South Dakota Administrative Rules
Title 20 - PUBLIC SAFETY
Article 20:18 - GAMING COMMISSION - DEADWOOD GAMBLING
Appendix A - Gaming Internal Control and Revenue Reporting Manual

REF

NARRATIVE

105.1

The following is the system of administrative and accounting controls for gaming operations instituted at ________________________. (Fill in name of licensee)

105.2

The objective of this system of internal accounting control is to provide reasonable assurance as to the safeguarding of assets and reliability of financial records.

105.3

The Accounting Department is responsible for complete analysis and reporting of all gaming revenue from the source documents through the general ledger to the required city, county, state, and federal tax returns and financial reports. Certain forms in this manual are required to be filed and retained by the accounting department. If the licensee does not have a secure area to place the forms which are to go to accounting, alternative locations can be substituted. These locations must provide access to the forms only by the owners and/or accounting personnel. The licensee must receive written approval from the executive secretary for this alternative location.

105.4

A key employee or owner is on the premises whenever wagering is being conducted, unless the licensee has received written permission from the executive secretary regarding an alternative arrangement.

105.5

An independent public certified accounting firm, licensed in the State of South Dakota will perform ____________ (audit, review, or compilations required by the executive secretary) of the books and records of the company at a prescribed time period or when so required by the executive secretary. (ARSD 20:18:22:10)

105.6

Repealed.

105.7

Gaming revenue shall only be collected and counted at times which have been previously submitted to the Executive Secretary. The times are reported on the "Gaming Revenue Collection and Count Schedule." Any unscheduled drop or count MUST be reported to the Commission office in advance. (ARSD 20:18:12.01:12)

105.8

All gaming documents shall be completed in pen. Corrections are made by drawing a single line through the error and writing in the correction. All corrections are to be initialed by the individual making the correction. Corrections to gaming documents that require more than one signature also require at least two sets of initials on changes.

105.9

Prior to each hard/soft count, the currency counter will be tested with a predetermined amount of bills to verify the accuracy of the device. The following procedures will be followed:

1. The currency counter is to be tested with a predetermined number of bills.

2. Count team member counts each denomination with currency counter and orally tells the recorder the number of bills for each denomination.

3. After orally verifying the amount for each denomination, the recorder logs the number on the bill validator summary or soft count card.

4. (Hard) count team members repeat steps 3 and 4 until all boxes have been counted for retail licensee.

5. At the conclusion of the counting for each retail license the second count team member or the recorder must recount each denomination for the entire drop, thus fulfilling the second physical count requirement. This total should compare with the amount calculated on the soft count card or bill validator summary.

105.10

When an imprest bank is used, it shall be counted before and after its use and documented on a cash inventory form to verify that the amount has not fluctuated. If a mobile imprest bank is used it shall be locked and secure at all times.

105.11

All sequentially numbered critical forms that are requisitioned from the executive secretary are documented on the prenumbered forms control log which requires date, starting and ending number, date of issuance, and signature of person issuing the form.

REF

TITLE

NARRATIVE

110.1

Owner/Operator

The Owner/Operator is _______________________ (name), and is responsible for operations of the entire property; attainment of long-term growth; delegates portions of the duties and responsibilities to appropriate management personnel; determines that all operations and activities are conducted in accordance with company policy and applicable state and federal law; has the authority to hire and terminate departmental personnel. All owner/operators must be licensed as such with the South Dakota Commission on Gaming.

110.2

Gaming Manager

The Gaming Manager is ________________________ (name), and is responsible to establish and monitor overall operating policy for the gaming operation; monitors games activity for adherence to company policy and state regulations; and has the authority to hire and terminate departmental personnel. This person must be licensed as a key employee. (SDCL 42-7B-22.1)

110.3

Controller/Bookkeeper

The Controller/Bookkeeper is ______________________ (name), and is responsible for the care and custody of company funds, securities, and records; administers and generally supervises all accounting functions of the company; analyzes financial statements and submits related reports to the state as required. This also includes any person who performs the accounting functions as stated in Sections 245, 360, 445, 535, and 645. This person must be licensed as either a key or support employee. Any person who performs accounting functions cannot participate in any gaming transactions or activities (i.e., Shift or Floor Supervisor duties, fills, jackpots, slot tech, cashier, dealer, pit personnel, recorder on the count team, etc.) as those are separate functions that shall be segregated for security reasons.

REF

DESCRIPTION

ARRATIVE

205.1

Pit Access

Access to the Blackjack table area is restricted to employees of the Pit Department and Security who are licensed by the Commission on Gaming.

205.2

Table Box Storage

Table drop box racks or cabinets for empty and full drop boxes are located in the ____________________________ (indicate location). The keys to the drop box racks or cabinets for empty and full drop boxes are retained in the __________________ (indicate key location). The issuance and receipt of these keys requires entries in a key log for signature date and time in a key log. When the keys are returned for storage in the ______________________, they are placed in _____________________. Access to the Cashier area is limited to those specified in this document.

205.3

Empty Table Box Control

Empty table drop boxes for each shift are locked in a table drop box rack or cabinet. Each rack or cabinet has a separate lock to control physical access. Access to each lock is controlled through the use of a key. The key to each empty table drop box rack is located at the _____________ (indicate location). These empty table drop boxes are transferred to the gaming tables by ___________________ (indicate personnel) prior to the start of each shift. The only individuals authorized to obtain the keys to the empty table drop box rack or cabinet are Soft Count Team Members, General Managers, and Slot Drop personnel. Access to the key requires that the individual receiving the key records time and date out, and their signature in the key control ledger which is located at the ___________________ (indicate location). When the key is returned, the cashier accepts custody and responsibility for the empty table drop box rack or cabinet key by recording key identification and time and date in and by signing the key control ledger and placing the key in _______________________ (indicate location).

205.4

Full Table Box Control

Full table drop boxes for each shift are locked in the full table drop box storage rack or cabinet. These full drop boxes are transferred from the gaming tables and placed in the table drop box storage rack or cabinet at the end of each shift. The key to the full table drop box section is located at the ___________________________ (indicate location). Access to the key requires that the individual receiving the key records time and date out and signs the key control ledger located at the _____________________ (indicate location). When the key is returned, __________________ (indicate personnel) accepts custody and responsibility for the full table drop box storage cabinet key by recording key identification and time and date in and by signing the key control ledger and placing the key in __________________ (indicate location).

205.5

Drop Box Marking

All drop boxes are: 1) marked with a number corresponding to a to a permanent number on the table; 2) marked to indicate game and shift; 3) marked in such a manner as to be clearly visible at a distance of 20 feet. (ARSD 20:18:15:36.01)

205.6

Card Supply Control

The unused cards are locked in _____________________ (indicate location). All unused cards are inspected by the Owner/Operator or Gaming Manager prior to being placed into play on the respective table. Subsequent disposition of used cards is the responsibility of the Owner/Operator. (ARSD 20:18:19:02 and 20:18:19:06)

205.7

Policies

Cross fills or even money exchanges between tables are prohibited. Fills and credits are transferred to and from the cashier only by personnel who are independent of the transaction. Access to keys and locked boxes or storage areas are limited to only those people specified in writing.

205.8

Forms Control

1. Request for Fills/Credits

All unissued requests for fills/credits are stored and maintained by the Cashier. In order to obtain a request for fills/credits, a Gaming Manager or Pit Boss must request a full book from the Cashier. Access to request for fills/credits is limited to the Gaming Manager or Pit Boss by locking the request for fills/credit in a pit podium or cabinet.

2. Fill and Credit Slips

a. All Fill and Credit Slips are prenumbered utilizing the alphabet. Only one series at a time is issued and used.

b. The Fill and Credit Slips are inserted and locked into writing machines. All slips are utilized in numerical sequence.

c. Fill and Credit Slips are requisitioned from the Executive Secretary as needed. These slips are documented on the prenumbered forms control log which require date, starting and ending number, date of issuance, and signature of person issuing the fill and credit slips. The fill and credit slips are then issued to the cage and inserted into the fill and credit dispensing machine. Slips not inserted into the fill and credit dispensing machine are stored in the Accounting Office with the Owner/Operator, Gaming Manager, Controller/Bookkeeper, or Key Employee on duty having access to the key to the stored forms. If an alternative storage location is needed, the licensee must receive written approval from the Executive Secretary.

d. When the Controller/Bookkeeper or Gaming Manager participate in the Soft Count, the Controller/Bookkeeper or Gaming Manager may not serve as the count team recorder.

e. When a Gaming Manager acts as a Runner, this individual is precluded from acting as a Pit Boss who authorizes the fill/credit.

f. All fill and credit slips are accounted for after use by the Accounting Personnel. An investigation is performed to determine the reason(s) and responsibility for the loss of any fill or credit slips. The investigation is documented in a report which is submitted to the Executive Secretary for action as appropriate.

205.9

Voids

When a fill or credit slip is voided, the Cashier clearly marks "void" across the face of the original and yellow copy, and the Cashier drops the original and yellow copy in the accounting paperwork lock box for retention and accountability.

REF

TITLE

NARRATIVE

210.1

Owner/Operator

The Owner/Operator is _________________________ (name) and is responsible for operations of the entire property; attainment of long-term growth; delegates portions of the Owner's/Operator's duties and responsibilities to appropriate management personnel; determines that all operations and activities are conducted in accordance with company policy and applicable state and federal law; and has the authority to hire and terminate departmental personnel. All owners/operators must be licensed as such with the South Dakota Commission on Gaming.

210.2

Gaming Manager

The Gaming Manager (key employee) is _____________________ and is responsible to establish and monitor overall operating policy for the Gaming Operator; monitors games activity for adherence to company policy and state regulations; and has the authority to hire and terminate departmental personnel. This person must be licensed as a key employee (SDCL 42-7B-22.1).

210.3

Pit Boss

The Pit Boss's responsibility is to issue cards and direct and supervise personnel where required and observe table action; instruct personnel on table assignments; change charts, review irregularities; arbitrate customer disputes arising from table play; maintain proper loads on tables with fills and credits; oversee or count table inventory at the end and beginning of each shift; view drop box removal at established times; and submit all reports as required. A list of authorized Pit Bosses is filed with the Executive Secretary. (ARSD 20:18:08:02.01)

210.4

Blackjack Dealer

The Black Jack Dealers' responsibility is to handle buy-ins, make payoffs, and deal cards. A list of authorized Blackjack Dealers is filed with the Executive Secretary. (ARSD 20:18:08:02.01)

210.5

Runners

Runners are responsible for the transfer of fill and credit documents and chips to and from the Cashier. A list of authorized runners is filed with the Executive Secretary. (ARSD 20:18:08:02.01)

REF

NARRATIVE

220.1

The following procedures are performed when a request for fill is needed in the pit: (ARSD 20:18:15:32)

1. A Pit Boss determines that a table needs a fill, obtains a "request for fill/credit" slip, and completes the following information: Date, time, shift, game, table number, denomination, amount of chips and total. (Unissued 2-part "request for fill/credit" books are maintained by the Cashier and are only issued at the request of the pit.)

2. The Pit Boss calls a Runner, they both sign the original "request for fill/credit," and places the original (white) on the table.

3. The Runner transports duplicate (yellow) "request for fill/credit" to Cashier area and gives to Cashier.

4. The Cashier reviews "request for fill/credit" for proper authorization and initials form as performing this review.

5. The Cashier calls the Gaming Manager on large amounts informing them of the table number and amount to fill.

6. The Cashier prepares "fill/credit" slip and counts chips using the duplicate (yellow) "request for fill/credit" as a reference and maintains duplicate (yellow) "request for fill/credit".

7. The "fill/credit" slip utilized is a two-part form pre-numbered as supplied by the Commission on Gaming and contains the same number on all parts. The forms are used in a continuous numerical series and are printed in a form utilizing the alphabet and only in one series at a time. The Cashier simultaneously prepares two parts indicating the following information: date, shift, game, table number, denomination, amount of chips, and total.

8. The Cashier signs both copies of the "fill/credit" slip, indicating that the chips and fill slips match the information recorded on duplicate (yellow) "request for fill/credit."

9. The Cashier gives the chips to the Runner, who verifies the chips and compares to "fill/credit" slip and "request for fill/credit" to insure they agree and signs the "fill/credit" slips in the presence of Cashier.

10. The Cashier dispenses original (white) and second part (yellow) of the "fill/credit" slip from the dispensing machine. The cashier maintains possession of the second part (yellow copy) of both the "request for fill/credit" and "fill/credit" slips.

11. The Runner transports chips and the original (white) "fill/credit" slip to pit and gives to Pit Boss.

12. The Pit Boss verifies chips and compares to "fill/credit" slip. The Pit Boss accompanied by the Runner transports those items to the table as designated on "fill/credit" slip and places items on the table next to the Dealer employed at the table.

13. The Pit Boss signs "fill/credit" slip.

14. The Dealer breaks chips down and counts them in full public view prior to placing in table rack and compares amounts to those listed on the "request for fill/credit" and "fill/credit slips.

15. The Dealer signs "fill/credit" slip.

16. The Dealer places chips in table rack. Deposits the original (white) "fill/credit" slip and original (white) "request for fill/credit" in the table drop box.

17. The Cashier compares and staples second part (yellow) "request for fill/credit" to second part (yellow) of "fill/credit" slip and files until the end of the shift. At the end of the shift, the Cashier totals the fills, credits, and enters totals on the daily cash summary report.

REF

NARRATIVE

225.1

The following procedures are performed when a credit is needed to the pit: (ARSD 20:18:15:33)

1. The Pit Boss determines that a table needs a credit, obtains a 2-part "request for fill/credit" form and completes the following information: Date, time, shift, game, table number, denomination, amount of chips, and total. (Unissued 2-part "request for fill/credit" forms are maintained by the Cashier and are only issued at the request of the pit).

2. The Pit Boss signs the "request for fill/credit" and calls a Runner who takes the slips to the table.

3. The Dealer counts out the requested credit in full public view and compares amounts to the "request for fill/credit", then signs the slips.

4. The Runner verifies the chips and/or coins to be transported and then signs the slips. The Runner then takes the duplicate "request for fill/credit" and the funds to the Cashier. The original "request for fill/credit" remains on the table as evidence of the funds being transported.

5. The Cashier counts and compares the chips received and signs the copy (yellow) of the "request for fill/credit," indicating agreement with the amount stated, this copy is retained in the cage.

6. The Cashier then prepares a two part "fill/credit" slip with the following information: specifying credit slip, date, time, shift, game, table number, denomination, amount of chips, and total.

7. The Cashier signs the "fill/credit" slips, indicating that the chips received and the credit slips match the information recorded on the duplicate (yellow copy) of the "request for fill/credit." The Runner also signs the "fill/credit" slips at this time.

8. The Cashier dispenses original (white) and second part (yellow) of the "fill/credit" slip from the dispensing machine. The second part (yellow) is retained with the Cashier's shift paperwork.

9. The Cashier gives the original (white) copy of the "fill/credit" slip to the Runner who transports it to the pit and gives to Pit Boss.

