Current through Register Vol. 43, No. 39, September 26, 2024
(a) A
facility manager may utilize gaming tickets and a gaming ticket system that has
been tested and approved by the commission under K.A.R. 112-107-3.
(b) Each facility manager shall establish a
system of internal controls for the issuance and redemption of gaming tickets.
The internal controls shall be submitted and approved by the commission under
K.A.R. 112-104-1 and shall address the following:
(1) The procedures for assigning an EGM's
asset number, identifying other redemption locations in the system, and
enabling and disabling ticket capabilities for EGMs and redemption
locations;
(2) the procedures for
issuance, modification, and termination of a unique system account for each
user in accordance with article 110;
(3) the procedures used to configure and
maintain user passwords in accordance with article 110;
(4) the procedures for restricting special
rights and privileges, including administrator and override capabilities, in
accordance with article 110;
(5)
the duties and responsibilities of the information technology, internal audit,
electronic gaming operations, cage, and accounting departments and the level of
access for each position with regard to the gaming ticket system;
(6) a description of physical controls on all
critical hardware, including locks and surveillance. This description shall
include the location and security protocols applicable to each piece of
equipment;
(7) the procedures for
the backup and timely recovery of critical data in accordance with article 110;
and
(8) the use of logs to document
and maintain the details of commission-approved hardware and software
modifications upon implementation.
(c) The system of internal controls required
in subsection (b) shall also include controls over the issuance and redemption
of gaming tickets and shall include all of the following requirements:
(1) Upon presentation of a gaming ticket for
redemption, the electronic gaming cashier or EGM shall use the gaming ticket
system to verify the validity of the serial number and value of the ticket, and
if valid, the system shall immediately cancel the ticket electronically and
permit the redemption of the ticket for the value printed thereon. Before
redeeming a gaming ticket, the complete serial number of the unredeemed gaming
ticket shall be available only to the system.
(2) The facility manager shall maintain a
record of all transactions in the gaming ticket system for at least 210 days
from the date of the transaction.
(3) Each gaming ticket shall expire in not
less than 180 days from the date of issuance if not redeemed.
(4) A gaming ticket system shall not be
configured to issue a gaming ticket exceeding $10,000.
(5) The facility manager shall maintain a
record of unredeemed gaming tickets for all gaming tickets that were issued but
not redeemed. The record shall be stored in the system for a period of time
approved by the executive director, which shall be at least one year from the
date of issuance of the gaming ticket. The following requirements shall apply:
(A) Each unredeemed gaming ticket record
removed from the system after one year shall be stored and controlled in a
manner approved by the commission.
(B) Each unredeemed gaming ticket record
removed from the system shall be subject to the standard record retention
requirements of this article.
(d) The system of internal controls required
to be submitted and approved by the commission under subsection (b) shall also
include procedures to be used in the following instances:
(1) If the facility manager chooses to pay a
patron the represented value of a gaming ticket notwithstanding the fact that
the gaming ticket system is inoperable, rendering the manager unable to
determine the validity of the gaming ticket at the time of payment. The system
of internal controls shall include procedures to verify the ticket once the
gaming ticket system becomes operable in accordance with article 110;
and
(2) if the facility manager
chooses to pay a patron the value of a gaming ticket notwithstanding the fact
that the gaming ticket system failed to verify and electronically cancel the
gaming ticket when it was scanned. Each payment by the facility manager shall
be treated as a complimentary. These payments shall not result in a deduction
from EGM income.
(e) At
the end of each gaming day, the gaming ticket system shall be caused by the
facility manager to generate reports, and the reports shall be provided to the
manager's accounting department, either directly by the system or through the
management information systems department. The report, at a minimum, shall
contain the following information:
(1) A list
of all gaming tickets that have been issued, including the asset number and the
serial number of the EGM, and the value, date, and time of issuance of each
gaming ticket;
(2) a list of all
gaming tickets that have been redeemed and cancelled, including the redemption
location, the asset number of the EGM or location if other than an EGM, the
serial number, the value, date, and time of redemption for each ticket, the
total value of all gaming tickets redeemed at EGMs, and the total value of all
gaming tickets redeemed at locations other than EGMs;
(3) the liability for unredeemed gaming
tickets;
(4) the readings on gaming
ticket-related EGM meters and a comparison of the readings to the number and
value of issued and redeemed gaming tickets, as applicable;
(5) the exception reports and audit logs;
and
(6) any other relevant reports
as required by the executive director.
