Pennsylvania Code › Title 58 - RECREATION › Part VII - GAMING CONTROL BOARD › Subpart E - Slot Machine, Table Game and Associated Equipment Testing and Control; Accounting and Internal Controls › Chapter 465a - ACCOUNTING AND INTERNAL CONTROLS › Section 465a.26 - Jackpot and credit meter payouts

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
				  Prior to commencing gaming operations, a slot machine licensee shall establish
				  a comprehensive system of internal controls addressing jackpot and credit meter
				  payouts that are not paid directly from a slot machine, electronic wagering
				  terminal or fully automated electronic gaming table. The internal controls
				  shall be submitted to and approved by the Board under §
										465a.2 (relating to internal
				  control systems and audit protocols).
(b) The internal control procedures must, at
				  a minimum, include:
(1) The use of a two-part
				  electronically generated jackpot/credit meter payout slip created by a slot
				  attendant or slot supervisor or higher slot operations department employee,
				  verifying the winning wager or winning combination of characters or a code
				  corresponding to the winning combination of characters on the slot machine,
				  electronic wagering terminal or fully automated electronic gaming table and the
				  amount of the jackpot or credit meter payout based on the observed winning
				  wager or winning combinations.
(2)
				  A requirement that if the jackpot or credit meter payout on a slot machine is
				  equal to or between $1,200 and $9,999.99, a security department member or a
				  slot operations department member other than the preparer shall sign the
				  jackpot/credit meter payout slip verifying the winning combination of
				  characters or a code corresponding to the winning combination of characters on
				  the slot machine, the amount of the jackpot or credit meter payout and the
				  payment of the jackpot or credit meter payout to the patron. Notwithstanding
				  the forgoing, if the licensee's slot or casino management system can
				  independently verify a jackpot or credit meter payout, only the preparer is
				  required to sign the jackpot/credit meter payout slip for payouts less than or
				  equal to $4,999.99 provided that the slot machine licensee's internal control
				  reflect the following:
(i) If the slot machine
				  licensee's slot or casino management system or the central control computer
				  system are not fully operational, or when overrides or adjustments are
				  required, two individuals shall verify a jackpot or credit meter payout that is
				  equal to or between $1,200 and $9,999.99 as specified in this
				  paragraph.
(ii) Jackpot payouts
				  that are equal to or greater than $1,200 shall be accompanied by the issuance
				  of a W-2G Form.
(3) A
				  requirement that if the jackpot or credit meter payout is equal to or between
				  $10,000 and $24,999.99 on a slot machine, or between $5,000 and $24,999.99 on a
				  fully automated electronic gaming table or electronic wagering terminal, a
				  security department member, a slot supervisor or other employee holding the
				  same or greater level of authority than a slot supervisor shall sign the
				  jackpot/credit meter payout slip verifying the winning wager or winning
				  combination of characters or a code corresponding to the winning combination of
				  characters on the slot machine, electronic wagering terminal or fully automated
				  electronic gaming table, the amount of the jackpot or credit meter payout, and
				  the payment of the jackpot or credit meter payout to the patron. If the
				  two-part electronically generated jackpot/credit meter payout slip required
				  under paragraph (1) is created by a slot supervisor or higher slot operations
				  department employee, the verification required by this paragraph may be
				  completed by a slot attendant, security department member, a slot supervisor or
				  other employee holding the same or greater level of authority as a slot
				  supervisor.
(4) A requirement that
				  if the jackpot or credit meter payout on a slot machine, electronic wagering
				  terminal or fully automated electronic gaming table is $25,000 or more, a slot
				  supervisor or other employee holding the same or greater level of authority as
				  a slot supervisor shall sign the jackpot/credit meter payout slip verifying the
				  winning wager or winning combination of characters or a code corresponding to
				  the winning combination of characters on the slot machine, electronic wagering
				  terminal or fully automated electronic gaming table, the amount of the jackpot
				  or credit meter payout, and the payment of the jackpot or credit meter payout
				  to the patron. If the two-part electronically generated jackpot/credit meter
				  payout slip required under paragraph (1) is created by a slot supervisor or
				  higher slot operations department employee, the verification required by this
				  paragraph may be completed by a slot attendant, security department member, a
				  slot supervisor or other employee holding the same or greater level of
				  authority as a slot supervisor.
(5)
				  A requirement that the following information be on all two-part electronically
				  generated jackpot/credit meter payout slips:
(i) The date and time of the jackpot or
				  credit meter payout.
(ii) The asset
				  number of the slot machine, electronic wagering terminal or fully automated
				  electronic gaming table on which the jackpot or credit meter payout was
				  registered.
