Minnesota Administrative Rules
Agency 177 - Gambling Control Board
Chapter 7861 - GAMBLING; GENERAL PROVISIONS
Part 7861.0300 - PADDLEWHEELS
Universal Citation: MN Rules 7861.0300
Current through Register Vol. 49, No. 13, September 23, 2024
Subpart 1. Restrictions.
In addition to the restrictions and requirements in part 7861.0260, the following apply to the conduct of paddlewheels.
A.
Paddlewheels must be played using paddletickets, paddleticket cards, and a
paddlewheel. A game of paddlewheels may be conducted with or without a
paddlewheel table.
B. Each
paddleticket card must have a paddleticket card number preprinted on the stub
and on each attached paddleticket. Each paddleticket card must have a different
paddleticket card number. An organization must not have two paddleticket cards
with the same number in its possession.
C. An organization must use paddletickets
that are attached to a paddleticket card.
D. All paddletickets on a paddleticket card
must be sold before the paddlewheel is spun. If all the paddletickets on the
card cannot be sold, the organization must refund the cost of the paddletickets
to the players. The unplayed paddletickets must be returned to and defaced by
the organization.
E. The mechanical
paddlewheel must be spun by the paddlewheel operator and make at least four
complete revolutions before stopping. If four complete revolutions are not
made, the spin is not valid and the paddlewheel must be spun again. An
organization may not have multiple spins of the paddlewheel to award multiple
prizes for one paddleticket card.
F. The winning number is determined by the
position of the pointer when the paddlewheel stops spinning. If the pointer
stops on top of a peg, the number preceding the peg is the winning
number.
G. Prizes may only be
awarded to a holder of a winning paddleticket.
H. An organization must not transfer
paddlewheel games in play to another permitted premises.
Subp. 2. Balancing, opening, closing, maintenance, and inspection of mechanical paddlewheels.
The following requirements for the balancing, opening, closing, maintenance, and inspection of paddlewheels apply to all paddlewheel games.
A. To open a paddlewheel, the
paddlewheel operator must inspect each peg and the pointer for uneven wear and
replace any worn peg or worn pointer.
B. The paddlewheel operator must check the
balance of the paddlewheel by:
(1) inspecting
the back of the paddlewheel for a foreign object that may affect the
paddlewheel's balance;
(2)
positioning the pointer so it does not interfere with the spin of the
paddlewheel; and
(3) slowly
rotating the paddlewheel 45 to 90 degrees at a time in one direction. The
paddlewheel operator must determine whether there is any abnormality in the
rotation or any reverse rotation after the paddlewheel stops. The wheel must
continue to be rotated until the entire wheel has been evaluated by this method
in both directions. If the paddlewheel is out of balance, the organization must
balance the paddlewheel before conducting paddlewheels.
C. To close a paddlewheel, the paddlewheel
operator must place a cover over the paddlewheel or otherwise make it
inoperable.
Subp. 2a. Testing and maintenance of an electronic paddlewheel.
The following requirements for the testing and maintenance of an electronic paddlewheel apply to all paddlewheel games.
A. Prior to initial operation, the
organization must register the electronic paddlewheel with the board and
receive board approval of the electronic paddlewheel.
B. The organization must secure the
electronic paddlewheel when not in use to prevent any tampering or unauthorized
use.
C. The organization must
restrict log-in access to the operation of the electronic paddlewheel to the
operator of the game, the gambling manager, and the distributor.
D. Prior to the acceptance of any wager, the
operator of the game shall run a test game to verify the electronic paddlewheel
is operating according to the manufacturing standards for the device.
E. The organization must maintain a log-in
report identifying the time and date of each instance the electronic
paddlewheel was accessed for testing purposes or for actual play. The log-in
report must include start and end times of access.
Subp. 3. Posting of information for paddlewheels without a paddlewheel table.
