WASHINGTON STATE REGISTER

WSR 99-08-093

PROPOSED RULES

GAMBLING COMMISSION

[ Filed April 6, 1999, 4:17 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 98-24-088 with a published date of December 16, 1998.

Title of Rule: Card room rules.

Purpose: To implement legislation that passed in 1996 and 1997 enabling card rooms to offer the following: Increased number of tables, alternative collection of fees, jackpot schemes and house-banked card games. These rules set forth the regulatory and licensing requirements for card rooms to offer these activities.

At the March meeting, the commissioners voted to file alternative versions to five of the rules in this package and depending on testimony at upcoming hearings, one version for each rule will be selected for adoption.

WAC 230-40-030:

Version #1 15 tables in a card room; 7 players and 9 betting spots allowed at house-banked card tables.

Version #2 15 tables in a card room; 7 players and/or betting spots allowed at house-banked card tables.

Version #3 10 tables in a card room; 7 players and 9 betting spots allowed at house-banked card tables.

WAC 230-40-120:

Version #1 Phase II wagering limits set at $100.

Version #2 Phase II wagering limits set at $50, furthermore, for nonhouse-banked card games, a cap of $250 would be placed on a player's hand.

WAC 230-40-400:

Version #1 Owners of multiple card rooms located within one mile of each other must utilize the same operating hours.

Version #2 Local law enforcement must agree with an operator's proposed change of hours.

Version #3 Owners of multiple card rooms adjacent to each other must utilize the same operating hours.

Version #4 All card rooms will close between 2:00 a.m. and 4:00 a.m.

Version #5 All card rooms will close between 4:00 a.m. and 8:00 a.m.

WAC 230-40-820: Alternative version would require that for reviews contracted out, the contractor must be a licensed certified public accountant and knowledgeable of gaming in Washington state.

WAC 230-40-845: Alternative version clarifies no third party checks can be accepted at card rooms.

Statutory Authority for Adoption: RCW 9.46.070.

Summary: See Purpose above.

Reasons Supporting Proposal: See Purpose above.

Name of Agency Personnel Responsible for Drafting: Susan Arland, Lacey, (360) 438-7654, ext. 374; Implementation: Ben Bishop, Lacey, (360) 438-7640; and Enforcement: Sherri Winslow, Lacey, (360) 438-7654, ext. 301.

Name of Proponent: Staff, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose above.

Proposal Changes the Following Existing Rules: See Purpose above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Proposal is exempt under RCW 19.85.025(2), therefore, a small business economic impact statement is not required.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. This agency does not choose to make section 201, chapter 403, Laws of 1995, apply to this rule adoption.

Hearing Location: Heathman Lodge, 7801 N.E. Greenwood Drive, Vancouver, WA 98662, (360) 254-6100, on May 14, 1999, at 1:30 p.m.

Assistance for Persons with Disabilities: Contact Susan Yeager by May 3, 1999, TDD (360) 438-7638, or (360) 438-7654, ext. 302.

Submit Written Comments to: Susan Arland Mailstop 42400, Olympia, WA 98504-2400, fax (360) 438-8652, by May 3, 1999.

Date of Intended Adoption: May 14, 1999.

April 6, 1999

Susan Arland

Rules Coordinator

OTS-2826.1

REPEALER

The following sections of the Washington Administrative Code are repealed:
WAC 230-40-060 Persons shall not share in winnings or charge additional fee for playing cards.
WAC 230-40-150 Side bets prohibited.
WAC 230-40-160 Wagers by other than participants prohibited.
WAC 230-40-900 Public card room enhancement program--Pilot study.

OTS-2825.1

REPEALER

The following section of the Washington Administrative Code is repealed:
WAC 230-02-400 Card game.

OTS-2899.2

AMENDATORY SECTION(Amending WSR 96-11-073, filed 5/13/96, effective 7/1/96)

WAC 230-40-010
Types of card games authorized.

Only card games that have been specifically authorized are allowed to be played in public or social card rooms licensed by the commission. The commission hereby authorizes the following card games:

(1) Poker - Any poker game described in Hoyle's Modern Encyclopedia of Card Games, by Walter B. Gibson, published by Doubleday and Company, Inc., April 1974, 1st edition, pages 219 through 277((~~: Provided, That only a maximum of five betting rounds per hand are permitted~~)).

(2) Hearts.

(3) Pinochle.

(4) Cribbage.

(5) Rummy.

(6) ((~~Mah-jongg (tiles).~~

~~(7)~~)) Pan.

((~~(8)~~)) (7) Pitch.

((~~(9)~~)) (8) Washington blackjack - as set forth in WAC 230-40-125.

((~~(10) Pai-Gow poker.~~

~~(11)~~)) (9) Pan-9.

((~~(12)~~)) (10) Bid Whist.

((~~(13) Dominos.~~

~~(14)~~)) (11) House-banked card games in which each participant is dealt cards and competes against the house. The following house-banked card games are authorized:

(a) Blackjack.

(b) Let It Ride.

(d) Progressive Blackjack.

(e) Spanish 21.

(f) Match The Dealer Blackjack.

(g) Casino War.

(h) Paulson's Draw Poker.

(i) Pai-Gow Poker.

(12) Those games the director approves on a temporary, case-by-case basis ((~~upon application by a licensee for approval of a particular game~~)). An application for approval of a game ((~~not specifically authorized~~)) must be in writing, and include the rules of play and all wagering schemes. Temporary approvals granted are valid for no more than six months or until adopted by the commission, whichever occurs first.

[Statutory Authority: RCW 9.46.0281, 9.46.070 (1), (2), (14) and (20). 96-11-073, § 230-40-010, filed 5/13/96, effective 7/1/96. Statutory Authority: RCW 9.46.070. 94-13-098 (Order 252), § 230-40-010, filed 6/15/94, effective 7/16/94. Statutory Authority: RCW 34.05.220(4), [34.05].230 and 9.46.070 (11) and (14). 90-05-032 (Order 205), § 230-40-010, filed 2/14/90, effective 3/17/90. Statutory Authority: RCW 9.46.070. 88-19-038 (Order 183), § 230-40-010, filed 9/13/88. Statutory Authority: Chapter 9.46 RCW. 86-19-056 (Order 161), § 230-40-010, filed 9/15/86. Statutory Authority: RCW 9.46.070(11). 82-23-050 (Order 125), § 230-40-010, filed 11/15/82. Statutory Authority: RCW 9.46.070(10) (see RCW 9.46.020(20)). 80-09-067 (Order 103), § 230-40-010, filed 7/17/80; Order 78, § 230-40-010, filed 11/17/77; Order 67, § 230-40-010, filed 3/11/77; Order 40, § 230-40-010, filed 6/26/75; Order 23, § 230-40-010, filed 9/23/74.]

OTS-2900.1

AMENDATORY SECTION(Amending Order 125, filed 11/15/82)

WAC 230-40-015
Rules by which the authorized card games shall be played.

(1) Card games authorized by the commission shall be played only in the manner set out for that game in Hoyle's Modern Encyclopedia of Card Games, by Walter B. Gibson, published by Doubleday and Company, Inc., April 1974 1st Edition: Provided, That each licensee may make immaterial modifications to the rules of each authorized game set out in that publication: Provided Further, That approved card games not referenced in Hoyle's Modern Encyclopedia of Card Games shall be played in a manner as approved by the commission.

Each such immaterial modification, or rule of conduct, shall be ((~~conspicuously~~)) posted in plain view on the premises where it can be clearly seen by the players in the card game.

(2) Each licensee may establish rules of conduct for the card players on its premises.

(3) Where other of the commission's rules are inconsistent in any respect with the above-referenced publication, or with any modification or rule of conduct of the licensee, the commission's rule shall prevail over such inconsistent requirement.

[Statutory Authority: RCW 9.46.070(11). 82-23-050 (Order 125), § 230-40-015, filed 11/15/82. Statutory Authority: RCW 9.46.070(10) (see RCW 9.46.020(20)). 80-09-067 (Order 103), § 230-40-015, filed 7/17/80; Order 67, § 230-40-015, filed 3/11/77; Order 40, § 230-40-015, filed 6/26/75; Order 29, § 230-40-015, filed 1/23/75.]

OTS-2901.1

AMENDATORY SECTION(Amending Order 184, filed 10/24/88)

WAC 230-40-030
Number of tables and players limited.

((~~(1)~~)) No licensee ((~~to allow~~)) with a public card room on its premises shall allow more than ((~~five~~)) fifteen separate tables at which card games are played((~~, nor~~)). No licensee shall allow more than ten players for nonhouse-banked card games and seven players for house-banked card games to participate at any one table at any given time((.)): Provided((~~: When poker is played, additional players are authorized to participate at the card table(s) as follows;~~

~~(a)Class E-12 players~~

~~(b)Class E-2 thru E-5~~

~~and Class D4 players~~

~~Provided further, that no table shall have more then twelve players.~~

(2) No licensee to allow a social card room on its premises shall allow more than ten players to participate at any one table at any given time. Provided, when poker is played, they may have two tables with 12 players at each table.