10. The Pit Boss and Dealer both verify that the amount on the original (white) slips agree. They then sign the original (white) copy of the "fill/credit" slip.

11. The Dealer then deposits the original (white) slips in the table drop box.

REF

NARRATIVE

230.1

1. The Pit Boss records time and date out, reason for obtaining key, and signs pit access key log at Cashier area and obtains key for the empty drop box rack or cabinet from the Cashier.

2. The Cashier initials the pit access key log as issuer upon release of empty table drop box rack or cabinet key.

3. The Pit Boss summons a Runner to acquire empty drop boxes, gives the Runner the key to the empty table drop box rack or cabinet.

4. The Runner and Pit Boss enter the area where the empty drop box racks or cabinets are located.

5. The Runner unlocks empty drop box rack or cabinet; removes empty drop boxes for coming-on shift from empty drop box rack or cabinet; locks empty drop box rack or cabinet.

6. Pit Boss and Runner leaves storage area.

7. Runner returns the key to the empty drop box rack or cabinet to the Pit Boss.

8. The Pit Boss returns the empty drop box rack or cabinet key to the Cashier.

9. The Cashier records time and date in, and initials the pit access key log as receiver.

10. The Pit Boss records time and date, reason for acquiring drop box release key and signs pit access key log for drop box release key.

11. The Cashier initials the pit access key log as issuer upon release of the drop box release key.

12. The Runner transports empty drop boxes to the pit area, placing each box next to the appropriate table; advises Pit Boss (going-off shift) when empty boxes are in place.

13. A. If the table is being shut down the off-going Pit Boss counts each table's inventory; enters on the "Opener/Closer" and signs. The slips are then separated and the "closer" (white) is dropped in the drop box. The "opener" (yellow copy) is placed in the locked chip tray until the table is opened up again.

B. If this is a shift change the off-going Pit Boss counts each table's inventory; enters on the "Opener/Closer" and signs. The on-coming Pit Boss, in the presence of the off-going Pit Boss, counts each table's inventory comparing it to the entries on the "Opener/Closer"; reconciles any differences immediately; signs, places closer (white) in each table's drop box prior to its removal from the table; temporarily retains the "Opener" (yellow copy).

14. The off-going Pit Boss and Runner, after "Closers" (white copy) are placed in drop boxes, removes drop boxes for each table by unlocking with drop box table release key and immediately replaces each with an empty drop box for the next shift. Both verifies replacement drop box is securely locked into place.

15. The on-coming Pit Boss places "Opener" (yellow copy) in table's empty drop box for all tables which are open. For tables which are not open the "Opener" (yellow copy) is locked in the chip tray until the table is opened, at which time the "Opener" (yellow copy) is dropped in the empty drop box.

16. The Pit Boss returns the drop box release key to the Cashier.

17. The Cashier records time and date in, and signs the pit access key log as receiver.

18. The Pit Boss records time and date out, reason for obtaining key, and signs the pit access key log at the Cashier area to obtain key for the full table box rack or cabinet.

19. The Cashier initials the pit access key log upon release of full table box rack or cabinet.

20. The Runner and Pit Boss transports drop boxes taken from the table(s) directly to the storage area.

21. The Runner opens full drop box storage rack or cabinet.

22. The Runner places drop boxes taken from the table(s) in the drop box storage rack or cabinet.

23. The Runner locks full drop box storage rack or cabinet.

24. The Pit Boss and Runner leaves the storage area.

25. The Pit Boss returns the full drop box storage rack or cabinet key to the Cashier.

26. The Cashier records time and date in, and signs the pit access key log.

27. The persons authorized to remove the drop boxes from each are precluded from having access to the drop box contents keys during the transfer of the boxes.

REF

NARRATIVE

235.1

Soft Count room personnel start the count at a time designated by the Controller/Bookkeeper and reported to the Executive Secretary by using the form provided by the commission. (ARSD 20:18:12.01:12)

235.2

There will be no extraneous items, such as purses, magazines, newspapers, etc., in the count room.

235.3

The Soft Count is performed by a minimum of two persons. (ARSD 20:18:15:36) A licensee must notify the executive secretary of persons authorized to participate in the count. (ARSD 20:18:12.01:12)

235.4

Access to stored drop boxes, full or empty, is restricted to authorized Members of the drop and Count Teams.

235.5

Access to the count room during the count is restricted to Members of the drop and Count Teams, excluding observers, supervisors for resolution of problems, and authorized maintenance people.

235.6

The Count Team Leader and Count Team are under the direct control of the Controller/Bookkeeper and are independent with respect to the pit department. Count Team Members are rotated on a routine basis as feasible; the same two individuals are not on the Count Team more than four consecutive counts.

235.7

All moneys are removed from the count room at the end of the count and transferred to the custody of the Cashier.

235.8

Master games sheets are written in ink. Any error is lined out and correction written above. Two Count Team Members will initial all corrections.

235.9

Additionally, if the grand total is changed on the master games it must be approved and initialed by the Cashier who accepts the funds.

235.10

The following details the Soft Count procedures:

1. The Count Team Leader obtains any/all documentation required to perform count.

2. The Count Team Leader obtains the following keys just prior to entering the secured count room:

a. Keys to drop box storage racks or cabinets.

b. Drop box release key.

c. Drop box contents key.

3. The Count Team Leader signs pit access key log and obtains keys to enter count room from Cashier.

Keys to open count room are under the control of the Cashier. The pit access key log is maintained with the key which indicates date and time issued, date and time returned, signature of person authorized to obtain key and type of key and reason for obtaining key.

4. The Count Team enters count room and shuts and locks the door to the count room. Count Team consists of a Count Team Leader and one or more counters.

5. The Count Team Members unlock the storage racks or cabinets in the count room and remove boxes with all Count Team Members present and begin to count.

6. The Count Team member (opener) obtains one locked drop box from rack or cabinet and unlocks box. Keys remain on table and in full view when not in use.

7. The Count Team member (opener) opens the drop box in view of the other team member(s) and empties and counts the contents on count table.

8. The Count Team member (opener) shows empty drop box to camera and Count Team Leader. Count Team Leader acknowledges verbally that box is empty.

9. The Count Team member (opener) ensures that the drop slot is open and relocks the drop box placing both keys on the table and then places box back into storage rack or cabinet.

10. The Count Team Leader and Count Team member sort "fill/credit" slips, "request for fill/credit" slips, "opener/closer" slips, coupons, and any other items from moneys in drop box.

11. Original (white) "request for fill/credit" slips and original (white) "fill/credit" slips are matched or otherwise reconciled by the Count Team to verify that the dollar amounts for the shift are identical.

12. Fills and credits are recorded on the Master Games Sheet and examined for correctness.

13. The opening/closing table inventory forms are examined and recorded on the master games sheet.

14. The total face value of coupons used must be recorded on the credit "in" portion of the master game sheet. Fifty percent of the total face value is recorded on the "out" column on the master game sheet. (ARSD 20:18:20.02:03 or 20:18:22:23)

15. Fill slips, credit slips, and all other forms, other than cash, are given to Count Team recorder for filing. Cash is stacked in the center of the count table prior to sorting. No sorting until all money is stacked in the center of the table.

16. All currency is then sorted by denomination by one count member, and the amounts by denomination are recorded on the count card by the recorder. The total count per count card is calculated and compared to a second total physical count performed by a second Count Team member. If the amounts agree, the total count of currency is recorded as the drop amount for that particular table on the master games sheet.

(Steps 6-16 are repeated for each drop box which is to be counted during each soft count process.)

17. At the end of the count for each shift, moneys counted for that shift are agreed by the verifier and the Count Team Leader.

18. At the completion of the count for each shift, all Count Team Members sign the Master Games Sheets attesting to the accuracy of the count.

19. Two Count Team Members relock storage racks or cabinets containing empty drop boxes. At the end of count, the Count Team Leader returns keys to the Cashier.

20. The Count Team delivers moneys counted to Cashier and team member observes Cashier count drop.

21. The Cashier signs, in ink, the master games sheets to attest to the accuracy of the moneys delivered and received, and RETURNS the Master Games Sheet to Team Leader.

22. The Count Team Leader returns count room key to Cashier and signs pit key access log.

23. All documents from drop boxes and all documents generated in the count (master game sheets, fill, credits, and all forms, etc.) are transmitted directly to accounting. IN NO CASE will these documents be accessible to Cashier personnel.

REF

NARRATIVE

240.1

All sensitive keys relating to the Pit Department are controlled through the pit access key log which indicate the following:

1. Date of issuance

2. Time of issuance

3. Signature of individual receiving key

4. Key number

5. Reason for removal of key

6. Initials of individual issuing key

7. Date of return

8. Time of return

9. Initials of individual accepting return of key

10. Comments

Restricted access is achieved by maintaining a list of those persons authorized to obtain each key with the pit access key log.

240.2

The following keys are maintained in a locked drawer or cabinet in the indicated location:

KEY

LOCATION

1. Count room

Cashier

2. Racks or cabinet for full drop boxes

Cashier

3. Racks or cabinet for empty drop boxes

Cashier

4. Drop box table release key

Cashier

5. Drop box content key

Cashier

6. Table tray cover key

Pit

REF

NARRATIVE

245.1

At the end of each shift all reports and supporting forms are forwarded to accounting.

245.2

Accounting personnel then perform the following:

1. Recalculates win/loss by table then total for each shift; compare to Master Games Sheet; examine Master Games Sheet for proper signatures.

2. Matches the original (white) with the copy (yellow) of fill/credit slips, accounts for numerical sequence from shift-to-shift; traces amounts and serial numbers to entries on master games sheet; examines fill/credit slips for signature as appropriate.

3. Arranges fill/credit slips in numerical sequence; files fill/credit slips.

4. Files Opener/Closer; request for fill/credit; soft count card; and master games sheet.

5. On a timely and periodic basis, prepares a Master Table Games Summary with information from the master games sheet and reviews data input for reasonableness.

6. Immediately investigates to determine reason for out-of-balance condition.

7. Posts pit data to income and sales journal; posts totals to general ledger at month-end; files Master Table Games Summary.

245.3

The Controller/Bookkeeper investigates any missing Fill/Credit Slips. The Controller/Bookkeeper then produces a report explaining the cause of loss and responsibility.

245.4

The Owner/Operator or the Gaming Manager, in conjunction with the appropriate personnel, investigate any large or unusual fluctuations in the Master Games Sheet.

245.5

Key features of the reports generated are the reporting of the drop and win amounts by table for each game. Such statistics are generated by shift, by day, cumulative month-to-date, cumulative quarter-to-date, and cumulative year-to-date. (ARSD 20:18:22:04)

REF

NARRATIVE

250.1

Statistical game records are maintained for each game reflecting the drop and win by table. These statistics are maintained by shift, by day, cumulative month-to-date, cumulative quarter-to-date and cumulative year-to-date.

250.2

This information is prepared by accounting and reviewed by management on at least a monthly basis.

250.3

Repealed.

250.4

Repealed.

REF

NARRATIVE

260.1

The following is a list of state authorized and provided forms:

SDCG FORM

DESCRIPTION

SDCGF-1

Request for Fill/Credit Slip

SDCGF-2

Fill/Credit Slip

SDCGF-3

Opener/Closer Table Inventory Form

SDCGF-4

Soft Count Card

SDCGF-5

Master Games Sheet

SDCGF-6

Pit Access Key Log

SDCGF-7

Pre-Numbered Forms Control Log

260.2

Samples of each are provided on the following pages.

REF

DESCRIPTION

NARRATIVE

305.1

Table Banks

All card table banks are maintained on an imprest basis. The card table banks are used for the purpose of making change or handling player buy-ins and all table bank moneys are maintained in the table chip tray.

305.2

Policy

A Poker Dealer may not wager in a game the Poker Dealer is dealing. Retail licensees and employees shall be permitted to act as a shill in the establishment where employed if supervision is otherwise provided. (ARSD 20:18:12.01:01)

305.3

Rake-Off

The Pit Boss monitors and supervises the poker activity to insure compliance with company policies. One of these employees will be present at all times the card game is operating. The maximum rake-off percentage, buy-in or other fee charged, the number of raises allowed, the monetary limit of each raise and the amount of ante are posted and clearly legible at the table(s).

305.4

Tips

Tips received by a Poker Dealer are displayed in an obvious manner and are tapped against the table in order to call attention to the Pit Boss. The tip is then placed in the Poker Dealer's shirt pocket.

305.5

Card Supply

The unused cards are locked in ____________________________ Control (indicate location). All unused cards are inspected by the Owner/Operator or Gaming Manager prior to being placed into play on the respective table. Subsequent disposition of used cards is the responsibility of the Owner/Operator. (ARSD 20:18:19:02 and 20:18:19:06)f

REF

DESCRIPTION

NARRATIVE

310.1

Owner/ Operator

The Owner/Operator is _______________________ (name) and is responsible for operations of the entire property; attainment of long-term growth, delegates portions of the Owner's/Operator's duties and responsibilities to appropriate management personnel; determine that all operations and activities are conducted in accordance with company policy and applicable state and federal law; has the authority to hire and terminate departmental personnel. All owner/operators must be licensed as such with the South Dakota Commission on Gaming.

310.2

Gaming Manager

The Gaming Manager is _____________________________and is responsible to establish and monitor overall operating policy for the Gaming Operator; monitors games activity for adherence to company policy and state regulations; and has the authority to hire and terminate departmental personnel. This person must be licensed as a key employee. (SDCL 42-7B-22.1)

310.3

Pit Boss

A list of authorized Pit Bosses is filed with the Executive Secretary. The Pit Boss's responsibility is to issue cards and direct and supervise personnel where required and observe table action, instruct personnel on table assignments; change charts, review irregularities; arbitrate customer disputes arising from table play; maintain proper loads on tables with fills and credits; oversee or count table inventory at end and beginning of shift; view drop box removal at established times; and submit all reports as required.

310.4

Poker Dealer

A Poker Dealer handles buy-ins; collects rakes-off, buy-ins, or other fees; deals cards and verifies transfers from Cashier; makes even money exchanges between table banks and Cashier.

310.5

Poker Shill

A Poker Shill promotes poker play in card room in accordance with company policy and South Dakota Commission on Gaming Regulations and is responsible for the money extended to them at the beginning of their shift.

REF

NARRATIVE

320.1

Each card table has one table drop box with the drop slot located at least two inches to the right of and even with the top right corner of the table tray, with a cover over the drop slot.

320.2

The on-coming Poker Dealer counts down the imprest balance of the table chip tray taking responsibility for the game. This procedure is observed by the Pit Boss.

320.3

The Poker Dealer deals cards in accordance with company policy and rakes off a portion of the sums wagered for the hand in an obvious manner after each round of betting and places on the cover of the drop slot. Rake-offs do not exceed 10% of the sums wagered for a hand.

320.4

The Poker Dealer immediately releases drop slot cover at the conclusion of the hand and the moneys fall directly into the card table drop box.

320.5

Gross Revenue Computation. For each poker game, gross revenue equals all money received by the licensee as compensation for conducting the game. A licensee may not include either shill win or loss in gross revenue computations. (ARSD 20:18:22:12)

REF

NARRATIVE

325.1

Sales and exchanges of chips/cash are only made prior to beginning of the hand or after the winner is declared.