In addition to the information required by part 7861.0260, subpart 2, an organization must prominently post at the point of sale:
A. clear and legible house rules that
include, at a minimum, the following information:
(1) all paddletickets on a card must be sold
before the paddlewheel is spun;
(2)
the paddlewheel must make at least four complete revolutions before the pointer
stops. If the pointer stops on top of a peg, the number preceding the peg is
the winning number;
(3) the winner
is not required to be present when the paddlewheel is spun; and
(4) the winner must claim the prize by the
conclusion of the activity for the day;
B. the master flare for the paddlewheel game,
which the organization may not change; and
C. a clear and legible sign stating the
amount of any cash prize and the fair market value of all merchandise prizes to
be awarded for each spin.
Subp. 4. Conduct of paddlewheels without a paddlewheel table.
The following items apply to the conduct of paddlewheels without a paddlewheel table.
A. The
sale of paddletickets must comply with the following:
(1) Each ticket on a paddlecard must be sold
for the same price and must be a separate and equal chance to win as all other
paddletickets with the same paddleticket card number.
(2) In order to play, a person may not be
required to purchase more than one paddleticket or pay for anything other than
the ticket.
(3) The paddletickets
must be sold on the permitted premises on the same day the paddlewheel is
spun.
B. The redemption
of a winning paddleticket and the awarding of a prize must comply with the
following.
(1) To be eligible for the prize, a
player is not required to be present when the paddlewheel is spun.
(2) All winning tickets must be redeemed
before the conclusion of the activity for that day. Otherwise, the player
forfeits the prize.
(3) For each
redeemed winning paddleticket, an organization must keep a record of the date
played and the cash prize amount or merchandise prize awarded.
(4) In addition to the prize awarded to the
winning number, prizes may be awarded to the numbers immediately adjacent to
the winning number on the paddlewheel.
Subp. 5. Posting of information for paddlewheels with a paddlewheel table.
In addition to the information required by part 7861.0260, subpart 2, an organization must prominently post at the point of sale clear and legible information including, at a minimum, the following:
A.
information required by subpart
3, item A, subitems (1) and
(2);
B. the master flare for the
paddlewheel game, which the organization may not change;
C. cash denominations at which paddlewheel
chips issued by the organization are sold and redeemed;
D. a player must first purchase paddlewheel
chips from the paddlewheel operator;
E. chips must be safeguarded. A chip dropped
into a table betting slot must be retrieved by authorized organization
employees;
F. a player must
purchase with chips only as many paddletickets as the player desires to bet on
the immediate next spin of the paddlewheel;
G. a player is assigned a unique
identification number that the player must write on the back of purchased
paddletickets;
H. the player places
a bet by inserting a paddleticket in a selected betting slot on the paddlewheel
table. Jammed tickets are void;
I.
a player may not touch a paddleticket after the paddlewheel operator announces
"bets closed" and until the operator announces "place bets";
J. a winning "odd" or "even" bet is
determined by a winning number of only the designated colored circle. However,
a player loses all "odd" and "even" bets if the pointer stops on a specially
designated "house number." This rule must be posted only if an "odd" or "even"
bet is accepted;
K. a prize payout
is made in chips that must be redeemed through the cashier; and
L. a player must be present to win.
Subp. 6. Conduct of paddlewheels with a paddlewheel table.
The following items pertain to the conduct of paddlewheels with a paddlewheel table.
A. Before
conducting a paddlewheel game with a paddlewheel table, the organization's
gambling manager must attend a board-authorized class on the conduct of
paddlewheels with a paddlewheel table. Thereafter a replacement gambling
manager must attend a board-authorized class on the conduct of paddlewheels
with a paddlewheel table within 60 days of the effective date of the new
gambling manager's license. If a gambling manager fails to meet
board-authorized class requirements, the organization must discontinue the
conduct of paddlewheels with a paddlewheel table until the replacement gambling
manager has attended the board-authorized class.
B. No more than two paddlewheel tables may be
at a permitted premises. If there are two paddlewheel tables at a permitted
premises, each table and its drop boxes must have a separate and unique
paddlewheel table identification number.