(3) The commission may permit a licensee to exceed the player limits on specific occasions for good cause shown. Requests to exceed the limit shall be submitted to the commission in writing not less than 30 days preceding the date upon which the licensee wishes to exceed the limit. The request shall indicate the date(s) involved, the reasons why the request is made, and the number of games and players in the games which the licensee desires to allow on that occasion)), That the number of spots for wagers at house-banked card tables shall not exceed nine. Each table shall be permanently numbered and readily identifiable by the licensee's surveillance system.

[Statutory Authority: RCW 9.46.0281 and 9.46.070 (11), (12) and (14). 88-22-019 (Order 184), § 230-40-030, filed 10/24/88. Statutory Authority: RCW 9.46.010 and 9.46.070 (8) and (14). 85-03-025 (Order 143), § 230-40-030, filed 1/9/85; Order 23, § 230-40-030, filed 9/23/74.]

OTS-3022.1

AMENDATORY SECTION(Amending Order 184, filed 10/24/88)

WAC 230-40-030
Number of tables and players limited.

((~~(1)~~)) No licensee ((~~to allow~~)) with a public card room on its premises shall allow more than ((~~five~~)) fifteen separate tables at which card games are played((~~, nor~~)). No licensee shall allow more than ten players for nonhouse-banked card games and seven players and/or spots for wagering at house-banked card games to participate at any one table at any given time. ((~~Provided: When poker is played, additional players are authorized to participate at the card table(s) as follows;~~

~~(a)Class E-12 players~~

~~(b)Class E-2 thru E-5~~

~~and Class D4 players~~

~~Provided further, that no table shall have more then twelve players.~~

OTS-3023.1

AMENDATORY SECTION(Amending Order 184, filed 10/24/88)

WAC 230-40-030
Number of tables and players limited.

((~~(1)~~)) No licensee ((~~to allow~~)) with a public card room on its premises shall allow more than ((~~five~~)) ten separate tables at which card games are played((~~, nor~~)). No licensee shall allow more than ten players for nonhouse-banked card games and seven players for house-banked card games to participate at any one table at any given time((.)): Provided((~~: When poker is played, additional players are authorized to participate at the card table(s) as follows;~~

~~(a)Class E-12 players~~

~~(b)Class E-2 thru E-5~~

~~and Class D4 players~~

~~Provided further, that no table shall have more then twelve players.~~

OTS-2902.3

AMENDATORY SECTION(Amending Order 300, filed 9/18/96, effective 10/19/96)

WAC 230-40-050
Fees for card playing--Method of assessment and collection--Maximum fees.

((Except as provided in WAC 230-40-055 for card tournaments, no time based or per hand fee shall be charged a person, directly or indirectly, to play in a card game except as set forth in this section. Each type of fee shall be maintained and recorded separately from all other fees as set forth in WAC 230-08-090, and be available for audit by the commission and local law enforcement and taxing authorities.

~~(1) For all card games, the following procedures apply to collection of such fees:~~

~~(a) Fees shall be collected in advance by the licensee in cash, or in wagering chips, directly from the player;~~

~~(b)~~)) No person shall be charged a fee directly or indirectly, to play in a card game in excess of those fees set forth in this section. Each type of fee shall be maintained and recorded separately from all other fees as set forth in WAC 230-08-090, and be available for audit by commission staff, local law enforcement, and taxing authorities.

(1) The following are authorized methods of assessing fees for playing social card games. Only one method of assessing fees may be used at a table at any given time:

(a) Fees based on a period of time - A specific fee of not more than ten dollars per hour, per player, may be charged to play social card games: Provided, That a licensee may collect the hourly fee in thirty-minute increments;

(b) Fees for each hand played - A specific fee of not more than one dollar per hand, per player, may be charged to play social card games: Provided, That WAC 230-40-825 requirements for surveillance shall apply for licensees utilizing this fee assessment method;

(c) Fees based on the amounts wagered during a hand (rake) - A portion of the total amount wagered by a player, not to exceed five dollars per hand or ten percent of total wagers for a hand, whichever is less, may be collected for playing social card games: Provided, That WAC 230-40-825 requirements for surveillance shall apply for licensees utilizing this fee assessment method and the surveillance system shall be approved prior to operation;

(d) An administrative fee not to exceed ten percent of the amount collected for player-supported progressive prize contests may be imposed by the card room operator;

(e) Fees to enter tournaments shall be as set forth in WAC 230-40-055; or

(f) A commission on the winning hand for a pai-gow poker game not to exceed five percent.

(2) Fees shall be collected by a licensed card room employee in the following manner:

(a) Fees assessed on a period of time shall be collected directly from each player by the dealer or floor supervisor responsible for that particular section of the card room. The "direct collection," "chip rack," or "drop box" methods set forth in this section may be used for collection of fees assessed on a period of time;

(b) Fees assessed on a per-hand basis shall be placed in a designated area of the table by the player and collected by the dealer before the first round of cards has been dealt. After collection, the dealer shall deposit all chips or coins in the chip rack or drop box, as applicable;

(c) Fees assessed on the amounts wagered during a game, or for progressive jackpots shall be collected by the dealer during play of the hand and placed in a designated area of the table. Once the maximum fee for a hand or jackpot is accumulated, the dealer shall spread the chips or coins to allow players and the surveillance system the ability to verify the amount collected. After verification, chips shall be deposited in the dealer's chip rack or drop box, as applicable;

(d) All fees to enter tournaments shall be collected in advance of the start of play in accordance with WAC 230-40-055; or

(e) Licensees may apply to the director for approval of alternate fee collection methods. If approved, the method of collection shall be set forth in the letter granting approval.

(3) All fees collected from players shall be controlled and recorded in a method prescribed by the commission as set forth in WAC 230-08-090. All collections shall be in wagering chips and kept separate from all other chips and cash in the card room until recorded in the daily card room records and deposited in the cashier's cage. All chips and cash in the cashier's cage shall be kept separate from all other chips and cash located on the licensed premises at all times card games are conducted. The following methods may be used for control of fees collected for card games and player-supported progressive prize contests:

(a) Direct collection method - Fees are collected directly from each player by a licensed card room employee responsible for that particular section of the card room and deposited in the card room cage serving the area of the card room from which collections are made. Collections shall be made at least once per hour, at times designated by the licensee. All fees shall be recorded immediately upon collection, per WAC 230-08-090. This collection method may only be used when assessing fees based on a period of time.

(b) Chip rack method - This method is allowed for Class E-1 through E-3 licensees only. It requires a licensed center dealer, a designated area for player fees, and a chip rack separated into sections for each type of fee collected. Fees are temporarily stored in the chip rack and controlled by a licensed dealer until collected by the floor supervisor. All chips collected as fees shall be removed from the dealer's chip rack at least every four hours by the licensed card room employee responsible for that particular section of the card room. The collection process shall include the counting of chips and coins in the presence of players and immediately recording the totals on a count slip. The dealer and the supervisor making the collection shall each initial the count slip verifying its accuracy.

(c) Drop box method - Fees are temporarily stored in a numbered, locked drop box. The drop box method requires a center dealer, a table with a designated area for each type of player fee and/or fees removed from the pot, and a separate drop box for each type of fee. Drop box movement, storage, and counting shall be conducted as prescribed in WAC 230-40-840. The drop box shall be located in a position that is isolated from the pot area and in plain view of all players and the surveillance system.

(4) No player shall be required to pay for or purchase any other goods or services as a condition of playing cards except as authorized by this section;

((~~(c)~~)) (5) A schedule setting forth all fees to participate in card games shall be posted in plain view where it can be seen by the players in the card games((.));

((~~(2)~~)) (6) A person requesting a new deck of cards beyond those regularly furnished by the operator, as required by WAC 230-40-070(2), may be charged a fee not to exceed the actual cost to the licensee of the deck. Further, Class D licensees may charge a fee not to exceed actual cost to the licensee per deck for each deck of playing cards furnished to a table as required by these rules, or as requested by any player at the table. The fee shall be collected in cash directly from the players, or the player requesting the deck, at the time the deck is introduced into the game((.));

(((3) This rule shall not prevent a bona fide nonprofit or charitable organization which has been established and operated for purposes other than card playing from charging its usual membership fee to belong to the organization.

~~(4)~~)) (7) The licensee shall collect the same fee from all players at a table ((~~except licensed card room employees or the licensed owner~~)). If the licensee elects to allow free play, then all players at a table must be allowed to play for free((.

~~(5) The amount collected shall be recorded by the licensee each half hour on forms supplied by the commission.~~

~~(6) All records required by this rule shall be maintained for a period of three years from the end of the licensee's fiscal year for which the record is kept.~~

~~(7)~~)): Provided, That a licensee may allow licensed card room employees and owners to play without a fee if fees are based on time, as authorized by subsection (1)(a) of this section;

(8) This rule shall not prevent a licensee from collecting an admission fee for entry into that portion of the licensed premises conducting entertainment, provided that the same fee is charged to all patrons.

