary determination that a new gaming device or new inter-casino linked
system meets the standards required by this Rule.
5. Each application shall include, in
addition to other items or information as the Commission may require:
(a) A complete, comprehensive, and
technically accurate description and explanation in both technical and lay
language of the manner in which the device or inter-casino linked system
operates and complies will all applicable statutes, regulations and technical
standards, signed under penalty of perjury;
(b) A statement under penalty of perjury
that, to the best of the manufacturer's knowledge, the gaming device meets the
standards of section 14.040 or, in the case of an inter-casino linked system,
that to the best of the operator's knowledge the system meets the standards of
section 14.045;
(c) In the case of
a gaming device, a copy of all executable software, including data and graphic
information, and a copy of all source code for programs that cannot be
reasonably demonstrated to have any use other than in a gaming device,
submitted on electronically readable, unalterable media;
(d) In the case of a gaming device, a copy of
all graphical images displayed on the gaming device including, but not limited
to, reel strips, rules, instructions and paytables;
(e) In the case of an inter-casino linked
system:
(1) An operator's manual;
(2) A network topology diagram;
(3) An internal control system;
(4) A hold harmless agreement;
(5) A graphical representation of the system
theme and all related signage;
(6)
Information sufficient to calculate a theoretical payoff schedule amount
including, but not limited to, the base and reset amounts, the total
contribution percentage and a breakdown of that percentage including
contribution rates to all progressive payoff schedules and all reset funds, the
odds of winning the progressive payoff schedule and the amount of the wager
required to win the progressive payoff schedule; and
(7) The form of any agreement or written
specifications permitted or required of an operator by any other state or
tribal government and affecting a multi-jurisdictional progressive prize
system.
(f) In the case
of a mobile gaming system:
(1) An operator's
manual;
(2) A network topology
diagram;
(3) An internal control
system; and
(4) A description of
the method used to isolate game function to the areas listed in these Rules;
and
(g) All materials
relating to the results of the registered independent testing laboratory's
inspection and certification process that are required under section
14.400.
12.040 Minimum standards for gaming devices.
1. All gaming devices must:
(a) Theoretically pay out a mathematically
demonstrable percentage of all amounts wagered over the life of the game, which
must not be less than 83 percent for each wager available for play on the
device.
(b) Determine game outcome
solely by the application of:
(1)
Chance;
(2) The skill of the
player; or
(3) A combination of the
skill of the player and chance.
(c) Display in an accurate and non-misleading
manner:
(1) The rules of play;
(2) The amount required to wager on the game
or series of games in a gaming session;
(3) The amount to be paid on winning
wagers;
(4) Any rake-off percentage
or any fee charged to play the game or series of games in a gaming
session;
(5) Any monetary wagering
limits for games representative of live gambling games;
(6) The total amount wagered by the
player;
(7) The game outcome;
and
(8) Such additional information
sufficient for the player to reasonably understand the game outcome.
(d) Satisfy the technical
standards adopted pursuant to these Rules.
2. Once a game is initiated by a player on a
gaming device, the rules of play for that game, including the probability and
award of a game outcome, cannot be changed. In the event the game or rules of
play for the game, including probability and award of a game outcome, change
between games during a gaming session, notice of the change must be prominently
displayed to the player.
3. Gaming
devices connected to a common payoff schedule shall:
(a) All be of the same denomination and have
equivalent odds of winning the common payoff schedule/common award based as
applicable on either or both of the combined influence of the attributes of
chance and skill; or
(b) If of
different denominations, equalize the expected value of winning the payoff
schedule/common award on the various denominations by setting the odds of
winning the payoff schedule in proportion to the amount wagered based as
applicable on either or both the combined influence of the attributes of chance
and skill, or by requiring the same wager to win the payoff schedule/award
regardless of the device's denomination. The method of equalizing the expected
value of winning the payoff schedule/award shall be conspicuously displayed on
each device connected to the common payoff schedule/common award. For the
purposes of this requirement, equivalent is defined as within a 5 percent
tolerance for expected value and no more than a 1 percent tolerance on return
to player or payback.
4.
All possible game outcomes must be available upon the initiation of each play
of a game upon which a player commits a wager on a gaming device.
5. For gaming devices that are representative
of live gambling games, the mathematical probability of a symbol or other
element appearing in a game outcome must be equal to the mathematical
probability of that symbol or element occurring in the live gambling
game.
6. Gaming devices that offer
games of skill or hybrid games must indicate prominently on the gaming device
that the outcome of the game is affected by player skill.
7. Gaming devices must not alter any function
of the device based on the actual hold percentage.
8. Gaming devices may use an identifier to
determine which games are presented to or available for selection by a
player.
9. For gaming devices
manufactured and distributed before September 28, 1989, the Commission may
waive the requirements of these Rules for a licensee exposing a gaming device
to the public for play, if the licensee can demonstrate to the Commission's
satisfaction that:
(a) After the waiver the
aggregate theoretical payout for all amounts wagered on all gaming devices
exposed for play by the licensee at a single establishment meets the 83 percent
standard of subsection 1(a) of section 14.040, and
(b) The licensee is unable to bring the
device into compliance with the requirements of subsection 1(a) of section
14.040 because of excessive cost or the unavailability of parts.
10. The Commission may waive for
good cause shown the requirements of a technical standard for a game. The
Commission has full and absolute authority to condition or limit a waiver
granted under this section for any cause deemed reasonable.
12.045 Minimum standards for inter-casino linked systems. All inter-casino linked systems submitted for approval:
1. Shall, in the case
of an inter-casino linked system featuring a progressive payoff schedule that
increases as the inter-casino linked system is played, have a minimum rate of
progression for the primary jackpot meter of not less than .4 of one percent of
amounts wagered. In the case of an inter-casino linked system featuring a
progressive payoff schedule that increases over time, have a minimum rate of
progression for the primary jackpot meter of not less than one hundred dollars
per day. The provisions of this subsection do not prevent an operator from
limiting a progressive payoff schedule as allowed by these Rules.
