820 KAR 1:033. Electronic Pulltab System, Electronic Pulltab Device, and Electronic Pulltab Construction

Link to law: http://www.lrc.ky.gov/kar/820/001/033reg.htm
Published: 2015

PUBLIC PROTECTION CABINET

Department of Charitable Gaming

(As Amended at ARRS, October 13, 2015)

 

      820 KAR 1:033. Electronic pulltab system,

electronic pulltab device, and electronic pulltab construction.

 

      RELATES

TO: KRS 238.505(5), (27), (28), 238.545(1), (2)

      STATUTORY

AUTHORITY: KRS 238.515(2), (4), (9), 238.530(5), 238.545(1), (2)

      NECESSITY,

FUNCTION, AND CONFORMITY: KRS 238.515(2) and (9) require the Department of

Charitable Gaming to establish reasonable standards for the conduct of

charitable gaming. KRS 238.505(27), (28) and KRS 238.545(2) require the

department to establish standards for electronic pulltab device and electronic

pulltab construction, distribution, and rules of play. KRS

238.530(5) requires manufacturers and distributors of charitable gaming supplies

and equipment to maintain records as required by the department. This

administrative regulation establishes standards for the construction and

distribution of electronic pulltab devices and electronic pulltabs.

 

      Section

1. General Requirements. (1) A manufacturer shall affix to each[all]

electronic pulltab device[devices] an

identification badge that shall include the following information:

      (a)

Manufacturer name;

      (b)

A unique serial number;

      (c)

The electronic pulltab device model number, if applicable; and

      (d)

The date of manufacture, if applicable[; and

      (e) Any other information required by the

department].

      (2)

An electronic pulltab system’s central computer system shall be dedicated[primarily]

to electronic accounting, reporting, and the presentation, randomization, and

transmission of electronic pulltabs to electronic pulltab devices. It shall

also be capable of generating the data necessary to provide reports required by

regulation or otherwise specified by the department.

      (3)

A player shall purchase or otherwise obtain access to an electronic pulltab

device, and load money to a player account for purchase of electronic pulltabs

during the current gaming occasion, only from a point of sale station. The

point of sale station may be stationary, mobile, or self-service[,

or any configuration approved by the department].

      (4)

A player shall only cash-out or redeem credits from a point of sale station.

      (5)

All equipment used to facilitate the distribution, play, or redemption of electronic

pulltabs shall be physically located within the boundaries of the Commonwealth

of Kentucky. Electronic pulltab devices, site system if used, point of sale

stations, and all secondary components shall be located on the premises where

the gaming occasion is being held.

      (6)

An electronic pulltab device shall not be capable of being used for the purpose

of engaging in any game prohibited by the department.

      (7)

A licensed manufacturer of charitable gaming supplies and equipment shall sell,

lease, or otherwise provide in the Kentucky market only those electronic

pulltab systems and electronic pulltabs that conform to the requirements of 820

KAR 1:032 and this administrative regulation[these administrative

regulations].

      (8)

A licensed distributor of charitable gaming supplies and equipment shall

distribute in Kentucky only those electronic pulltab systems and electronic

pulltabs that conform to the requirements of 820 KAR 1:032 and this

administrative regulation[these administrative regulations].

      (9)

A licensed charitable organization shall provide to the public only those

electronic pulltab systems and electronic pulltabs that conform to the

requirements of 820 KAR 1:032 and this administrative regulation[these

administrative regulations].

 

      Section

2. Testing and Approval of Electronic Pulltab Systems. (1) An

electronic pulltab system shall not be sold, leased, or otherwise furnished to

any person for use in the conduct of charitable gaming until an identical

system containing identical software has been:

      (a) Tested and

certified by an independent testing facility accepted by the department;

and

      (b)[, demonstrated to the department by the

manufacturer upon request of the department, and] Approved by the

department.

      (2) The cost of testing and certification shall be the

responsibility of the manufacturer.

      (3) The independent testing facility shall certify in

writing that the electronic pulltab system and associated hardware and software

conform, at a minimum, to the requirements and restrictions set forth in KRS

238.505(27), KRS 238.545(2), 820 KAR 1:001, 820 KAR 1:032, 820 KAR

1:036, and this administrative regulation[the

administrative regulations].

