California Code of Regulations › Title 4 - Business Regulations › Division 18 - California Gambling Control Commission › Chapter 7 - Conditions of Operation for Gambling Establishments › Article 3 - Minimum Internal Control Standards (MICS) for Cardroom Business Licensees › Section 12386 - Cage Operation and Functions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				  policies and procedures for all tiers must meet or exceed the following
				  standards for cages:
(1) The cardroom
				  business licensee must maintain within the gambling establishment at least one
				  separate and secure area at a fixed location that is designated as a cage. A
				  cage must be located, designed, constructed and operated to provide convenience
				  for patron transactions while maintaining appropriate security and
				  accountability for all monetary transactions occurring at the cage and all cage
				  contents.
(2) The cardroom business
				  licensee must assign at least one gambling enterprise employee to process
				  monetary transactions at a cage. The titles, classifications, or positions of
				  all employees assigned to process monetary transactions at a cage must be
				  listed on the gambling enterprise's organizational chart. The assigned
				  employees' duties may include any or all of the following:
(A) Custody of the cage inventory or
				  individual cashiers' banks, which is comprised of currency, coin, patron
				  checks, gambling chips, forms, documents and records consistent with the
				  operation of a cage or an individual cashier's bank.
(B) Receipt and distribution of gambling
				  chips through internal operations.
(C) Sale and redemption of chips through
				  patron transactions.
(D) Deposits
				  to and withdrawals from players' banks and dealers' banks, if
				  applicable.
(E) Check cashing and
				  extensions of credit for patrons, as permitted by the cardroom business
				  licensee's policies and procedures.
(F) Preparation of cage accountability
				  reconciliations and records necessary to document compliance with the
				  requirements of this chapter.
(G)
				  Recording patron information that is necessary for compliance with the
				  requirements of sections
				  5313 and
				  5314 of Title 31 of the United
				  States Code, applicable regulations in Chapter X (effective as of July 1, 2011)
				  of Title 31 of the Code of Federal Regulations and any successor provisions,
				  and subsection (a) of Section
				  12315.
(H) The proper accounting and safeguarding of
				  any cage bank or cashier's bank, and gambling equipment or confidential
				  documents when kept in a cage.
(3) Routine access and entry into a cage, or
				  an area designated as a cage pursuant to paragraph (1) of this subsection, must
				  be limited to on-duty cage personnel assigned pursuant to paragraph (2) of this
				  subsection. Other employees of the gambling enterprise who hold a valid
				  cardroom category license may be granted access to a cage or cage area for the
				  purpose of performing their duties.
(4) A log must be maintained, either in
				  writing or electronically, to document entry into a cage by any person not
				  authorized access pursuant to paragraphs (2) and (3) of this subsection. The
				  log must contain the person's name, title, date of entry, and time entering and
				  exiting; or provide substantially equivalent information through an automated
				  access control system. Any automated access control system must provide a
				  secure, tamperproof means of recording and maintaining entry and exit
				  information.
(5)
(A) Cage and cashiers' banks must be
				  reconciled after each shift by the incoming and outgoing assigned cage
				  employees. If an imprest is used, each outgoing cage employee responsible for
				  an imprest must balance his or her imprest to the imprest amount. The
				  recordable cage transactions and reconciliations must be posted and reconciled
				  to the general ledger at least monthly.
(B) The reconciliation of each cage and
				  cashiers' bank must be documented on a cage accountability form that must
				  include, at a minimum, all of the following, as applicable:
1. The date of the reconciliation;
2. The designation of the shift being
				  reconciled;
3. An accounting of the
				  contents of the cage bank, cashiers' banks, and, if applicable, players' banks
				  in use during the subject shift, including:
i.
				  The beginning shift balances, unless an imprest is used;
ii. All transactions recordable to the
				  general ledger;
iii. The ending
				  balances of cash and chips;
iv. An
				  identification of any overage or shortage with an explanation, if
				  known.
4. The amount
				  assigned or issued from the cage to dealers' banks and floor banks in use
				  during the subject shift.
5. The
				  printed name and signature of each assigned cage employee performing the
				  reconciliation, as applicable.
(6) The purchase or redemption of gambling
				  chips by a patron may only occur at a cage or from an authorized cardroom
				  category licensee on the gambling floor. Cardroom category licensees may not
				  permit TPPPS category licensees to purchase or redeem gambling chips for cash
				  or cash equivalents from a patron or to sell gambling chips to a patron. For
				  the purposes of this article, the sale, purchase or redemption of gambling
				  chips may not include the exchange of a chip or chips of one total value for a
				  chip or chips of an equal total value.
(7) If a cardroom business licensee operates
				  more than one cage at any time during any shift, all cages, irrespective of
				  their designations (e.g., main cage, satellite cage, auxiliary cage,
				  supplementary cage, secondary cage, back up cage, support cage, etc.), will be
				  subject to and comply with all provisions of this article applicable to the
				  operation and functions of cages for the cardroom business licensee's
				  tier.