325.2

The following procedures are performed when a patron requests to buy-in to a game:

1. A player requests to make buy-in and gives the chips and/or cash to the Poker Dealer.

2. A Poker Dealer exchanges cash for chips from table tray, places cash in table tray.

3. The Poker Dealer then gives the chips to the player.

REF

NARRATIVE

330.1

When the card table banks need to be replenished with chips, an exchange for cash/ chips is made by using lammers. (ARSD 20:18:16:46.01)

1. The dealer advises the Pit Boss that chips are needed and must ask for a specific amount of chips.

2. The supervisor obtains the necessary combination of lammers and gives to the dealer who places them on a conspicuous place on the table.

3. The dealer removes the necessary currency from the imprest bank and gives to the Pit Boss.

4. The Pit Boss takes this currency to the cashier cage and purchases the appropriate amount of chips and transports these chips to the dealer.

5. The dealer verifies the amount of chips is the amount that was requested.

6. Upon verification the pit boss must then retrieve the lammers from the table.

7. The Pit Boss must store the lammers in a secured place accessible only by persons who supervise the dealers.

REF

NARRATIVE

335.1

Poker Shills are identified upon a player's request. A sign clearly legible in the poker room states, "South Dakota gaming regulations allow the use of shills. Shills shall be identified by management upon request." A list of all Poker Shills is maintained by the Cashier.

335.2

Poker Shills can only wager with chips or coin. All advances to and winnings of a Poker Shill are only utilized for wagering in card games or turned in to the Cashier at the conclusion of play.

335.3

No more than a combination of three shills may play in a card game.

335.4

The procedures used to issue and turn-in shill moneys are as follows:

1. Each initial advance made by the Cashier to a Poker Shill is evidenced by a shill check-out form which indicates amount, date, shift, shill's name, signature, signature of the Pit Boss and signature of the Cashier evidencing approval.

2. The Poker Shill turns-in to the Cashier the entire amount of chips and coins in their possession from the winnings or losses and signs check-out form.

3. The Cashier counts down the amount turned in by the shill, makes entry on shill check-out form, initials entry and places turn-in to cashier bank; totals shill checkout form and enters the amount on the Cashier's record of shill win/losses.

Any Poker Shill winnings are subtracted from shill losses and winnings over the amount of losses are turned into the Cashier at the end of the shift.

4. The Cashier maintains shill check-out forms until end of shift.

5. The amount of shill losses or wins are accounted for through the general ledger via the Cashier's daily summary and are not used in the determination of poker revenue for South Dakota Gaming Tax purposes. Large or unusual shill losses or winnings are reported to the Owner/Operator or Gaming Manager, who should investigate.

REF

NARRATIVE

340.1

The Poker Dealer counts down table chip tray on open games and agrees to imprest balance as verified by Pit Boss (on-coming and off-going). Records the amount on the Opener/Closer Table Inventory Form and signs.

340.2

The Pit Boss both on-coming and off-going count down unused table banks on closed games to ensure that the imprest balance agrees to a copy of "Opener/Closer" Table Inventory Form prepared upon close of table game.

340.3

The original (white) "Opener/Closer" Table Inventory Form upon signature of off-going and on-going pit boss is placed in table drop box. The second copy (yellow) is placed in table drop box after table drop has been replaced with empty drop box.

340.4

Card table banks, when the tables are not in use, are locked or returned to the Cashier. The Pit Boss is issued a key to the poker table tray locks. A log is maintained on the keys for the table tray cover by the Cashier.

REF

NARRATIVE

345.1

The procedures for the collection of Poker drop boxes and the count of the contents

350.1

thereof comply with the internal control standards applicable to the pit drop boxes as discussed at Blackjack, Sections 230 and 235.

REF

NARRATIVE

355.1

The procedures for key control are part of the internal control procedures applicable to key controls for Blackjack. See Black Jack, Section 240.

REF

NARRATIVE

360.1

At the end of each shift all reports and supporting forms are forwarded to accounting.

360.2

Accounting personnel then perform the following:

1. Verifies win by table for each shift and examines Master Games Sheet for proper signatures.

2. Files Opener/Closer; soft count card and Master Games Sheet.

3. On a timely and periodic basis, prepares a Master Table Games Summary with information from the master games sheet and reviews data input for reasonableness.

4. Immediately investigates to determine reason for out-of-balance condition.

5. Posts pit data to income and sale journal; posts totals to general ledger at monthend; files Master Table Games Summary.

360.3

The Owner/Operator or the Gaming Manager, in conjunction with the appropriate personnel investigate any large or unusual fluctuations in the Master Games Summary Report.

360.4

Key features of the reports generated are the reporting of the drop (win) amounts by table for each game. Such statistics are generated by shift, by day, cumulative month-to-date, cumulative quarter-to-date, and cumulative year-to-date.

370.1

The following is a list of state authorized and provided forms:

SDCG FORM #

DESCRIPTION

SDCGF - 10

Poker Shill Check Out form

SDCGF - 3

Opener/Closer Table Inventory Form

370.2

Samples of each are provided on the following pages

REF

DESCRIPTION

NARRATIVE

405.0

Slot Machine Access

Upon all access to machine, the machine access log is to be completed and returned to the inside of the machine upon securing the door. A coin from the hopper must be retained before locking the door. This coin is used to play off the door open light on top of the machine. If a winning combination of more than five coins is hit when playing off the door open light, place the coins paid out into the hopper. Record the number of coins paid out of the slot machine on the slot machine access card (SDCGF12) inside the machine.

405.1

Drop Cabinet Access

Access to the Slot Drop Cabinets is controlled by a key maintained by the Cashier. The key is controlled by the use of a key control log. The slot drop cabinet key is only removed from the Cashier by the drop team leader prior to the transfer of the slot drop. The Drop Team Leader records time and date out and signs the Slot Access Key log when checking the key out. This key is immediately returned to the Cashier after the slot drop is completed. The Cashier records key identification and date and time in and signs the Slot Access Key log when the key is returned.

405.2

Theoretical Hold

The theoretical hold for each machine is maintained by the Controller. On a monthly basis, a report is generated which shows the deviation from theoretical hold for each machine. This report is reviewed by the Owner/Operator/Controller/Accountant and/or the Gaming Manager. Accounting investigates any unusual statistical fluctuations. Unusual statistical fluctuations are considered +10% or -10% from the hold percentage for the previous period. All documentation must be maintained for at least five years. (ARSD 20:18:17:33)

405.3

Foreign Tokens

Foreign tokens in the slot machine drop buckets are sorted and segregated from regular house tokens and negotiable currency during the hard count. It is a violation of federal treasury laws to utilize any tokens other than house tokens for reuse.

405.4

Counting Machines

The coin counting machine is tested by two Hard Count Team Members prior to the count of any denomination. The amount of coins tested and signatures of Count Team Members is documented on the slot drop-summary report.

405.5

Policies

A general policy is followed that access to keys and locked cabinets or counting areas is limited to only those people specified in writing.

405.6

Forms Control

Jackpot Payout/Fill Slip

1. All Payout/Fill Slips are prenumbered utilizing the alphabet; only one series at a time is issued and used.

2. The Payout/Fill Slips are inserted into dispensing machines. All slips are utilized in numerical sequence.

3. Payout/Fill Slips are requisitioned from the Executive Secretary as needed. These slips are documented on the prenumbered forms control log which requires date, starting and ending number, date of issuance, and signature of person issuing the jackpot payout/fill slip. These slips are then issued to the cage and inserted into the payout/fill dispensing machine. The slips not inserted into the payout/fill dispensing machine are stored in the Accounting Office with the Owner/Operator, Gaming Manager, Controller/Bookkeeper, or Key Employee on duty having access to the key to the stored forms. If an alternative storage location is desired, the licensee must receive written approval from the Executive Secretary.

4. When the Controller/Bookkeeper or Gaming Manager participates in the Hard Count, the Controller/Bookkeeper or Gaming Manager is precluded from access to the locked box copies of Jackpot Payout/Fill Slips until after the Hard Count is complete and the Slot Summary Report is sent to the Accounting Department. This person may not act as recorder.

5. All Jackpot Payout/Fill slips are accounted for after use by the Accounting Personnel. An investigation is performed to determine the reason and responsibility for the loss of any Jackpot Payout/Fill slips. The investigation is documented in a report which is submitted to the Executive Secretary for action as appropriate.

405.7

Voids

When a Jackpot Payout/Fill slip is voided, the Cashier clearly marks "void" across the face of the original and two copies, and the Cashier drops the original and two copies in the accounting paperwork lock box for retention and accountability.

405.8

Removal of Machines From Floor

When it is necessary to remove a slot machine from the floor or transfer a machine from one retail location to another, the following procedures must be followed before the removal of the machine:

1. An employee not involved in the removal of the machine reads both the hard and soft meters as required. These meter readings are immediately transferred to accounting.

2. The amounts in the drop bucket and bill acceptor box are transferred to the count room where a count is preformed. (See section 435).

3. A hopper adjustment is performed on the hopper contents. (See section 437).

4. Both the hopper load and the amount dropped are transferred and accepted by the cashier.

5. Upon completion of the meter readings, drop process, and counting of the hopper, the machine may be removed from the floor.

Before the removed machine is replaced by another approved gaming device, the commission must be notified and allowed to inspect the device. A gaming device stamp must be placed on the replacement device.

If the removal of a machine is temporary and only for the placement of a tournament machine per § 20:18:14.01, standards two through five as described above do not apply to the removal of the machine. The machine being removed shall be secured off the gaming floor away from the gaming public to a location approved by the commission staff. All other standards of section 405 shall be followed.

405.9

Hopper Adjustments

The initial hopper load is not a fill and does not affect gross revenue computations. (ARSD 20:18:22:12) When making the initial fill write INITIAL FILL on the slip, along with the other required information. The difference between the initial hopper load and the total amount in the hopper at the time of the adjustment must be included as either an addition or subtraction from the gross revenue computation for the month the adjustment was made. Hopper adjustments must be made:

1. at least monthly for each machine;

2. when the denomination is changed for a machine;

3. when moving a machine from one establishment to another location; and

4. when there is a change in ownership or when a business closes.

405.10

Machine Conversions

Written approval must be received from the South Dakota Commission on Gaming prior to a program change. The following information must be included in all requests for approval:

1. location of machine

2. SDCG stamp number

3. serial number

4. the program ID number which is going to be used.

If the conversion is a denomination change or change of location, the licensee must notify the Executive Secretary in writing prior to the change but does not need written approval to change the machine.

405.11

Machine Access

Upon all access into the locked portion of the slot machine, the machine access log must be completed and returned to the inside of the machine upon securing the door. These cards must be retained for not less than five years. (ARSD 20:18:22:08)

405.12

Dual Lock Box

A secured dual lock box which can be accessed by two separate keys, one which is held by the key licensee on duty and one which is held by the cashier. This lock box is used to hold all gaming-related sensitive keys as defined in sections 440.2 and 240.2 that would normally be in the cashier's cage. A key control log must be completed whenever access to this box is gained. In no case may this box be accessed by one person independently.

405.13

Paperwork Lock Box

Each cashier cage must have a secured lock box which may be used to deposit paperwork. The key for this box will be possessed by the operator's accounting department. Only a member of the accounting department will have access to contents of this box or any accounting paperwork lockbox.

The slot supervisor shall take the white copy of the jackpot payout/fill slip to accounting. As an alternative, a secured accounting paperwork lock box can be set up outside the cashier cage where the slot supervisor may immediately drop the jackpot pay-out/fill slips.

If a licensee uses electronic generated jackpot payout/fill slips, the cashier may drop the white copy of the jackpot payout/fill slip into the accounting paperwork lock box because the third copy is secured inside the computer.

REF

TITLE

NARRATIVE

410.1

Owner/ Operator

The Owner/Operator is _______________________ (name) and is responsible for operations of the entire property; attainment of long-term growth, delegates portions of the Owner's/Operator's duties and responsibilities to appropriate management personnel; determines that all operations and activities are conducted in accordance with company policy and applicable state and federal law; has the authority to hire and terminate departmental personnel. All owner/operators must be licensed as such with the South Dakota Commission on Gaming.

410.2

Gaming Manager

The Gaming Manager is ____________________________and is responsible to establish and monitor overall operating policy for the Gaming Operator; monitors games activity for adherence to company policy and state regulations; and has the authority to hire and terminate departmental personnel. This person must be licensed as a key employee. (SDCL 42-7B-22.1)

410.3

Slot Supervisor

The Slot Shift Supervisor oversees the day-to-day shift personnel.

This individual can verify and approve jackpots and fills.

410.4

Change Person

The Change Person supplies coin to customers and maintains change belt fund at imprest amounts. The change person witnesses jackpot payouts and fills.

410.5

Slot Mechanic

The Slot Mechanic is responsible for maintaining and repairing slot machines. This individual has no authority for jackpot payouts and fills.

410.6

Hard Count Team Leader

The Hard Count Team Leader oversees the hard count. This individual participates and verifies the drop and is responsible for the other Hard Count Team Members and hard count equipment. The Hard Count Leader reports directly to the controller/bookkeeper.

410.7

Hard Count Team Members

The Hard Count Team Members count and wrap the drop.

REF

NARRATIVE

420.1

When a jackpot requires a manual payout or there is a handpay the following occurs:

1. Customer notifies change person. If the jackpot amount is for an amount of $50,000 or greater, the commission office must be notified prior to awarding the jackpot. A copy of this "Jackpot Payout/Fill" slip must be given to the commission agent verifying the jackpot.

2. The Slot Supervisor visually verifies jackpot lights are lit, symbols appear in proper sequence and that the machine door is locked.

3. The Slot Supervisor witnesses jackpot or handpay and requests amount from Cashier.

4. The Cashier completes "Jackpot Payout/Fill" slip including:

a. Location

b. Date, Time, and Shift

c. Machine number & SDCG stamp number

d. Dollar amount (alpha and numeric)

e. Reel symbols (jackpot only, does not apply to multiline winning combinations)

f. Signatures of at least two employees verifying and witnessing the payout or fill

g. Jackpot payouts over $5,000 require a third signature and verification from the Owner/Operator or Key Employee.

5. The Cashier then signs all three copies of the "Jackpot Payout/Fill" slip.

6. Cashier forwards the cash to Slot Supervisor who, after verifying the funds, signs the slips.

7. The original (white), second part (yellow), and third part (pink) copies of the Jackpot payout/fill slip are dispensed from the dispensing machine. Cashier keeps second part (yellow) copy of the "Jackpot Payout/Fill" for Cashier accountability. The original (white) is taken by the Slot Supervisor along with the funds. A third (pink) is dropped immediately into the accounting paperwork lock box or if not dispensed kept in unbroken sequence in locked dispensing machine.

8. The Slot Supervisor returns to the machine. The customer is paid.

9. The Slot Supervisor then observes customer playoff machine and forwards the original (white) of "Jackpot Payout/Fill" to accounting or drops immediately inside a paperwork lock box located outside the cage.