      (4)(a) The department, in consultation with the independent

testing facility, shall determine if the electronic pulltab system and associated

hardware and software conform to the requirements and restrictions contained in

KRS 238.505(27), KRS 238.545(2) 820 KAR 1:001, 820 KAR 1:032, 820 KAR

1:036, and this administrative regulation[the

administrative regulations] and shall notify the manufacturer of

its decision in writing.

      (b) Once the department has received the test results from

the independent testing facility, the department may request a demonstration of

the product within thirty (30) days.

      (c) The department shall either approve or disapprove the

electronic pulltab system and software. The department shall inform the

manufacturer of its decision[within thirty (30) days of the demonstration,

or] no later than sixty (60) days after the department receives the

test results from the independent testing facility. Approval shall be granted

in accordance with paragraph (a) of this subsection.

      (5) Any modifications to an electronic pulltab system or its

software, except as provided in subsection (6) of this section,

shall be tested and certified by an independent testing facility, demonstrated

to the department by the manufacturer upon request, and approved by the

department in the same manner as a new system or new software. Testing and

certification shall be at the manufacturer’s expense.

      (6) A manufacturer may conduct routine maintenance

activities and replace secondary components of an electronic pulltab system

without additional testing and certification as long as this activity does not

affect the operation of any proprietary software, the manner in which an

electronic pulltab game is played, the integrity of any critical or controlled

software, or the outcome of an electronic pulltab game. A record of all[such]

activities shall be maintained and provided to the department within ten (10)

days of the maintenance or replacement.

      (7)(a) If a manufacturer, distributor, or charitable

organization detects or discovers any defect, malfunction, or problem with an

electronic pulltab system, electronic pulltab device, or electronic pulltab

game that affects the security or the integrity of the electronic pulltab

system, electronic pulltab device, or electronic pulltab game, the

manufacturer, distributor, or charitable organization shall immediately notify

the department. The charitable organization shall also immediately notify the

distributor of the defect, malfunction, or problem. The distributor shall

immediately notify the manufacturer of the defect, malfunction, or problem.

      (b) If the department detects, discovers, or is notified of

any problem with an electronic pulltab system, electronic pulltab device, or

electronic pulltab game that affects the security or the integrity of the

electronic pulltab system, electronic pulltab device, or electronic pulltab game,

the department shall direct the manufacturer, distributor, and charitable

organization to immediately cease the sale, lease, or use of the affected

electronic pulltab system, electronic pulltab device, or electronic pulltab

game until the problem can be assessed by the department in consultation with

the manufacturer or distributor.

      (c) If the department, in consultation with the manufacturer

or distributor, determines that a defect actually exists, and the defect

affects game security or otherwise threatens public confidence in the game, the

department shall require the manufacturer to issue a total recall of all

affected electronic pulltab systems, electronic pulltab devices, or electronic

pulltab games or affected game sets or subsets, if necessary.

      (d) In choosing and directing a particular recall in

accordance with paragraph (c) of this subsection, the department shall be guided

in each circumstance by any combination of the following factors:

      1. The nature of the defect;

      2. Whether the defect affected game security;

      3. Whether the defect affected game playability;

      4. Whether the defect was limited to a specific number of

deals of a particular form number;

      5. Whether the defect was easily detectable by a charitable

organization;

      6. Whether the defect was easily detectable by members of

the general public;

      7. Whether the defect threatens public confidence in the

game; or

      8. Whether the defect is capable of being used to adversely

affect the fair play of the game.

      (e) The manufacturer or distributor may correct the defect,

if possible, without issuing a total recall if the affected electronic pulltab

devices and electronic pulltabs are not offered for sale, lease, or use if and

until the department allows. The manufacturer or distributor shall make all

corrections within a reasonable time, not to exceed thirty (30) days, and the

manufacturer or distributor shall demonstrate the correction to the department.

If the department believes the defect has been corrected and that the defect no

longer affects game security or otherwise threatens public confidence in the

game, the department may issue written notification that the affected

electronic pulltab system, devices, or pulltab game may be reoffered for sale,

lease, or use.

      (f) If a recall of an electronic pulltab system or

electronic pulltab device is necessary, the department, in consultation with

the manufacturer, shall determine a specific date for the recall of any

affected electronic pulltab system or electronic pulltab device[devices]

to be completed and whether the manufacturer is required to reimburse the

organization or distributor. The recall of any electronic pulltab game shall

occur no later than twenty-four (24) hours after the manufacturer is notified

of the defect.