C. To open a paddlewheel for use, a gambling
employee or volunteer must inspect the cavity of the table for any
paddleticket, paddlewheel chip, or foreign object that may have fallen through
the slots, and must attach a paddlewheel chip tray and lock a paddlewheel drop
box to the table.
D. For the sale
of paddlewheel chips and paddletickets the organization must comply with the
following.
(1) All paddletickets must be sold
on the permitted premises immediately before a spin to be valid for that
spin.
(2) Each ticket on the
paddlecard must be sold for the same price and must be a separate and equal
chance to win with all other paddletickets sold for the spin.
(3) The player must purchase paddlewheel
chips and paddletickets from the paddlewheel operator at the paddlewheel
table.
(4) A player must purchase
paddletickets only with paddlewheel chips, except that paddletickets for the
immediate next spin may be purchased directly with cash in an amount equal to
the value of the tickets.
(5) When
a player first purchases paddlewheel chips, the operator must give the player a
card containing a unique identification number. The player must return the card
to the operator when the player stops playing.
(6) Only chips may be used that comply with
the standards in subpart
9.
E. Upon receiving currency from a player for
the purchase of paddlewheel chips or paddletickets, the operator must:
(1) spread each bill of currency face down
and flat, in sequence of denomination, in the inner table area perpendicular to
the chip tray, and momentarily move the operator's hands away from the currency
so the currency is within the camera's view;
(2) spread the paddlewheel chips or purchased
paddletickets out on the playing surface, and momentarily move the operator's
hands away from the chips or paddletickets so that the chips or paddletickets
are within the camera's view;
(3)
restack the chips and push them to the player; and
(4) place the currency in the drop box after
giving the player the chips or paddletickets.
F. The placement of bets must comply with the
following.
(1) Each player must write the
player's assigned identification number on the back of the player's
paddletickets before placing the tickets in a betting slot on the paddlewheel
table.
(2) A player must bet all of
the player's purchased paddletickets on the immediate next spin. Any purchased
but unplayed tickets are not valid, must not be used on any other spin of the
paddlewheel, and must be given back to the operator who must treat them as
losing tickets.
(3) To bet, a
player must place the purchased paddleticket in a betting slot on the
paddlewheel table. If the player forces the ticket all the way through the slot
into the cavity of the table, the paddleticket is not valid and must be treated
as a losing ticket.
(4) The
paddlewheel operator must announce "bets closed" when the paddlewheel operator
has determined that:
(a) no other player wants
to purchase a paddleticket for the immediate next spin;
(b) there is no partially sold paddleticket
card; and
(c) the players have bet
all their tickets.
After that, a player may not bet a paddleticket, change a bet of a previously placed ticket, touch any ticket, or place the player's hands on top of the paddlewheel table.
(5) The paddlewheel operator may assist a
player with a disability if the operator first verbally announces to all
players at the table that assistance is being given.
G. The paddlewheel operator must record each
spin in the following manner.
(1) The
paddlewheel operator must sequentially number each paddlewheel spin for each
day of activity beginning with "one" for the first spin of the day, progressing
until activity for the day is completed.
(2) The spin number must be written with a
nonerasable marker in a consistent manner either on:
(a) the face of the first paddleticket card
stub for which paddletickets have been sold for a particular spin; or
(b) the back of the last stub from which
tickets have been sold for a particular spin.
(3) All spin numbers must be recorded in the
same location on the stub.
(a) When the sale
of tickets for a particular spin continues into a new sealed grouping of
paddleticket cards, the sequential spin number must then be written on the face
of the first stub of the group from which tickets are continuing to be
sold.
(b) For each subsequent spin
of the same group of paddleticket cards, the spin number must be written in a
consistent manner on either the face of the first stub for which paddletickets
have been sold or on the back of the last stub from which tickets have been
sold.
(4) All tickets
sold for a spin must have the same prize payout. If more than one group of
paddletickets is sold for a spin, the master flare for each group of tickets
must be posted. At the end of the spin, the old flare must be
removed.
