Michigan Administrative Code › Department - Treasury › Michigan Gaming Control Board › Michigan Gaming Control Board - Administrative Rules - Casino Gaming (Parts 1-16) › Part 8 - CONDUCT OF GAMING/GAMING EQUIPMENT › Section R. 432.1841 - Wide area progressive system authorization

Current through Vol. 24-12, July 15, 2024
Rule 841.
(1) This
				  rule authorizes the use of a wide area progressive system.
(2) Unless otherwise permitted by the board
				  in writing, each machine on the link shall have the same probability of hitting
				  the combination that will award the progressive jackpot. In addition, each
				  machine on a link shall be located on the licensed premises of 1 casino or a
				  machine may be linked among more than 1 casino if the system, hereinafter
				  referred to as multilink for describing such system, is in compliance with all
				  of the following:
(a) The wide area
				  progressive system shall have the ability to monitor entry into the front door
				  of each networked EGD as well as the logic area of each networked EGD and
				  report it to the central system immediately.
(b) All communication packets between each
				  location and the central system shall be encrypted.
(c) A progressive EGD must either contain or
				  be linked to a progressive display showing the wide area progressive jackpot to
				  all players who are playing a progressive EGD and who may potentially win the
				  wide area progressive jackpot.
(d)
				  All progressive meter reading data shall be obtained in real-time in an
				  automated fashion. When requested to do so, the system shall return meter
				  readings on the first device attached to the system within 5 minutes of the
				  meter acquisition request. This limitation shall not apply to the length of
				  time it takes the computer system to calculate and print reports, but rather
				  only to the time it takes to gather data used for the process. Manual reading
				  of meter values may not be substituted for these requirements.
(e) A casino licensee utilizing a wide area
				  progressive system shall suspend play on the system if a communication failure
				  in the system cannot be corrected within 24 consecutive hours. If a
				  communication failure occurs in a wide area progressive system, then the
				  operator of the system shall take a reading during the time the system is down
				  to make sure that the jackpot amount is the same at all locations connected to
				  the system when restoring the system.
(f) A licensee authorized to provide a wide
				  area progressive system shall keep a log of all events for a period of not less
				  than 60 days.
(g) Wide area
				  progressive jackpot verification procedures shall include the following
				  provisions:
(i) When a wide area progressive
				  jackpot is won, the licensee authorized to provide the wide area system shall
				  inspect the machine and the board must be notified prior to inspection. The
				  inspection shall include examining the EPROM or equivalent electronic storage
				  mediums, the error events received by the central system, and any other data
				  that could reasonably be used to ascertain the validity of the
				  jackpot.
(ii) The central system
				  shall produce reports that will clearly demonstrate the method of arriving at
				  the payoff amount. The reports shall include wagers beginning at the polling
				  cycle immediately following the previous jackpot and will include all wagers up
				  to and including the polling cycle, which includes the jackpot signal. Wagers
				  before the jackpot message is received will be used in calculating the
				  progressive amount before the current jackpot. Wagers subsequent to the jackpot
				  message being received will be used in calculating the progressive amount of
				  the next jackpot.
(iii) A jackpot
				  of more than $100,000.00 may be paid in installments over a period of not more
				  than 25 years if each machine clearly displays the fact that the jackpot will
				  be paid in installments. In addition, the number of installments and time
				  between installments shall be clearly displayed on the face of the machine in
				  plain language that is approved by the board.
(iv) Two jackpots that occur in the same
				  polling cycle are deemed to have occurred simultaneously and, therefore, each
				  winner shall receive the full amount shown on the meter, unless another method
				  of resolution has been approved in advance by the board.
(h) Submission to the board of any wide area
				  progressive system shall occur in the following 2 phases:
(i) The initial phase, wherein the underlying
				  gaming devices and communication hardware are tested and approved or rejected
				  by the board.
(ii) The on-site
				  testing phase, wherein a field inspection is conducted at the central computer
				  site as well as multiple field sites to ensure compliance with the act and
				  these rules. Operation of the system will be authorized only after the board is
				  satisfied that the system meets both the initial approval and on-site testing
				  requirements, as well as any other requirements that the board may impose to
				  assure the integrity, security, and legal operation of the wide area
				  progressive system.
(i)
				  The central computer site shall be equipped with a noninterruptible power
				  supply, and the central computer shall be capable of on-line data redundancy if
				  hard disk peripherals fail during operation.