      (8)(a) A distributor or charitable organization shall not

add or remove any software programs to an approved electronic pulltab system

without the written permission of the manufacturer and the department.

      (b) If the department detects or discovers an electronic

pulltab system at a playing location that is using components or software that

were required to have been approved by the manufacturer and the department, but

have not been approved, the electronic pulltab system shall be determined to

have an unauthorized modification and use of the system shall cease

immediately.

      (9) All games including game themes, sounds, and music shall

be approved by the department prior to being available for play on an

electronic pulltab device in the Commonwealth of Kentucky.

 

      Section

3. Electronic Pulltab System Requirements. (1) Any element of the central

computer system that holds or maintains game data, other than an electronic

pulltab device or point of sale station when in use, shall be kept in a locked

and secure enclosure with limited access to designated personnel. The system

shall provide a secure physical and electronic means for securing the games and

game data against alteration, tampering, or unauthorized access.

      (2)

The central computer system shall include a central server located in the

Commonwealth of Kentucky that is accessible to the department so the department

has the ability to remotely verify the operation, compliance, and internal

accounting systems of the electronic pulltab system at any time. The department shall have

real time and complete read-only access to all data for all systems and

devices.

      (a)

The manufacturer shall provide to the department all current protocols,

passwords, and any other required information needed to access the electronic

pulltab system prior to the operation of the system within Kentucky, and at all

times while the system remains operational within Kentucky.

      (b)

The department shall be notified of any changes in the protocols, passwords,

and any other required information needed to access the system at

least[within] three (3) days prior to[of]

the change.

      (c)

Any reports maintained or generated by the electronic pulltab system shall be

capable of being downloaded or otherwise accessed via the internet by the

department.

      (3)

A site system, if used, shall:

      (a) Be located at the gaming premises;

      (b) Be operated by the charitable organization;

      (c) Interface with, connect with, control, or

define the operational parameters of the electronic pulltab devices;

      (d) Report and transmit the game results as

prescribed by the department;

      (e) Provide security and access levels sufficient

so that the internal control objectives are met as prescribed by the

department; and

      (f) Contain a point of sale station.

      (4) The site system, if used, may include the

following components:

      (a) Required printers;

      (b) Proprietary executable software;

      (c) Report generation software; and

      (d) An accounting system or database.

      (5)

The electronic pulltab system shall provide password protection for each

organization.

      (6)[(4)]

An electronic pulltab system shall provide a means for terminating a game set

if information about electronic pulltabs in an open game set has been accessed,

or if the department determines there has been a breach of game

security[at the discretion of the department].[In

such cases,] Traceability of unauthorized access including time and

date, users involved, and any other relevant information shall be available.

      (7)[(5)]

An electronic pulltab system shall not permit the alteration of any accounting

or significant event information. Significant events shall include power resets

or failures, communication loss between an electronic pulltab device and the

electronic pulltab system, any award in excess of the single win limit for an

electronic pulltab, or corruption of the electronic pulltab system memory or

storage. If financial data is changed, an automated audit log shall be capable

of being produced to document the following:

      (a)

Data element altered;

      (b)

Data element value prior to alteration;

      (c)

Data element value after alteration; and

      (d)

Time and date of alteration.

      (8)[(6)]

An electronic pulltab system shall provide password security or other secure

means of ensuring data integrity and enforcing user permissions for all system

components, including the following:

      (a)

All programs and data files shall only be accessible via the entry of a

password that shall be known only to authorized personnel;

      (b)

The electronic pulltab system shall have multiple security access levels to

control and restrict different privilege levels;

      (c)

The electronic pulltab system access accounts shall be unique when assigned to

the authorized personnel;

      (d)

The storage of passwords and PINs shall be in an encrypted, nonreversible form;

and

      (e)

A program or report shall be available that lists all authorized users on the

electronic pulltab system including their privilege level.

      (9)[(7)]

All components of an electronic pulltab system that allow access to users,

other than end-users for game play, shall have a password sign-on comprised

of a[with two-level codes comprising the] personal

identification code and a personal password.

      (a)

The personal identification code shall have a length of at least six (6) ASCII

characters.