[Statutory Authority: RCW 9.46.0281, 9.46.070 (1), (2), (4)-(8), (11), (12), (14) and (20). 96-19-082 (Order 300) § 230-40-050, filed 9/18/96, effective 10/19/96. Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4). 95-23-109, § 230-40-050, filed 11/22/95, effective 1/1/96. Statutory Authority: RCW 9.46.070. 94-17-091 (Order 256), § 230-40-050, filed 8/16/94, effective 9/16/94. Statutory Authority: RCW 9.46.070 (1), (2), (4), (5), (6), (9), (11), (14) and (17) and 9.46.020 (19) and (23). 85-17-015 (Order 153), § 230-40-050, filed 8/12/85. Statutory Authority: RCW 9.46.020 (20)(d), 9.46.050(3) and 9.46.070 (1), (2), (5), (8), (9), (11) and (12). 85-03-026 (Order 144), § 230-40-050, filed 1/9/85. Statutory Authority: RCW 9.46.070 (8) and (17). 83-23-055 (Order 138), § 230-40-050, filed 11/15/83. Statutory Authority: RCW 9.46.070(11). 82-11-028 (Order 120), § 230-40-050, filed 5/11/82; 80-09-067 (Order 103), § 230-40-050, filed 7/17/80; Order 72, § 230-40-050, filed 7/26/77; Order 42, § 230-40-050, filed 9/18/75; Order 38, § 230-40-050, filed 5/9/75; Emergency Order 37, § 230-40-050, filed 5/9/75; Order 35, § 230-40-050, filed 3/14/75; Order 29, § 230-40-050, filed 1/23/75; Order 23, § 230-40-050, filed 9/23/74.]

OTS-2903.2

AMENDATORY SECTION(Amending Order 192, filed 5/16/89)

WAC 230-40-070
Licensee to furnish all cards, chips and other services.

Each public card room licensee shall furnish ((~~the following items and services~~)) all cards in connection with all card games conducted on its premises at no additional charge to the players((:

~~(1) Chips. Chips for use in wagering shall be of generally conventional size and design~~)). All chips and cards shall be of generally conventional size and design, and include safeguards that maximize the integrity of the card games. The following standards and procedures apply to this section:

(1) For nonhouse-banked card games, the licensee shall furnish chips and cards that meet the following requirements:

(a) Chips furnished by a licensee shall be so designed that they are readily identifiable as having been furnished by that particular licensee.

((~~(2) Cards or mah-jongg tiles.~~)) (b) For poker, the deck, or decks of cards being used at a given table ((~~where any poker game is being played~~)) shall be changed at a minimum every half hour by the licensee.

((Playing cards or mah-jongg tiles furnished shall be of generally conventional size and design. Playing cards or tiles that have been shaved, sanded, cut, carved, or otherwise marked in any manner which may make certain cards or tiles identifiable to players other than as allowed by the rules of the particular game are prohibited.)) (2) For house-banked card games, the licensee shall furnish chips and cards that meet the following requirements:

(a) Chips. Chips must include the house name, clearly denote the chip value, be produced by a licensed manufacturer, and purchased from a licensed manufacturer or distributor. All house-banked card rooms that conduct poker games which utilize the same cashier shall meet the house-banked requirements for all banked and nonbanked games.

(b) Cards. The deck or decks of cards must include the house name or logo, be produced by a licensed manufacturer, and be purchased from a licensed manufacturer or distributor.

(3) Bank services. The licensee shall sell its chips to all players desiring to buy them not in excess of any limits set by the commission and redeem all chips at the value for which they were sold. The value at which the various types of chips are sold and redeemed shall be conspicuously posted and visible to each person prior to that person purchasing chips. ((~~Money taken in on chips sold and table fees collected shall be kept~~)) The licensee shall collect the money taken in on chips sold and fees collected and shall keep these funds separate and apart from all other money received by the licensee.

(4) Chips may be sold for cash only and an operator shall extend no credit of any nature ((~~shall be extended by an operator~~)) to a person purchasing chips: Provided, That an operator may accept a check in accordance with WAC 230-12-053 and 230-40-845. Counter checks are prohibited. Each receipt by a person of a quantity of chips from the operator shall be a separate transaction for the purpose of this rule. Checks received for chips retained by the operator after close of business shall be deposited by the operator not later than the second day following receipt upon which the operator's bank is open for business.

(5) ((~~No licensee shall allow~~)) The licensee shall safeguard all chips and cards to assure integrity of games and banking services and no licensee shall allow:

(a) Playing cards that have been shaved, sanded, cut, carved, or otherwise marked in any manner which may make certain cards identifiable to players other than as allowed by the rules of the particular game.

(b) Any cards or chips not furnished by the licensee ((~~on that business day~~)) to be used in any card game conducted upon its premises. ((~~No licensee shall allow~~))

(c) Any cards or chips furnished in connection with any card game to be used, unless they are furnished by the licensee that same business day.

(d) Any other person to buy or sell chips for use in card games upon its premises nor provide any other item or service for use in connection with the game.

[Statutory Authority: RCW 9.46.070 (8), (11) and (14). 89-11-048 (Order 192), § 230-40-070, filed 5/16/89. Statutory Authority: RCW 9.46.070 (11), (14) and 9.46.0218 [9.46.0281]. 89-05-024 (Order 186), § 230-40-070, filed 2/13/89. Statutory Authority: RCW 9.46.070 (1), (2), (4), (5), (6), (11), (14) and (17). 86-13-055 (Order 158), § 230-40-070, filed 6/13/86; Order 74, § 230-40-070, filed 8/17/77; Order 40, § 230-40-070, filed 6/26/75; Order 29, § 230-40-070, filed 1/23/75; Order 23, § 230-40-070, filed 9/23/74.]

OTS-2904.1

AMENDATORY SECTION(Amending Order 252, filed 6/15/94, effective 7/16/94)

WAC 230-40-120
Limits on wagers in card games.

Social and public card room licensees shall not allow wagering limits set by the commission to be exceeded in any card game. The number and value of wagers in card games are limited as follows:

(1) ((~~The maximum number of wagers in any betting round shall be three, comprised of an initial wager plus two raises.~~

~~(2) The maximum number of a wager in any betting round shall be as follows:~~

~~(a) Games with a single betting round - ten dollars per wager;~~

~~(b) Games with multiple betting rounds:~~

~~(i) Two betting round games - wagers for the first round shall not exceed five dollars, and the second round shall not exceed ten dollars;~~

~~(ii) Three betting round games - wagers for the first two betting rounds shall not exceed five dollars, and wagers for the third betting round shall not exceed ten dollars;~~

(iii) Four betting round games - the wagers for each round may be structured by house rule: Provided, That the total wagers for all four betting rounds shall not exceed twenty-five dollars, and any single wager shall not exceed ten dollars; and

(iv) Five betting round games - the wagers for each round may be structured by house rule: Provided, That the total wagers for all five betting rounds shall not exceed thirty dollars, and any single wager shall not exceed ten dollars.

~~(c) Games that do not allow raises - single wager not to exceed ten dollars for each betting round.~~

~~(3)~~)) Nonhouse-banked card games:

(a) Poker:

(i) There shall be no more than five betting rounds in any one game;

(ii) The maximum number of wagers in any betting round shall be four, comprised of an initial wager plus three raises; and

(iii) The maximum amount of a single wager shall not exceed twenty-five dollars.

(b) Games based on achieving a specific number of points - each point shall not exceed five cents in value.

((~~(4)~~)) (c) An ante, except for panguingue (pan), shall not be more than ten dollars. The ante may, by house rule, be made by one or more players, but the total ante may not exceed ten dollars. ((~~No one player can ante more than the maximum wager allowed in the first round.~~)) An ante, by house rule, may be used as part of a player's wager.

((~~(5)~~)) (d) Panguingue (pan) - maximum value of a chip for payoff will not exceed four dollars. Ante will not exceed one chip. No doubling of conditions. Players going out may collect not more than two chips from each participating player.

((~~(6) Provided,~~)) (e) Washington blackjack shall be subject to the rules and wagering limits set forth in WAC 230-40-125.

(2) House-banked card games:

(a) Operators authorized to conduct Phase I house-banked card games shall not allow a single wager to exceed twenty-five dollars;

(b) Operators authorized to conduct Phase II house-banked card games shall not allow a single wager to exceed one hundred dollars; and

(c) A single wager may be made on each separate element of chance. In addition, for blackjack, an additional wager may be placed for doubling down.

(3) The wager to enter a player-supported progressive prize contest shall not exceed one dollar per hand.

(4) House rules establishing wagering limits for the betting rounds of each type of game played shall be posted in plain view where it can be seen by the players in the card game.

(5) Side bets between and against players and against the house are prohibited. Only persons actually playing in the card game may wager upon the outcome of the game. Wagers by persons other than those playing which in any way involves the outcome of the game, or of any aspect of the game, are prohibited: Provided, That gratuity wagers made by a player for a dealer shall not be considered a side bet.