2. Shall have a method to secure data
transmissions between the games and devices and the main computer of the
operator, as approved by the Commission.
3. Shall display the rules of play and the
payoff schedule.
4. Shall meet the
applicable minimum standards for internal control that have been adopted
pursuant to these Rules.
12.050 Technical standards.
1. The Commission shall publish technical
standards for approval of gaming devices, on-line slot metering systems,
cashless wagering systems, and associated equipment.
2. The Commission shall:
(a) Publish notice of proposed technical
standards or revisions by posting the proposed changes or revisions on the
Commission's website;
(b) Mail
notice of the posting of the proposed technical standards or revisions on the
Commission's website and a copy of this section to every Casino licensee,
licensed manufacturer and every person who has filed a request with the
Commission; and
(c) Provide a copy
of the proposed technical standards or revisions to the Commission.
3. The Commission shall consider
all written statements, arguments, or contentions submitted by interested
parties within 30 days of service of the notice provided for in subsection
2.
4. Not later than 45 days after
service of written notice that the Commission has proposed the technical
standards or revisions, any Casino licensee or licensed manufacturer may object
to the technical standards or revisions by filing a written objection with the
Commission.
5. The Commission shall
consider any objections filed to the technical standards or revisions proposed
by the Commission. If the Commission does not concur with any of the technical
standards, the Commission shall revise the technical standards to reflect the
order of the Commission.
6. The
Commission shall send written notice of the effective date of the standards or
revisions to all Casino licensees, licensed manufacturers and every person who
has filed a request with the Commission.
7. Casino licensees or licensed manufacturers
may propose the adoption, revision, or deletion of technical standards by
submitting a written request to the Commission who will consider the request at
the Commission's discretion. If the Commission does not propose the technical
standard, the Casino licensee or licensed manufacturers may file a request with
the Commission to adopt, revise, or delete a technical standard. The Commission
may consider the request at its discretion.
12.060 Employment of individual to respond to inquiries from the Commission.
1. Each manufacturer and operator shall
employ or retain an individual who understands the design and function of each
of its gaming devices, cashless wagering systems, inter-casino linked systems,
mobile gaming systems, or interactive gaming systems who shall respond within
the time specified by the Commission to any inquiries from the Commission
concerning the gaming device, cashless wagering system, inter-casino linked
system, mobile gaming system, or interactive gaming system or any modifications
to the gaming device, cashless wagering system, inter-casino linked system,
mobile gaming system, or interactive gaming system. Each manufacturer or
operator shall on or before December 31st of each year report in writing the
name of the individual designated pursuant to this section and shall report in
writing any change in the designation within 15 days of the change.
2. Each registered independent testing
laboratory shall employ an individual who understands the inspection and
certification methodology, procedures, and operation of the registered
independent testing laboratory. Such person shall be available during regular
Arkansas business hours to respond to requests from the Commission. Each
registered independent testing laboratory shall provide the Commission with the
name of the employee performing this function as part of their initial
registration application materials, and shall report in writing any subsequent
change in the employee designated to perform this function within 15 days of
the change.
12.070 Commission evaluation of new gaming devices. The Commission may require transportation of not more than two working models of a new gaming device to the new game lab of the Commission or some other location for review and inspection. The manufacturer seeking approval of the device must pay the cost of the inspection and investigation. The lab may dismantle the models and may destroy electronic components in order to fully evaluate the device. The Commission may require that the manufacturer provide specialized equipment or the services of an independent technical expert to evaluate the device.
12.075 Commission evaluation of inter-casino linked systems. The Commission may require transportation of not more than one working model of an inter-casino linked system to the Commission's offices or some other location for review and inspection pursuant to these Rules. The associated equipment manufacturer seeking approval of the system shall pay the cost of the inspection and investigation. The Commission may dismantle the model and may destroy electronic components in order to fully evaluate the inter-casino linked system. The Commission may require that the operator of an inter-casino linked system provide specialized equipment or the services of an independent technical expert to evaluate the inter-casino linked system.
12.080 Field test of new gaming devices and new inter-casino linked systems.
1. The Commission, in accordance with these
Rules, may allow or require that one or more models of a new gaming device or
inter-casino linked system be tested at a licensed gaming establishment(s) for
not more than 180 days under terms and conditions that the Commission may
approve or require. Upon written request of the manufacturer, distributor or
operator, the Commission may, by written agreement, allow the test period to be
continued an additional 90 days beyond the 180-day maximum field test period,
for the purpose of allowing the application for approval of the new gaming
device or application to operate a new inter-casino linked system to be acted
upon by the Commission. The Commission shall report all field tests on the
agenda of the next regularly scheduled meeting of the Commission.
2. In the interests of expediting the
introduction of innovative, alternative and advanced technology for gaming
devices and inter-casino linked systems for use or play in Arkansas, a
manufacturer may request its new gaming device or inter-casino linked system be
considered for evaluation under New Innovation Beta as an alternative to the
field testing process set forth under subsection 1.
(a) For purposes of this section only, the
term "New Innovation Beta" means a process of evaluating a new gaming device or
inter-casino linked system utilizing a field testing period under conditions
and limitations described in this subsection.
(b) The terms and conditions imposed under
the New Innovation Beta will be set forth by the Commission, and may include
the requirement that a licensee notify patrons that the new gaming device is
part of such a field test and is being exposed for play prior to finalization
of the product in order to allow the evaluation of the gaming device or
inter-casino linked system at an earlier stage of the regulatory approval
process.
(c) The decision whether
to permit a new gaming device or inter-casino linked system to be evaluated
utilizing New Innovation Beta is at the sole and absolute discretion of the
Commission.