420.2

If a jackpot is $1,200 or more, an IRS form W-2G Statement of Gambling Winnings is completed by the cashier.

REF

NARRATIVE

425.1

When a manual pay results from the need to fill the hopper or a short pay, the following occurs:

1. The Slot Supervisor, checks the key out, opens the machine and observes the hopper. If hopper is empty go to step 2. Otherwise frees machine to complete payout. If machine is not jammed, tests payout setting to determine if machine is paying short. If not, go to section 425.2.

2. After locking machine, the Slot Supervisor proceeds to Cashier, requests funds and the Cashier fills out the "Jackpot Payout/Fill" including:

a. Location

b. Date, Time, and Shift

c. Machine number &SDCG stamp number

d. Dollar amount (alpha and numeric)

e. Signatures of at least two employees verifying and witnessing the fill

f. Fills over $5,000 require a third signature and verification from the Owner/Op-erator or Key Employee.

3. The Cashier then signs all three copies of the "Jackpot Payout/Fill" slip. Cashier forwards the cash to Slot Supervisor who, after verifying the funds, signs the slips.

4. The original (white), second part (yellow), and third part (pink) copies of the Jackpot payout/fill slip are dispensed from the dispensing machine. Cashier keeps second part (yellow) of the "Jackpot Payout/Fill" for Cashier accountability. The original (white) is taken by the Slot Supervisor along with the funds. A third (pink) is dropped immediately into the accounting paperwork lock box or if not dispensed kept in unbroken sequence in locked dispensing machine.

5. The Slot Supervisor places funds in hopper and turns machine on.

6. The Slot Supervisor observes completion of payout and forwards the original (white) copy of the "Jackpot Payout/Fill" slip to accounting or drops immediately inside a paperwork lock box located outside the cage.

425.2

Upon all access to machine, the machine access log is to be completed and returned to the inside of the machine upon securing the door.

REF

NARRATIVE

427.1

Payment by Ticket Printers. If the gaming device has a printer that has the means to print a Hopper Ticket or Paper Token, the printer shall print on a ticket and provide the data to a slot monitoring system. This system must have the means to validate a Hopper Ticket or Paper Token. If communication is lost and validation information cannot be sent to the slot monitoring system, the slot machine shall not accept paper tokens and shall only dispense hopper tickets which must be manually redeemed. The information to be printed on the ticket shall include:

a. The value of the credits redeemed in U.S. dollars in numerical form;

b. The name of the casino issuing the hopper ticket or paper token;

c. The time of day the hopper ticket or paper token was printed in twenty-four hour format showing hours and minutes;

d. The date the hopper ticket was printed showing day, month, and year;

e. The expiration date of the hopper ticket or paper token, which is 90 days; no variances may be granted on this expiration date;

f. A number identifying the slot machine that generated the hopper ticket or paper token;

g. A unique validation number or barcode; and

h. A description of any restrictions on the redemption of the hopper ticket or paper token.

427.2

Payment of Paper Tokens. Paper tokens may be redeemed at the cashier cage or inserted in another slot machine that is capable of accepting these tickets at the casino where the ticket was printed before the expiration date that is printed on the paper token.

427.3

Payment of Hopper Tickets. Hopper tickets that are not validated by the slot monitoring system must be manually redeemed at the cashier cage of the casino where the ticket was printed before the expiration date printed on the hopper ticket. Hopper tickets that were not validated must show by some means that it did not communicate with the slot monitoring system. This must be approved by the Executive Secretary.

427.4

Payment of Casino Script. This preprinted voucher of predetermined value may be dispensed from the bill hopper or may be accepted into a slot machine and does not require a slot monitoring system. Casino script must have a Commission approved validation system and include:

a. The value in U.S. dollars in numerical form;

b. The name of the casino issuing the voucher;

c. A unique validation number or barcode;

d. A description of any restrictions on the redemption of the voucher; and

e. Security features that limit the ability to counterfeit.

427.5

Payment of Jackpots with Paper Tokens, Hopper Tickets, and Casino Script. If a paper token or hopper ticket is printed due to a jackpot, the tickets shall be manually redeemed following proper jackpot procedures. If a casino script results in a jackpot, it shall also be manually redeemed. The printed paper token, hopper ticket, or casino script will be stapled to the yellow jackpot slip.

427.6

Voiding of Paper Tokens, Hopper Tickets, and Casino Script. When voiding a paper token, hopper ticket, or casino script, the cashier shall mark void across the face of the paper token or hopper ticket. The cashier and slot attendant shall sign across the face of the paper token, hopper ticket, or casino script. The cashier then submits the voided tickets to accounting for retention and accountability.

REF

NARRATIVE

430.1

Within a reasonable period prior to the drop of the machines, an employee (accounting personnel are preferred) reads and records the soft meter readings on a meter reading summary and, if applicable, the bill acceptor meter reading summary. This meter reading function must be done separate from the actual drop. The drop and the meter readings must be completed prior to gaming commencing. The meter readings are transferred to accounting immediately after they are completed. Any unusual meter readings are reported to and investigated by the Slot Supervisor or Slot Mechanic. Any adjustments to the meter readings are documented on the meter reading summary.

430.2

The hard meter readings must be taken prior to the last drop which is to be included on the gaming tax return for each month. These must be recorded on the hard meter reading summary.

430.3

The Slot Drop Team consists of at least two of the following persons:

a. Hard Count Team Leader; and

b. At least one Hard Count Team Member.

430.4

The Slot Drop Team assembles at the previously specified time on each day that the drop occurs. This time must be reported to the Commission by using forms provided by that office. The Hard Count Team Leader logs out the keys to the drop cabinet, bill acceptor release box, and the count room from the Cashier by signing and dating the slot access key log.

430.5

A Hard Count Team Member removes the bucket and any overflow and places a preprinted machine identification tag into the bucket and sets the bucket on a cart. An empty bucket is placed in the drop cabinet and the door to the drop cabinet is locked. Once the cabinet key is removed, the door should be tested to ensure it is locked.

430.6

Machines with bill acceptor boxes must be dropped in conjunction with the drop buckets, as follows:

a. Use the bill acceptor release key to release the bill acceptor box. Replace with an empty bill acceptor box. This lock must be different than the slot drop cabinet lock;

430.6

b. If not preidentified, tag the bill acceptor box that was removed. This identification tag must include the machine number. Place the removed bill acceptor box on the cart.

430.7

The Hard Count Team Leader observes the actions of the Hard Count Team Members and ensures that all removed drop buckets are placed on the guarded cart.

430.8

The cart is moved by the Hard Count Team Members. The Observer escorts it to the count room.

430.9

The Hard Count Team unloads the cart, secures uncounted buckets by LOCKING the count room and repeats paragraphs 430.5 through 430.8 until all buckets are removed.

430.10

The Hard Count Team Leader returns drop cabinet, bill acceptor release, and count room keys to the Cashier and dates and signs slot access key log.

430.11

Slot machine drop cabinet keys, including duplicates, are maintained by a department independent of the slot department.

430.12

Two persons are required to accompany such keys while checked out and observe each time slot machine drop cabinets are accessed.

REF

NARRATIVE

435.1

The Slot Count Team consists of at least two of the following persons:

a. Hard Count Team Leader, and

b. At least one Hard Count Team Member.

435.2

The Hard Count Team enters the secured count room. At least two members of Slot Count Team are present at all times in the count room until the entire drop is counted.

435.3

Prior to the running of each denomination through the count machine, Count Members are to test the machine with a predetermined number of coins. Team members are to record the number of coins used to test discrepancies and their signatures on the hard count summary report to document the testing process.

435.4

One member of the Count Team pulls one bucket from the cart and gives preprinted machine identification tag from bucket to Hard Count Recorder.

435.5

Hard Count Recorder inputs identification number on hard count summary.

435.6

Count Team Member dumps contents of bucket in count machine hopper.

435.7

Count Team Member runs counter until all coins have been counted and calls out total to Hard Count Recorder. The Hard Count Recorder verbally repeats the total to the count team member as verification of the amount.

435.8

Hard Count Recorder inputs total coins and amounts on hard count summary.

435.9

Steps described in paragraphs 435.4 through 435.8 are repeated until all buckets are counted and recorded.

435.10

The Hard Count Team Leader records the total coin count by denomination and machine on the hard count summary and calculates total drop for the day.

435.11

Coins must be wrapped as soon as possible after being counted.

435.12

At least two persons are present throughout the wrapping of the slot drop.

435.13

Hard count summary entries are written in ink. Corrections of slot count documentation are made by crossing out the error, entering the correct figure, and then obtaining the initials of at least two Count Team Members.

435.14

The Hard Count Recorder counts all wrapped coins and records the results by denomination onto the count/wrap variance report. Variances between the count and wrap are calculated.

435.15

The Hard Count Team Leader verifies the wrap.

435.16

BILL ACCEPTOR BOXES - Upon completion of the wrap, the contents of the bill acceptor boxes are counted. The following steps apply to those licensees with bill acceptor boxes. If bill acceptor boxes are not used, go to step 435.19.

1. One Count Team Member (the opener) obtains one bill acceptor box, unlocks it, and opens it in full view of the other team member (the verifier). The opener then empties the contents of the box on the count table.

2. The opener shows the camera and the verifier that the box is empty. The verifier verbally acknowledges that the box is empty.

3. The bill acceptor box is then closed, locked, and placed in the bill acceptor box rack or a secure location.

4. The opener sorts all currency by denomination, paper tokens, and casino script and counts each separately. Paper tokens and casino script are counted after all bills have been counted. No counting may take place until all bills from the bill acceptor box are sorted by denomination.

5. The number of bills for each denomination is recorded by the verifier on the bill acceptor summary form for that particular slot machine.

6. The total dollar amount for that slot machine is then calculated and entered on the summary form by the verifier.

7. The verifier then performs an independent second count of the bills and compares this total with the count recorded. If there are any discrepancies between these two amounts, the opener must recount the bills and the verifier must recalculate the amounts recorded on the form. This must be done until all discrepancies are resolved.

8. The opener computes a total dollar value for all paper tokens and casino script found in each bill acceptor. The recorder records the dollar value of the paper tokens on the bill acceptor summary. The verifier performs a second computation. If there are any discrepancies between these two amounts, the verifier must recompute the voucher amount. This procedure must be performed until all discrepancies are resolved.

9. These procedures are repeated until all bill acceptor boxes are counted.

435.17

The bill acceptor summary is then totaled to reflect the total dollar amount counted from the bill acceptor boxes. The grand total is then transferred to the hard count summary which reflects the total dollar amount dropped.

435.18

Funds (including paper tokens and casino script) from the bill acceptor boxes are considered part of the hard drop and must be included on the slot summary report. That is, bills, paper tokens, and casino script dropped must be added to the coins dropped to obtain the total drop for each slot machine and in total.

435.19

The Hard Count Team Leader and the Hard Count Recorder attest to the accuracy of the drop by signing the hard count summary and the bill acceptor summary.

435.20

The Hard Count Team Leader, Recorder and Cashier each independently count the wrapped coins and attest to the count by signing the count/wrap variance report. The Cashier accepts responsibility of the funds by attesting to the count/wrap variance report.

435.21

The Hard Count Team Leader and` the Hard Count Recorder sign the count/wrap variance report attesting to their participating in the count and wrap process. All other count team members sign the hard count summary attesting to their participation in the drop, count and wrap process.

435.22

Upon completion of the count/wrap process, the count team transfers the funds to the Cashier who signs the hard count summary report and bill acceptor summary attesting to the accuracy of the amount received. This total is entered onto the cashiers' daily summary as slot drop accepted.

If a vault is used to store the funds for the hard drop, the Cashier must verify the amount and sign the slot summary report attesting to the accuracy of the amount stated. This amount is entered on the cashiers' daily summary as slot drop accepted and then recorded as a transfer to the vault.

435.23

The Hard Count Recorder, immediately at the conclusion of the count/wrap process, transports all slot count documentation to the accounting offices. IN NO CASE will any slot count documentation be accessible to cashier personnel.

435.24

The Hard Count Recorder reports any large or unusual variances (by denomination, either 2% or $100) to the Controller/Bookkeeper. The variances are investigated by the Controller/Bookkeeper. The results of the investigation are documented and retained.

435.25

The coins are wrapped and reconciled in a manner which precludes the commingling of slot drop coins with coins from other sources.

REF

NARRATIVE

437.1

At least once every month the hopper contents are counted and reconciliations are performed. The tax return for that month reflects the adjustment. (ARSD 20:18:22:12) For the tax reporting period any increase in the hopper inventories increase gross revenues, decreases in the hopper inventory decrease gross revenue.

437.2

The hopper adjustment team consists of at least two people:

1. The hopper adjustment team leader; and

2. At least one assistant;

The hopper count is accomplished using the count procedures outlined in §§ 435.3 to 435.10, inclusive.

437.3

Immediately prior to the hopper count an employee separate from the hopper adjustment team reads and records the soft and hard meter readings on SDCGF-17 and 17.1. These readings are done separately from the hopper count and are transferred to accounting as soon as they are completed. The hopper count and meter readings must be completed before gaming starts.

437.4

The hopper adjustment team leader logs out the slot access key from the cashier by signing and dating the slot access key log.

437.5

The slot machine access card is completed upon access to each slot machine.

437.6

The contents of the hopper are either weighed or counted, then this count is recorded in the appropriate column on the Hopper Count Summary (SDCGF-28). The hopper contents are then placed back in the hopper and the machine is locked. This process is repeated until all of the slot machines have been accounted for.

437.7

The Hopper Count Summary (SDCGF-28) is signed by the hopper adjustment team members attesting to the accuracy of the report. This report is then immediately forwarded to the accounting department.

437.8

The slot access key is checked back in to the cashier.

REF

NARRATIVE

440.1

All sensitive keys relating to the Slot Department are controlled through restricted access and slot access key log which indicate the following:

1. Date of issuance;

2. Time of issuance;

3. Signature of individual receiving key;

4. Key number;

5. Reason for removal of keys;

6. Initials of individual issuing key;

7. Date of return;

8. Time of return;

9. Initials of individual accepting return of key; and

10. Comments.

440.2

The following keys are maintained in a locked drawer or cabinet in the Cashier area:

1. Slot door keys;

2. Slot drop cabinet keys;

3. Count room key;

4. Key for lock box containing vouchers slot machine detail report;

5. Bill acceptor box release key; and

6. Bill acceptor box key.

REF

NARRATIVE

445.1

All original copies (white) of "Jackpot Payout/Fill" slips are forwarded to accounting. Accounting then enters the slip on the payout fill summary sheet and retains that slip until the next drop.

445.2

At the end of each drop, all reports and supporting forms are forwarded to accounting.

445.3

A person from accounting then performs the following:

1. Obtains third copy (pink) of any "Jackpot Payout/Fill" slips used since the last drop was done.

2. Reviews matching of original (white) and second copy (yellow) with the third copy (pink) of the "Jackpot Payout/Fill" slips; accounts for numerical sequence from shift to shift.