[Statutory Authority: RCW 9.46.070. 94-13-098 (Order 252), § 230-40-120, filed 6/15/94, effective 7/16/94. Statutory Authority: RCW 34.05.220(4), [34.05].230 and 9.46.070 (11) and (14). 90-05-032 (Order 205), § 230-40-120, filed 2/14/90, effective 3/17/90. Statutory Authority: RCW 9.46.070 (8), (11) and (14). 89-15-039 (Order 194), § 230-40-120, filed 7/18/89, effective 8/18/89. Statutory Authority: RCW 9.46.050(3) and 9.46.070 (1), (2) and (11). 86-15-025 (Order 159), § 230-40-120, filed 7/14/86. Statutory Authority: RCW 9.46.070 (1), (2) and (11) and 9.46.110. 85-21-046 (Order 154), § 230-40-120, filed 10/14/85. Statutory Authority: RCW 9.46.020 (20)(d) and 9.46.070(11). 82-23-050 (Order 125) and 83-01-045 (Order 125A), § 230-40-120, filed 11/15/82 and 12/13/82. Statutory Authority: RCW 9.46.070(11). 82-04-010 (Order 118), § 230-40-120, filed 1/22/82; 81-19-073 (Order 112), § 230-40-120, filed 9/15/81. Statutory Authority: RCW 9.46.070(10). 80-03-059 (Order 98), § 230-40-120, filed 2/25/80; Order 80, § 230-40-120, filed 12/28/77; Order 51, § 230-40-120, filed 4/30/76; Order 48, § 230-40-120, filed 3/23/76; Order 23, § 230-40-120, filed 9/23/74.]

OTS-3024.1

AMENDATORY SECTION(Amending Order 252, filed 6/15/94, effective 7/16/94)

WAC 230-40-120
Limits on wagers in card games.

Social and public card room licensees shall not allow wagering limits set by the commission to be exceeded in any card game. The number and value of wagers in card games are limited as follows:

(1) ((~~The maximum number of wagers in any betting round shall be three, comprised of an initial wager plus two raises.~~

~~(2) The maximum number of a wager in any betting round shall be as follows:~~

~~(a) Games with a single betting round - ten dollars per wager;~~

~~(b) Games with multiple betting rounds:~~

~~(i) Two betting round games - wagers for the first round shall not exceed five dollars, and the second round shall not exceed ten dollars;~~

~~(ii) Three betting round games - wagers for the first two betting rounds shall not exceed five dollars, and wagers for the third betting round shall not exceed ten dollars;~~

~~(c) Games that do not allow raises - single wager not to exceed ten dollars for each betting round.~~

~~(3)~~)) Nonhouse-banked card games:

(a) Poker:

(i) There shall be no more than five betting rounds in any one hand;

(ii) The maximum number of wagers in any betting round shall be four, comprised of an initial wager plus three raises; and

(iii) The maximum amount of a single wager shall not exceed twenty-five dollars and the amount wagered per player shall not exceed two hundred fifty dollars per hand. For purposes of this subsection, the hand shall mean a complete set of betting rounds.

(b) Games based on achieving a specific number of points - each point shall not exceed five cents in value.

((~~(6) Provided,~~)) (e) Washington blackjack shall be subject to the rules and wagering limits set forth in WAC 230-40-125.

(2) House-banked card games:

(a) Operators authorized to conduct Phase I house-banked card games shall not allow a single wager to exceed twenty-five dollars;

(b) Operators authorized to conduct Phase II house-banked card games shall not allow a single wager to exceed fifty dollars; and

(c) A single wager may be made on each separate element of chance. In addition, for blackjack, an additional wager may be placed for doubling down.

(3) The wager to enter a player-supported progressive prize contest shall not exceed one dollar per hand.

(4) House rules establishing wagering limits for the betting rounds of each type of game played shall be posted in plain view where it can be seen by the players in the card game.

OTS-2905.3

AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-125
Washington blackjack--Rules of play--Wagering limits.

Washington blackjack is a nonhouse-banking card game permitted in Class A and E card rooms. Washington blackjack shall be played in the following manner:

(1) Fees to play Washington blackjack shall only be assessed on a time basis and collected using the direct collection method as defined in WAC 230-40-050.

(2) Up to six standard fifty-two-card decks shall be used with suits disregarded and each card valued numerically only as follows: Ace equal 1 or 11; face cards (King, Queen, Jack) equal 10 each; others according to their spots, 10 to 2. The number of decks used shall be established by house rule. The cards shall be dealt from a shoe at all times. The game is played with ((~~either a house dealer and a player/banker or~~)) a player who is ((a)) both the dealer((/)) and banker (dealer/banker).

((~~(2)~~)) (3) When starting a new table the cards are cut to determine who the first dealer/banker will be. The dealer/banker shall announce the amount of money that he or she will put into the bank. If a minimum bank ((~~may be~~)) is established as per individual house rule it shall not exceed five hundred dollars. ((~~If a house dealer is used, the banker delivers the bank to the dealer and the dealer shall place a marker reading "banker" on the bet line in front of the banker.~~

~~(3)~~)) (4) Once the bank has been established, the player to the immediate left of the dealer/banker places his/her wager on the bet line and the dealer/banker covers that wager by matching it with a like amount of chips. Each player makes their wager in turn and each wager is immediately matched by the dealer/banker. The maximum and minimum wager may be set by house rule but in no event shall the maximum wager exceed twenty-five dollars. If the bank runs out of money (tapped out) prior to the commencement of the deal, then only those players with a wager covered will be dealt a hand.

((~~(4)~~)) (5) The play begins with the dealer/banker dealing one card face up to each covered player including himself/herself, one more card face up to each covered player, and then one down card to himself/herself. A player may be dealt more than one hand by house rule. ((~~When a house dealer is used, no cards are dealt to the banker.~~)) If a player holds an ace and a face card or a ten, it is a "natural" 21 and the player collects 1.5 times the amount of their bet from the dealer/banker, unless the dealer/banker also has a natural which results in a tie (push). All ties result in the players and the dealer/banker recovering their wagers.

((~~(5)~~)) (6) If the dealer/banker has a "natural," he/she collects the wagers from players who do not have a "natural." If the dealer/banker does not have a "natural," he/she pays off any player with a "natural" starting with the first one to the left of the dealer/banker. Should the dealer/banker not have enough money in the bank to make up the 1.5 for one payoff due on a "natural," then those hands and wagers will be frozen in place until the additional wagers are made up or the hand is over. If after the hand is over, a dealer/banker cannot cover the 1.5 for one, the player shall get the amount of wager that was covered by the dealer/banker.

((~~(6)~~)) (7) If the dealer/banker does not have a "natural," play continues with the player on the dealer/banker's immediate left. The dealer/banker deals cards face up, one by one, as that player calls for them. The player's aim is to total 21 or as close to 21 without going over. When a player is satisfied with their total, they shall declare "stand." If the player wants more cards, the player declares "hit." If a player goes over a 21 point count, the hand is a "bust" and they must turn the hand down, while the dealer/banker collects the bet. The dealer/banker does the same with each remaining player. Any player who stands must wait while the dealer/banker draws his or her cards. If the dealer/banker goes bust, each standing player is paid the amount of their wager. If the dealer/banker "stands," the down card is turned up and players whose totals are higher than the dealer(('s))/banker's are paid. The dealer/banker collects from any player whose total is less. Action is always to the left of the dealer/banker. Any frozen wagers needing to be "made up" will be done in order, to the left of the dealer/banker from losing wagers the dealer/banker collects.

((~~(7)~~)) (8) Should the dealer/banker not be able to cover all frozen wagers then those frozen wagers are released to the winning players and the deal passes immediately to the left at which time the new dealer/banker shall announce the amount of the bank and shuffle the cards. The same shall apply if the dealer/banker has no money in the bank. The dealer/banker may, if allowed by house rule, add to their bank in between hands.

((~~(8)~~)) (9) Upon completion of the shuffle, the player to the right of the dealer/banker shall cut the cards. After the cards have been placed into the shoe the dealer/banker shall insert a blank card approximately three quarters of the way through the deck(s). A dealer/banker may deal from the shoe until he/she reaches the blank card. After the blank card appears, the dealer/banker may continue dealing that hand, but will not start a new hand. ((~~If a house dealer is used, he/she returns the remaining chips in the bank to the banker.~~)) The player on the dealer/banker's immediate left shall be offered the opportunity to be the next dealer/banker ((~~or banker~~)). The discards may only be reshuffled to complete the last hand.

((~~(9)~~)) (10) Once wagers are placed and covered on the bet line, no player, including the dealer/banker, may touch those wagers until the winner has been determined. Any player touching the wagers may be ruled to have fouled and their wager forfeited.

((~~(10)~~)) (11) Any player who lifts their cards up from the table or slides their cards out of their own playing area shall be ruled to have fouled and their wager may be forfeited.

