Current through Register Vol. 54, No. 44, November 2, 2024
(a) Slot machine licensees' systems of
internal controls must, in accordance with sections 1322 and 13A25(c) of the
act (relating to slot machine accounting controls and audits; and table game
accounting controls and audit protocols) and §
465a.2 (relating to internal
control systems and audit protocols), include organization charts depicting
segregation of functions and responsibilities and descriptions of the duties
and responsibilities for each position shown on each organization chart. Slot
machine licensees shall be permitted, except as otherwise provided in this
section, to tailor organizational structures to meet the needs or policies of a
particular management philosophy. A slot machine licensee's organization charts
must provide for:
(1) A system of personnel
and chain of command which permits management and supervisory personnel to be
held accountable for actions or omissions within their areas of
responsibility.
(2) The segregation
of incompatible functions, duties and responsibilities so that no employee is
in a position to both commit an error or perpetrate a fraud and to conceal the
error or fraud in the normal course of the employee's duties.
(3) The performance of all functions, duties
and responsibilities in accordance with sound financial practices by qualified
personnel.
(4) The areas of
responsibility which are not so extensive as to be impractical for an
individual to monitor.
(5) A chief
executive officer. For the purposes of this section, a "chief executive
officer" means the individual located at the licensed facility who is
ultimately responsible for the daily conduct of the slot machine licensee's
gaming business regardless of the form of business association of the slot
machine licensee or the particular title which that individual or any other
individual holds. A slot machine licensee's organization chart may also include
an assistant chief executive officer who is responsible for the daily conduct
of the slot machine licensee's gaming business during the chief executive
officer's absence. However, the assistant chief executive officer may not be
the department head of one of the departments required under subsection (b).
Each supervisor of a department required under subsection (b) shall report
directly to the chief executive officer or assistant chief executive officer of
the slot machine licensee regarding administrative matters and daily
operations. The slot machine licensee's organization charts must designate
which positions, in the absence of the chief executive officer and the
assistant chief executive officer, shall be designated as having responsibility
for the daily conduct of the slot machine licensee's gaming business.
(b) A slot machine licensee's
system of internal controls must also include, at a minimum, the following
departments and supervisory positions, each of which must be categorized as
mandatory and must cooperate with, yet perform independently of, other
mandatory departments and supervisory positions of the slot machine licensee.
Notwithstanding the foregoing, a department or supervisor that is not required
or authorized by this section may operate under or in conjunction with a
mandatory department or supervisor provided the organizational structure is
consistent with the standards contained within the act and subsection (a).
Mandatory departments and supervisory positions are:
(1) A surveillance department supervised by
an individual located at the licensed facility who functions, for regulatory
purposes, as the director of surveillance. The director of surveillance shall
be subject to the reporting requirements specified in subsection (c) and shall
be licensed as a key employee. The surveillance department shall be responsible
for the following:
(i) The clandestine
surveillance of the operation of, and gaming conducted at, slot machines and
table games.
(ii) The clandestine
surveillance of the operation of automated bill breaker, gaming voucher, coupon
redemption and jackpot payout machines.
(iii) The clandestine surveillance of the
operation of the main cage, Poker room cage and any satellite cage.
(iv) The video recording of activities in the
count room and the video recording of movements of cash, slot cash storage
boxes and table game drop boxes.
(v) The clandestine surveillance of areas
used for the storage of gaming chips, plaques, cards, dice, Sic Bo shakers,
Roulette balls, Pai Gow tiles and other equipment used to conduct table
games.
(vi) The detection of
cheating, theft, embezzlement and other illegal activities within the licensed
facility.
(vii) The detection of
the presence of any individual who may or is required to be excluded or ejected
from the licensed facility under section 1514 or 1515 of the act (relating to
regulation requiring exclusion or ejection of certain persons; and repeat
offenders excludable from licensed gaming facility) and Chapters 511a and 513a
(relating to persons required to be excluded; and underage gaming), or is self
excluded from the gaming floor and gaming activities at all licensed facilities
under section 1516 of the act (relating to list of persons self-excluded from
gaming activities) and Chapter 503a (relating to casino
self-exclusion).
(viii) The video
recording of those locations, individuals, activities or transactions required
under §
465a.9(e)
(relating to surveillance system; surveillance department control; surveillance
department restrictions) and of any illegal and unusual activities monitored by
the surveillance department.
(ix)
The provision of immediate notice to supervisors designated in the internal
controls, the casino compliance representatives and the Pennsylvania State
Police at the licensed facility upon detecting, and also upon commencing video
recording of, an individual who is engaging in or attempting to engage in, or
who is suspected of cheating, theft, embezzlement, a violation of this part or
other illegal activities, including an individual who is required to be
excluded or ejected from the licensed facility under section 1514 of the act,
who may or is required to be excluded or ejected from the licensed facility
under section 1514 or 1515 of the act and Chapter 511a or 513a or is
self-excluded from the gaming floor and gaming activities at all licensed
facilities under section 1516 of the act and Chapter 503a.