3. Arranges Jackpot Payout/Fill slips in numerical sequence; reviews the posting made to the "payout fill summary" sheet.

4. Enters the amounts shown for the drops from the "hard count summary" and the payout/fills from the "payout fill summary" sheet with the appropriate machine number on the "slot summary report."

5. Calculates the net result by machine on the slot summary report.

6. Agrees totals of count wrap variance report and net cash transferred to daily cash summary. Investigates any differences.

7. Posts meter readings from meter reading summary to master slot summary report by machines; posts drop payouts/fills and net win by machine from slot summary to master slot summary report. Calculates the following on master slot summary:

a. Calculated drop from meter readings;

b. Variance between drop from physical count and calculated drop;

c. Handle for previous drop and current drop from meter readings;

d. Drop from prior drop and current drop days;

e. Record of hopper adjustments (monthly);

f. Theoretical hold (monthly);

g. Actual hold (monthly);

h. Variance between actual and theoretical hold (monthly);

i. Variance between actual jackpot amounts paid and metered jackpot amounts paid.

8. Variances calculated on the master slot summary between actual jackpots amount paid and metered jackpots amount paid of $50 or more by machine per month are reported to the South Dakota Commission on Gaming.

9. Variances calculated on the master slot summary between drop from physical count and calculated drop of $50 or more by machine per month are reported to the South Dakota Commission on Gaming.

445.4

The Controller/Bookkeeper investigates any missing Jackpot Payout/Fill Slips and then produces a report explaining the cause of loss and responsibility.

445.5

The Owner/Operator or the Gaming Manager, in conjunction with the appropriate personnel, investigates any large or unusual fluctuations in the master slot summary report.

445.6

Paper Tokens, Hopper Tickets, and Casino Script that are the result of single awards that exceed a limit configured on the game are jackpots. These tickets must be included on the comparison of meter jackpot with actual jackpots paid report. For all other paper tokens, hopper tickets, and casino script accounting must prepare a report by drop, by machine, by denomination, on a month to date basis, which compares a voucher issued meter to the vouchers issued system report. Any variance of 50 dollars or more by machine by month shall be reported to the South Dakota Commission on Gaming.

On a monthly basis, accounting prepares a schedule of voucher liability based on the vouchers redeemed and the vouchers issued for the reporting period. This calculated voucher liability is compared to the system generated voucher liability for reasonableness. Any large or unusual variance shall be reported to the South Dakota Commission on Gaming.

445.7

Accounting must maintain a report detailing the dollar value of all unredeemed Paper Tokens, Hopper Tickets, and Casino Script. The dollar value for unredeemed tickets can be obtained from the reports generated by the slot monitoring system. This report will be prepared each drop period.

445.8

Redeemed and unredeemed vouchers are considered gaming records. These records must be maintained for 5 years.

445.9

The Controller/Bookkeeper keeps all fill bag seals and tags, along with a reconciliation log. The reconciliation log must have all seal numbers, tag numbers, date the bag was made, and the reason for breaking the seal. Any missing seal numbers must be investigated.

445.10

After each hopper count is performed, the hopper count summary and meter reading forms are forwarded to the Controller/Bookkeeper. The amounts reflected on this form are transferred to the hopper adjustment summary. These adjustments are reported when filing the Monthly Gross Revenue Tax Report (SDCGR-2).

445.11

The Controller/Bookkeeper then completes the reconciliation by using the Hopper Reconciliation Worksheet (SDCGF-26). This form is used to determine the correct hopper contents. Any variances of $50 or more are investigated and noted by the Controller/Bookkeeper. Any variances of $100 or more are to be reported to the South Dakota Commission on Gaming.

REF

NARRATIVE

450.1

All slot machines contain functioning coin-in meters. At least weekly, immediately prior to the drop, an accounting representative reads and records the meter readings on a meter reading summary. After the meter reading summary is completed, an accounting representative reviews the meter readings for reasonableness. Prior to final preparation of meter reading summary report, those meters that appear to be unreasonable are reviewed with the Slot Supervisor or Slot Mechanic and any discrepancies are resolved. Any unresolved meter readings are listed by accounting personnel supervisor for follow-up by the Slot Supervisor who also documents the follow-up, as well as documenting investigations of unusual deviations between actual and theoretical hold.

450.2

Accurate and current theoretical hold are maintained for each slot machine on the master slot summary. (ARSD 20:18:17:33)

450.3

Theoretical hold percentages are provided by the manufacturers through par sheets. The par sheets must be kept in each slot machine. Actual hold should be compared to the theoretical hold by slot supervisor personnel.

450.4

Records are maintained for each machine which indicate the dates of any changes made to the reel settings or payout/award schedules, the actual changes made, and the recalculation of theoretical hold as a result of the changes. The Controller/Book-keeper periodically compares the reel settings to the manufacturer's theoretical hold.

450.5

Records are maintained for each machine which indicates the date the machine was placed into service, the date the machine was removed from operation, the date the machine was placed back into operation, and any changes in machine numbers and designations.

450.6

Licensees must read and record meters that will enable them to identify whether a variance between the actual drop and meter drop is attributable to coin, currency, or vouchers.

450.7

Repealed.

REF

NARRATIVE

455.1

When machines are permanently removed from the floor, the same procedures are followed as noted for machines temporarily removed from the floor, and all appropriate documentation is routed to the accounting department.

455.2

The wrapping of loose Cashier coins is performed at a time or location that does not interfere with the hard count/wrap process, or the accountability of that process.

455.3

A record is maintained evidencing the transfer of unwrapped coins.

REF

NARRATIVE

460.1

The following is a list of state authorized forms provided by the South Dakota Commission on Gaming:

SDCG FORM #

DESCRIPTION

SDCGF-11

Jackpot Payout/Fill Slip

SDCGF-12

Slot Machine Access Record

SDCGF-13

Slot Summary Report

SDCGF-14

Payout/Fill Summary

SDCGF-15

Count/Wrap Variance Report

SDCGF-16

Slot Access Key Log

SDCGF-17

Soft Meter Reading Summary

SDCGF-17.1

Hard Meter Reading Summary

SDCGF-17.3

Bill Acceptor Meter Reading Summary

SDCGF-25

Hard Count Summary

SDCGF-25.1

Bill Acceptor Summary

SDCGF-26

Hopper Reconciliation Worksheet

SDCGF-27

Hopper Adjustment Summary

SDCGF-28

Hopper Count Summary

SDCGF-38

Gaming Information Form

N/A

W2-G

460.2

Samples of each are reproduced on the following pages.

REF

DESCRIPTION

NARRATIVE

505.1

Cashier Area

The Cashier area is the repository for all gaming revenues. These revenues are taken into Cashier accountability and are recorded as increases in the general ledger.

505.2

The Cashier area is counted down at the end of every shift to ascertain that the opening bankroll, plus revenues and minus expenses and bank deposits equals the ending bankroll. The cash inventory along with the cash summary for each shift is forwarded to the accounting department for review and general ledger recording. All paperwork connected with the drops, fill/credits, redeemed coupons, etc. are forwarded to the accounting department for comparison and review procedures and are then appropriately filed.

505.3

Unredeemed cash value coupons should NOT be stored in the cashiers cage. All redeemed cash value coupons should go along with other paperwork for that shift to accounting.

505.4

Unredeemed match play and free play coupons can be stored in the cage as long as they are inventoried each shift and recorded.

REF

TITLE

NARRATIVE

510.1

Owner/ Operator

The Owner/Operator is _________________________

(name) and is responsible for operations of the entire property; attainment of long-term growth, delegates portions of the Owner's/Operator's duties and responsibilities to appropriate management personnel; determine that all operations and activities are conducted in accordance with company policy and applicable state and federal law; has the authority to hire and terminate departmental personnel. All owner/operators must be licensed as such with the South Dakota Commission on Gaming.

510.2

Gaming Manager

The Gaming Manager is _____________________________and is responsible to establish and monitor overall operating policy for the Gaming Operator; monitors games activity for adherence to company policy and state regulations; and has the authority to hire and terminate departmental personnel. This person must be licensed as a key employee. (SDCL 42-7B-22.1)

510.3

Cashier

The Cashier is accountable for the cashier area; exchanges cash for chips; checks information of check application to identification; prepares fill and credit slips; prepares jackpot payout/fill slips; maintains control over pit and Slot key access logs; verifies and accepts moneys from hard and soft counts; handles poker shill checkouts; prepares cash inventory report and daily cash summary. The Cashier who accepts hard and soft counts should NEVER be part of that drop and count team. This person must be licensed as either a key or support employee.

SIGNATORY ABILITY

CASHIER

Request for fill/credit slips

Yes

Fill/credit slips

Yes

Master games report

Yes

Check cashing

Yes(1)

Jackpot payout/fill slip

Yes

Poker buy-sell form

Yes

Poker shill check-out

Yes

Hard Count Summary

Yes(1)

Opener/closer

No

Soft count card

No

Pit and Slot access key logs

Yes

Prenumbered forms control log

No

SDCG signature control log

No

Slot machine access record

No

Payout/fill summary

No

Meter reading summary

No

Paper Tokens, Hopper Tickets, & Casino Script Yes

Cashier area

Yes

Count room

Yes(2)

Slot machine

No

Pit area

No

Drop boxes

No

Vault

No

REF

NARRATIVE

520.1

The following procedures are performed by the cashier:

1. Counts the cash, coin, and chip inventory and documents it on the cash inventory sheet at the beginning and end of each shift.

2. Check Cashing:

When a customer informs the cashier that the customer wishes to cash a check, checks the check application information and if properly approved cashes the check.

3. Soft Count:

a. Verifies the money from the soft count and upon verification of amount signs the master game sheet and accepts the drop.

b. At the completion of the count puts the funds into the cashier bank and increases the accountability on the Daily Cash Summary.

4. Pit Transactions:

a. Reviews all requests for fill/credit, counts chips received for credit, and signs the request for fill/credit.

b. Notifies management on all transactions $1,000 and above of the amount and table number of the fill/credit.

c. Prepares the fill/credit slip, signs it, and gives the original (white) to the runner. In the case of a fill, also gives the runner the exact amount of chips or coin in the denomination requested.

d. Compares the second copy (yellow) of the fill/credit slip and staples it to the duplicate (yellow) request for fill/credit slip, and files it until the end of shift. At the end of shift, the cashier totals the fills and credits and enters the total on the Daily Cash Summary.

e. Maintains the soft drop keys. A pit access key log is maintained by the cashier containing the name of the individual receiving keys, date, time out, and time brought back in.

f. Fill and credit dispensing machines are located in the cashier area. When the dispensing machine is empty, the cashier notifies one of the following licensees, Owner/Operator, Gaming Manager, Controller/Bookkeeper, or Key Employee on duty who has access to the key to the stored forms. This person obtains the next numerical sequence from the secured location, completes the prenumbered forms control log, proceeds to the cashier's cage, and refills the dispensing machine.

g. Maintains requests for fill/credits and issues them to the pit on request.

h. Maintains opener/closer table inventory forms in the cashier area and issues them to the pit in numerical sequence.

i. Maintains table cards in the cashier area and issues them to the pit.

5. Slot Transactions:

a. Accrues all requests for jackpot payouts or fills, prepares and signs the jackpot payout/fill slip, and gives payouts to the Slot Supervisor.

b. Prepares W2-G for all slot winnings in excess of $1,200.

c. Retains second (yellow) copy of jackpot payout/fill slip for daily accountability, gives original copy (white) to the Slot Supervisor who immediately forwards it to accounting or drops it immediately inside a paperwork lock box located outside the cage. The third copy (pink) is dropped immediately into the accounting paperwork lock box or if not dispensed retained in locked dispensing machine.

d. Maintains the hard count and slot machine/cabinet keys and a slot access key log containing the names of individuals receiving keys, date, time out, and time brought back in.

e. Follows the same procedures for the slot jackpot payout/fill slip dispensing machine as outlined in steps 4f and 4g.

f. Verifies and accepts all funds from hard counts. Records the amount of these counts on the daily cash summary.

g. When a patron or slot attendant brings a paper token, casino script, or a hopper ticket to the cage, the cashier shall validate the voucher; if it is a paper token or casino script, the cashier shall sign it; and give the amount of money found on the validation receipt to the patron or slot attendant. The cashier shall maintain each voucher for accountability.

h. If the paper token, hopper ticket, or casino script is the result of a jackpot, proper jackpot procedures are followed and the cashier will staple the voucher to the yellow jackpot slip for accounting use. If the retail premises is routed then the voucher is attached to the white jackpot fill slip for the routeperson to take and forward to accounting.

i. At the time of redemption, the cashier making the payment must sign all paper tokens, hopper tickets, and casino scripts, and record the amount of these redemption amounts on the daily cash summary.

j. NOTE: A W-2G Statement of Gambling Winnings must be completed in accordance with IRS regulations for single award payments of $1,200 or more. Single win award paper tokens, hopper tickets, and casino script of $1,200 or more fall under this requirement. These tickets will actually state that they are jackpots.

6. Poker Transactions:

a. Receives money from the Pit Boss and issues the appropriate amount of chips to the Pit Boss.

b. Signs the poker shill check out form initiated by the Pit Boss. Remits funds to the shill and retains the form. Upon receipt of residual funds from the shill, calculates win/loss on the poker shill check out form and posts it to the daily cash summary.

c. Maintains opener/closer table inventory forms in the cashier area and issues them to the poker tables in numerical sequence.

d. Maintains table cards in the cashier area and issues them to the pit.

7. Transfers to/from vault:

a. The Owner/Operator or Key Employee decides when a transfer of funds is to be made to/from the vault. A "vault transfer sheet" is prepared showing the amount of moneys which are to be transferred. If the amount is from a specific process (i.e, hard drop from slot summary) this is noted on the memo portion of the slip.

b. The transfer of the moneys takes place.

c. The Cashier verifies the amount of the transfer and signs the vault transfer sheet attesting to this, the original (white) copy is kept by the Cashier with the paperwork for that shift. The second part (yellow) is given to the Owner/Operator or Key Employee who places it in the vault as documentation of the transfer and used when the licensee reconciles the inventory of the vault. The third copy (pink) is retained by the Owner/Operator or Key Employee.

d. The Cashier makes the appropriate entry to the daily cash summary report.

e. Keys for the vault area are kept in the possession of the Owner/Operator or Key Employee. NO ONE else has access to the vault area.

8. Fill Bags:

a. A fill bag must be filled (made) by at least two people. Both people must sign the fill bag tag, record the dollar amount of the bag, and record the seal number. The tag is then secured to the bag with the prenumbered seal.

b. When a seal is broken, two people must be present. The date of breaking the seal, the signatures of both present, and the purpose of breaking the seal (Example: jackpot payout/fill number) are recorded on the fill bag tag. The broken seal and bag tag are attached to the white copy of the jackpot payout/fill slip if the seal is broken for a jackpot payout/fill. If the seal is broken for any other reason it is attached to the daily cash summary for that shift.