((~~(11)~~)) (12) No player may "buy" the bank. The bank must pass around the table to the left and no player can authorize ((~~anyone other than a house dealer~~)) another person to deal for him or her. No player may be the dealer/banker for more than one consecutive shoe before passing the bank((~~: Provided, That when there are less than five players at a table a player may deal more than one consecutive shoe only when the remaining players have passed the deal~~)).

((~~(12)~~)) (13) The dealer/banker must stand on seventeen or above and must take hits on sixteen or below. If a dealer/banker has an ace, it shall be counted as eleven if it brings his or her total to seventeen or more (but not over twenty-one). Provided, the house may elect to play a "soft seventeen," which occurs when the dealer(('s))/banker's first two cards are an ace valued at eleven and a six. If the house elects to play a soft seventeen, house rules must specify that the dealer/banker must hit a soft seventeen, and must stand on a hard seventeen and any eighteen or above. House blackjack rules must be posted in plain view to the players and the house must ensure they are consistently followed.

((~~(13)~~)) (14) The conditions for doubling down shall be set by house rule, provided that the wager may be doubled and the player received only one more card. The player must then stand on those three cards. If the dealer(('s))/banker's bank is insufficient to cover a double down wager, the player may wager an amount equal to the dealer(('s))/banker's remaining bank. The dealer/banker must then cover that wager. If the dealer/banker has no bank then a player may not double down.

((~~(14)~~)) (15) If the dealer(('s))/banker's face-up card is a ten, face card or ace, he/she may look at their face-down card to see if they have a natural; if his/her face-up card is anything else, they may not look at their face-down card until their turn comes to draw.

((~~(15)~~)) (16) If the dealer/banker's face-up card is an ace, the house may allow the player banking the game to offer an "insurance" bet against losing to the dealer/banker's possible natural. The dealer/banker, before looking at his/her down card, inquires if any player wants insurance. A player who desires insurance places an amount equal to half his/her present wager on his/her own hand. When this bet is made, the dealer/banker looks at his/her down card. If it is a 10 count, the dealer/banker turns it face up and announces a natural. The insurance bettor is paid off at a rate of 2 to 1, and they lose their original wager. If the dealer/banker's down card is not a 10 count card, the player loses his/her insurance bet and continues playing on their original wager.

(17) If a player's first two cards are a pair, then that player may split the pair into two separate hands. The amount of the player's original bet then goes on one of the cards, and they must place an equal amount as a bet on the other card. If the dealer/banker does not have enough in their bank to cover the doubled bet, the dealer/banker must cover an amount equal to the value of their remaining bank. The player then has the option to divide the wagers in any manner between the two hands, not to exceed the allowable limit per hand. If the dealer/banker has no bank then the player may divide their wager in any manner between the two hands, unless the player's original bet was a minimum allowed in that game then they may not split their pair. Additional splits shall be determined by house rule.

((~~(16)~~)) (18) The dealer/banker will pay only on the value of the cards held by the player and shall not pay on the number of cards received or the card sequence.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4). 95-23-109, § 230-40-125, filed 11/22/95, effective 1/1/96. Statutory Authority: RCW 9.46.070. 93-13-062 (Order 240), § 230-40-125, filed 6/17/93, effective 7/18/93. Statutory Authority: Chapter 9.46 RCW. 91-21-053 (Order 228), § 230-40-125, filed 10/15/91, effective 11/15/91; 91-05-047 (Order 220), § 230-40-125, filed 2/14/91, effective 3/17/91. Statutory Authority: RCW 9.46.070 (11) and (14). 90-11-058, § 230-40-125, filed 5/15/90, effective 6/15/90. Statutory Authority: RCW 34.05.220(4), [34.05].230 and 9.46.070 (11) and (14). 90-05-032 (Order 205), § 230-40-125, filed 2/14/90, effective 3/17/90.]

OTS-2906.2

AMENDATORY SECTION(Amending Order 23, filed 9/23/74)

WAC 230-40-130
Wagers to be made with chips only.

All wagers and fees to play made in connection with a card game shall be made with chips furnished by the licensed premises((~~. No money, nor other thing of value, shall be used directly in the game itself~~)): Provided, That operations of house-banked card games may use coins with a value of fifty cents or twenty-five cents: Provided further, That coins with a value of less than twenty-five cents may be used for pai-gow poker games. However, no chips from other card rooms may be accepted.

[Order 23, § 230-40-130, filed 9/23/74.]

OTS-2907.1

AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-200
Participants to compete on equal terms--Deal to rotate among players.

Participants in card games shall compete on equal terms with all other participants in the game, and solely as a participant therein.

The deal in any series of nonhouse-banked card games shall be passed from player to player, unless the table incorporates a house dealer as per house rule: Provided, That house dealers may not be used for Washington blackjack. No player who deals a game shall deal another game until each other player at the table has dealt a game in his turn((~~: Provided, That any player may voluntarily waive his right to deal any particular game.~~

~~Licensees shall take all necessary measures to insure that card games played upon their premises are played in this manner~~)).

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4). 95-23-109, § 230-40-200, filed 11/22/95, effective 1/1/96. Order 40, § 230-40-200, filed 6/26/75; Order 23, § 230-40-200, filed 9/23/74.]

OTS-2908.3

AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-225
House dealer allowed in certain games.

((~~Notwithstanding the provisions of WAC 230-40-200,~~)) Any licensee may furnish a dealer or "mucker" in any ((~~Washington blackjack,~~)) pan or poker game played on the licensed premises. Dealers shall have no financial interest, directly or indirectly, in the outcome of such game and shall not otherwise participate or play in the game: Provided, That a licensee shall be required to have a house dealer for all house-banked card games, card games operated with a player-supported progressive prize contest, or card games authorized to assess fees for each hand played or fees based on amounts wagered: Provided further, That house dealers may not be used for Washington blackjack.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4). 95-23-109, § 230-40-225, filed 11/22/95, effective 1/1/96. Statutory Authority: RCW 9.46.070. 94-13-098 (Order 252), § 230-40-225, filed 6/15/94, effective 7/16/94; Order 29, § 230-40-225, filed 1/23/75.]

OTS-2909.2

AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-400
Hours ((~~limited~~)) for card games--Procedures for changing hours.

The hours during which card games may be played in licensed public card rooms shall be limited as follows:

(1) Licensees shall not allow the use of their premises for card playing between the hours of 2:00 a.m. and 6:00 a.m.: Provided, That the director may allow closing hours to be adjusted beyond 2:00 a.m. as long as the following conditions ((~~remain in effect~~)) are met:

(a) ((~~The local law enforcement agency with jurisdiction concurs;~~

~~(b) Other state agencies involved in regulation of the business do not object; and~~)) The director shall consult with the local law enforcement agency which has jurisdiction;

(b) The director shall consult with other state agencies involved in regulation of the business;

(c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation.

((~~(2)~~)) (d) The food and/or drink business being stimulated shall be open to the public for business any time card games are conducted((: Provided, That entry to the business by new customers may be limited if access to the premises is open to the commission, law enforcement, or other state or local regulatory agencies, and service of food and nonalcoholic beverages is available for customers remaining on the premises after 2:00 a.m.));

((~~(3)~~)) (e) At all times during the hours of operation of a Class E or F card room, the operator or a licensed card room employee must be on duty and in the licensed card room area; and

(f) Any person with ten percent or more interest in licensed card rooms within one mile of each other shall be closed for at least the same four-hour period each day; and

(g) The licensee complies with any other terms and conditions imposed by the director.

(2) The director may deny the request for extended hours or revoke hours already approved if the local law enforcement agency or a state agency objects or if the director determines that the licensee has violated any provisions of chapter 9.46 RCW, any other commission rule, or any of the terms set forth in subsection (1) of this section. All objections to changing a licensee's operating hours or requests to revoke an approved operating schedule must be submitted in writing.

(3) The commission shall afford a licensee an opportunity for a brief adjudicative proceeding prior to denying or revoking the licensee's authorization for extended card room hours. The brief adjudicative proceeding shall be heard by an administrative law judge, and shall follow the procedures set forth in WAC 230-50-010 (4) and (5), and RCW 34.05.494.

[Statutory Authority: RCW 9.46.070 (1)-(4), (7), (8), (11), (12), (14), (20) and 9.46.110 (3), (4). 95-23-109, § 230-40-400, filed 11/22/95, effective 1/1/96. Statutory Authority: RCW 9.46.070. 95-13-024, § 230-40-400, filed 6/13/95, effective 7/14/95. Statutory Authority: RCW 9.46.070(11). 82-04-010 (Order 118), § 230-40-400, filed 1/22/82; Order 58, § 230-40-400, filed 8/17/76; Order 40, § 230-40-400, filed 6/26/75; Order 23, § 230-40-400, filed 9/23/74.]

OTS-3025.1

AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-400
Hours ((~~limited~~)) for card games--Procedures for changing hours.

