Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 06 - Racing Commission › Rule 006.06.10-001 - Regulations for Franchise Holders Operating Electronic Games of Skill

Current through Register Vol. 49, No. 6, June, 2024
Preamble
These regulations apply only to the Electronic Games of Skill
				operations at licensed Pari-mutuel franchises, as authorized by Act 1151 of
				2005. The provisions of this Act are located in the Arkansas Code and codified
				as A.C.A. §
								23-113-201.
				They were developed by Gaming Laboratories International, Inc. with the input
				of the Arkansas Racing Commission, the staff of the Department of Finance and
				Administration. Comments from suppliers of electronic games of skill and the
				general public were also considered in the drafting of this document. The
				regulations were adopted under the provisions of A.C.A. §§
								25-15-201
				through
				25-15-218.
				Associated with, but not part of these regulations, are "appendices."
The purpose of the appendices is to provide pertinent material
				that is subject to frequent change, particularly forms that are related to
				licensing. Although appendices are documents that enable the enforcement of
				regulations, they are located outside the body of this document. This will
				permit the ability to change and update forms, procedures and processes to
				conform to changes without making policy/regulatory changes. Such changes are
				considered to be technical in nature and, therefore, will not necessitate
				invoking the rule making process.
The appendices are designated by a "P" followed by a hyphen,
				and then with a reference number of the Section number to which is refer or
				supports.
Example: P 1-13-17(a) would be a "Personal History Disclosure
				form.
Appendices contain such items as:
Index of forms and appendices
Forms
Examples
Instructions
Key to abbreviations and acronyms
Frequently asked questions (FAQs)
The Games of Skill Regulations and Appendices reside on the
				Department of Finance and Administration's (DFA), Racing Division's web site at
http://www.arkansas.gov/dfa/racing/rc_index.html
,
				and are also available in printed form upon request. Requests for printed
				copies may be made in the form of an e-mail to the Manager of the Racing
				Division (listed on web site) or by U.S. Mail at P.O Box 3076, Little Rock, AR
				72203 or by telephone at 501-682-1467.
The Arkansas Racing Commission and the offices of the
				Department of Finance and Administration adhere to the spirit and letter of the
				Freedom of Information Act of 1967 as stated in ACA§
								25-19-101 et
				seq.
10.0
Definitions
The following words and terms, when used in these regulations,
				shall have the following meanings unless the context clearly indicates
				otherwise:
10.1 "Affiliate" business
			 companies, organizations, or individuals are Affiliates of each other if,
			 directly or indirectly, either one has the power to control the other, or a
			 third party controls or has the power to control both.
10.2 "Asset number" means a unique number
			 assigned to an EGS and a cash storage box for purposes of tracking that machine
			 and storage box while owned or leased by the Franchise Holder.
10.3 "Cash" means currency.
10.4 "Cash equivalent" means a Certified
			 check, Electronic Cards, chips, cashiers check, treasurer's check, recognized
			 travelers check or recognized money order that is made payable to the Franchise
			 Holder, "bearer" or "cash," is dated, but not postdated; and does not contain
			 any endorsement other than that of the presenting patron.
10.5 "Cash storage box" means a
			 tamper-resistant cash box that is contained in a Bill Acceptor which shall
			 securely store all deposited cash, gaming tickets and coupons.
10.6 "Cashier Booth" means a cashier booth,
			 to house one or more cashiers and to serve as the central location in the EGS
			 gaming area, or, when there are multiple cashier booths, in that portion of the
			 EGS gaming area.
10.7
			 RESERVED
10.8 "Commission" means
			 the Arkansas Racing Commission or its successor having jurisdiction over horse
			 racing and greyhound racing in this state. The Arkansas Racing Commission is
			 responsible for all Licensing, adjudication of fines, Certification of
			 Electronic Games of Skill, Appeals/Rulings and approval of all EGS
			 plans.
10.9 "Complimentary services
			 or items" mean a service or item provided directly or indirectly by a Franchise
			 Holder at no cost or at a reduced price.
10.10 "Coupon" means a document which is
			 issued in accordance with the coupon redemption and complimentary distribution
			 programs approved by the Commission.
10.11 "Denomination" when used in conjunction
			 with or in reference to an EGS, means the value or monetary amount of the
			 lowest Wager that can be placed on the EGS.
10.12 "Distributor" means any person that
			 sells, leases, or offers, or otherwise provides, distributes, or services any
			 EGS or associated equipment for use or play of EGS in a Franchise Holder's
			 facility. A Manufacturer may be a distributor.
10.13 "EGS" acronym for Electronic Game or
			 Games of Skill.
10.14 "EGS Section"
			 means the Office of Field Audit within the Revenue Division of the Commission.
			 The EGS Section is assigned responsibility for auditing and review of internal
			 controls and the day-to-day operations of the EGS. This would include full
			 administrative regulatory jurisdiction and exercise of the duties, powers and
			 responsibilities over electronic games of skill and wagering on the electronic
			 games of skill as authorized in Act 1151 of 2005 and Section 11.0.