9. Other Transactions:

a. Accepts moneys and remits funds as appropriate for other non-gaming operations of the licensee.

b. Accounts for all non-gaming cash transaction increases and decreases on the daily cash summary.

c. Verifies coupons as they are redeemed. Stamps or writes the date redeemed on the coupon. Enters all coupons redeemed for the shift on the daily cash summary so that the cash inventory will balance. Files the redeemed coupons with the paperwork for that shift. It is recommended that all coupons be prenumbered. The numbers which are redeemed could be recorded, allowing greater control for the establishment.

10. End of Shift:

a. Counts cash, coin, and chip inventory and documents on cash inventory sheet.

b. Reconciles beginning cash inventory to ending cash inventory by accounting for all or some of the following on the daily cash summary:

1) Soft count

2) Hard count

3) Poker shill win/loss

4) Vault transfers

5) Deposits to banks

6) Other operations receipts

7) Other operations disbursements

8) Jackpot payout/fills

9) Fills/credits

10) Miscellaneous income

11) Miscellaneous payouts

12) Over/short

c. At the end of each Cashier's shift, the Cashier must print a report which details the sum of the paper tokens, hopper tickets, and casino script paid during that cashier's shift. The Cashier will use this report to reconcile with the cash drawer. This report must be filed with the daily cash summary. At the end of the gaming day, the gaming manager must print a report that details all of that gaming day's voucher transactions. This report must immediately be forwarded to accounting by the gaming manager.

d. Slot machine paper token, hopper ticket, and casino script payouts are recorded on the daily cash summary under "paper token, hopper ticket, and casino script."

e. Immediately forwards all paperwork to accounting. This includes both cash inventory sheets, daily cash summary, all second parts (yellow) of fill/credit slips, request for fill credit slips, paper tokens, hopper tickets, casino script, and second copies (yellow) of jackpot payout/fill slips which are reflected on the daily cash summary. At no time may the paperwork of a previous shift be accessible to the cashier personnel of the oncoming shift.

REF

NARRATIVE

525.1

Granting Check Cashing privileges are as follows:

A. The customer

1. Goes to Cashier and requests check-cashing privileges.

2. The Cashier has the customer fill out and sign the Check-Cashing Appli-cation/Data Form and Authorization to Verify Credit Standing Form.

3. The Cashier interviews customer, enters customer information on CheckCashing Application/Data Form and enters customer requested limit.

4. The Owner/Operator, Gaming Manager or Pit Boss reviews Check-Cashing Application/Data Form, makes inquiries as appropriate, and signs Check-Cashing Application/Data Form.

5. Accounting sends Authorization to Verify Credit Standing Form to customer's bank.

6. The customer's bank completes Authorization to Verify Credit Standing Form and mails back to the Licensee.

7. Accounting receives and reviews Authorization to Verify Credit Standing Form received from customer's bank.

8. Accounting reviews bank credit data and posts data to Check-Cashing Application/Data Form.

9. The Owner/Operator or Gaming Manager rates card, establishes a limit up to $1,000.00.

10. Accounting files Authorization to Verify Credit Standing Form.

11. The Cashier files completed Check-Cashing Application/Data Form for reference when customer seeks check cashing privileges.

12. Check cashing privileges granted prior to performing the above procedures are subject to denial as a bad debt deduction for gross gaming-revenue tax purposes.

525.2

Check Cashing procedures are as follows upon granting of Check Cashing privileges:

1. The customer presents check to Cashier.

2. The Cashier reviews Check-Cashing Application/Data Form for any previous returned checks and check-cashing limits.

3. If check is within limits and the customer has had no returned checks, go to Step 6.

4. If check is greater than limit, obtains approval from either Owner-Operator or Gaming Manager.

5. If check is not approved for cashing, the Cashier informs customer, returns check to customer, and this procedure is terminated.

6. The Cashier gives cash to customer and places check in cash drawer.

7. The Cashier records date and amount of check on Check-Cashing Application/Data Form. If check is greater than $500 and customer requests chips, immediately notifies Pit Boss so the Pit Boss is aware of the check amount and identification of the customer.

8. The Cashier files Check-Cashing Application/Data Form.

525.3

Returned check collection or write-off procedures are as follows:

1. The Cashier receives check returned by the bank, notes on Check-Cashing Application/Data Form date, amount of check returned from bank, and date redeposited; files Check-Cashing Application/Data Form in returned check file, enters check on Daily Returned Check Report.

2. The Cashier redeposits returned check, enters check on Daily Returned Check Report, if check clears, enters date cleared on Check-Cashing Application/ Data Form; files form in Check-Cashing Application/Data file, end of procedure if cleared.

3. If the Cashier receives check returned by bank, update Check-Cashing Appli-cation/Data Form for return and enters check on Daily Returned Check Report.

4. Accounting periodically prepares a letter to all Customers who owe money to the licensee as a result of returned checks, requesting payment. Accounting informs Cashier who enters date letter sent on Check-Cashing Application/ Data Form.

5. Accounting retains a copy of each letter signed by Owner/Operator or Gaming Manager and mails original letter.

6. Accounting prepares a transmittal listing of returned checks; forwards returned check (photocopy) and listing to collection agency; retains copy of listing.

7. Accounting periodically receives funds or notification of uncollectability from collection agency; files notification in collection agency file.

8. The Controller/Bookkeeper periodically determines uncollectability of returned check, prepares listing of returned check to be written off.

9. The Cashier pulls Check-Cashing Application/Data Form and returned check(s) to be written off, forwards to accounting to file in written-off file.

10. Cashier sends listing of written-off checks to Controller/Bookkeeper, updates Daily Returned Check Report.

11. The Owner/Operator or Gaming Manager examines returned checks to be written-off, authorizes write-off by signing listing of written-off checks.

12. The Controller/Bookkeeper prepares journal entry to record bad debt loss.

13. Accounting at least quarterly reconciles Daily Returned Check Report to inventory of returned checks active and inactive.

14. The Controller/Bookkeeper on a periodic basis reviews inventory of returned checks comparing to returned checks on file; reconciles any differences and updates general ledger.

15. Bad debts written off that have not been processed by the above procedures are subject to denial of deduction for gross gaming revenue tax purposes.

REF

NARRATIVE

530.1

The Cashier is custodian to the pit and Slot keys and the accompanying key access logs as described in sections 240, 355, and 440.

530.2

Duplicate copies of all keys are locked in _________________ (indicate location) and are only accessible by the Owner/Operator or Gaming Manager.

REF

NARRATIVE

535.1

At the end of the shift all reports and supporting forms are forwarded to accounting.

535.2

Accounting personnel then perform the following:

1. Reverify cash inventories beginning and ending of shift and trace to daily cash summary.

2. Recalculate net cash increase or decrease on daily cash summary and post to a monthly cage summary which is then posted to the general ledger.

3. Trace amounts received from soft and hard count per daily cash summary to master games and master slot summaries. Investigate and document any discrepancies.

4. Arrange fill/credit slips; jackpot payout/fill slips; reconcile paper tokens, hopper tickets, and casino script; poker shill check out forms; in numerical sequence and match to equivalents as received from soft and hard count personnel. Investigate any discrepancies.

535.3

The Controller/Bookkeeper investigates any missing critical forms and then produces a report explaining the cause of loss and responsibility.

535.4

Review all critical forms for numerical sequence and data integrity. Discrepancies are investigated and documented. Official notice in writing to the Executive Secretary is required within five (5) days of discovery of discrepancy.

535.5

Instructions and Worksheet Minimum Bankroll Requirements. The bankroll verification worksheet provided in this section shall be used when evaluating compliance with § 20:18:12.01:14. The "immediate exposure" column is intended to function as an analysis of current cash availability, reflecting total cash on hand, less the games and slot machine cash requirement, as of the date the review is performed. Cash available for the "cash on premises" figure is restricted to cash and cash equivalents which are readily available for customer payouts. Coin in slot hoppers cannot be used in this calculation. The "cash in banks" figure must reflect book balance, as opposed to the bank's balance, to recognize any outstanding checks. Consideration shall be given to restrictions on cash in banks. Lines of credit from financial institutions which are immediately available to the licensee are considered a cash equivalent. Amounts in trust funds or other bank

accounts, which do not allow unrestricted access, may not be included in "cash available." The "thirty-day exposure" column functions as a cash flow statement, in that cash flow for one month is added to total cash on hand at the time of the bankroll verification, to project a cash position at the end of 30 days. Cash flow, as used here, includes cash revenues and cash expenses of all departments, not just the departments which are gaming-related. The licensee shall use the most recent month's revenue and expenses or a projected amount based on experience, whichever method is determined by commission staff to more accurately reflect the 30-day exposure. Gross revenues must exclude complimentaries. As appropriate, delinquent payables or other delinquent debt payments may be another consideration in determining cash requirement if payments on these payables is required. The computations used to determine the cash requirement for licensed gaming activity area as follows:

1. The average daily fill for each blackjack and house banked poker game is determined by dividing total fills, as reflected in the accounting records, by the number of days in that month. This is multiplied by two days to approximate the cash needed to operate each blackjack or house banked poker games.

2. The craps table reserve amount is determined by multiplying the average daily fill amount as calculated for blackjack and house banked poker game by two or by a method approved by the executive secretary. This is multiplied by two days to approximate the cash needed to operate each craps table.

3. The roulette table reserve amount is equal to the average daily fill amount as calculated for blackjack and house banked poker game or by a method approved by the executive secretary. This is multiplied by two days to approximate the cash needed to operate each Roulette table.

4. The keno game reserve amount is equal to the single highest award available for payout.

5. The slot machine reserve amount, other than those involving periodic payments as described in item 3 below, is determined by totaling items a, b, and c, as applicable:

a. The average daily payouts amount (i.e., fills/jackpots/tickets redeemed, which may be determined from the most recent SDCG Monthly Gross Revenue Tax Report(s) by subtracting "gross revenue" from "drop" and then dividing the result by the number of days in the month), times the greater of:

i. The number of days until the next slot drop; or

ii. Two days.

b. The single highest available nonprogressive jackpot.

c. All progressive jackpot amounts that are not specifically funded by restricted cash reserves as required by § 20:18:17:24.16.

6. The present value of the total sums owed to patrons for annuities or periodic payments as permitted under § 20:18:17:24.11 must be included as a cash requirement until those sums are fully funded.

7. Other progressive payouts include 100 percent of the progressive payout liability from licensed games other than slots and any bad beat liability.

535.6

Accounting personnel shall prepare a detailed itemized schedule that proofs the difference between the monthly cage summary or general ledger and corresponding element totals used to compute the Monthly Gross Revenue Tax Report. This Schedule shall be completed and kept as support for the Monthly Gross Revenue Tax Report when filed.

REF

NARRATIVE

545.1

The following is a list of state authorized and provided forms:

SDCG FORM

DESCRIPTION

SDCGF-18

Check Cashing Application/Data Form

SDCGF-19

Credit Inquiry and Authorization Form

SDCGF-20

Daily Returned Checks Report

SDCGF-21

Cash Inventory

SDCGF-22

Daily Cash Summary

SDCGF-22.1

Cage Overage and Shortage Investigation Minimum Procedures

SDCGF-23

Vault Transfer Sheet

SDCGF-30

Seal Reconciliation Form

N/A

Fill Bag Seal

N/A

Minimum Bankroll Requirements

545.2

Samples of each are provided on the following pages.

Cash Available

Immediate Exposure

Thirty Day Exposure

Cash on Premises

$

Cash in Banks

$

Cash - Other

$__________________

Total Cash on Hand

$

$

Gross Revenues (1 month)

$_________________

Total Cash Available

$

Cash Requirement's:

Operating Expenses (1 month)

$

Payroll (1 month)

$

Debt Service (1 month)

$_________________

Licensed Gaming Activity Cash Requirement (1)

$()

Other

$(______________)

Total Cash Requirement

$__________________

$_________________

Cash Excess/(Deficiency)

$__________________

$_________________

Note:

(1) Licensed Gaming Activity Cash requirement

Games

Average Daily Fill

X

2 Days

House Banked Table

Games

$

X

2

$(____________)

Slot Machine Reserve

$(____________)

Other Progressive

Payouts

$(____________)

Periodic Payments Owed

$(____________)

Total

$(____________)

REF

DESCRIPTION

NARRATIVE

605.10

Dual Lock Box

A secured dual lock box which can be accessed by two separate keys, one which is held by the retail cashier or common retail premises cashier, the other by the router or the common retail premises key employee. This lock box is used to store the drop cabinet keys and the bill acceptor release key. A key control log must be completed whenever access to this box is gained. In no case may this box be accessed by either party independently.

605.15

Paperwork Lock Box

A lock box which can securely hold paperwork. The key for this box will be possessed by the route operator's accounting department. This cannot be accessed by any member of the drop team. A route operator, excluding a common retail premise route operator, is required to have an accounting paperwork lock box located in each routed retail cashier's cage.

605.20

Dispensing Machines

A jackpot payout/fill slip dispensing machine must be located in each location's cashier cage.

605.25

Slot Machine Access

Upon all access to machine, the machine access log is to be completed and returned to the inside of the machine upon securing the door. A coin from the hopper must be retained before locking the door. This coin is used to play off the door open light on top of the machine. If a winning combination of more than five coins is hit when playing off the door open light, place the coins paid out into the hopper. Record the number of coins paid out of the slot machine on the slot machine access card (SDCGF12) inside the machine.

605.30

Drop Cabinet Access

Access to the Slot Drop Cabinets is controlled by a key which is stored in the dual lock box. The key is controlled by the use of a key control log. The Drop Team Leader records time and date out and signs the Slot Access Key log when checking the key out. This key is immediately returned to the Cashier after the slot drop is completed. The Cashier records key identification and date and time in and signs the Slot Access Key log when the key is returned. This key is then placed in the dual lock box which is locked with the two keys.

605.35

Theoretical Hold

The theoretical hold for each machine is maintained by the Controller. On a monthly basis, a report is generated which shows the deviation from theoretical hold for each machine. This report is reviewed by the Owner/Operator/Controller/Accountant and/or the Gaming Manager. Accounting investigates any unusual statistical fluctuations. Unusual statistical fluctuations are considered +10% or -10% from the hold percentage for the previous period. All documentation must be maintained for at least five years. (ARSD 20:18:17:33.)

605.40

Foreign Tokens

Foreign tokens in the slot machine drop buckets are sorted and segregated from regular house tokens and negotiable currency during the hard count. It is a violation of federal treasury laws to utilize any tokens other than house tokens for reuse.

605.45

Weigh Scales

At each location the weigh scale is tested by two hard Count Team Members prior to the count of each denomination. The amount of coins tested and signatures of Count Team Members are documented on the hard count summary.

605.50

Policies

A general policy is followed that access to keys and locked cabinets or counting areas are limited to only those people specified in writing.