(x) The clandestine surveillance of any slot
computer system or equipment designated for coverage by the Board in
conjunction with the approval of a slot machine system, including a slot
monitoring system, electronic gaming table system, casino management system,
wide area progressive system, gaming voucher system and any communication
equipment with the central control computer.
(xi) The installation, maintenance and repair
of the surveillance system equipment used by the surveillance
department.
(xii) The submission of
a surveillance staffing plan as part of the slot machine licensee's internal
controls detailing the minimum staffing and the manner in which the
responsibilities of this subsection shall be met.
(2) An internal audit department supervised
by an individual located at the licensed facility who functions, for regulatory
purposes, as the director of internal audit. The director of internal audit
shall be subject to the reporting requirements specified in subsection (c) and
licensed as a key employee.
(3) An
information technology department supervised by an individual located at the
licensed facility who functions, for regulatory purposes, as the information
technology director. The information technology director shall be licensed as a
key employee and be responsible for the quality, reliability and accuracy of
all slot computer systems used by the slot machine licensee regardless of
whether data, software or systems are located within or outside the licensed
facility. The information technology director shall further be responsible for
the security and physical integrity of, and the accountability and maintenance
of, the following:
(i) Access codes and other
security controls used to insure limited access to computer software and the
system wide reliability of data.
(ii) Computer tapes, disks or other
electronic storage media containing data relevant to the slot machine
licensee's operations.
(iii)
Computer hardware, communications equipment and software used in the conduct of
the slot machine licensee's operations.
(iv) The computerized slot monitoring system
utilized by the slot machine licensee. The information technology director
shall ensure that:
(A) Slot machines,
electronic wagering terminals and fully automated electronic gaming tables
located on the gaming floor are connected electronically to the slot machine
licensee's computerized slot monitoring system and to the Commonwealth's
central control computer in accordance with section 1323 of the act (relating
to central control computer system).
(B) The security features of the computerized
slot monitoring system prohibit, at a minimum, the deletion, creation or
modification of any data unless a permanent record is created that sets forth:
(I) The original information.
(II) Modifications to the original
information.
(III) The identity of
the employee making the modification.
(IV) The identity of each employee
authorizing the modification, if applicable.
(C) Computerized jackpot payout systems
utilized by the slot machine licensee are configured to require that any
modification of $100 or more to the original amount recorded on a computerized
jackpot payout or system override is authorized by two slot operations
department employees, one of whom is in a position of greater authority than
the individual preparing the jackpot payout.
(D) Procedures and controls are in place that
define and limit interaction between both the slot operations department and
finance department and the computerized slot monitoring system including access
to system menus, the establishment of slot machine, electronic wagering
terminal and fully automated electronic gaming table profile parameters, and
the ability of each department to access, delete, create or modify information
contained in the slot monitoring system.
(4) Except as provided in paragraphs (8) and
(9), a slot operations department supervised by an individual located at the
licensed facility who functions, for regulatory purposes, as the director of
slot operations. The director of slot operations shall be licensed as a key
employee and be responsible for the operation of, and conduct of gaming at,
slot machines and fully automated electronic gaming tables within the licensed
facility.
(5) A security department
supervised by an individual located at the licensed facility who functions, for
regulatory purposes, as the director of security. The director of the security
department shall be licensed as a key employee and be responsible for the
overall security of the licensed facility including the following:
(i) The physical safety of
individuals.
(ii) The physical
safeguarding of assets.
(iii) The
protection of the property of both the patron and the slot machine licensee
from illegal activity.
(iv) The
design, implementation and enforcement of a system for the issuance of
temporary access credentials.
(v)
The recording of any unusual incidents within the licensed facility in which
the security department is involved. Each incident shall be recorded by
security department personnel in a book with bound numbered pages that cannot
be readily removed or be maintained in an electronic format which has an audit
function that prevents modification of information after the information has
been entered into the system. The log shall be stored and retained in
accordance with §
465a.6 (relating to retention,
storage and destruction of books, records and documents). The following
information shall be recorded:
(A) The
assignment number of the incident.
(B) The date and time.
(C) The nature of the incident.
(D) The individuals involved in the
incident.
(E) The security
department employees assigned to cover the incident.
(vi) The identification and removal of any
individual who is required to be excluded or ejected from the licensed facility
under section 1514 of the act, who may be excluded or ejected from the licensed
facility under section 1515 of the act or is self excluded from the gaming
floor and gaming activities at all licensed facilities under section 1516 of
the act.