(f) Each facility manager shall, at the time
of discovery, report to the commission audit staff any evidence that a gaming
ticket has been counterfeited, tampered with, or altered in any way that would
affect the integrity, accuracy, reliability, or suitability of the gaming
ticket.
(g) Upon any attempt to
redeem a gaming ticket when the total value of which gaming ticket cannot be
completely converted into an equivalent value of credits, the EGM shall perform
one of the following procedures:
(1)
Automatically issue a new gaming ticket containing the value that cannot be
completely converted;
(2) not
redeem the gaming ticket and return the gaming ticket to the patron;
or
(3) allow for the additional
accumulation of credits on a meter that displays the value in dollars and
cents.
(h) Each facility
manager that utilizes a system or an EGM that does not print a test gaming
ticket that is visually distinguishable from a redeemable gaming ticket shall
adopt internal controls for all of the following:
(1) The issuance of test currency from the
cage; and
(2) the return and
reconciliation of the test currency and any gaming tickets printed during the
testing process.
(i)
Except as provided in subsection (m), each gaming ticket shall be redeemed by a
patron for cash, EGM credits, or a check issued by the facility manager in the
amount of the gaming ticket redeemed. A facility manager shall not permit
redemption of a gaming ticket if the facility manager knows or has reason to
know that the ticket meets any of the following conditions:
(1) Is different from the sample of the
gaming ticket approved by the commission;
(2) was previously redeemed; or
(3) was printed as a test gaming
ticket.
(j) Any facility
manager may effectuate redemption requests submitted by mail. Gaming tickets
redeemed by mail may only be redeemed by a cage supervisor in accordance with
internal controls approved by the commission under K.A.R. 112-104-1 that
include the following:
(1) Procedures for
using the gaming ticket system to verify the validity of the serial number and
value of the ticket that, if valid, shall be immediately cancelled
electronically by the system; and
(2) procedures for the issuance of a check
equal to the value of the ticket.
(k) Gaming tickets redeemed at cashier
locations shall be transferred to the facility manager's accounting department
on a daily basis. The gaming tickets redeemed by EGMs shall be counted in the
count room and forwarded to the manager's accounting department upon the
conclusion of the count process. The gaming tickets redeemed at automated
gaming ticket redemption machines shall be forwarded to the manager's
accounting department upon the conclusion of the cage reconciliation process.
The manager's accounting department employees shall perform the following, at a
minimum:
(1) On a daily basis, the following:
(A) Compare gaming ticket system report data
to any count room system report data available for that gaming day to ensure
proper electronic cancellation of the gaming ticket; and
(B) calculate the unredeemed liability for
gaming tickets, either manually or by means of the gaming ticket system;
and
(2) on a weekly
basis, compare appropriate EGM meter readings to the number and value of issued
and redeemed gaming tickets per the gaming ticket system. Meter readings
obtained through an electronic gaming monitoring system may be utilized to
complete this comparison.
(l) Each facility manager shall provide
written notice to the commission audit staff of any adjustment to the value of
any gaming ticket. The notice shall be made before or concurrent with the
adjustment.
(m) Employees of a
facility manager who are authorized to receive gratuities under K.A.R.
112-104-27 may redeem gaming tickets given as gratuities only at a cage. Gaming
tickets valued at more than $100 shall be redeemed at the cage only with the
approval of the supervisor of the cashier conducting the redemption
transaction.
(n) Each gaming ticket
system shall be configured to alert each facility manager to any malfunction in
accordance with article 110. Following a malfunction of a system, the facility
manager shall notify the commission within 24 hours of the malfunction and
shall not utilize the system until the malfunction has been eliminated. A
facility manager may be permitted by the executive director to utilize the
system before the system is restored, for a period not to exceed 72 hours, if
all of the following conditions are met:
(1)
The malfunction is limited to a single storage media device, including a hard
disk drive.
(2) The system contains
a backup storage media device not utilized in the normal operation of the
system. The backup device shall automatically replace the malfunctioning device
and permit a complete recovery of all information in the event of an additional
malfunction.
(3) Continued use of
the malfunctioning system would not inhibit the ability to perform a complete
recovery of all information and would not otherwise harm or affect the normal
operation of the system.
(o) Other than a modification to a gaming
ticket system that is required on an emergency basis to prevent cheating or
malfunction and is approved by the executive director under K.A.R.
112-107-3(m), a modification to a gaming ticket system shall not be installed
without being tested and approved under K.A.R. 112-107-3.