605.55

Forms Control

Jackpot Payout/Fill Slip:

1. Payout/Fill slips are prenumbered utilizing the alphabet. Only one series at a time is issued and used.

2. The Payout/Fill slips are inserted into dispensing machines. All slips are utilized in numerical sequence.

3. Payout/Fill slips are requisitioned from the Executive Secretary as needed. These slips are documented on the prenumbered forms control log which requires date, starting and ending number, date of issuance, and signature of person issuing the jackpot payout/fill slip. These slips are then issued to the cage and inserted into the payout/fill dispensing machine. The slips not inserted into the payout/fill dispensing machine are stored in the Route Operator Accounting Office with the Owner/Operator, Gaming Manager, Controller/Bookkeeper, or Key Employee on duty having access to the key to the stored forms. If an alternative storage location is desired, the licensee must receive written approval from the Executive Secretary.

4. Spare Payout/Fill slips may be kept in the dual lock box. These forms may be used when the inventory of slips in the dispensing machine unexpectedly runs out.

5. All three copies of the Jackpot Payout/Fill slips are dispensed from the dispensing machine after they have been signed by the route person and routed retail cashier. The first (white) copy is given to the route person, the second (yellow) copy is retained by the retail cashier, the third (pink) copy is dropped into the route operators accounting paperwork lock box by the retail cashier. If the third (pink) copy is not dispensed, it is kept in unbroken sequence in locked dispensing machine. During the drop, the cashier and the routeman will remove the pink copy of the Jackpot Payout/Fill slips. The pink copies which have been removed are then placed in the paperwork lock box.

6. All Jackpot Payout/Fill slips are accounted for after use by the Accounting Personnel. An investigation is performed to determine the reasons and responsibility for the loss of any Jackpot Payout/Fill slips. The investigation is documented in a report which is submitted to the Executive Secretary for action as appropriate.

605.60

Voids

When a Jackpot Payout/Fill slip is voided, the Cashier clearly marks "void" across the face of the original and two copies. The Cashier drops the original and third (pink) copies in the route operator's accounting paperwork lock box and retains the second (yellow) copy for their records.

605.65

Machine Conversions

Written approval must be received from the South Dakota Commission on Gaming prior to a program change. The following information must be included in all requests for approval:

1. Location of machine;

2. SDCG stamp number;

3. Serial number; and

4. The program ID number which is going to be used.

If the conversion is a denomination change or change of location, the licensee must notify the Executive Secretary in writing prior to the change. Written approval is not needed for these changes.

605.70

Removal of Slot Machines From Floor or Transfer of Machines to Another Location

When it is necessary to remove a slot machine from the floor or transfer a machine from one retail location to another, the following procedures must be followed before the removal of the machine:

1. An employee not involved in the removal or transfer of the machine reads both the hard and soft meters as required. These meter readings are immediately transferred to accounting.

2. The amounts in the drop bucket and bill acceptor box are dropped and counted. (See section 630).

3. A hopper adjustment is performed on the hopper contents. (See Section 637).

4. Both the hopper load and the amount dropped are transferred and accepted by the cashier.

5. Upon completion of the meter readings, drop process, and counting of the hopper, the machine may be removed from the floor or transferred to another retail location.

Before a machine being removed or transferred is replaced by another gaming device, the commission must be notified and allowed to inspect the device. A gaming device stamp must be placed on the replacement device.

If the removal of a machine is temporary and only for the placement of a tournament machine per § 20:18:14.01, standards two through five as described in this section do not apply to the removal of the machine. The machine being removed shall be secured off the gaming floor away from the gaming public to a location approved by commission staff. All other standards of section 605.70 shall be followed.

605.75

Hopper Adjustments

The initial hopper load is not a fill and does not affect gross revenue computations. (ARSD 20:18:22:12) A fill slip must be prepared because it is money coming from the cage. Write INITIAL FILL on the slip, along with the other required information.

The difference between the beginning hopper load for the period and the ending hopper load at the time of the adjustment must be included as either an addition or subtraction from the gross revenue computation for the month the adjustment was made. Hopper adjustments must be made:

1. At least monthly for each machine;

2. When the denomination is changed for a machine;

3. When moving a machine from one retail establishment to another; and

4. When there is a change in ownership or when a business closes.

605.80

Mobile Imprest Bank

If a slot route operator uses a mobile imprest ban it shall be locked and secured at all times. It shall be counted at the beginning and end of each shift by the route person and cashier on duty and documented on a cash inventory form.

605.85

Money Exchanges

Any money transactions including even money exchanges between a route operator and a retail cage cashier need to be documented on a Money Exchange Form (SDCGF-23.1). The Money Exchange Form must be signed by both the retail cashier and the routeperson or route operator cashier to verify the amount exchanged or transferred. The original (white) copy will be filed with a routeperson or route operator cashier's paperwork and the second (yellow) copy will be filed with the retail cashier's paperwork.

REF

TITLE

NARRATIVE

610.1

Owner/Operator

The Owner/Operator is ____________________________

(name)

and is responsible for operations of the entire operation; attainment of long-term growth; delegates portions of the duties and responsibilities to appropriate management personnel; determines that all operations and activities are conducted in accordance with company policy and applicable state and federal law; has the authority to hire and terminate departmental personnel. All owner/operators must be licensed as such with the South Dakota Commission on Gaming.

610.2

Gaming Manager

The Gaming Manager is ____________________________and is responsible to establish and monitor overall operating policy for the Gaming Operator; monitors games activity for adherence to company policy and state regulations; and has the authority to hire and terminate departmental personnel. This person must be licensed as a key employee (SDCL 42-7B-22.1).

610.3

Routeman

The Routeman is responsible for maintaining and repairing slot machines. The Routeman is an employee of the licensed slot route operator.

610.6

Hard Count Team Leader

The Hard Count Team Leader oversees the hard count. This individual participates in and verifies the drop and is responsible for the other Hard Count Team Members and hard count equipment. The Hard Count Leader reports directly to the Controller/ Bookkeeper.

610.7

Hard Count Team Members

The Hard Count Team Members assist in the drop process.

REF

NARRATIVE

620.0

When a jackpot requires a manual payout or there is a handpay, the following occurs: ARSD 20:18:17:28)

1. Customer notifies change person who notifies the route operator.

2. Upon arrival at the retail location the Routeman visually verifies that jackpot lights are lit, symbols appear in proper sequence, and the machine door is locked. If the jackpot amount is for $50,000 or greater, the commission office must be notified prior to paying the winning patron any portion of the winnings. A copy of this "Jackpot Payout/Fill" slip must be given to the commission agent verifying the jackpot.

3. The Routeman witnesses the jackpot or handpay and secures the jackpot amount.

4. The Cashier or Routeman completes "Jackpot/Payout Fill" slip, including:

a. Location;

b. Date, time, and shift;

c. Machine number and SDCG stamp number;

d. Dollar amount (alpha and numeric);

e. Reel symbols (jackpot only, does not apply to multiline winning combinations);

f. Signatures of at least two employees verifying and witnessing the payout; and

g. Jackpot payouts over $5,000 require a third signature and verification of the Owner/Operator or Key Employee.

5. The Routeman, after verifying the amount, signs all three copies of the "Jackpot Payout/Fill" slip.

6. Routeman forwards the cash to Cashier who, after verifying the funds, signs the slips.

7. The original (white), second part (yellow), and the third part (pink) copies of the Jackpot Payout/Fill slip are dispensed from the dispensing machine. Cashier keeps second part (yellow) copy of the "Jackpot Payout/Fill." The original (white) is taken by the Routeman along with the funds. The third (pink) is dripped immediately into the accounting paperwork lock box or if not dispensed kept in unbroken sequence in the locked dispensing machine.

8. The Routeman returns to the machine. The customer is paid.

9. The Routeman then observes customer play off machine and includes the original copy (white) of "Jackpot Payout/Fill" with the imprest bank.

620.2

If a jackpot is $1,200 or more, an IRS form W-2G Statement of Gambling Winnings is completed by the cashier or routeman.

REF

NARRATIVE

625.

When a manual pay results from the need to fill the hopper or a short pay, the following occurs.

1. Customer notifies change person who notifies the route operator.

2. The Routeman opens the machine and observes the hopper. If the hopper is empty, go to step 3. Otherwise the Routeman frees the machine to complete the payout. If the machine is not jammed, the Routeman tests the payout setting to determine if the machine is paying short. If not, go to section 625.2.

3. After locking the machine, the Routeman secures necessary funds, proceeds to Cashier, and the Cashier or Routeman fills out the "Jackpot Payout/Fill" including:

a. Location;

b. Date, time, and shift;

c. Machine number and SDCG stamp number;

d. Dollar amount (alpha and numeric);

e. Signatures of at least two employees verifying and witnessing the fill; and

f. Fills over $5,000 require a third signature and verification of the Owner/Op-erator or Key Employee.

4. The Routeman then signs all three copies of the "Jackpot Payout/Fill" slip. The cash is forwarded to the Cashier who, after verifying the funds, signs the slips.

5. The original (white), second part (yellow), and third part (pink) copies of the Jackpot Payout/Fill slip are dispensed from the locked dispensing machine. The Cashier keeps the second part (yellow) of the "Jackpot Payout/Fill." The original (white) is taken by the Routeman along with the funds. A third (pink) is dropped immediately into the accounting paperwork lock box or if not dispensed kept in unbroken sequence in the locked dispensing machine.

6. The Routeman and the other licensee who sign the bag tag place the funds in the hopper and turn the machine on.

7. The Routeman observes completion of the payout and includes the signed bag tag and seal and the original (white) copy of the "Jackpot Payout/Fill" with the imprest bank.

625.2

Upon all access to slot machines, the machine access log is to be completed and returned to the inside of the machine upon securing the door.

REF

NARRATIVE

627.1

Payment By Ticket Printers. If the gaming device has a printer that has the means to print a Hopper Ticket or Paper Token, the printer shall print on a ticket and provide the data to a slot monitoring system. This system must have the means to validate a Hopper Ticket or Paper Token. If communication is lost and validation information cannot be sent to the slot monitoring system, the slot machine is prohibited from accepting paper tokens and can only dispense hopper tickets which must be manually redeemed. The information to be printed on the ticket must include:

a. The value of the credits redeemed in U.S. dollars in numerical form;

b. The name of the casino issuing the hopper ticket or paper token;

c. The time of day the hopper ticket or paper token was printed in twenty-four hour format showing hours and minutes;

d. The date the hopper ticket was printed showing day, month, and year;

e. The expiration date of the hopper ticket or paper token, which is 90 days;

f. A number identifying the slot machine that generated the hopper ticket or paper token;

g. A unique validation number or barcode; and

h. A description of any restrictions on the redemption of the hopper ticket or paper token.

627.2

Payment of Paper Tokens. Paper tokens may be redeemed at the cashier cage or inserted in another slot machine that is capable of accepting these tickets at the casino where the ticket was printed. The paper tokens must be redeemed before the expiration date that is printed on the paper token.

627.3

Payment of Hopper Tickets. Hopper tickets that are not validated by the slot monitoring system must be manually redeemed at the cashier cage of the casino where the ticket was printed before the expiration date printed on the hopper ticket. Hopper tickets that were not validated must show by some means that it did not communicate with the slot monitoring system. This must be approved by the Executive Secretary.

627.4

Payment of Casino Script. This preprinted voucher of predetermined value may be dispensed from the bill hopper or may be accepted into a slot machine and does not require a slot monitoring system, but must have a Commission approved validation system and includes:

a. The value in U.S. dollars in numerical form;

b. The name of the casino issuing the voucher;

c. A unique validation number or barcode;

d. A description of any restrictions on the redemption of the voucher; and

e. Security features that limit the ability to counterfeit.

627.5

Payment of Jackpots with Paper Tokens or Jackpots. If a paper token or hopper ticket is printed due to a jackpot, the tickets must be manually redeemed following proper jackpot procedures. The printed paper token or hopper ticket shall be stapled to the white jackpot slip.

627.6

Voiding of Paper Tokens or Hopper Tickets and Casino Script. When voiding a paper token, hopper ticket, or casino script the cashier shall clearly mark void across the face of the voucher. The cashier signs across the face of the paper token, hopper ticket, or casino script. The cashier shall then submit the voided tickets to accounting for retention and accountability.

REF

NARRATIVE

630.1

Within a reasonable period prior to the drop of the machines, an employee (accounting personnel are preferred) reads and records the soft meter readings on a meter reading summary and, if applicable, the bill acceptor meter reading summary. This meter reading function must be done separately from the actual drop. The drop and the meter readings must be completed before gaming starts.

The meter readings are immediately placed in the paperwork lock box. The operator's accounting staff collects them sometime after the drop is complete. Any unusual meter readings are reported to and investigated by the Routeman or Slot Mechanic. Any adjustments to the meter readings are documented on the meter reading summary.

630.2

The hard meter readings must be taken before the last drop which is to be included on the gaming tax return for each month. These must be recorded on the hard meter reading summary.

630.3

The Slot Drop Team consists of the following, unless the licensee has received written permission from the Executive Secretary regarding other arrangements:

1. The Hard Count Team Leader; and

2. At least one Hard Count Team Member;

(A representative of the retail licensee is recommended.)

630.4

The Slot Drop Team assembles at the location at the previously specified time on each day that the drop occurs. This time must be reported to the commission by using forms provided by that office. The Hard Count Team Leader accesses the key to the drop cabinet from the Cashier by signing and dating the slot access key log and then accessing the key to the dual lock box.

630.5

A Hard Count Team Member removes the bucket and any overflow, places a preprinted machine identification tag into the bucket, and sets the bucket on the cart. An empty bucket is placed in the drop cabinet and the door to the drop cabinet is locked. Once the cabinet key is removed, the door should be tested to ensure it is locked.

630.6

Machines with bill acceptor boxes must be dropped in conjunction with the drop buckets, as follows:

1. Use the bill acceptor release key to release the bill acceptor box. Replace with an empty bill acceptor box. This lock must be different from the slot drop cabinet lock.

2. If not preidentified, tag the bill acceptor box that was removed. This identification tag should include the machine number. Place removed bill acceptor box on the cart. The boxes will be taken to the Retailer's count room or the Route Operator's count room to be counted.

If the drop is to be removed from the common retail premises, it must be weighed at this time. If not removed, the drop is transferred to the operator count room, the drop keys are returned in accordance with section 630.10 and count/wrap procedures are followed in accordance with section 435.

630.7

The Hard Count Team Leader observes the actions of the Hard Count Team Members and ensures that all removed drop buckets are accurately weighed. Each machine's drop shall be weighed and recorded according to the preprinted identification tag. The recorder will be in a position to observe the amount on the scale. The hard count recorder will document the amount by machine on the hard count summary until all drop from the slot machines is counted and recorded.

630.8

A count team member guards the cart containing removed drop buckets.

630.9

Upon completion of the drop at each retail location, the Hard Count Team Members sign the hard count summary. By signing the form the members are attesting to the accuracy of the form, which reflects the amount of the drop.

630.10

The Hard Count Team Leader returns drop cabinet keys and bill acceptor release keys to the Cashier and dates and signs the slot access key log. The keys are then locked in the dual lock box.

630.11

Repealed.

630.12

Slot machine drop cabinet keys, including duplicates, are maintained by a department independent of the slot department.

630.13

Two persons are required to accompany such keys while checked out and observe each time the slot machine drop cabinets are accessed.