(d) When considering
the request to evaluate a new gaming device or inter-casino linked system
utilizing New Innovation Beta, the Commission will consider factors including,
without limitation, the ability of the gaming device to accurately determine,
evaluate, and display the game outcome, the ability of the gaming device to
accurately process the acceptance and award of all payments, and the extent to
which an inter-casino linked system complies with the requirements of these
Rules.
(e) The Commission may also
consider the approval status of the gaming device or inter-casino linked system
in another state or foreign jurisdiction in which gaming is legal and regulated
by a government agency with standards for gaming devices and inter-casino
linked systems materially the same as those in Arkansas, the determination of
which is within the sole discretion of the Commission.
3. A manufacturer shall not modify a gaming
device and an operator shall not modify a new inter-casino linked system during
the test period without the prior written approval of the Commission.
4. The Commission may order termination of
the test period, if the Commission determines, in the Commission's sole and
absolute discretion, that the manufacturer, operator, or licensed gaming
establishment has not complied with the terms and conditions of the order
allowing or requiring a test period or for any cause deemed reasonable.
(a) If the test period is terminated due to
the licensed gaming establishment's failure to comply with the terms and
conditions of the order allowing or requiring a test period, the Commission may
order that the test be conducted at another licensed gaming
establishment.
(b) A manufacturer
or operator may object to the termination of the test period by filing a
written objection with the Commission. The filing of an objection shall not
stay the order terminating the test. If the Commission fails to order
resumption of the test within 60 days of the written objection, the objection
will be deemed denied. If the Commission sustains the objection, the testing
may be resumed under terms that may be approved or required by the
Commission.
5. A
licensee or manufacturer, or their agent shall not play a new gaming device
during a test period. A licensee or operator, or their agent, shall not play a
gaming device or game connected to a new inter-casino linked system during a
test period.
6. If the Commission
has made a determination that a new gaming device or new inter-casino linked
system is not eligible for testing at a licensed gaming establishment, the
Commission shall notify the manufacturer or operator in writing. Not later than
10 days after receipt of such notification, the manufacturer or operator may
object to such a determination by filing written objection with the Commission.
If the Commission fails to order a test period within 60 days of the written
objection, the objection will be deemed denied. If the Commission sustains the
objection, the new gaming device or new inter-casino linked system may be
tested at a licensed gaming establishment under terms and conditions that may
be approved or required by the Commission.
12.090 Certification by manufacturer.
1. After completing its
evaluation of a new gaming device, the Commission's new games lab shall send a
report of its evaluation to the manufacturer seeking approval of the device.
The report must include an explanation of the manner in which the device
operates. The report must not include a position as to whether the device
should be approved. The manufacturer shall return the report within 15 working
days and shall either:
(a) Certify under
penalty of perjury that to the best of its knowledge the explanation is
correct; or
(b) Make appropriate
corrections, clarifications, or additions to the report and certify under
penalty of perjury that to the best of its knowledge the explanation of the
gaming device is correct as amended.
2. The Commission may order additional
evaluation and a field test of the new gaming device of up to 60 days in
addition to the test period provided for in these Rules if the Commission
determines, based upon the manufacturer's certification, that such additional
evaluation is necessary.
12.100 Final approval of new gaming devices and new inter-casino linked systems.
1. After completing its evaluation of the new
gaming device or the operation of a new inter-casino linked system, the
Commission shall recommend whether the application for approval of the new
gaming device or operation of a new inter-casino linked system should be
granted.
2. In considering whether
a new gaming device or operation of a new inter-casino linked system will be
given final approval, the Commission shall consider whether:
(a) Approval of the new gaming device or
operation of a new inter-casino linked system is consistent with the public
policy of this state.
(b) The terms
of any agreement or written specifications permitted or required of an operator
by any other state or tribal government and affecting a multi-jurisdictional
progressive prize system:
(1) Comply with the
provisions of these Rules; and
(2)
Include procedures satisfactory to the Commission for:
(A) Ensuring compliance with the requirements
of these Rules;
(B) Resolution of
patron disputes under procedural and substantive requirements equal to or
greater than the standards applied by the Commission;
(C) Surveillance and security of gaming
devices connected to such system;
(D) Record-keeping and
record-retention;
(E) Control of
access to any internal mechanism of gaming devices connected to such
system;
(F) Prior administrative
approval of the Commission for any adjustments to progressive meters;
(G) Access by the Commission to audit
compliance with the requirements of this subparagraph; and
(H) Any special procedures necessary for a
multi-jurisdictional progressive prize system with lawfully operated gaming
locations participating outside the United States, including without limitation
matters of currency conversion and the availability of English translations of
all relevant and material documentation and information.
(c) For an inter-casino linked
system of games of skill or hybrid games:
(1)
The types of games that will be connected to such a system are
compatible;
(2) The communications
technology used to connect participating gaming devices is adequate for the
operating environment for such a system; and
(3) The progressive payoff schedules used for
such systems are accurately described for players and comply with these Rules.
Notwithstanding the provisions of these Rules, such schedules may broaden and
encourage participation in games with skill attributes, by providing, without
limitation, for partial prize awards, and prize awards for games with different
themes or based on the use of identifiers.
3. Commission approval of a gaming device or
inter-casino linked system does not constitute certification of the devices or
inter-casino linked system's safety. Commission approval of a
multi-jurisdictional progressive prize system shall include approval of any
agreement or written specifications permitted or required by any other state or
tribal government and affecting such system. The Commission will complete any
written acknowledgement necessary to document the Commission's approval of any
such agreement or written specifications. The prior administrative approval of
the Commission is required of any modification to such agreement or written
specifications.
4. A manufacturer
or distributor who becomes aware that a gaming device or associated equipment
approved by the Commission or the Commission no longer complies with the Rules
of the Commission or the technical standards adopted pursuant to these Rules
shall notify the Commission in writing within 3 business days.