The hours during which card games may be played in licensed public card rooms shall be limited as follows:

(a) The local law enforcement agency with jurisdiction concurs;

(b) Other state agencies involved in regulation of the business do not object; and

(c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation.

((~~(3)~~)) (e) At all times during the hours of operation of a Class E or F card room, the operator or a licensed card room employee must be on duty and in the licensed card room area; and

(f) Any person with ten percent or more interest in licensed card rooms within one mile of each other shall be closed for at least the same four-hour period each day; and

(g) The licensee complies with any other terms and conditions imposed by the director.

OTS-3026.1

AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-400
Hours ((~~limited~~)) for card games--Procedures for changing hours.

The hours during which card games may be played in licensed public card rooms shall be limited as follows:

(a) ((~~The local law enforcement agency with jurisdiction concurs;~~

~~(b) Other state agencies involved in regulation of the business do not object; and~~)) The director shall consult with the local law enforcement agency which has jurisdiction;

(b) The director shall consult with other state agencies involved in regulation of the business;

(c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation.

((~~(3)~~)) (e) At all times during the hours of operation of a Class E or F card room, the operator or a licensed card room employee must be on duty and in the licensed card room area; and

(f) Any person with ten percent or more interest in licensed card rooms adjacent to each other shall be closed for at least the same four hour period each day; and

(g) The licensee complies with any other terms and conditions imposed by the director.

OTS-3027.1

AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-400
Hours limited for card games.

The hours during which card games may be played in licensed public card rooms shall be limited as follows:

(1) Licensees shall not allow the use of their premises for card playing between the hours of 2:00 a.m. and 6:00 a.m.((~~: Provided, That the director may allow closing hours to be adjusted beyond 2:00 a.m. as long as the following conditions remain in effect:~~

~~(a) The local law enforcement agency with jurisdiction concurs;~~

~~(b) Other state agencies involved in regulation of the business do not object; and~~

~~(c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation.~~

(2) The food and/or drink business being stimulated shall be open to the public for business any time card games are conducted: Provided, That entry to the business by new customers may be limited if access to the premises is open to the commission, law enforcement, or other state or local regulatory agencies, and service of food and nonalcoholic beverages is available for customers remaining on the premises after 2:00 a.m.

~~(3) At all times during the hours of operation of a Class E card room, the operator or a licensed card room employee must be on duty and in the licensed card room area.~~))

OTS-3028.1

AMENDATORY SECTION(Amending WSR 95-23-109, filed 11/22/95, effective 1/1/96)

WAC 230-40-400
Hours ((~~limited~~)) for card games.

The hours during which card games may be played in licensed public card rooms shall be limited as follows:

(1) Licensees shall not allow the use of their premises for card playing between the hours of ((~~2:00 a.m. and 6:00 a.m.: Provided, That the director may allow closing hours to be adjusted beyond 2:00 a.m. as long as the following conditions remain in effect:~~

~~(a) The local law enforcement agency with jurisdiction concurs;~~

~~(b) Other state agencies involved in regulation of the business do not object; and~~

~~(c) A licensee must observe a four-hour period of closure at the end of each business day before beginning the next period of operation.~~

~~(3) At all times during the hours of operation of a Class E card room, the operator or a licensed card room employee must be on duty and in the licensed card room area~~)) 4 a.m. and 8 a.m.

OTS-2910.2

AMENDATORY SECTION(Amending WSR 97-14-013, filed 6/20/97, effective 7/21/97)

WAC 230-50-010
Adjudicative proceedings--Hearings.

(1) ((~~Adjudicated~~)) Adjudicative proceedings shall be commenced for any and all matters wherein the commission is causing administrative charges to be brought against any applicant, licensee or permittee within the limitations to chapter 34.05 RCW as applicable.

(2) The commission shall afford an applicant for a license an opportunity for an ((~~adjudicated~~)) adjudicative proceeding prior to denying such application, and shall afford a licensee the opportunity for an ((~~adjudicated~~)) adjudicative proceeding prior to suspending or revoking a license.

(3) The commission will afford a person applying to the commission for approval of a pull-tab dispensing device under WAC 230-30-095 an opportunity for an ((~~adjudicated~~)) adjudicative proceeding prior to denying approval of such device.

(4) No hearing will be conducted with respect to any ((~~adjudicated~~)) adjudicative proceeding unless an application for an ((~~adjudicated~~)) adjudicative proceeding and request for hearing is timely filed by the applicant or licensee with the commission in compliance with WAC 230-50-210. The application must be made upon a form to be obtained from the commission, or facsimile thereof, and must be received within 20 days following service upon the party affected by the commission or the director of a notice of administrative charges and opportunity for an ((~~adjudicated~~)) adjudicative proceeding. Said document shall contain the maximum penalty that may be assessed should an application not be filed by the party affected. An application for an ((~~adjudicated~~)) adjudicative proceeding and request for hearing shall accompany all notices of administrative charges.

(5) If an application for an ((~~adjudicated~~)) adjudicative proceeding is not timely filed, then the party affected shall have waived the right to a hearing on the allegations set forth in the notice of administrative charges. The party shall be deemed to be in default pursuant to RCW 34.05.440 and the commission and director may take action against the party not to exceed the maximum penalty as stated in the notice of administrative charges and opportunity for an ((~~adjudicated~~)) adjudicative proceeding, which action shall be final.

(6) The procedures of RCW 34.05.485, brief adjudicative proceedings, shall be used for the following purposes:

(a) All hearings in which the penalty sought by the commission is for a suspension of seven days or less;

(b) Hearings held pursuant to WAC 230-50-015 (stay of summary suspension);

(d) Hearings held pursuant to WAC 230-04-190 (10)(c) (two part payment plan: Failure to make second payment);

(e) Hearings in which the parties have stipulated to facts or the parties have stipulated to charges, and the hearing is limited to a determination of whether facts constitute violations as charged and/or determination of appropriate penalty to be imposed;

(f) Denial of an application to operate at a higher bingo license class when the licensee has been restricted by WAC 230-20-062;

(g) Petitions for a variance to bingo net return requirements authorized by WAC 230-20-060; ((or))

(h) Denial or revocation of extended card room hours pursuant to WAC 230-40-400;

(i) Denial of request for Phase II pursuant to WAC 230-40-810; or

(j) Where the parties have stipulated to the use of brief adjudicative proceedings.

[Statutory Authority: RCW 9.46.070 (1), (2). 97-14-013, § 230-50-010, filed 6/20/97, effective 7/21/97. Statutory Authority: RCW 9.46.070. 95-13-030, § 230-50-010, filed 6/13/95, effective 7/14/95; 92-19-107 (Order 231), § 230-50-010, filed 9/18/92, effective 10/19/92. Statutory Authority: Chapter 34.05 RCW. 89-24-003 (Order 200), § 230-50-010, filed 11/27/89, effective 12/28/89. Statutory Authority: RCW 9.46.070(13). 80-03-059 (Order 98), § 230-50-010, filed 2/25/80; Order 45, § 230-50-010, filed 12/30/75; Order 9, § 230-50-010, filed 12/19/73.]

OTS-2862.3

NEW SECTION
WAC 230-40-600
Authorization procedures for player-supported progressive prize contests.

In order to ensure operators of player-supported progressive prize contests have an adequate control environment functioning, the following requirements shall be met:

(1) Each gaming operation shall submit a description of its internal control procedures detailing rules of play for player-supported progressive prize contests in the standard format prescribed by commission staff;

(2) The internal control submission shall undergo a review process and be approved prior to implementation; and

(3) Any changes to a gaming operation’s system of internal controls for the player-supported progressive prize contests must be submitted to commission staff and be approved prior to implementation.

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OTS-2863.4

NEW SECTION
WAC 230-40-610
Player-supported progressive prize contest--Restrictions--Manner of conducting--Approval.

Card room operators with a Class E or F card room license may establish a prize fund for the purpose of operating player-supported progressive prize contests (player-supported jackpot or PSJ). Only a PSJ approved in writing by the director or the director’s designee shall be allowed. The operator must establish a detailed written procedure for funding each PSJ offered.

(1) Funding of a PSJ: An operator may provide house funds to establish a PSJ. The organization shall issue a check from the general business account into the PSJ account to start the prize fund. Recouping of start-up funds shall be done by issuing a check from the PSJ account to the business general account. Electronic bank transfers shall satisfy this requirement. Start-up funds shall not exceed five thousand dollars per PSJ.

(2) An operator may assess an amount not to exceed one dollar per hand or game that each player contributes to a PSJ. Each assessment shall be separately collected and recorded in a format prescribed by commission staff.

(3) The operator acts only as the custodian of the PSJ funds and maintains no legal right to the funds. All PSJ prizes shall be awarded.

(4) Each operator shall designate a "prize fund custodian" who shall be responsible for safeguarding and disbursing funds to winners. The custodian shall have signature authority for prize fund bank accounts and ensure accountability of all funds collected for use in a PSJ. The operator shall meet deposit requirements of WAC 230-12-072.