(5) The paddlewheel
operator must initial each paddleticket card stub with a nonerasable
marker.
(6) After each spin, the
paddlewheel operator must record with a nonerasable marker the winning number
or numbers on:
(a) the face of the
paddleticket card stub with the lowest serial number of the cards related to
that spin of the paddlewheel; or
(b) the back of the paddleticket card stub
with the highest serial number of the cards related to that spin of the
paddlewheel.
H. When redeeming a winning paddleticket and
awarding a prize, the organization must comply with the following.
(1) The paddlewheel operator must remove all
losing paddletickets from the slots on the paddlewheel table and in view of the
players tear in half and discard the torn tickets in a container that is not
easily accessible by a player.
(2)
Next, the operator must pay off the winning tickets, if any, slot by slot. To
pay off the winning tickets, the operator must:
(a) circle or record, in ink, the winning
number or set of numbers on the face or on the back of the winning
ticket;
(b) pay off the winning
ticket in chips to the player who has the card containing the unique
identification number written on the back of the ticket; and
(c) record the prize amount in ink on the
face or on the back of the winning ticket.
I. To close a paddlewheel, a paddlewheel
operator must tell the players that their paddlewheel chips must be redeemed
through the cash bank cashier. A paddlewheel operator must collect all
identification cards from the players.
Subp. 7. Use of digital video recorder (DVR) system for paddlewheels with a paddlewheel table.
The following items apply to the conduct of paddlewheels with a paddlewheel table.
A. Within 14
calendar days of the initial operation of a paddlewheel table or within 14
calendar days of switching to a DVR system, the organization must send to the
board a video recording of at least one day's activity. The board must review
the video recording to verify that the organization is complying with rule
requirements. If the board does not receive a video recording or if the board
determines the video recording does not meet rule requirements, the
organization must make corrections before resuming paddlewheel
activity.
B. An organization must
use a DVR system that meets, at a minimum, the following requirements:
(1) record at the same time the operator,
paddlewheel table rail to rail, and a picture of the wheel pointer and number
of the paddlewheel table;
(2) not
have an audio recorder;
(3) record
real date and time of activity in a location on the video that does not obscure
the view of the paddlewheel table or the wheel pointer;
(4) allow for immediate verification of the
value of chips, placement and payment of bets, the pointer, the winning number
on the paddlewheel, and drop box slot;
(5) show the identification number of the
paddlewheel table when an organization conducts more than one paddlewheel
table;
(6) record in color and be
capable of variable focus;
(7) have
sufficient clarity to distinguish the numbers on the table and the
denominations of chips and bills;
(8) record at a rate of at least 30 frames
per second; and
(9) be programmable
with a seven-day memory backup.
C. When using a DVR system, the paddlewheel
table and paddlewheel must be in plain view and not be blocked.
D. Security of the DVR system must meet the
following:
(1) the DVR must be in a locked
cabinet;
(2) the DVR and camera
must not be plugged into an outlet that can be switched off;
(3) the DVR and camera must be plugged into a
surge protector; and
(4) the DVR
monitor, if any, will not be visible to the customers or operators.
E. The organization must maintain
the DVR equipment to ensure the quality of the recording of activity at the
paddlewheel table. The organization must close the paddlewheel table if the DVR
system is not properly operating or fails to comply with this
subpart.
F. Only a gambling manager
or an authorized organization member or organization employee may start and
stop the DVR system from the time a paddlewheel table is open for the day to
the closing of the paddlewheel table or access an organization's DVR system and
recordings.
A paddlewheel table operator or cashier, lessor, lessor's immediate family, and lessor's employees are specifically excluded from the activities in this item.
The system may be preprogrammed to start and stop at set times. The system must be locked and inaccessible to the paddlewheel table operator.
G. Each week the
gambling manager or an authorized organization member or organization employee,
excluding the paddlewheel table operator or cashier, lessor, lessor's immediate
family, or lessor's employees, must review at a minimum one day's activity per
table. A log must be kept showing who conducted the review and when it was
conducted.