(j) A licensee authorized to provide a wide
				  area progressive system shall supply reports in a format approved by the board
				  that support and verify the economic activity on the system.
(k) Any licensee authorized to provide a wide
				  area progressive system must supply, as requested, reports and information to
				  the board indicating the amount of, and basis for, the current jackpot amount
				  (the amount currently in play).
The reports shall include an aggregate report and a detail
					 report. The aggregate report shall show only the balancing of the system with
					 regard to system-wide totals. The detail report shall be in a form that
					 identifies each machine on a polling station and indicates for each machine,
					 summarized by location, the coin-in and coin-out totals as the terms are
					 commonly understood in the industry.
In addition, upon the invoicing of any licensee
					 participating in a wide area progressive system, a licensee shall be given a
					 printout identifying all of the following:
(i) Each machine linked to the
				  system.
(ii) The wagers by each
				  machine to the jackpot for the period for which an invoice is
				  remitted.
(iii) Other information
				  required by the board to document the validity of the licensee's contributions
				  to the jackpot amount.
(l) A licensee authorized to provide a wide
				  area progressive system shall obtain written approval from the board
				  identifying all of the following:
(i) The
				  methods of funding the progressive prize pool.
(ii) The calculating and receipt of payments
				  from participating licensees.
(iii)
				  Provisions for equipment and services associated with the wide area progressive
				  system.
(m) In
				  calculating gross receipts, a licensee shall deduct its contributions to any
				  progressive jackpots awarded during the month. The deducted amount shall be
				  listed on the detailed accounting records provided to the licensee by the
				  person authorized to provide the wide area progressive system. A licensee's
				  contribution is based on the wagered amounts from that licensee's machines on
				  the wide area progressive system, compared to the total amount of coins in on
				  the whole system for the time period or periods between the jackpot or jackpots
				  awarded.
(n) The right to receive
				  the jackpot payments may not be encumbered, assigned, or otherwise transferred
				  by a winner, estate, or heir of a deceased winner, except to the estate or heir
				  of the person upon his or her death. An attempt to make a prohibited transfer
				  may result in the person forfeiting the right to receive future
				  payments.
(o) Except where
				  prohibited by law, if a licensee ceases operations and a progressive jackpot is
				  awarded subsequent to the last day of the final month of operation, then the
				  licensee may file an amended tax return or make claim for a gaming tax refund
				  based on its contributions to the particular progressive pool.
(p) The central monitoring system for the
				  wide area progressive shall be located within this state unless otherwise
				  approved in writing by the board. The office containing the central monitoring
				  system shall be equipped with a surveillance system that has been approved by
				  the board. The licensee authorized to provide a wide area progressive system
				  shall be required to limit access to the monitoring system room and keep and
				  maintain an entry and exit log for the office in a manner approved by the
				  board. The board must, at all times, have the right to immediate access to the
				  office containing the central monitoring system and the system
				  itself.
(q) The licensee authorized
				  to provide the wide area progressive system must not allow any agent or
				  employee to work on any component of the system until the person has
				  demonstrated that the employee or agent is qualified and experienced in the
				  construction, software, hardware, and all internal and external components of
				  the system and has attained at least a level 2 occupational license from the
				  board.
(r) The licensee authorized
				  to provide a wide area progressive system shall supply a copy of all leases and
				  contractual agreements relating to the wide area progressive system if
				  requested by the board.
(s) The
				  wide area progressive system prize fund (the amount of money contributed by the
				  participating licensees) shall be audited, in accordance with generally
				  accepted auditing standards, on the fiscal year of the licensee authorized to
				  provide the system, by an independent accountant licensed by the Michigan state
				  board of accountancy and approved by the board. The report shall be submitted
				  to the board upon completion of the audit or 90 days after the conclusion of
				  the licensees fiscal year, whichever occurs first. The licensee providing the
				  wide area progressive system shall pay for the cost of the audit.
(t) The licensee who is authorized to provide
				  a wide area progressive system must maintain, in a restricted account, a
				  reserve consisting of cash, United States government treasury securities,
				  approved debt instruments, or combination of not less than the sum of both of
				  the following:
(i) The aggregate remaining
				  balances owed on all jackpots previously won by patrons through the wide area
				  progressive system.
(ii) An amount
				  sufficient to fully fund the present value of all amounts currently reflected
				  on the progressive meters of the wide area progressive systems.