      (b)

The personal password shall have a minimum length of six (6) alphanumeric

characters, which shall include at least one (1) non-alphabetic character.

      (10)[(8)]

Electronic pulltab system software components shall be verifiable by a secure

means at the system level. An electronic pulltab system shall have the ability

to allow for an independent integrity check of the components from an outside

source and is required for all control programs that may affect the integrity

of the electronic pulltab system. This shall be accomplished by being authenticated

by a third-party device, which may be embedded within the electronic pulltab

system software or having an interface or procedure for a third-party

application to authenticate the component. This integrity check shall provide a

means for field verification of the electronic pulltab system components.

      (11)[(9)]

The electronic pulltab system shall have a medium for securely storing

electronic pulltab game sets which shall be mirrored in real time by a backup

medium. The electronic pulltab system shall also provide a means for storing

duplicates of the game sets already transmitted to the electronic pulltab

devices so as to reflect, on an ongoing basis, changes in the transmitted game

sets as they occur.

      (a)

All storage shall be through an error checking, nonvolatile physical medium, or

an equivalent architectural implementation, so that if the primary storage

medium fails, the functions of the electronic pulltab system and the process of

auditing those functions shall continue with no critical data loss.

      (b)

The database shall be stored on redundant media so that a single failure of any

portion of the system shall not result in the loss or corruption of data.

      (c)

If there is a catastrophic failure when the electronic pulltab system cannot be

restarted in any other way, it shall be possible to reload the electronic

pulltab system from the last viable backup point and fully recover the contents

of that backup, to consist of at least the following information:

      1.

All significant events;

      2.

All accounting information; and

      3.

Auditing information, including all open game sets and the summary of completed

game sets.

      (12)[(10)]

Connections between all components of the electronic pulltab system shall only

be through use of secure communication protocols which are designed to prevent

unauthorized access or tampering, employing Data Encryption Standards (DES) or

equivalent encryption with changeable seeds or algorithms.

      (13)[(11)]

An electronic pulltab system's[system] central

computer system may be used to record the data used to verify game play and to

configure and perform security checks on electronic pulltab devices, if the

functions do not affect the security, integrity, or outcome of any game and

meet the requirements set forth in this administrative regulation regarding program

storage devices.

      (14)[(12)]

An electronic pulltab system shall not display to the

player, the licensed organization, or the licensed distributor the number of

electronic pulltabs that remain in a game set, or the number of winners or

losers that have been drawn or still remain in the game set, while the game set

is still open for play. Once a game set has been closed, it shall not be able

to be opened for play.

      (15)[(13)] The electronic pulltab

system shall render unplayable the electronic pulltabs of a charitable

organization once the organization logs out of the system at the end of the

organization’s gaming occasion and until the organization logs back onto the

system at the start of the organization’s next scheduled gaming occasion. If

multiple organizations use the same electronic pulltab devices and electronic

pulltab system, one (1) organization’s electronic pulltab games and data shall

not be accessible or played by another organization.

      (16)[(14)]

An electronic pulltab system may include player tracking software. Player

tracking records shall at all times be the property of the charitable

organization and neither the manufacturer nor the distributor shall utilize or

make available to any person, other than the department or as otherwise

authorized by law, the information contained within the player tracking

software without the express permission of the charitable organization.

 

      Section

4. Point of Sale Requirements. (1) An electronic pulltab system shall include a

point of sale station that is used to facilitate the sale of an electronic

pulltab device, to load money to a player account for purchase of electronic

pulltabs during the current gaming occasion, and to cash-out or redeem credits

from the play of electronic pulltabs.

      (a)

The point of sale station may be stationary, mobile, or self-service[,

or any configuration approved by the department].

      (b)

The point of sale station shall not be designed or manufactured to resemble an

electronic gaming device that utilizes a video display monitor, such as a video

lottery terminal, video slot machine, video poker machine, or any similar video

gaming device.

      (c)

The point of sale station shall not have vertical or horizontal spinning reels,

a pull handle, sounds or music intended to entice a player to play, flashing

lights, tower light, top box, enhanced animation, artwork, or any other

attribute or representation that mimics a video lottery terminal, video slot

machine, video poker machine, or any similar video gaming device.

      (d)

The point of sale station shall not function simultaneously as an electronic

pulltab device.