(vii) The performance of
the duties and responsibilities required under the system of internal controls
submitted and approved under §
465a.2.
(viii) The provision of immediate notice to
the Pennsylvania State Police upon detecting the presence in the licensed
facility of an individual possessing a weapon in violation of § 465a.13
(relating to possession of weapons within a licensed facility).
(ix) The provision of immediate notice to
supervisors designated in the internal controls and the casino compliance
representatives and the Pennsylvania State Police at the licensed facility upon
detecting any individual who is engaging in or attempting to engage in, or who
is suspected of cheating, theft, embezzlement, a violation of this part or
other illegal activities.
(x) The
provision of immediate notice to supervisors designated in the internal
controls and the casino compliance representatives and the Pennsylvania State
Police at the licensed facility upon detecting any individual who is required
to be excluded or ejected from the licensed facility under section 1514 or 1515
of the act and Chapter 511a or 513a or is self-excluded from the gaming floor
and gaming activities at all licensed facilities under section 1516 of the act
and Chapter 503a.
(6) A
finance department supervised by an individual located at the licensed facility
who functions, for regulatory purposes, as the director of finance. The
director of finance shall be licensed as a key employee and responsible for all
finance functions including the preparation and control of records and data,
the control of stored data, the control of unused forms, the accounting for and
comparison of operational data and forms, and the control and supervision of
the inventory of gaming chips, the issuance of credit, the main cage, Poker
room cage, satellite cages and the count room. The employees responsible for
the issuance of credit shall be in a reporting line to the director of finance.
The supervisor of the cage shall, on all shifts, be permitted as a gaming
employee.
(7) Except as provided in
paragraphs (8) and (9), a certificate holder shall have a table games
department supervised by an individual located at the licensed facility who
functions, for regulatory purposes, as the director of table games. The
director of table games shall be licensed as a key employee and responsible for
all table game functions including the inventory of table game
equipment.
(8) In lieu of separate
slot and table games departments, a slot machine licensee may elect to have a
gaming department supervised by an individual located at the licensed facility
who functions, for regulatory purposes, as the director of gaming. The director
of gaming shall be licensed as a key employee and responsible for the overall
operation and conduct of gaming at slot machines and table games within the
licensed facility. A slot machine licensee may also elect to have a director of
table games and a director of slot operations who report to the director of
gaming.
(9) Unless otherwise
specified by the certificate holder, for the conduct of gaming on electronic
wagering terminals and hybrid gaming tables, the slot operations department
shall supervise the electronic wagering terminals and the table games
department shall supervise the conduct of gaming at hybrid gaming tables as
provided in paragraphs (4) and (7).
(c) The supervisors of the surveillance and
internal audit departments required under subsection (b) shall report directly
to one of the following persons or entities regarding matters of policy,
purpose, responsibility and authority, which persons or entities shall also
control the hiring, termination and salary of each supervisor:
(1) The independent audit committee of the
slot machine licensee's board of directors.
(2) The independent audit committee of the
board of directors of any holding or intermediary company of the slot machine
licensee which has authority to direct the operations of the slot machine
licensee.
(3) The senior
surveillance or internal audit executives of any holding or intermediate
company included in paragraph (2) if the most senior executive in the reporting
line reports directly to the independent audit committee of the board of
directors of the holding or intermediary company.
(4) For slot machine licensees or holding
companies that are not corporate entities, the noncorporate equivalent of any
of the persons or entities listed in paragraphs (1)-(3).
(5) An independent audit committee or other
individuals designated by the Board in the slot machine licensee's Statement of
Conditions under §
423a.6 (relating to license,
permit, registration and certification issuance and statement of
conditions).
(d) The slot
machine licensee's personnel shall be trained in all policies, procedures and
internal controls relevant to each employee's individual function. Special
instructional programs shall be developed by the slot machine licensee in
addition to any on-the-job instruction sufficient to enable all members of the
departments required under this section to be thoroughly conversant in, and
knowledgeable of, the required manner of performance of all transactions
relating to their functions.
(e)
Notwithstanding other provisions to the contrary, a slot machine licensee may
designate and assign more than one individual to serve jointly as the
supervisor of a department required under this section. Each individual
approved to serve as a joint supervisor of a mandatory department shall be
located at the licensed facility and shall be individually and jointly
accountable and responsible for the operations of that department.
(f) In the event of a vacancy in the chief
executive officer position or any mandatory department supervisory position
required under subsection (b), the following apply:
(1) The slot machine licensee shall notify
the Board within 5 days from the date of vacancy. The notice must be in writing
and indicate the following information:
(i)
The vacant position.
(ii) The date
on which the position will become or became vacant.