H. The organization must
keep the recordings of each day's paddlewheel with a paddlewheel table activity
in a safe and secure storage place for 90 days. The recordings may not be
accessible to the paddlewheel table operator.
I. The organization must submit the
recordings to the board upon request in a format approved by the board. The
recordings must be viewable frame by frame and at high speed.
Subp. 8. Operating procedures and internal controls for paddlewheels with a paddlewheel table.
The following operating procedures and internal controls apply to the conduct of paddlewheels with a paddlewheel table.
A. An organization is responsible for the
safeguarding and secure storage of paddleticket cards and paddlewheel
chips.
B. An organization must
redeem paddlewheel chips for cash at the value for which they were sold. The
chips must be redeemed only through the paddlewheel chip and cash bank cashier.
The organization must keep the cash bank used to redeem paddlewheel chips
separate from all other organization cash. Until the organization completes the
records for the time period during which the chips were redeemed, the
organization must keep redeemed chips separate and apart from the chip
bank.
C. All tips must be made only
with paddlewheel chips. A paddlewheel operator must redeem paddlewheel chips
received as tips through the paddlewheel chip and cash bank cashier and may not
exchange those chips for other chips from any chip tray.
D. An organization may not transfer or make
change of chips directly from one table to another table.
E. When paddlewheel chips are distributed to
a paddlewheel table from the chip bank, the paddlewheel chip and cash bank
cashier must prepare a fill slip. The fill slip must be at least a two-part
carbonless form and include at a minimum the following information:
(1) date and time;
(2) denomination of chips;
(3) quantity and total dollar value, by
denomination, of chips;
(4) total
dollar value of chips; and
(5) if
there is more than one paddlewheel table located at the permitted premises, the
table identification number.
The cashier must keep the original copy of the fill slip. The paddlewheel operator must deposit the duplicate copy of the fill slip in the paddlewheel table drop box.
F. When paddlewheel chips are returned from
the paddlewheel table to the chip bank, the paddlewheel operator must prepare a
credit slip which must be at least a two-part carbonless form. The same
information must be recorded on the original and duplicate credit slip as on a
fill slip. The paddlewheel operator must deposit the original copy of the
credit slip in the paddlewheel table drop box, and the cashier must keep the
duplicate copy of the credit slip.
G. After play has started, the paddlewheel
operator must keep the money plunger in the paddlewheel table drop box slot
while the drop box is attached to the table. The paddlewheel operator must
remove the money plunger when coin, currency, or forms are being inserted into
the drop box.
H. The paddlewheel
operator must immediately place all cash received for paddlewheel chips into
the drop box. The contents of the drop box may not be accessed by any person
before the drop box cash count.
I.
An organization employee or volunteer, who is not the paddlewheel operator or
paddlewheel chip and cash bank cashier, must keep and control the key to at
least one lock securing the contents of the paddlewheel drop box during the
time a paddlewheel is in play.
J.
At the end of the activity, the paddlewheel operator must remove and secure the
unopened drop box.
K. The drop box
must be opened and the cash counted by two organization employees or
volunteers, only one of which may be the paddlewheel operator or the chip and
cash bank cashier.
Subp. 9. Standards for paddlewheel chips for paddlewheels with a paddlewheel table.
The following standards apply to paddlewheel chips used with a paddlewheel table.
A. Paddlewheel
chips must not be made of plastic, wood, or paper.
B. An organization must issue paddlewheel
chips in denominations of $1, $2, $5, or $25. $1 chips must be white, $2 chips
must be yellow, $5 chips must be red, and $25 chips must be green.
C. Each chip must have permanent edge spots
that are different in color than the rest of the chip.
D. Each paddlewheel chip must be clearly and
permanently impressed, engraved, or imprinted with the organization's license
number and the dollar value of the chip.
Subp. 10. Bet and prize payout restrictions for paddlewheels with a paddlewheel table.
The following bet and prize payout restrictions apply to the conduct of paddlewheels with a paddlewheel table.