(iii) The winning wager
				  or winning combination of characters constituting the jackpot or a code
				  corresponding to the winning combination of characters constituting the
				  jackpot.
(iv) The type of win (that
				  is, progressive, jackpot or credit meter payout).
(v) The amount that is to be paid to the
				  winning patron. This amount may, at the slot machine licensee's discretion, be
				  rounded up to the nearest whole dollar.
(vi) A unique number generated by the slot
				  monitoring system.
(vii) The
				  signature or, if the slot accounting system has approved controls for access to
				  the system, the electronic authorization of the preparer.
(viii) The signature or, if the slot
				  accounting system has appropriate controls for access, the electronic
				  authorization of the witness when the amount is equal to or greater than
				  $1,200, except as provided in paragraph (2).
(ix) The signature or identification code of
				  the cashier providing the funds to the preparer, if applicable.
(6) A requirement that the
				  two-part electronically generated jackpot/credit meter payout slip not be
				  susceptible to any changes or deletion from the slot monitoring system by any
				  personnel after preparation.
(7) A
				  requirement that whenever a winning patron is paid directly by a slot
				  attendant's imprest fund, a two-part manual jackpot/credit meter payout slip is
				  completed that contains the following information:
(i) The date and time of the jackpot or
				  credit meter payout.
(ii) The asset
				  number of the slot machine, electronic wagering terminal or fully automated
				  electronic gaming table on which the jackpot or credit meter payout was
				  registered.
(iii) The winning wager
				  or winning combination of characters constituting the jackpot or a code
				  corresponding to the winning combination of characters constituting the
				  jackpot.
(iv) The type of win (that
				  is, progressive, jackpot or credit meter payout).
(v) The amount paid to the winning patron.
				  This amount may, at the slot machine licensee's discretion, be rounded up to
				  the nearest whole dollar.
(vi) The
				  signature and Board-issued credential number of the preparer.
(vii) The signature and Board-issued
				  credential number of the witness when the amount is equal to or greater than
				  $1,200, except as provided in paragraph (2).
(8) When jackpot or credit meter payouts are
				  made from slot attendants' imprest funds, procedures for the replenishment of
				  the imprest funds and the reconciliation process to be used by the slot
				  attendants.
(9) A requirement that
				  the slot machine licensee's accounting department perform, at the conclusion of
				  each gaming day, effective audit procedures over the issuance of jackpot and
				  credit meter payouts including adequate comparisons to the slot monitoring
				  system.
(10) Detailed procedures on
				  the processing of all system overrides or adjustments to jackpot or credit
				  meter payouts. All jackpot or credit meter payouts that do not match the payout
				  amount electronically sent from the slot machine, electronic wagering terminal
				  or fully automated electronic gaming table to the slot monitoring system
				  require an override.
(11) Detailed
				  procedures for the processing of all voided jackpot/credit meter payout
				  slips.
(12) Detailed procedures for
				  the processing of unclaimed taxable jackpot payouts. The procedures must
				  include notice to the casino compliance representatives at the licensed
				  facility when an unclaimed taxable jackpot payout or credit meter payout
				  occurs.
(13) Back-up procedures
				  that will be used when the slot monitoring system is offline or an electronic
				  jackpot payout slip cannot be created, including the use of a three-part manual
				  jackpot or credit meter payout book or equivalent. The three-part manual
				  jackpot payout book or equivalent must contain preprinted, serial numbered
				  three-part manual jackpot/credit meter payout slips that include the following
				  information:
(i) Preprinted serial
				  numbers.
(ii) The date and time of
				  the jackpot or credit meter payout.
(iii) The asset number of the slot machine,
				  electronic wagering terminal or fully automated electronic gaming table on
				  which the jackpot or credit meter payout was registered.
(iv) The amount of the jackpot or credit
				  meter payout.
(v) The method of
				  payment requested by the patron.
(vi) The signature and Board-issued
				  credential number of the preparer.
(vii) The signature and Board-issued
				  credential number of the witness when the amount is equal to or greater than
				  $1,200.
(14) A
				  requirement that the unused manual jackpot payout books or equivalent be
				  maintained in a secured locked cabinet, that the key to the cabinet be
				  controlled by the security department or the finance department and that the
				  manual jackpot payout books or equivalent can only be signed out by a slot
				  supervisor or other employee holding a greater level of authority when the slot
				  monitoring system is offline.
(15)
				  A requirement that the surveillance department be verbally notified of all
				  jackpot or credit meter payouts when the amount of the jackpot or credit meter
				  payout is $5,000 or more. The surveillance department shall log all calls
				  regarding jackpot or credit meter payouts in the surveillance log.