12.105 Installation of a system based game or a system supported game. A licensee shall not install or use a system based game or system supported game without prior written approval of the system network implementation from the Commission. Additionally, any modifications to the approved network implementation must be approved by the Commission. Applications for approval to install or modify a system based game or system supported game shall be made and processed in such manner and using such forms as the Commission may prescribe. The applicant seeking approval of the installation shall pay the cost of the investigation.
12.110 Approval to modify gaming devices or inter-casino linked systems; applications and procedures.
1. Modifications to
gaming devices may only be made by licensed manufacturers who have received
prior written approval of the Commission. Inter-casino linked system
modifications may only be made by operators of such systems who have received
prior written approval of the Commission.
The Commission, in the Commission's sole and absolute discretion, may refer an inter-casino linked system modification to the full Commission for consideration of approval. In an emergency when a modification is necessary to prevent cheating or malfunction, the Commission may, in the Commission's sole and absolute discretion, orally approve a modification to be made by a manufacturer or operator. Within 15 days of the emergency modification, the manufacturer or operator making such modification shall submit a written request for approval of the modification that shall contain the information required by subsection 3 and such other information as required by the Commission.
2. A
manufacturer shall not modify a gaming device unless the device, as modified,
meets the standards in these Rules. An operator shall not modify an
inter-casino linked system unless the system, as modified, meets the standards
in these Rules. The Commission may, in the Commission's sole and absolute
discretion, waive all or some of the standards in these Rules, if the
modification is necessary to prevent cheating or malfunction. A waiver shall be
effective when the manufacturer or operator receives a written notification
from the Commission that all or some of the standards will be waived pursuant
to this subsection. A waiver of all or some of the standards pursuant to this
subsection is not an approval of the modification.
3. Applications for approval to modify a
gaming device or an inter-casino linked system shall be made by a manufacturer
and processed in such manner and using such forms as the Commission may
prescribe. Each application shall include, in addition to such other items or
information as the Commission may require:
(a) A complete, comprehensive, and
technically accurate description and explanation of the modification in both
technical and lay language signed under penalty of perjury;
(b) Unless the standards of these Rules have
been waived pursuant to subsection 2, a statement under penalty of perjury that
to the best of the manufacturer's knowledge, the gaming device, as modified,
meets the standards of these Rules or, in the case of an inter-casino linked
system, a statement under penalty of perjury that to the best of the operator's
knowledge the inter-casino linked system, as modified, meets the standards of
these Rules;
(c) In the case of a
gaming device:
(1) A copy of all executable
software, including data and graphic information, and a copy of all source code
for programs that cannot be reasonably demonstrated to have any use other than
in a gaming device, submitted on electronically readable, unalterable
media;
(2) A copy of all graphical
images displayed on the gaming device including, but not limited to, reel
strips, rules, instructions and paytables;
(d) In the case of a modification to the
control program of a gaming device that includes software, source language or
executable code designed or developed by an independent contractor:
(1) The name of the independent contractor;
and
(2) A general subject matter
description of such software, source language or executable code compiled into
the control program as part of the submission to the Commission;
(e) In the case of an inter-casino
linked system:
(1) An operator's
manual;
(2) An internal control
system;
(3) A hold harmless
agreement;
(4) A graphical
representation of the system theme and all related signage; and
(5) Information sufficient to calculate a
theoretical payoff schedule amount.
(f) All materials relating to the results of
the registered independent testing laboratory's inspection and certification
process that are required under these Rules.
12.120 Commission evaluation of modifications.
1. The Commission may
require transportation of not more than two working models of a modified gaming
device or not more than one working model of a modified inter-casino linked
system, or any component thereof, to the Commission's offices or some other
location for review and inspection. The manufacturer or operator seeking
approval of the modification shall pay the cost of the inspection and
investigation. The Commission may dismantle the models and may destroy
electronic components in order to fully evaluate the modified gaming device or
inter-casino linked system, or component. The Commission may require that the
manufacturer or operator provide specialized equipment or the services of an
independent technical expert to evaluate the modification.
2. The Commission has sole and absolute
discretion to determine whether the requested modification of a gaming device
renders the device sufficiently different so that the modified device should be
treated as a new gaming device. If the Commission makes such a determination,
the Commission shall notify the manufacturer in writing. The manufacturer may
file an application for approval of a new gaming device.
3. The manufacturer or operator shall submit
materials relating to the results of the registered independent testing
laboratory's inspection and certification process that are required under these
Rules.
12.130 Field test of modified gaming devices and modified inter-casino linked systems.
1. The Commission may allow or
require that one or more models of a modified gaming device or modified
inter-casino linked system be tested at a licensed gaming establishment for not
more than 180 days under terms and conditions that the Commission may approve
or require.
2. In the interests of
expediting innovative, alternative and advanced technology in the modification
of gaming devices and inter-casino linked systems approved for use or play in
Arkansas, a manufacturer may request a modification to its gaming device or
inter-casino linked system be considered for evaluation under New Innovation
Beta as an alternative to the field testing process set forth in these Rules.
(a) For purposes of this section only, the
term "New Innovation Beta" means a process of evaluating a modification to a
gaming device or inter-casino linked system utilizing a field testing period
under conditions and limitations described in this subsection.
(b) The terms and conditions imposed under
New Innovation Beta will be set forth by the Commission, and may include the
requirement that a licensee notify patrons that the modification to an approved
gaming device or inter-casino linked system is part of such a field evaluation
and is being exposed for play prior to finalization of the product in order to
allow the evaluation of the modification to the gaming device or inter-casino
linked system at an earlier stage of the regulatory approval process.
(c) The decision whether to permit a
modification to an approved gaming device or inter-casino linked system to be
evaluated utilizing New Innovation Beta is at the sole and absolute discretion
of the Commission.