A. A player must not place a bet that exceeds
one or more of the following limits:
(1) $50
in aggregate for a spin of the paddlewheel;
(2) $10 on a single number;
(3) $25 for a line bet; and
(4) $25 on either "odd" or "even."
A bet is void if it exceeds one or more of these limits. The paddletickets used to make the excess portion of the bet must be treated as losing tickets.
B. The prize payout must be a predetermined
variable multiple of the amount wagered, must be made in paddlewheel chips, and
must not exceed the following ratios:
(1) 40
to 1 for a bet on a single number in the outer concentric circle of the
paddlewheel;
(2) 20 to 1 for a bet
on a single number in the middle concentric circle of the
paddlewheel;
(3) 10 to 1 for a bet
on a single number in the inner concentric circle of the paddlewheel;
(4) 5 to 1 for a line bet; or
(5) 2 to 1 for an "odd" or "even"
bet.
Subp. 11. Paddlewheel records and reports.
A. An organization must keep all records,
reports, and prize receipts for a paddlewheel game for 3-1/2 years following
the end of the month in which the lawful gambling occasion was conducted and
reported on the tax return.
B. An
organization must complete records, reports, and prize receipts for paddlewheel
games in ink.
C. With the exception
of completed prize receipt forms and unsold tickets and stubs, an organization
may maintain or convert and store records and reports in an electronic format.
An organization must make records and reports available in paper format to the
board, the commissioner of revenue, the commissioner of public safety, or their
agents upon request.
D. For each
paddlewheel game, an organization must keep the master flare, all redeemed and
unsold paddletickets, and all paddlecard stubs.
E. When using a paddlewheel with a table, an
organization must complete forms prescribed by the board that account for cash
banks, chips, receipts, operator sales, prize receipts, and operator percent of
hold. An organization must keep records to account for the paddletickets,
paddleticket cards, paddlewheel chips, gross receipts, actual net receipts,
actual cash profit, and cash long or short for each separate time period on
each day that a paddlewheel table is open for play.
F. For each separate time period that a
paddlewheel table is in use, an organization must keep a record of the
following information:
(1) premises permit
number;
(2) table identification
when the organization uses more than one table;
(3) dates and times that the paddlewheel was
open for play;
(4) starting and
ending cash bank amount;
(5)
starting and ending paddlewheel chip inventories by denomination and total
dollar value; and
(6) denomination
and total dollar value of paddlewheel chips taken to the table from inventory,
taken from the table to inventory, and redeemed for cash.
G. The organization must deface all unsold
paddleticket cards when closing a grouping of paddleticket cards.
H. At the end of the month, the organization
must close from play all partially played groupings of paddleticket cards and
report as unsold any unplayed paddleticket cards.
I. For each sealed grouping of 100 or fewer
sequentially numbered paddleticket cards from which paddletickets were sold
that month and closed from play, an organization must complete a monthly report
in a format prescribed by the commissioner of revenue, as required by Minnesota
Statutes, section
297E.06.
Subp. 12. Disposal of played paddlewheel tickets and records.
The following items apply to the disposal and destruction of tickets and records.
A. An
organization must keep redeemed paddlewheel tickets, unsold tickets, and master
flares for 3-1/2 years following the end of the month in which the game was
played and reported as a played game on the tax return.
B. An organization may destroy paddlewheel
records, redeemed paddletickets, unsold tickets, and master flares when the
retention period in item A expires, except as required by item C. The game must
be completely destroyed using a method such as shredding or burning.
C. An organization must keep the game and
records after the retention period in item A expires if they are notified by
the board, commissioner of revenue, commissioner of public safety, or their
agents that an audit, compliance review, or investigation is being
conducted.
Statutory Authority: MS s 14.055; 349.12; 349.151; 349.154; 349.155; 349.16; 349.162; 349.163; 349.1635; 349.165; 349.166; 349.167; 349.169; 349.17; 349.1711; 349.1721; 349.173; 349.19; 349.191; 349.211
Disclaimer: These regulations may not be the most recent version. Minnesota 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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