(5) PSJ funds can only be used for awarding cash prizes based upon a format approved by commission staff. Access to PSJ funds shall be restricted to the prize fund custodian.

(6) Prize amounts paid in cash shall not exceed five hundred dollars. Prize amounts not awarded in cash shall be paid by check, the type which provides a duplicate copy, which shall not be cashed on the organization’s premises. A record of all prizes paid shall be maintained in the format prescribed by commission staff and shall include:

(a) For prizes up to fifty dollars, a system of accounting denoting each individual prize may be utilized.

(b) For prizes in excess of fifty dollars, the following information shall be recorded on a prize record:

(i) Full printed name;

(ii) Date of birth;

(iii) Street address;

(iv) Driver’s license number or Social Security number;

(v) Amount of the prize awarded;

(vi) Description of the winning hand;

(vii) Time and date awarded; and

(viii) The supervisor’s, dealer’s and winner’s initials.

(c) Upon awarding a prize of five hundred dollars or more, the dealer shall fan the winning hand in view of the surveillance camera. The hand shall be collected and sealed with the prize record. The winning hand and remaining deck shall be maintained on the premises as part of daily card room records for a period of fourteen days, unless released by a commission agent.

(7) Owners and managers may participate in card games that offer a PSJ, but may not share in the winnings of any prize awarded. If playing in a game with a PSJ, owners and managers must turn their cards face up at the end of each game so that the cards may be observed by other players at the table and surveillance. Any prize winnings an owner or manager may be entitled to under game rules, must be divided equally among the other players at the table.

(8) Floor supervisors may participate in card games that offer a PSJ, but may not share in any prize, unless a card room manager or owner is on-site during the game to resolve disputes.

(9) Card room employees may participate in card games that offer a PSJ and share in prize winnings unless they are supervising the game. If a card room employee is supervising a game he/she must distribute any prize winnings equally among all other players at the table.

(10) All card games offering a PSJ must utilize a house dealer.

(11) Security requirements: Each gaming table offering a PSJ shall be required to install a closed circuit television system as outlined in WAC 230-40-825.

(12) Licensees offering a PSJ shall have at least one supervisor for every five tables: Provided, That should a licensee utilize two separate areas of a particular gaming establishment, then each area shall require at least one supervisor. At a minimum, the licensee must have at least two licensed card room employees in the card room at all times if a PSJ is being utilized. One such employee must be a floor supervisor.

(13) In the event that an organization ceases to operate a card room, fails to maintain a valid card room license, or discontinues player-supported progressive prize contests, the balance (less any nonrecouped seed money) of all PSJ accounts will be forwarded to the Washington State Council on Problem Gambling: Provided, That an operator may seek approval from the director or his/her designee to revise their prize contests in order to distribute all accumulated prize funds.

(14) House rules to include administrative fees shall be posted in a location readily visible by all players and disclose the conditions under which prizes may be won, the prize amount, cost to participate, and any other conditions which may affect the outcome of the game.

(15) If a dispute arises involving the outcome of a PSJ, the organization shall notify commission staff within twenty-four hours and preserve the video recording, the winning hand and remaining deck, and all records for the game where the dispute occurred. The licensee shall document all information pertaining to the dispute including:

(a) The names, addresses, and phone numbers of all players, card room staff, and any witnesses involved;

(b) Amount of the advertised PSJ; and

(16) All disputes involving a PSJ will be investigated by commission staff, with a report submitted to the director. A written decision will be issued by the director, or his/her designee, and such decision shall be final.

(17) During the course of dispute resolution, the commission may become the temporary custodian of any and all prize funds. The PSJ will be suspended until the dispute is resolved.

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OTS-2864.4

NEW SECTION
WAC 230-40-800
Adoption of rules for house-banked card games.

Licensees that operate house-banked card games shall establish rules and procedures governing their operation. The following restrictions and procedures apply:

(1) House-banked card games shall not be operated prior to approval from commission staff. The gaming operation shall submit all rules governing the game to commission staff for approval. Game rules adopted shall include, in addition to the rules of play, specifications provided by the equipment manufacturer or supplier applicable to gaming equipment to include at least the following:

(a) Physical characteristics of chips; and

(b) Physical characteristics of the following:

(i) Cards (including procedures for receipt and storage);

(ii) All gaming tables and layouts;

(iii) Dealing shoes (including procedures for receipt and storage);

(iv) Card peeking devices;

(v) Bill changer devices; and

(vi) Such other equipment as may be required for use in otherwise authorized games.

(2) Rules for each authorized game, shall include at least the following:

(a) Procedures of play;

(b) Minimum and maximum permissible wagers;

(d) Dealer take and pay procedures;

(e) Payout odds on each form of wager;

(f) Procedures to be followed on occurrence of irregularities, including explanation of irregularities as applicable to each game; and

(g) Prohibitions on side betting between and against player(s) and against the house.

(3) Rule summaries of each game's method of play shall be visibly displayed in the gaming operation. The betting limits applicable to any card game shall be displayed at the gaming table.

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OTS-2866.4

NEW SECTION
WAC 230-40-810
Authorization procedures for Phase II wagering limits for housed-banked card games.

In order to ensure an adequate control environment, a Class F card room licensee shall meet specific authorization procedures prior to being approved for Phase II wagering limits. The licensee shall demonstrate that they have fully complied with all commission requirements and are capable of operating at higher wager limits. In order to demonstrate their capability, an operator shall be reviewed by commission staff and receive a recommendation from the director. The following requirements and procedures apply to the review and approval process:

(1) Operation at Phase I limits for a minimum of six months.

(2) Compliance with commission requirements, including no material violations resulting in written warnings or administrative actions, complete or pending.

(3) Payment of all taxes on gambling activities owed to counties, cities, or towns. For purposes of this section, gambling taxes include those taxes owed as of the most recent reporting period (month or quarter), as provided in the jurisdiction's ordinance, plus any interest and/or penalties that may be due.

(4) Completion of a review by commission staff that shall consist of examining the gaming operation's compliance with applicable WAC rules and the operator's internal control submission and determining if the gaming operation has developed a sufficient control environment to warrant Phase II limits:

(a) Upon commission approval, the gaming operation shall be authorized to conduct gaming at Phase II limits.

(b) Operators shall be required to pay the cost of this review prior to going to Phase II limits.

(5) The director may deny a request for Phase II based on a licensee's failure to comply with one or more requirements in subsection (1), (2), (3), or (4) of this section or if the director determines that the licensee has violated any provisions of chapter 9.46 RCW or any other commission rule.

(6) The commission shall afford a licensee an opportunity for a brief adjudicative proceeding prior to denying the licensee's request for Phase II. The brief adjudicative proceeding shall be heard by an administrative law judge, and shall follow the procedures set forth in WAC 230-50-010 (4) and (5), and RCW 34.05.494.

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OTS-2867.4

NEW SECTION
WAC 230-40-815
House-banked card games--Administrative and accounting control structure--Organization of gaming operation.

It shall be the responsibility of each gaming operation licensed to operate house-banked card games to ensure that all games are operated fairly, in accordance with all rules of the commission, and that all income and expenses are recorded. Operators shall fulfill this responsibility by maintaining a control environment that includes at least the following:

(1) The gaming operation shall have a system of internal administrative and accounting controls that include at least the following:

(a) Administrative controls, which include, but are not limited to, the organization's plan, procedures, and records concerned with decision processes leading to management's authorization of transactions; and

(b) Accounting controls which include the organization's plan, procedures, and records concerned with the safeguarding of assets and the reliability of financial records. These controls must be designed to provide reasonable assurance that:

(i) Transactions are executed in accordance with management's general and specific authorization;

(ii) Transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles, and to maintain accountability for assets;

(iii) Access to assets is permitted only in accordance with management's authorization; and

(iv) The recorded accountability for assets is compared with existing assets at least annually and appropriate action is taken within five working days with respect to any differences.

(2) The gaming operation's system of internal administrative controls shall provide for the following:

(a) Competent personnel with an understanding of prescribed procedures;

(b) The segregation of incompatible functions so that no employee is in a position to perpetrate and conceal errors or irregularities in the normal course of his or her duties; and

(c) Each employee of a Class F card room shall be licensed by the commission and shall be knowledgeable in all accounting and internal control practices and procedures relevant to each employee's individual function.

(3) The gaming operation shall, at a minimum, establish the following departments or functions that shall be independent from all other departments or functions in the gaming operation.

(a) A security/surveillance department. The head of security/surveillance shall be responsible for, but not limited to, the following:

(i) The clandestine surveillance of the operation and conduct of the table games;

(ii) The clandestine surveillance of the operation of the cashier's cage;

(iii) The video and audio taping of activities in the count rooms;

(iv) The detection of cheating, theft, embezzlement, and other illegal activities in the gaming facility, count rooms, and cashier's cage;

(v) The video taping of unusual or suspected illegal activities;

(vi) The notification of appropriate supervisors, and commission staff, within three working days, upon the detection of cheating, theft, embezzlement, or other illegal activities;

(vii) Control of cards and dealing shoes, including storage of new and used cards and shoes, and control of the disposition and/or destruction of same when removed from service; and

(viii) Ensuring that each dealer is evaluated for at least fifteen minutes per week to determine if all required dealer procedures and techniques set forth in the gaming operation's approved internal controls are followed. A written report will be submitted to the CEO/COO for each dealer evaluation at the end of each week.

