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11VAC5-90-10 Definitions

 

 “Electronic transfer of money” means any transfer of money, other than a transaction initiated by a check, draft or other similar instrument, that is initiated through an electronic terminal, telephone, computer or magnetic tape for the purpose of ordering, instructing or authorizing a financial institution or person holding an account on behalf of another to debit or credit an account.

Comment: provides consistency with section X (3)(a) which details the permissible use of cash, credit and debit cards.

 

"Gaming day" means a period of time determined by the facility operator and approved by the department not to exceed 24 hours marking the beginning and ending times of gaming activities for the purposes of accounting reports and determination by the central monitor and control system of daily proceeds.

 

"Slot machine" means a machine or other device that:

2. By the element of chance, may deliver or entitle the player who operates the machine or device to receive cash, premiums, merchandise, tokens, or anything of value, whether the payout is made automatically from the device or in any other manner.

Slot Machine includes a.3. A machine or device that (i) does not directly dispense money, tokens, or anything of value to winning players; and (ii) uses a cashless funds transfer system making the deposit of bills, coins, or tokens unnecessary.

 

Comment: for clarity

 

11VAC5-90-70 Applications for and issuance of supplier permits

 

G. Issuance.

3. Upon request of an applicant, the director may in his sole discretion, waive the requirement for an application, issue a temporary or conditional supplier permit to an apparently-qualified applicant pending final board approval of the permit.

Comment: Gives the department flexibility

11VAC5-90-80 Application for and issuance of service permits

D. An applicant for a service permit shall submit with its application all required fees and applications for:

 3. If applicable, all principals and kKey Managers, Deletion is suggested to make it clear the principals of “service permittees” need not apply. 

Comment: This to avoid limiting the ability to access non-gaming vendors that will not submit their principals to licensing such as many national corporations, e.g. Microsoft.

G. Issuance.

 3. Upon request of an applicant, the director may in his sole discretion waive the requirement for an application, issue a temporary or conditional service permit to an apparently-qualified applicant pending final board approval of the permit.

Comment: Gives the department flexibility

 

11VAC5-90-100 General facility operator requirements

F. Central monitor and control system.

2. In addition to complying with the minimum design standards of 11VAC5-90-150 V, the central monitor and control system shall:

b. Collect the following information from each electronically operated casino game, as applicable:

 (8) The amounts paid to play the game wagered;

G. Conduct of casino gaming; prohibited acts.

7. No licensee, permit holder, or any person on the premises of a casino gaming establishment shall extend lines of credit or accept any credit card or other electronic fund transfer in payment for participation in any gaming operation.

Comment: Often times players will wire money in to redeem their counter checks being held by the facility operator

9. Tokens, chips, or electronic tickets or cards may be used only for the purpose of:

a. Making wagers on casino games;

b. tipping

c. Converting to cash; or

d. Making a donation to a charitable entity granted tax-exempt status under § 501(c)(3) of the Internal Revenue Code, provided that the donated tokens, chips, or electronic tickets or cards are redeemed by, or on behalf of, the same charitable entity accepting the donation.

10 e. Use or possess with the intent to use a device to assist in:

(1) Projecting the outcome of a game;

(2) Keeping track of the cards played keeping a count of high and low valued cards dealt;

Comment: This is suggested as a definition of card counting

 

J. Voluntary exclusion; responsible gaming

 2. c. (3) US Treasury, Financial Crimes Enforcement Network

Comment: To allow for reporting of SARs

 

3. (c) May confiscate any winnings.

4.  A facility operator may not knowingly:

a. Permit an individual on the voluntary exclusion list to:

(1) Enter the facility; or

(2) Play a casino game;

b. Knowingly fail Fail to exclude from the premises an individual on the voluntary list; or

K. Mandatory exclusion.

3. f.  Engages in, or has a documented history of engaging in, disturbance of players or disruption of casino game play;

Comment: This involves those who are disruptive, outside of a game.  For example, credit sweeping, voucher theft, drink theft, etc

11VAC5-90-110 Casino gaming facility internal control standards

G. Record retention.

1. d. Kept immediately available for inspection during the operating hours of the accounting department; by the department during all hours of operation;

Comment: Since these records are housed in the accounting department

 

 

 

H. Table of organization.

1. For the purposes of this subsection, the title used to describe a department head is intended to indicate responsibility for the functions of the enumerated department and does not obligate the facility operator to use that particular title.

2. Subject to the requirements of this subsection, a facility operator shall tailor its table of organization to meet its needs and policies.

3. At least 30 days before casino game operations begin, a facility operator shall submit to the department for review and written approval a table of organization depicting all direct and indirect reporting lines for:

a. The chief executive senior operating officer required by this subsection;

Amend: 7 (e) A senior operating chief executive officer who is:

Comment: The term Chief Executive Officer should be replaced with “Senior Operating Officer” or “Senior Property Officer” to allow for flexibility in titles.  This should be changed throughout this section

K. Surveillance department minimum staffing.

Add: 3.d Monitor the facility to attempt to ensure that the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility:

e. Monitor the gaming floor to attempt to ensure that an individual younger than 21 years of age is identified, prohibited from accessing the gaming floor, and, if necessary, immediately removed from the gaming floor; and

f. Monitor the facility to attempt to identify potential victims of human trafficking and respond appropriately.

