Kansas Administrative Regulations › Agency 112 - KANSAS RACING AND GAMING COMMISSION › Article 104 - MINIMUM INTERNAL CONTROL SYSTEM › Section 112-104-21 - Jackpot payouts

Current through Register Vol. 43, No. 28, July 11, 2024
(a) Each facility
			 manager's internal control system shall include internal controls for jackpot
			 payouts that are not paid directly from an EGM and for the method of jackpot
			 payout specified in subsection (d). The internal controls shall be submitted to
			 and approved by the commission according to K.A.R. 112-104-1.
(b) The internal controls developed and
			 implemented by the facility manager under subsection (a) shall include the
			 following:
(1) A request for jackpot payout
			 document or an electronic entry into an EGM computer system generating jackpot
			 payouts by an EGM department employee or EGM department supervisor, evidencing
			 the observation by the EGM department employee or EGM department supervisor of
			 the winning combination of characters on the EGM and a determination of the
			 amount of the jackpot payout based on the observed winning combinations;
(2) a requirement that the
			 preparer of the request for jackpot payout document or the employee performing
			 the electronic entry into the EGM computer system be an EGM department
			 supervisor if the hand-paid jackpot is $10,000 or more;
(3) a requirement that the following
			 information be on the request for jackpot payout document or electronically
			 entered into the EGM computer system and maintained in stored data:
(A) The date and time of the jackpot;
(B) the asset number of the EGM on
			 which the jackpot was registered;
(C) the winning combination of characters
			 constituting the jackpot or a code corresponding to the winning combination of
			 characters constituting the jackpot;
(D) the dollar amount of the jackpot payout
			 in both alpha and numeric form or a description of personal property awarded,
			 including the fair market value of the personal property;
(E) the method of payment requested by the
			 patron;
(F) the signature or
			 identification code of the preparer; and
(G) the following additional signatures or
			 identification codes, which shall be required if the EGM or the progressive
			 meter is reset before the patron is paid or if payment is made directly to the
			 patron by a gaming cashier:
(i) The signature
			 or identification code of a security department member or EGM department
			 attendant other than the preparer, attesting to the winning combination of
			 characters constituting the jackpot and the amount of the jackpot payout; or
(ii) the signature or
			 identification code of the EGM department shift manager, attesting to the
			 winning combination of characters constituting the jackpot and the amount of
			 the jackpot payout if the jackpot amount is $25,000 or more;
(4) a requirement that,
			 upon preparation, the request for jackpot payout document be transported by the
			 preparer to the cage, where the document will serve to authorize the
			 preparation of a jackpot payout document or that the information be made
			 available by the EGM computer system;
(5) a requirement that if the winning patron
			 will not be paid before the EGM or progressive meter is reset, the preparer of
			 the request for jackpot payout document or the employee performing the
			 electronic entry required by paragraph (b)(1) also prepare a two-part receipt
			 document containing the following information:
(A) The date and time of the jackpot;
(B) the asset number of the EGM on
			 which the jackpot was registered;
(C) the winning combination of characters
			 constituting the jackpot or a code corresponding to the winning combination of
			 characters constituting the jackpot;
(D) the dollar amount of the jackpot payout
			 in both alpha and numeric form or a description of personal property awarded,
			 including the fair market value of the personal property;
(E) the signature of the winning patron on
			 the original form only; and
(F)
			 the signature of the preparer, attesting that the information on the receipt
			 document is correct and agrees with the information on the request for jackpot
			 payout document or in stored data;
(6) a requirement that the receipt document
			 be distributed as follows:
(A) The original
			 shall be immediately delivered to the gaming cashier by the preparer, security
			 department member, or verifying EGM department attendant, along with the
			 request for jackpot payout document if manually generated in accordance with
			 paragraph (b)(1); and
(B) the
			 duplicate shall be immediately presented to the winning patron, who shall be
			 required to present the duplicate receipt document before being paid the
			 jackpot in accordance with the procedures set forth in this regulation;
(7) a requirement that