(d) When
considering the request to evaluate a modification to an approved gaming device
or inter-casino linked system utilizing New Innovation Beta, the Commission
will consider factors including, without limitation, the ability of the gaming
device to accurately determine, evaluate, and display the game outcome, the
ability of the gaming device to accurately process the acceptance and award of
all payments, and the extent to which an inter-casino linked system complies
with the requirements of these Rules.
(e) The Commission may also consider the
approval status of the modification to an approved gaming device or
inter-casino linked system in another state or foreign jurisdiction in which
gaming is legal and regulated by a government agency with standards for
modifications of gaming devices and inter-casino linked systems materially the
same as those in Arkansas, the determination of which is within the sole
discretion of the Commission.
3. A manufacturer shall not further modify a
gaming device and an operator shall not further modify an inter-casino linked
system during the test period without the prior written approval of the
Commission.
4. The Commission may
order termination of the test period if the Commission determines, in the
Commission's sole and absolute discretion, that the manufacturer, operator, or
licensed gaming establishment has not complied with the terms and conditions of
the order allowing or requiring a test period or for any cause deemed
reasonable.
5. A licensee or
manufacturer, or their agent shall not play a modified gaming device during a
test period. A licensee or operator, or their agent shall not play a gaming
device or game connected to a modified inter-casino linked system during a test
period.
6. If the Commission has
made a determination that the modified gaming device or modified inter-casino
linked system is not eligible for testing at a licensed gaming establishment,
the Commission shall notify the manufacturer or operator in writing.
12.140 Final approval of modifications. The Commission shall notify the manufacturer or operator in writing of the Commission's decision to approve or disapprove a modification.
12.160 Duplication of program storage media. A licensee other than a manufacturer shall not duplicate the contents of gaming device program storage media unless its duplication process has received written approval of the Commission.
12.170 Marking, registration, and distribution of gaming devices.
1. Except as otherwise provided in subsection
2, a manufacturer or distributor shall not distribute a gaming device unless
the gaming device has:
(a) A permanent serial
number which must be affixed as required by the provisions of the Gaming Device
Act of 1962,
15 U.S.C.
1173; and
(b) For devices distributed in this state:
(1) A permanent serial number which must be
the same number as given the device pursuant to the provisions of the Gaming
Device Act of 1962,
15 U.S.C.
1173, permanently stamped or engraved in
lettering no smaller than 5 millimeters on the metal frame or other permanent
component of the device and on a removable metal plate attached to the cabinet
of the device; and
(2) The
Commission approval number or, if the device has been modified since initial
approval of the device, the modification approval number affixed on all program
storage media placed in the device.
2. The Commission may, in the Commission's
sole and absolute discretion, waive the requirements of subsection 1 if:
(a) The device was manufactured prior to
January 1, 1962, and the manufacturer or distributor permanently stamps or
engraves in lettering no smaller than 5 millimeters a distributor's
identification code assigned by the Commission and a seriatim number on the
metal frame or other permanent component of each device covered by this
subsection.
(b) The program storage
media in 1(b) can be altered through a means that does not require removal from
the device or if the size of such media does not permit it.
3. Each manufacturer or
distributor shall keep records of the date of each distribution, the serial
numbers of the devices, the Commission approval number, or if the device has
been modified since initial approval of the device, the modification approval
number, and the name, addresses and telephone numbers of the person to whom the
gaming devices have been distributed for use or play in Arkansas and shall
provide such records to the Commission immediately upon the Commission's
request.
4. For all gaming devices
distributed from a location within Arkansas that are not for use or play in
Arkansas, a manufacturer or distributor shall provide any and all records
documenting such distributions to the Commission upon request. Such records
shall include the information required under the Gambling Device Act of 1962,
15 U.S.C.
1173, and shall be retained for a period of
five years.
12.180 Approval for category I licensees to distribute gaming devices out of Arkansas; applications and procedure; recordkeeping requirements for category II licensees; extraterritorial distribution compliance; inspection of facilities and devices.
1. Subject to
the exemption set forth in subsection 4, category I manufacturers and
distributors shall not distribute gaming devices out of this state without
applying for and receiving the prior written approval of the Commission.
Applications for such approval to distribute gaming devices out of this state
must be made, processed, and determined in such manner and using such forms as
the Commission may prescribe. Each application must include, in addition to
such other items or information as the Commission may require:
(a) The full name, state of residence,
address, telephone number, social security number, and driver's license number
of both the purchaser and the person to whom the shipment is being made, if
neither is currently licensed by the Commission. If the purchaser or person to
whom the shipment is being made does not have a social security number or
driver's license number, the birth date of the purchaser or person to whom the
shipment is being made may be substituted;
(b) The name and permanent address of the
purchaser or person to whom the shipment is being made if either is currently
licensed by the Commission;
(c) The
destination, including the port of exit if the destination is outside the
continental United States;
(d) The
number of devices to be shipped;
(e) The serial number of each
device;
(f) The model number of
each device and year each device was manufactured, if known;
(g) The denomination of each
device;
(h) The expected date and
time of shipment; and
(i) The
method of shipment and name and address of carrier.
2. Except as provided in paragraph (c) of
this subsection, category II manufacturers and distributors are exempt from
subsection 1, and shall:
(a) Prepare and
maintain records of the information required by the Gaming Devices Act of 1962,
15 U.S.C.
1173. The records and documentation required
by this paragraph (a) will be retained for a period of five years and must be
produced for inspection upon request by the Commission. The failure to prepare
and maintain such records and documentation will be an unsuitable method of
operation.
(b) Submit to the
Commission on or before the 15th day of January and July of each calendar year
an electronic record of the name and address of all current customers which
shall be in a searchable format. The record required by this paragraph (b) will
be received and retained by the Commission as confidential.