(b) A gaming operation department supervised by a gaming operation manager who shall be responsible for the operation of all house-banked card games conducted by ensuring the following:

(i) Card games are operated by licensed dealers who are assigned to each gaming table;

(ii) A floor supervisor is assigned the responsibility for the overall supervision of the conduct of gaming within a pit and can supervise no more than five tables. Provided, That a single supervisor may supervise up to seven tables, if only seven tables are in operation and the layout was preapproved by commission staff. The shift manager shall oversee floor supervisors and report to the gaming operation manager; and

(iii) A shift manager, who reports to the gaming operations manager, is assigned to supervise all gaming related activities that occur during each shift. In the absence of the gaming operation manager, the shift manager shall have the authority of a gaming operation manager.

(c) A gaming operation accounting department supervised by an individual who shall report directly to the CEO/COO. The responsibilities of the accounting department shall include, but not be limited to, the following:

(i) Implementing and monitoring of accounting controls;

(ii) The preparation, control, and storage of records and data required;

(iii) The control of unused forms inventory along with reconciliation of forms used in the gaming operation to the unused forms inventory; and

(iv) The control and supervision of the cashier's cage.

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OTS-2869.4

NEW SECTION
WAC 230-40-820
House-banked card games--Internal control evaluation--Required procedures.

To ensure commission rules and the licensee's internal control procedures are adhered to, commission staff will complete a review and evaluation of the internal control structure for all licensees operating house-banked card games, during each license year: Provided, That a review will not be required for an operator who has undergone a Phase II review within the last six months of the license year. The following restrictions and procedures apply:

(1) Commission staff shall evaluate the system of internal administrative and accounting controls for all house-banked gaming operations. This evaluation shall assure that the controls are adequate for the scope of operations and have been complied with in every material aspect.

(2) During each license year, a comprehensive review of management’s internal control structure will be completed, which will include the control environment, accounting system and control procedures. The comprehensive review shall be in addition to regular monitoring inspections performed by commission staff.

(3) A comprehensive report will be prepared on an annual basis summarizing all the areas reviewed, all material discrepancies noted during the year, and any corrective action taken.

(4) The director may contract for services outlined above to be performed by outside agencies as deemed necessary.

(5) The full cost of reviews will be paid by the licensee, whether conducted by commission staff or a contractor hired by the commission.

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OTS-3029.1

NEW SECTION
WAC 230-40-820
House-banked card games--Internal control evaluation--Required procedures.

(3) A comprehensive report will be prepared on an annual basis summarizing all the areas reviewed, all material discrepancies noted during the year, and any corrective action taken.

(4) The director may contract for services outlined above to be performed by outside agencies as deemed necessary. The contractor must, at a minimum, be licensed as a certified public accountant for the state of Washington and possess adequate experience and education in the gaming industry to ensure the report meets commission standards.

(5) The full cost of reviews will be paid by the licensee, whether conducted by commission staff or a contractor hired by the commission.

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OTS-2870.4

NEW SECTION
WAC 230-40-825
Closed circuit television system requirements and procedures.

All activities related to the operation of card games shall be closely monitored. Critical activities related to house-banked card games, player-supported progressive prize contests and assessment of fees based on amounts wagered (rake method) shall be monitored by use of a closed circuit television system and a video recording. The following restrictions and operating procedures apply when a closed circuit television system is required.

(1) Each gaming operation shall install and maintain a closed circuit television system that meets at least the specifications set forth below:

(a) Light sensitive cameras with pan, tilt, and zoom (PTZ) capabilities where necessary to effectively and clandestinely monitor in detail and from various vantage points, including the following:

(i) The gaming conducted at each gaming table in the facility;

(ii) The activities in the gaming operation pits;

(iii) Each table game area, with sufficient clarity to identify patrons and dealers;

(iv) Each table game surface, with sufficient coverage and clarity to simultaneously view the table bank and determine the configuration of wagers, card values and game outcome;

(v) The operations conducted at and in the cashier's cage;

(vi) Entrance to the cashier’s cage;

(vii) The count processes conducted in the count rooms, which processes shall be in conformity with commission rules;

(viii) The movement of cash, gaming chips, and drop boxes in the establishment;

(ix) The entrances and exits to the gaming operation and the count rooms; and

(x) Such other areas as the commission designates.

(b) All video cameras must be installed in a manner that will prevent them from being readily obstructed, tampered with, or disabled by patrons or employees.

(c) Where a PTZ camera is used to observe card tables and gambling related activities, the camera must be placed behind a smoked dome, one-way mirror or similar materials that conceal the camera from view.

(d) Video recording units, with time and date insertion capabilities, for recording what is being viewed by any camera of the system. Recording and playback of video signals shall be at a rate of not less than twenty frames per second. If multiple time and date generators are used, they shall be synchronized to the same time and date. The displayed date and time shall not significantly obstruct the recorded view. The following locations or activities shall be video taped:

(i) All gaming stations in operation or in which drop boxes are stored, to include video recording of all items noted in (a)(i) through (viii) of this subsection;

(ii) All entries to the count room;

(iii) The entire count process, including audio recording;

(iv) Any unusual or suspicious activities;

(v) Movement of drop boxes between tables and the count room; and

(vi) Any other activity or location designated by commission staff.

(e) One or more surveillance rooms in the establishment which shall have controlled access and be used by the employees of the gaming operation assigned to monitor the activities in the gaming operation and which may be used as necessary by agents of the commission.

(2) Lighting to provide sufficient clarity shall be present in all areas, including gaming tables and pits, where closed circuit camera coverage is required.

(3) Each video camera required by these rules shall be capable of having its picture displayed on a video monitor and recorded.

(4) The surveillance system must include a sufficient number of monitors to simultaneously display multiple card tables, the cashier’s cage, count room activities, and views of any dedicated cameras.

(5) Multiplexing devices may only be used for external surveillance, movement of drop boxes between tables and the count room and on entrances and exits.

(6) The gaming operation shall be required to maintain a record of all surveillance activities in the surveillance room. The surveillance log shall be maintained by surveillance personnel and shall include, at a minimum, the following:

(a) Date and time of surveillance;

(b) Person initiating surveillance;

(d) Time of termination of surveillance;

(e) Summary of the results of the surveillance; and

(f) A record of any equipment or camera malfunctions.

(7) A surveillance room log shall be available for inspection at any time by commission staff or local law enforcement.

(8) Video and audio tapes shall be retained for at least seven days or for such longer period as commission staff may require. Tapes of evidentiary value or documenting details of jackpot payouts over three thousand dollars shall be retained for at least thirty days, or longer if requested by commission staff.

(9) Entrances to the closed circuit television surveillance rooms shall not be readily observable from the gaming operation area.

(10) A surveillance employee shall be present in the surveillance room and monitoring the activities of the operation, via the surveillance room equipment, at all times the card room is open to conduct gaming: Provided, That licensed employees not serving in an incompatible function may provide temporary relief for surveillance employees during routine work breaks. A relief break shall not exceed thirty minutes: Provided further, That a surveillance employee is not required to be present if an operator does not assess fees using the rake method, offer house-banked card games, or player-supported progressive jackpot contests.

All surveillance employees shall have a demonstrated knowledge of the following:

(a) Operating surveillance systems pertaining to card rooms;

(b) An understanding of the procedures for the games being played; and

(c) The overall procedures relating to the duties of all employees of a Class F card room being monitored (dealers, shift managers, floor supervisors, cage personnel, and count team).

(11) The surveillance room sign-in log shall be used to document the time each surveillance employee monitors the gaming operation. Commission agents and law enforcement personnel shall be provided immediate access to the surveillance room upon request.

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OTS-2871.3

NEW SECTION
WAC 230-40-830
Cashier’s cage--Requirements.

All cash, cash equivalents, and chips related to the operation of card games shall be closely controlled and records maintained documenting receipts and disbursements. Each card room shall maintain a cashier's function whose responsibility shall be to secure and account for all chips and monies in the gaming operation. At a minimum the following restrictions and procedures apply:

(1) As part of the gaming operation there shall be on or immediately adjacent to the gaming floor a physical structure known as the cashier's cage (cage) to house the cashiers and to serve as the central location for, at a minimum, the following:

(a) The custody of the cage inventory comprising currency, coin, patron checks, gaming chips, forms, documents and records normally associated with the operation of a

WAC 230-40-060	Persons shall not share in winnings or charge additional fee for playing cards.
WAC 230-40-150	Side bets prohibited.
WAC 230-40-160	Wagers by other than participants prohibited.
WAC 230-40-900	Public card room enhancement program--Pilot study.