			 the following information be on any jackpot payout document generated by the
			 EGM computer system:
(A) The asset number of
			 the EGM on which the jackpot was registered;
(B) the winning combination of characters
			 constituting the jackpot or a code corresponding to the winning combination of
			 characters constituting the jackpot;
(C) the date on which the jackpot occurred;
(D) the dollar amount of the
			 jackpot payout in both alpha and numeric form or a description of personal
			 property awarded, including the fair market value of the personal property;
(E) the date, time, and method of
			 payment; and
(F) the signature or
			 identification code of the preparer;
(8) a requirement that the data in paragraphs
			 (b)(7)(A) through (F) not be susceptible to change or removal by any personnel
			 after preparation of a jackpot payout document;
(9) a requirement that whenever the winning
			 patron is paid directly by the gaming cashier, the following procedures be
			 followed:
(A) A jackpot payout document shall
			 be generated by the EGM computer system in accordance with paragraph (b)(7);
(B) if a one-part request for
			 jackpot payout document is involved and a security department member or
			 verifying EGM department attendant other than the preparer has not signed the
			 one-part request for jackpot payout document, the gaming cashier shall summon a
			 security department member or EGM department employee other than the preparer
			 of the request for jackpot payout document and provide that employee with the
			 request for jackpot payout document. The security department member or
			 verifying EGM department employee shall proceed to the EGM identified on the
			 request for jackpot payout document and sign the request for jackpot payout
			 document, attesting that the winning combination of characters on the EGM and
			 the amount to be paid match those that appear on the request for jackpot payout
			 document. If the jackpot amount is $25,000 or more, an EGM department shift
			 manager shall also sign the request for jackpot payout document, attesting that
			 the winning combination of characters on the EGM and the amount to be paid
			 match those that appear on the request for jackpot payout document. The request
			 for jackpot payout document shall be returned to the gaming cashier before the
			 end of that gaming day;
(C) after
			 the gaming cashier determines that the required signatures verifying the
			 winning combination of characters on the EGM and the amount to be paid have
			 been placed on the one-part request for jackpot payout document, if the amount
			 being paid is less than $10,000, the gaming cashier shall pay the winning
			 patron in the presence of the preparer of the request for jackpot payout
			 document. If the amount being paid is $10,000 or more but less than $25,000,
			 the gaming cashier shall pay the winning patron in the presence of the EGM
			 department attendant supervisor who prepared the request for jackpot payout
			 document. If the amount being paid by the cashier is $25,000 or more, the
			 gaming cashier shall pay the winning patron in the presence of the EGM
			 department supervisor and the EGM department shift manager who prepared the
			 request for jackpot payout document in accordance with this subsection. The
			 personnel required by this subsection to witness the payment shall sign the
			 duplicate jackpot payout document, attesting to the accuracy of the information
			 on the duplicate jackpot payout document and the disbursement of the payment to
			 the patron;
(D) if a receipt
			 document under paragraph (b)(5) was issued, the duplicate receipt document
			 shall be signed by the patron in the presence of the gaming cashier. The gaming
			 cashier shall compare the signature on the duplicate receipt document to that
			 on the original receipt document and make the payment only if the signatures
			 are in agreement;
(E) once the
			 required signatures are obtained and payment has been made, the gaming cashier
			 shall give the duplicate jackpot payout document to a security department
			 member or EGM department employee, who shall deposit the document into a locked
			 accounting box; and
(F) the gaming
			 cashier shall attach the request for jackpot payout document, if applicable,
			 and the original and duplicate receipt documents, if applicable, to the
			 original copy of the jackpot payout document. All documents shall be forwarded
			 by the end of the gaming day to the main bank for reimbursement;
(10) a requirement that the
			 facility manager's accounting department perform, at the conclusion of each
			 gaming day, income control reconciliation procedures over the issuance of
			 jackpot payouts, including adequate comparisons to gaming ticket system data;
			 and
(11) details for processing
			 system overrides or adjustments.