(c) A category II manufacturer and
distributor may by written notice to the Commission elect to be treated as and
comply with the requirements of this Rule applicable to a category I
manufacturer and distributor.
3. Manufacturers and distributors shall not
ship gaming devices to a destination where possession of a gaming device is
unlawful.
4. Category I
manufacturers and distributors are exempt from the requirements of this Rule
for shipments of gaming devices provided:
(a)
The gaming devices are only distributed to:
(1) Persons licensed to expose such devices
for play or for further distribution, in the jurisdiction of destination or by
a tribal gaming authority in the jurisdiction of destination;
(2) A federal, state or tribal gaming
regulatory authority or law enforcement agency; or
(3) A testing laboratory authorized by an
entity identified within subparagraph (2) of this paragraph.
(b) The category I manufacturer
and distributor files the information required by subsection 1 on or before the
15th of the month following the month of distribution.
[] The Commission may publish a list of jurisdictions or licensees to which this exemption does not apply and where category I manufacturers and distributors may not ship gaming devices without prior approval as required by subsection 1 of this Rule.
5. Category I manufacturers and distributors
shall obtain and thereafter maintain, a statement by the purchaser under
penalty of perjury that each device will be used only for lawful purposes,
unless the purchaser is currently licensed by the Commission or comparable
agency of another state or tribal gaming agency or the destination is outside
the United States.
6. Manufacturers
and distributors shall, on or before the 15th day of January of each calendar
year, give the Commission a copy of the documentation evidencing registration
with the United States Attorney General pursuant to the provisions of the
Gaming Devices Act of 1962,
15 U.S.C.
1173, for the ensuing year.
7. An agent of the Commission may inspect:
(a) The premises of manufacturers and
distributors and all gaming devices located therein.
(b) All gaming devices for which an
application has been filed by a category I manufacturer or distributor pursuant
to subsection 1 of this Rule prior to distribution out of this state. Category
I manufacturers and distributors shall make the gaming devices subject to such
applications available for such inspection.
8. If the Commission does not deny an
application filed by a category I manufacturer or distributor for approval to
distribute gaming devices out of this state pursuant to subsection 1 within 5
working days of receipt of a complete application, the application will be
deemed to be approved.
9. A
category I manufacturer or distributor shall keep a record of all shipments
made out of state of parts specifically designed for use in a gaming device.
The record must include the information set forth in subsection 1, if
applicable. A manufacturer or distributor shall not ship parts specifically
designed for use in a gaming device to a destination where possession of a
gaming device is unlawful.
10. The
Commission may, in the Commission's discretion, waive one or more of the
requirements of this section upon good cause shown.
11. As used in this section:
(a) "Category I manufacturer or distributor"
means any manufacturer or distributor licensed by the Commission that does not
qualify as a category II manufacturer or distributor.
(b) "Category II manufacturer or distributor"
means any manufacturer or distributor that:
(1) Is and has been licensed in good standing
by the Commission for the preceding five years;
(2) Is and has been licensed, registered,
approved or qualified in at least ten other domestic United States or tribal
jurisdictions for the preceding three years
(3) Maintains pursuant to or consistent with
the requirements of these Rules a compliance review and reporting
system;
(4) Has annual gross sales
exceeding $5 Million Dollars for such licensee's preceding fiscal
year;
(5) Maintains an office or
other facility in the state of Arkansas at which the records required by this
Rule are stored and may be inspected and copied by the Commission.
(6) Did not during the preceding year
exclusively distribute used gaming devices. As used in this subparagraph, "used
gaming devices" means gaming devices previously used or played in a gaming
operation in Arkansas, including such devices that have been in any way
modified or refurbished since original manufacture.
(c) "Current customer" means a person to whom
the applicable manufacturer or distributor has shipped or delivered a gaming
device within the preceding six months pursuant to a contract, agreement or
other arrangement with such manufacturer or distributor, or its affiliate, for
the purchase, lease, license or other right to use such gaming
device.
12.190 Approval for certain licensees to sell or dispose of gaming devices.
1. A licensee, other than a manufacturer and
distributor, shall not dispose of gaming devices without the prior written
approval of the DF&A, unless the devices are sold or delivered to its
affiliated companies or a licensed manufacturer or distributor, in which case
approval is deemed granted.
2. A
licensee, other than a manufacturer and distributor, shall not request approval
to sell or deliver gaming devices to a person other than its affiliated
companies or a licensed manufacturer or distributor unless the devices have
been marked pursuant to these Rules.
3. Applications for approval to sell gaming
devices under this Rule must be made, processed, and determined in such manner
and using such forms as the DF&A may prescribe. Each application must
include the information required by these Rules, in addition to such other
items or information as the DF&A may require.
4. Applications for approval to dispose of
gaming devices under this Rule must be made, processed, and determined in such
manner and using such forms as the DF&A may prescribe.
12.200 Maintenance of gaming devices. A licensee shall not alter the operation of approved gaming devices and shall maintain the gaming devices in a suitable condition. Each licensee shall keep a written list of repairs made to gaming devices offered for play to the public that require a replacement of parts that affect the game outcome and shall make the list available for inspection by the Commission upon the Commission's request.
12.210 Approval of promotional devices; applications and procedures.
1. As used in this section, "promotional
device" means a contrivance that resembles a gaming device or slot machine
that:
(a) Is playable without a wager being
made; or
(b) Always pays out an
amount in either cash or prizes that is equal to or greater than the wager
made.
2. A manufacturer
or distributor shall not distribute a promotional device for use in this state
and a Casino licensee shall not offer a promotional device for play to the
public unless the promotional device has been approved by the Commission. A
restricted licensee shall not offer a promotional device for play to the public
unless the promotional device and the use of the promotional device have both
been approved by the Commission.
3.
Applications for approval of promotional devices must be made, processed, and
determined in such manner and using such forms as the Commission may prescribe.