(iii) The date on which it is anticipated
that the vacancy will be filled on a permanent basis.
(2) The slot machine licensee shall designate
an individual to assume the duties and responsibilities of the vacant position
within 30 days after the date of vacancy. The individual may assume the duties
and responsibilities of the vacant position on a temporary basis, provided
that:
(i) The individual does not also
function as the department supervisor for any other mandatory department
required under this section.
(ii)
The individual's areas of responsibility will not be so extensive as to be
impractical for one individual to monitor.
(iii) The position shall be filled on a
permanent basis within 120 days of the original date of vacancy.
(3) Within 5 days of filling a
vacancy under paragraph (2), the slot machine licensee shall notify the Board
thereof. The notice must be in writing and indicate the following:
(i) The position.
(ii) The name of the individual
designated.
(iii) The date that the
vacancy was filled.
(iv) An
indication of whether the position has been filled on a temporary or permanent
basis.
(4) The notices
required in this subsection shall be directed to the Bureau of
Licensing.
(g) Each slot
machine licensee shall prepare and maintain a jobs compendium consistent with
the requirements of this section detailing job descriptions and lines of
authority for all personnel employed by the slot machine licensee. The jobs
compendium shall be submitted to the Board for approval as part of the slot
machine licensee's internal controls required under §
465a.2 at least 90 days prior to
the commencement of slot or table game operations. The Board will review the
jobs compendium to determine whether the job descriptions and the
organizational charts contained therein conform to the licensing, permitting
and registration requirements and chain-of-command and segregation of duties
requirements of the act and the Board's regulations as part of the Board's
review of the slot machine licensee's internal controls required under §
465a.2.
(h) A jobs compendium must
include the following sections:
(1) An
alphabetical table of contents listing the position title, job code and the
page number on which the corresponding job description may be found.
(2) An organizational chart for each
department or division, including all positions and illustrating by position
title, the direct and indirect lines of authority within the department or
division. Each page of an organizational chart must specify the following:
(i) The date the organizational chart was
approved.
(ii) The effective date
of the previously submitted organizational chart that the revised
organizational chart supersedes.
(iii) A unique title or other identifying
designation for that organizational chart.
(3) Job descriptions of each employee
position that accurately correspond to a position title listed in the
organizational charts and in the alphabetical table of contents. Each job
description must be contained on a separate page, organized by departments or
divisions, and include, at a minimum, the following:
(i) The job title and corresponding
department.
(ii) Job duties and
responsibilities.
(iii) Detailed
descriptions of experience or educational requirements.
(iv) The type of Board-issued credential
required under the act and the Board's regulations for each employee job
description.
(v) The date of
submission of each employee job description and the date of any prior job
description it supersedes.
(vi) The
access code that will be assigned to the employee job description for the
access badge required under §
465a.12 (relating to access badges
and temporary access credentials).
(i) Any proposed amendment to a previously
approved jobs compendium, including any amendment to an organizational chart,
which involves the departments listed in subsection (b) shall be submitted as
an amendment to the slot machine licensee's internal controls in accordance
with § 465a.2.
(j) For
departments that are not listed in subsection (b), unless otherwise directed by
the Board, a slot machine licensee will not be required to submit amendments to
its jobs compendium for approval. Instead, the certificate holder will be
required to notify the Bureau of Licensing by the end of the business day on
the date of implementation for newly created positions or changes to job
descriptions and tables of organizations. The notification must include
properly formatted job descriptions and organization charts for the affected
departments. After the notification has been submitted, the Bureau of Licensing
may require changes to the job descriptions and organizational charts to ensure
compliance with licensing, permitting or registration requirements.
(k) Each slot machine licensee shall maintain
on its premises a complete, updated copy of its jobs compendium, in a written
or electronic form, which shall be made available for review upon request of
the Board, the Department or the Pennsylvania State Police.
(m) If the proposed amendment to a previously
approved jobs compendium requiring submission and approval under subsection (i)
requires immediate implementation due to emergent circumstances, business
necessity, or if the scope of the proposed amendment is determined by the
Bureau of Gaming Operations to be minor, the slot machine licensee may request
expedited review of the amendment and interim approval by the Bureau of Gaming
Operations, pending a full review and approval by the Executive Director.
The provisions of this § 465a.11 amended under
4
Pa.C.S. §§
1202(b)(30),
1207,
1322, 13A 02(1)-(6), 13A25,
13A27, 13A62(a), 1516(a) and (b), 1602, 1604 and
1608.
This section cited in 58 Pa. Code §
465a.2 (relating to internal
control systems and audit protocols); and 58 Pa. Code §
465a.9 (relating to surveillance
system; surveillance department control; surveillance department
restrictions).