10.15 "Electronic card" means a card provided
			 by, or purchased from the Franchise Holder for use at the Franchise Holder's
			 EGS as a substitute for tickets for the conduct of gaming in the EGS.
10.16 "Electronic fund transfer" means a
			 transfer of funds, other than a Transaction originated by check, draft, or
			 similar paper instrument that is initiated through an electronic terminal,
			 telephone, computer, or magnetic tape for the purpose of ordering, instructing,
			 or authorizing a financial institution to debit or credit an account. For the
			 purposes herein, the term does not include any Transactions exempt, by statute
			 or regulation, from the provisions of Title IX of the Federal Consumer
			 Protection Act,
			 15 USC §
										1693.
10.17 "Electronic game(s) of skill"
			 (hereinafter EGS) means game(s) played through any electronic device or machine
			 that affords an opportunity for the exercise of skill or judgment where the
			 outcome is not completely controlled by chance alone. EGS do not include
			 pari-mutuel Wagering on horse racing and greyhound racing governed by the
			 Arkansas Horse Racing Law or Arkansas Greyhound Racing Law, whether pari-mutuel
			 Wagering on live racing, simulcast racing, or races conducted in the past and
			 rebroadcast by electronic means. See Arkansas Code Ann
			 23-113-201(d).
10.18 "Franchise Holder" means any person
			 holding a franchise to conduct horse racing under the Arkansas Horse Racing Law
			 or greyhound racing under the Arkansas Greyhound Racing Law.
10.19 "Gaming Day" means a 24-hour period of
			 time which represents the beginning and ending of EGS gaming activities by
			 which the Franchise Holder keeps its books and records for business and
			 accounting purposes.
10.20 "Gaming
			 Floor" means the designated area where EGS gaming activities occur.
10.21 "Gaming Operator" means a Franchise
			 Holder that is conducting the operation of EGS.
10.22 "Gross Wagering Revenues" mean the
			 total value of currency, coupons, gaming tickets, and electronic credits
			 invested by a patron to activate the play of an EGS. However, "Gross Wagering
			 Revenues" shall not include promotional coupons or promotional electronic
			 credits provided by a franchise holder/Gaming Operator to a patron at no cost
			 to the patron, which are used by the patron to make a wager on an
			 EGS.
10.23 "Identification
			 Credential" means a valid driver license, passport or other document generally
			 accepted in businesses a form of identification and which contains, at a
			 minimum, the person's signature. A personal reference does not constitute an
			 Identification Credential.
10.24
			 "Incompatible function" means a function for accounting control purposes that
			 places any person, employed by or department established by the Franchise
			 Holder, in a position to both perpetrate and conceal errors or irregularities
			 in the normal course of their duties. Anyone recording Transactions and having
			 access to assets ordinarily is in a position to perpetrate errors or
			 irregularities. Persons may have Incompatible Functions if such persons are
			 members of departments which have supervisors not independent of each
			 other.
10.25 "Intermediary company"
			 means a corporation, firm, association, partnership, trust or any other form of
			 business organization other than a natural person which is a holding company
			 with respect to a corporation which holds or applied for a Gaming License; and
			 is a subsidiary with respect to any holding company.
10.26 "Manufacturer" means any person who
			 manufactures, builds, rebuilds, fabricates, assembles, produces, programs,
			 designs, or otherwise makes modifications to any EGS or associated equipment
			 for EGS gaming purposes. A Manufacturer may be a Distributor, as approved by
			 the Commission.
10.27
			 "Multi-Station game" is an EGS that incorporates more than one (1) player
			 station, which are controlled by a unit that contains the game's CPU and houses
			 the game display, which is shared among the player stations. Since certain
			 features are shared by the player stations the actions of one player station
			 must not influence the operation of the other stations and at no time should
			 any of the players be at a disadvantage to the next game played. In addition,
			 each player station must make it clear as to when the next game will begin. For
			 Multi-Station Games, each player station is considered an EGS and must meet the
			 technical standards outlined throughout these regulations.
10.28 "Net Drop" is the total amount of
			 credits played, minus the credits won for EGS Gaming Operations.
10.29 "Progressive system" means a
			 computerized system linking EGS in one or more licensed facilities approved by
			 the Commission and offering one or more common progressive payouts based on the
			 amounts Wagered.
10.30
			 'Surveillance System" means any facility, not controlled by the Commission
			 employees, that has been approved by the Commission to receive transmissions
			 from the surveillance department's security system including, without
			 limitation, system monitoring rooms, surveillance department offices, system
			 repair areas, and system emergency facilities.
10.31 "Transaction" a Transaction includes
			 deposit, withdrawal, transfer between accounts, exchange of currency, loan,
			 extension of credit, purchase or redemption of gaming instruments or any other
			 payment, transfer, or delivery to a Franchise Holder, by whatever means
			 affected.
10.32 "Wager" a sum of
			 money or thing of value bet on an EGS.
10.33 "Wire Transfer" means a transfer of
			 funds by means of the Federal Reserve Bank wire system in accordance with the
			 requirements of
			 12 C.F.R.
			 210.25 et seq. and the Commission's
			 regulations.