Each application must include, in addition to such other items or information
as the Commission may require:
(a) A complete,
comprehensive, and technically accurate description and explanation of the
manner in which the device operates and complies with all applicable statutes,
regulations and technical standards, signed under penalty of perjury;
(b) The name and permanent address of the
purchaser if the purchaser is currently licensed by the Commission;
(c) The name, permanent address, social
security number, and driver's license number of the purchaser if the purchaser
is not currently licensed by the Commission. If the purchaser does not have a
social security number or driver's license number, the purchaser's birth date
may be substituted;
(d) The
quantity and the serial numbers of the promotional devices being sold or
distributed; and
(e) A statement by
the purchaser under penalty of perjury that the device will be used only for
lawful purposes.
12.220 Summary suspension of approval of gaming devices and inter-casino linked systems.
1. The Commission may issue a summary order,
with or without notice to the manufacturer, distributor, operator, or licensee,
suspending approval of a gaming device or inter-casino linked system if it
determines that the device or inter-casino linked system does not operate:
(a) In the manner certified by the
manufacturer pursuant to section 14.090;
(b) As approved by the Commission;
or
(c) As approved by the
Commission, if the device has been modified since initial approval of the
device or inter-casino linked system.
2. After issuing an order pursuant to
subsection 1, the Commission may seal or seize all models of that gaming device
or inter-casino linked system Arkansas.
12.230 Approval of new games and game variations; applications and procedures.
1. A licensee shall not offer a new game for
play unless the new game has been approved by the Commission. A licensee shall
not offer a game variation for play unless the game variation has been approved
in writing by the Commission.
2.
Applications for approval of a new game or game variation must be made and
processed in such manner and using such forms as the Commission may prescribe.
The applicant seeking approval of the new game or game variation shall pay the
cost of the investigation. Each application must include, in addition to such
other items or information as the Commission may require:
(a) The name, permanent address, social
security number, and driver's license number of the person developing the new
game or game variation. If the person developing the new game or game variation
does not have a social security number or a driver's license number, the
person's birth date may be substituted;
(b) The name of the game which must be
different than the name of a game currently approved by the
Commission;
(c) A description of
the new game or game variation, including the rules of play, the proposed
schedule of payouts, and a statistical evaluation of the theoretical
percentages of the game; and
(d)
All materials relating to the results of the registered independent testing
laboratory's inspection and certification process that are required under these
Rules.
12.240 Field trials of new games and game variations.
1. The Commission may allow or require that a
new game or game variation to be tested at a licensed gaming establishment for
not more than 180 days under terms and conditions that the Commission may
approve or require.
2. The
Commission may order termination of the test period, if the Commission
determines, in the Commission's sole and absolute discretion, that the
developer of the new game or the licensed gaming establishment has not complied
with the terms and conditions of the order allowing or requiring a test
period.
12.250 Final approval of new games. The Commission shall recommend to the Commission whether the application for approval of the new game should be granted. In considering whether a new game will be given final approval, the Commission shall consider whether approval is consistent with the public policy of this state.
12.260 Approval of associated equipment; applications and procedures.
1. Unless otherwise waived pursuant to
subsection 2, a manufacturer or distributor of associated equipment shall not
distribute associated equipment unless it has been approved by the Commission.
Applications for approval of associated equipment shall be made and processed
in such manner and using such forms as the Commission may prescribe. Each
application must include, in addition to such other items or information as the
Commission may require:
(a) The name,
permanent address, social security number, and driver's license number of the
manufacturer or distributor of associated equipment unless the manufacturer or
distributor is currently licensed by the Commission. If the manufacturer or
distributor of associated equipment is a corporation, the names, permanent
addresses, social security numbers, and driver's license numbers of the
directors and officers must be included. If the manufacturer or distributor of
associated equipment is a partnership, the names, permanent addresses, social
security numbers, and driver's license numbers of the partners and their
partnership interest must be included. If social security numbers or driver's
license numbers are not available, the manufacturer's or distributor's birth
date may be substituted;
(b) A
complete, comprehensive and technically accurate description and explanation in
both technical and lay language of the associated equipment or a modification
to previously approved associated equipment and its intended usage, signed
under penalty of perjury;
(c)
Detailed operating procedures for the associated equipment;
(d) The standards under which such tests were
performed, including Technical Standards 2 and 3 if applicable, and the results
of such testing that confirms the associated equipment is functioning as
represented, signed under penalty of perjury; and
(e) All materials relating to the results of
the registered independent testing laboratory's inspection and certification
process that are required under these Rules.
2. Except as provided in subsection 3, upon
written request from the manufacturer or distributor of associated equipment,
or as the Commission otherwise deems reasonable, the Commission may, in the
Commission's sole and absolute discretion, waive the approval requirement for
associated equipment upon such terms and conditions that the Commission may
approve or require or refer the associated equipment to the full Commission for
consideration of approval.
3.
Except as otherwise provided in subsection 4, the Commission shall not grant an
approval pursuant to these Rules or waive such approval requirement pursuant to
these Rules with respect to any associated equipment that, when installed, will
allow a patron to use a debit instrument for purposes of making electronic
funds transfers from an independent financial institution to a game or gaming
device through a cashless wagering system until such time as the appropriate
Rules for such transfers are adopted.
4. The Commission may grant approvals
pursuant to subsection 1 or waive such approval requirements pursuant to
subsection 2 with respect to the use of a prepaid access instrument in
conjunction with an approved cashless wagering system.
5. A manufacturer or distributor of
associated equipment who becomes aware that associated equipment approved by
the Commission no longer complies with the Rules of the Commission or the
technical standards adopted pursuant to these Rules shall notify the Commission
in writing within 3 business days.