L. Security department operating procedures.

3. A facility operator's security department operating procedures shall, at a minimum, include:

a. A security zone plan for the facility, employing fixed security posts and roving security officers designed to ensure to the extent practicable:

N. Internal audit department standards.

Amend 2.d. Timely report a deficiency in, or noncompliance with, the facility's internal controls to:

(1) The audit committee;

(2) The chief executive senior operating officer;

 

P. Cashiers' cage design standards.

1. A facility operator shall have on, adjacent, or proximate to the gaming floor a physical structure known as a cashiers' cage to house the cashiers and to serve as the central location in the facility for:

a. The custody of the cash, cage accounting records, and forms and documents required under this chapter to conduct casino gaming operations;

Comment: as opposed to other department’s records

Q. Accounting controls for a cashiers' cage.

1. A facility operator may only conduct gaming -related transactions with individuals at its cashiers' cage and any satellite cage during the hours of operation approved by the department for the facility.

Comment: This change is to allow off-premises collections

R. Checks accepted from a player.

6. A facility operator may not:

b. Except for a check issued under subdivision 5 of this subsection, accept from a player a check or multiple checks that in the aggregate exceed $50200,000 during a gaming day.

7. For a personal check equaling or exceeding $105,000, a facility operator shall confirm the availability of funds by:

9. A facility operator's internal controls shall require a check accepted from a player by a general cashier to be:

a. If a personal check other than an electronic check, restrictively endorsed "for deposit only" to the bank account designated for this purpose by the facility operator and:

(4) If a personal check equaling or exceeding $105,000, confirmed for availability of funds under subdivision 7 of this subsection;

b. Verified for signature authenticity by a general cashier who shall:

(2) Satisfactorily compare the:

(a) Signature of the player on the personal check or endorsing the payroll or payout check with the signature on an identification credential or if no signature thereupon, another government-issued form; and

(b) Player's physical appearance with the any  photograph contained on the valid, unexpired government-issued photographic identification presented by the player;

(c) If presented by a player as a payroll or payout check under subdivision 5 of this subsection, confirmed to have been issued as employment compensation or as a payout in connection with casino gaming-activity

Comment: It will be impossible to verify the check in question is employment compensation, or from gaming activity, especially during non business hours.

and

d. Immediately exchanged for any of the following:

(1) Cash;

(2) If the facility operator has the capability, a gaming ticket or voucher;

(3) A cChips or plaques

(4) A  Credit the  player account in accordance with this chapter; or

(5) At the request of the individual, aA combination of subdivisions 9 d (1), 9 d (2), and 9 d (3) of this subsection.

S. Wire transfers.

Section 5.a  The wired funds received by the facility operator have no documented business purpose other than to enable a player to take part in gaming;

Comment: Can this be clarified?

c. The player has engaged in minimal or no casino gaming play since receipt of the wire transfer

Comment: This needs refinement to set time frame, a player may wire funds well in advance of when they appear on property

 

U. Player accounts.

 7. Funds may be withdrawn from a player account through:

b. Cashier's check, wire transfer, or money order by the facility operator made payable to the player and issued directly or delivered to the player's address on file with the facility operator;

Comment: Checks drawn on the facility operators account should be permitted as well

V. Returned checks.

3. After reasonable collection efforts, returned checks may be considered uncollectible for accounting purposes if the write off is authorized by the:

a. Chief Executive Senior operating officer; and

Comment: As noted earlier, the words “chief executive officer” should be changed throughout the document to “senior operating officer”

c. A committee of employees with no incompatible functions.

Comment: Most casinos utilize a collection committee made up of various executives

 

X. Prohibition on the wagering with cash, credit cards, or debit cards.

1. A casino game may not be played or activated in any way by insertion, directly or indirectly, or use of:

AA. Promotional play.

2. A facility operator may not issue to a player promotional play equaling or exceeding $5,000 per gaming day without specific approval from the chief executive senior operating officer or the chief executive senior operating officer’s designee.

DD. Annuity jackpot.

3. A facility operator submitting a request for approval of an annuity jackpot to the department shall submit details pertaining to the annuity jackpot, including:

a. The specific terms of:

(1) The annuity; and

(2) Any cash payout option;

b. The written trust agreement supporting the trust fund used to make future cash payments on the annuity jackpot, including details pertaining to:

(1) Administration and funding of the trust agreement;

(2) Liability for payments owed to a player; and

(3) Designation of a trustee;

c. Internal controls addressing the offer and award of an annuity jackpot; and

d. Documentation supporting that the average payout percentage on the casino gaming machine offering the annuity jackpot will comply with this subsection.

4. A facility operator that offers an annuity jackpot payable over 10 years or more may offer a player the option to be paid in a single cash payout provided that payout is equal to the present value of the annuity jackpot as calculated in subdivision 5 of this subsection.

5. The present value of a cash payout option on an annuity jackpot shall be determined by:

a. Applying the discount rate to each of the future annuity jackpot payments;

CommentID: 117472