630.14

The cart is moved by the Hard Count Team Leader to the route operator's count room.

REF

NARRATIVE

635.1

The Hard Count Team transfers the slot drop to the operator's count room where it is wrapped and/or transferred to the cashier.

635.2

The coins are wrapped and reconciled in a manner which precludes the commingling of slot drop coins with coins from other sources.

635.3

BILL ACCEPTOR BOXES - Upon completion of the wrap, the contents of the bill acceptor boxes are counted. The following steps apply to those licensees with bill acceptor boxes. If bill acceptor boxes are not used, go to step 635.4.

1. One count team member (the opener) obtains one bill acceptor box, unlocks and opens it in full view of the other team member (the verifier). The opener then empties the contents of the box on the count table.

2. The opener shows the camera and the verifier that the box is empty. The verifier verbally acknowledges that the box is empty.

3. The bill acceptor box is then closed, locked, and placed in the bill acceptor box rack or in another place approved by the executive secretary.

4. The opener sorts all currency by denomination, paper tokens, casino script and counts each separately. Paper tokens and casino script are counted after all bills have been counted. No counting may take place until all bills from the bill acceptor box are sorted.

5. The number of bills for each denomination is recorded on the bill acceptor summary form for that particular slot machine by the verifier.

6. The total dollar amount for that slot machine is then calculated and entered on the summary form by the verifier.

7. The verifier then performs an independent second count of the bills and compares this total with the count recorded. If there are any discrepancies between these two amounts, the opener must recount the bills, and the verifier must recalculate the amounts recorded on the form. This must be done until all discrepancies are resolved.

8. The opener computes a total value for all paper tokens and casino script found in each bill acceptor. The recorder records the dollar value of the paper tokens and casino script on the bill acceptor summary. The verifier performs a second computation.

If there are any discrepancies between these two amounts the verifier must recompute the vouchers. This procedure must be performed until all discrepancies are resolved.

9. These procedures are repeated until all bill acceptor boxes are counted.

The bill acceptor summary is then totaled to reflect the total dollar amount counted from the bill acceptor boxes. The grand total is then transferred to the hard count summary which reflects the total dollar amount dropped.

Funds (including paper tokens and casino script) from the bill acceptor boxes are considered part of the hard drop and must be included on the slot summary report. That is, bills, paper tokens, and casino script dropped must be added to the coins dropped to obtain the total drop for each slot machine and in total.

The hard count team leader and the hard count recorder attest to the accuracy of the drop by signing the hard count summary and the bill acceptor summary.

635.4

The Cashier then performs an independent count of the wrapped coins and the currency, paper tokens, and casino script; if the coins are not wrapped at this stage, the coin from each machine must be weighed separately. Upon completion of the wrap process, the total wrap amount is entered into the cashier's daily summary as slot drop accepted.

If a vault is used to store the funds for the hard drop, the cashier must verify the amount and sign the slot summary report attesting to the accuracy of the amount stated. This amount is entered on the cashier's daily summary as slot drop accepted and then recorded as a transfer to the vault.

635.5

The Cashier accepts responsibility for the funds by attesting to the accuracy of the hard count summary by signing the form in the appropriate location.

635.6

The hard count summary is then taken to accounting or placed in a location which is not accessible by any member of the drop team or the cashier.

REF

NARRATIVE

637.1

At least once a month the hopper contents are counted and reconciliations are performed. The tax return for that month reflects the adjustment. (ARSD 20:18:22:12). For the tax reporting period, any increase in the hopper inventories increases gross revenue; decreases in the hopper inventory decrease gross revenue.

637.2

The hopper adjustment team consists of at least two people:

1. The hopper adjustment team leader; and

2. At least one assistant.

The hopper count is accomplished using the count procedures outlined from §§ 435.3 to 435.10, inclusive.

637.3

Immediately before the hopper count an employee separate from the hopper adjustment team reads and records the soft and hard meter readings on SDCGF-17 and 17.1. These readings are done separately from the hopper count and are transferred to accounting as soon as they are completed. The hopper count and meter readings must be completed before gaming starts.

637.4

The slot machine access card is completed upon access to each slot machine.

637.5

The contents of the hopper are either weighed or counted; then this count is recorded in the applicable column on the Hopper Count Summary (SDCGF-28). The hopper contents are then placed back in the hopper and the machine is locked. This process is repeated until all of the slot machines have been accounted for.

637.6

The Hopper Count Summary (SDCGF-28) is signed by the hopper adjustment team members attesting to the accuracy of the report. This report is then immediately placed in the paperwork lock box.

REF

NARRATIVE

640.1

All sensitive keys relating to the Slot Department are controlled through restricted access and the slot access key log which indicate the following:

1. Date of issuance;

2. Time of issuance:

3. Signature of individual receiving key;

4. Key number;

5. Reason for removal of keys;

6. Initials of individual issuing key;

7. Date of return;

8. Time of return;

9. Initials of individual accepting return of key; and

10. Comments.

640.2

The following keys are maintained in the dual lock box located in the Cashier area:

1. Slot drop cabinet keys;

2. Slot door keys;

3. Key for lockbox containing Voucher Slot Machine Detail Report.

REF

NARRATIVE

645.1

All original copies (white) of jackpot payout/fill slips are forwarded to accounting. Accounting then enters the slip on the payout/fill summary sheet and retains that slip until the next drop.

645.2

At the end of each drop, all reports and supporting forms are forwarded to accounting.

645.3

Accounting personnel then perform the following:

1. Collect all meter reading information from the paperwork lock box at the retail locations and obtain the third copy (pink) of any jackpot payout/fill slips used since the last drop was done.

2. Review matching of the original (white) with the third copy (pink) of the jackpot payout/fill slips and account for numerical sequence from shift to shift.

3. Arranges jackpot payout/fill slips in numerical sequence; review the posting made to the payout fill summary sheet.

4. Enter the amounts shown for the drops from the hard count summary and the pay-out/fills from the payout fill summary sheet with the applicable machine number on the slot summary report.

5. Calculate the net result by machine on the slot summary report.

6. Agree with the totals of count wrap variance report and net cash transferred to daily cash summary; investigate any differences.

7. Post meter readings from meter reading summary to master slot summary report by machines; post drop payouts/fills and net win by machine from slot summary to master slot summary report. Calculate the following on the master slot summary:

a. Calculated drop from meter readings;

b. Variance between drop from physical count and calculated drop;

c. Handle for previous drop and current drop from meter readings;

d. Drop from prior drop and current drop days;

e. Record of hopper adjustments (monthly)

f. Theoretical hold (monthly)

g. Actual hold (monthly)

h. Variance between actual and theoretical hold (monthly); and

i. Variance between actual jackpots paid amount and metered jackpots paid amount.

645.4

The Controller/Bookkeeper investigates any missing jackpot payout/fill slips. The Controller/Bookkeeper then produces a report explaining the cause of the loss and responsibility for it.

645.5

The Owner/Operator or the Gaming Manager, in conjunction with the appropriate personnel, investigate any large or unusual fluctuations in the master slot summary report.

645.6

Paper Tokens, Hopper Tickets, and Casino Script that are the result of single awards are jackpots. These tickets must be included on the comparison of meter jackpot with actual jackpots paid report. For all other Paper Tokens, Hopper Tickets, and Casino Script accounting must prepare a report by drop, by machine, by denomination, on a month to date basis which compares a voucher issued meter to the vouchers issued system report.

On a monthly basis, accounting prepares a schedule of voucher liability based on the vouchers redeemed and the vouchers issued for the reporting period. This calculated voucher liability is compared to the system generated voucher liability for reasonableness. Any large or unusual variance shall be reported to the South Dakota Commission on Gaming.

645.7

Accounting shall maintain a report detailing the dollar value of all unredeemed paper tokens, hopper tickets, and casino script. The dollar value for unredeemed tickets can be obtained from the reports generated by the slot monitoring system. This report will be prepared each drop period.

645.8

Redeemed and unredeemed vouchers are considered gaming records. These records must be maintained for 5 years.

645.9

The Controller/Bookkeeper keeps all fill bag seals and tags, along with a reconciliation log. The reconciliation log must have all seal numbers, tag numbers, the date the bag was made, and the reason for breaking the seal. Any missing seal numbers must be investigated.

645.10

After each hopper adjustment is performed, the hopper count summary and meter reading forms are forwarded to the Controller/Bookkeeper. The amounts reflected on this form are transferred to the hopper adjustment summary. These adjustments are reported when filing the monthly gross revenue tax report (SDCGR-2).

645.11

The Controller/Bookkeeper then completes the reconciliation by using the Hopper Reconciliation Worksheet (SDCGF-26). This form is used to determine the correct hopper contents. Any variances of $50 or more are investigated and noted by Con-troller/Bookkeeper. Any variances of $100 or more are to be reported to the South Dakota Commission on Gaming.

REF

NARRATIVE

650.1

All slot machines contain functioning coin-in meters. At least weekly, immediately prior to the drop, a Routeman or an employee of the Routeman reads and records the meter readings on a meter reading summary. After the meter reading summary is completed, an accounting representative reviews the meter readings for reasonableness. Those meters that appear to be unreasonable are reviewed with the Routeman or Slot Mechanic and any discrepancies are resolved. Any unresolved meter readings are listed by accounting personnel supervisor for follow-up by the Routeman who also documents the follow-up, as well as documenting investigations of unusual deviations between actual and theoretical hold.

650.2

Accurate and current hold percentages are maintained for each slot machine on the Master Slot Summary. (ARSD 20:18:17:33).

650.3

Theoretical hold percentages are provided by the vendors. Actual hold percentage strips are compared to the theoretical hold by Routeman personnel.

650.4

Records are maintained for each machine which indicate the dates of any changes made to the reel settings or payout/award schedules, the actual changes made, and the recalculation of theoretical hold as a result of the changes. The Controller/Book-keeper periodically compares the hold percentages to the manufacturer's theoretical hold.

650.5

Records are maintained for each machine which indicates the date the machine was placed into service, the date the machine was removed from operation, the date the machine was placed back into operation, and any changes in machine numbers and designations.

650.6

Licensees must read and record meters which will enable them to identify whether a variance between actual drop and meter drop is attributable to coin, currency, paper tokens, hopper tickets, or casino script.

650.7

Repealed.

REF

NARRATIVE

655.1

Repealed.

655.2

The wrapping of loose coins is performed at a time or location that does not interfere with the hard count/wrap process or the accountability of that process.

655.3

A record is maintained evidencing the transfer of unwrapped coins.

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DESCRIPTION

NARRATIVE

700.0

General Controls

Licensees that employ and utilize any type of computerized or automated system that accounts for either gaming transactions and activity or impacts statistical reporting requirements and the reporting of taxable gross revenue, or both, must have adequate, written backup and recovery procedures in place. These procedures must address contingency plans in the event of data loss or system failure and are applicable to systems used for any purpose related to gaming activity. This includes automated slot monitoring systems, meter capture systems, report-generating systems, handheld systems, ticketing systems, general ledger systems, accounting systems, etc. The procedures must be distributed to all necessary individuals and departments and must be tested periodically to ensure effectiveness.

All electronic and ticketing slot machine systems, which report or affect the taxable gaming revenue of a slot machine, must have a real time data backup device. All transactions recorded by the system must be backed up immediately by the backup device so that if the system experiences a catastrophic failure, all of the data in the system may be recovered. The following items must be addressed in the licensee's system of internal control:

1. The main computers (i.e., hardware, software, and data files) for each gaming application (e.g., slots, table games, etc.) are in a secured area with access restricted to authorized persons, including vendors.

2. The computer systems, including application software, are secured through the use of passwords or other approved means. Management personnel or persons independent of the department being controlled shall assign and control access to system functions.

3. Passwords are controlled as follows unless otherwise addressed in these standards:

a. Each user must have their own individual password.

b. Passwords used to gain access to the system are changed at least quarterly with changes documented by the system.

4. Adequate backup and recovery procedures are in place, and if applicable, include:

a. Daily backup of data files.

b. Backup of all programs.

c. Secured off-site storage of all backup data files and programs, or other adequate protection.

d. Recovery procedures are tested at least annually in a test environment.

e. Adequate system documentation is maintained, including descriptions of both hardware and software, operator manuals, etc.

700.1

Modems

If remote dial up to any associated equipment is allowed for software support, the licensee must maintain an access log which includes: name of employee authorizing modem access, reason for modem access, description of work performed, date, time, and duration of access.

700.2

Optical Disk

Documents may be scanned or directly stored to WORM ("Write Once Read Many") optical disk with the following conditions:

Document Storage

1. The optical disk must contain the exact duplicate of the original document.

2. All documents stored on optical disk must be maintained with a detailed index containing the retail license number, the retail location name, SDCG Document number or name as applicable, and document origination date. This index must be available upon request of the SDCG staff members.

3. Upon request by SDCG staff members, hardware (terminal, printer, etc.) must be provided in order to perform auditing procedures.

4. Controls must exist to ensure the accurate reproduction of records, up to and including the printing of stored documents used for auditing purposes.

1100.1

The Monthly Gross Revenue Tax Report and remittance is due from each retail license and route operator not later than fifteen days following the end of each month. (SDCL 42-7B-29)

1100.2

This form is provided by the Executive Secretary. Fill out the license number, name, and address for the business the return is for.

1100.3

All revenue figures must be reported in dollar increments (i.e. 24 coins in for a nickel slot machine should be reported as $1.20)

1100.4

If a pre-designated drop is not scheduled for the last day of the month the revenue from the drop closest to the end of the month is used for filing that month's return. The revenue generated for the remainder of the month is to be reported on the next gross revenue tax report.

1100.5

If the return is for a route operator a route location report must accompany the report and remittance. The route location report is a schedule which shows the statistics for each location which the route operation operates devices in.

1100.6

Gross Revenue Computations. (ARSD 20:18:22:12)

1100.7

Upon discovery of a reporting error by the licensee in a previous month's report, an amended report must be filed which contains the following information: (ARSD 20:18:22:03)

1. The total gaming revenue and statistics for that month, including the amendment on a regular tax report with "Amended Tax Report" written on the top of the form.

2. A memorandum which explains the legal basis for the amendment and calculation of the additional amount of tax due.

3. The proper amount of additional tax and interest due must be remitted with the amended report.

REF

NARRATIVE

1300

Internal audits must be performed by gaming licensee accounting personnel.

(1) Controls must be established and procedures must be implemented to perform the following procedures:

(a) At least weekly, reconcile wagering account liability (deposits - adjustments - withdrawals = total account balance) to the system record;

(b) At least weekly, review manual adjustments to or from wagering accounts to ensure such adjustments were authorized;

(c) At least monthly, review exceptions reports;

(d) At least monthly, review documentation related to access to inactive and closed accounts; and

(e) At least annually, review the cashless wagering system to determine that the configuration parameters are accurate and have not been altered without authorizations.

(2) The performance of internal audit procedures, the exceptions noted, and the follow-up of all internal audit exceptions must be documented and maintained.

(3) All accounting reports are be approved by the commission and kept for a minimum of three years, in accordance with commission regulations.