12.270 Commission evaluation of associated equipment. The Commission may require transportation of not more than 2 working models of associated equipment to the new game lab of the Commission or some other location for review and inspection. The manufacturer seeking approval of the equipment must pay the cost of the inspection and investigation. The lab may dismantle the associated equipment and may destroy electronic components in order to fully evaluate the equipment. The Commission may require the manufacturer or distributor seeking approval to provide specialized equipment or the services of an independent technical expert to evaluate the associated equipment.
12.280 Field trial of associated equipment.
1. The Commission may allow
or require that the associated equipment be tested at licensed gaming
establishments for not more than 180 days under terms and conditions that the
Commission may approve or require. The Commission may allow an additional test
period upon written request of the manufacturer or distributor of associated
equipment.
2. A manufacturer of
associated equipment shall not modify associated equipment during the test
period without the prior oral approval of the Commission.
3. The Commission may order termination of
the test period, if the Commission determines, in the Commission's sole and
absolute discretion, that the manufacturer or the distributor of the associated
equipment or licensed gaming establishment has not complied with the terms and
conditions of the order allowing or requiring a test period. If the test period
is terminated due to the licensed gaming establishment's failure to comply with
the terms and conditions of the order allowing or requiring a test period, the
Commission may order that the test be conducted at another licensed gaming
establishment.
12.290 Installation of associated equipment.
1. Except as otherwise provided in these
Rules, a licensee shall not install or use associated equipment without prior
written approval of the Commission, unless the Commission has waived the
approval requirement pursuant to these Rules. Applications for approval to
install or use associated equipment shall be made and processed in such manner
and using such forms as the Commission may prescribe. The Commission shall not
approve any use or installation(s) of associated equipment that allow a patron
to use a debit instrument for purposes of making electronic funds transfers
from an independent financial institution to a game or gaming device through a
cashless wagering system until such time as the appropriate Rules for such
transfers are adopted.
2. The
Commission may grant approvals for the use of or installation of equipment used
in conjunction with prepaid access instruments.
12.300 Maintenance of associated equipment. The manner in which previously approved associated equipment operates may be altered only with the prior written approval of the Commission.
12.302 Manufacturer or distributor of associated equipment; registration of a manufacturer or distributor of associated equipment; application and procedures.
1. The initial application
for registration and the application for renewal of registration shall be made,
processed, and determined using such forms as the Commission may require or
approve and must be accompanied and supplemented by such documents and
information as may be specified or required.
2. Any applications for registration or
renewal required under this section shall be prepared and submitted by the
relevant manufacturer or distributor of associated equipment.
3. Fee Structure and Registration Period.
(a) Upon submission of an application for
registration as a manufacturer or distributor of associated equipment or
renewal application, the applicant shall pay an application fee of
$1,000.
(b) Before the Commission
issues an initial registration or renewal of any registration for a
manufacturer or distributor of associated equipment, the manufacturer or
distributor of associated equipment shall pay an issuance fee of
$1,000.
4. Each
registered associated equipment manufacturer or distributor shall inform the
Commission in writing of any changes in the ownership, officers, or directors
of the manufacturer or distributor of associated equipment. Reports required
under this subsection shall be made to the Commission within 30 days of
occurrence.
12.305 Manufacturer or distributor of associated equipment; determination of suitability.
1. In addition to the
requirements of this Rule requiring a manufacturer or distributor of associated
equipment to be registered, the Commission may require a manufacturer or
distributor of associated equipment who sells, transfers or offers the
associated equipment for use or play in Arkansas to file an application for a
finding of suitability to be a manufacturer or distributor of associated
equipment.
2. The Commission may
require any person who directly or indirectly involves himself or herself in
the sale, transfer or offering for use or play in Arkansas of such associated
equipment who is not otherwise required to be licensed as a manufacturer or
distributor to file an application for a finding of suitability to be a
manufacturer or distributor of associated equipment.
3. The Commission shall give written notice
of its decision to require the filing of an application for a finding of
suitability under subsection 1 and/or 2.
4. All investigative costs and fees
associated with applications for a finding of suitability are owed by the party
required to file the application for a finding of suitability. Failure to remit
such costs and fees within such periods set by the Commission, upon the advice
of the Commission, will result in a lapse of the registrations of the
applicable manufacturer or distributor of associated equipment and will
constitute an unsuitable method of operation. Where the party required to file
an application to manufacture or distribute associated equipment is not
registered, failure to pay such investigative costs and fees is grounds for
denial of any application associated with such manufacture or distribution of
associated equipment.
5. Failure of
any party described in subsections 1 or 2 to submit an application for a
finding of suitability within 30 days of being demanded to do so by the
Commission shall constitute grounds for a finding of unsuitability of that
party.
6. If the Commission finds
any manufacturer or distributor of associated equipment, as described in
subsection 1, or any person, as described in subsection 2, to be unsuitable
under this section:
(a) The registration of
such manufacturer or distributor is thereupon revoked as a matter of
law;
(b) Any applications for
registration as a manufacturer or distributor of associated equipment
associated with a party which is found unsuitable are deemed denied as a matter
of law; and
(c) All Casino
licensees shall, upon written notification from the Commission, terminate any
existing relationships, direct or indirect, with such unsuitable
parties.
7. Failure of a
Casino licensee to terminate any association or agreement, direct or indirect,
with any party found unsuitable upon receiving written notice of the
determination of unsuitability constitutes an unsuitable method of
operation.
8. Failure of a
registered manufacturer or distributor of associated equipment to terminate any
association or agreement with any party found unsuitable upon receiving written
notice of the determination of unsuitability shall constitute grounds for the
revocation of the registration of the manufacturer or distributor of associated
equipment.
9. The Commission
retains jurisdiction to determine the suitability of any party described in
subsections 1 or 2 regardless of whether or not that party has severed any
relationship with a Casino licensee or registered manufacturer or distributor
of associated equipment.
12.310 Retention of records. Unless otherwise specified, all records required by this Rule must be maintained for 5 years.
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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