      (2)

The point of sale station shall be capable of printing a receipt, which the

organization shall provide to the player, that details each transaction. The

receipt shall contain, at a minimum, the following information:

      (a)

The date and time of the transaction;

      (b)

A unique non-resettable transaction number that is printed in continuous,

consecutive order;

      (c)

The dollar amount of the transaction, including the cost, if any, of the

electronic pulltab device and the amount of money loaded to a player account

that will be available for the purchase of electronic pulltabs during that

gaming occasion;

      (d)

A unique entry code or account number that will be used to activate an

electronic pulltab device and make available to the player the money loaded to

the player account at the point of sale for the purchase of electronic pulltabs

during that gaming occasion;

      (e)

The name of the charitable organization and license number; and

      (f)

The point of sale identification number or name.

      (3)

If the receipt printer malfunctions or printed receipts are not legible, manual

receipts shall be issued that contain the same information required by

subsection (2) of this section.

      (4)

The point of sale station shall be capable of displaying, at minimum, the following

for each gaming occasion:

      (a)

The sales transaction history, including:

      1.

The organization name and license number;

      2.

Date and time of each transaction;

      3.

Dollar value of each transaction;

      4.

Quantity of electronic pulltab devices sold;

      5.

All transaction numbers; and

      6.

The point of sale identification number or name; and

      (b)

A pay-out history detailing all pay-outs, including:

      1.

The organization name and license number;

      2.

Date and time of each pay-out;

      3.

Dollar value of each pay-out; and

      4.

Point of sale identification number or name.

      (5) A point of sale station shall not display[pay-out]

information relating to prizes already paid out in[specific to]

a particular game set, the number of electronic pulltabs that remain in a game

set, or the number of winners or losers that have been drawn or still remain in

the game set, while the game set is still open for play.

 

      Section

5. Electronic Pulltab Device Requirements. (1) An electronic

pulltab device shall be designed as a handheld or fixed base personal computing

device that:

      (a) Is used to play one (1) or more electronic pulltab

games;

      (b) Requires coded entry to activate a device for a player

to purchase and play electronic pulltabs, but does not allow the use of coin,

currency, or tokens to be inserted to purchase and play electronic pulltabs;

      (c) Maintains and displays information pertaining to accumulation

of credits that may be applied to games in play or redeemed upon termination of

play;

      (d) Has no vertical or horizontal spinning reels, pull

handle, sounds or music solely intended to entice a player to play, flashing

lights, tower light, top box, coin tray, ticket acceptor, hopper, coin

acceptor, cabinet, artwork, or any other attribute or representation that

mimics a video slot machine;

      (e) Shall

not be capable of displaying any enticing animation while in an idle state. An

electronic pulltab device may use simple display elements or screen savers to

prevent monitor damage;

      (f) Has no additional function as a gambling device other

than as an electronic pulltab device or as an approved card-minding device, if

possible; and

      (g) Is not a pulltab dispenser as described[defined]

in 820 KAR 1:034.

      (2) An

electronic pulltab device shall not have hardware or software that determines

the outcome of any electronic pulltab, produces its own outcome, or affects the

order of electronic pulltabs as dispensed from the electronic pulltab system's[system]

central computer system. The game outcome shall be determined by the electronic

pulltab system's[system] central computer system.

      (3) An electronic pulltab

device may utilize a touch screen. The touch screen shall meet the following

requirements:

      (a)

It shall be accurate once calibrated;

      (b)

It shall be able to be recalibrated; and

      (c)

It shall have no hidden or undocumented buttons or touchpoints anywhere on the

touch screen.

      (4) An electronic pulltab device shall not be capable of

displaying the number of electronic pulltabs that remain in a game set or the

number of winners or losers that have been drawn or still remain in the game

set, while the game set is still open for play.

      (5) A fixed base electronic pulltab device shall

not be built into a cabinet or in any way be designed or manufactured to

resemble any electronic gaming device that utilizes a video display monitor,

such as a video lottery terminal, video slot machine, video poker machine, or

any similar video gaming device.

 

      Section

6. Electronic Pulltab Requirements. (1) An electronic pulltab

system shall dispense, upon player request and payment of consideration, an

electronic pulltab. A player shall win if the player's electronic pulltab

contains a combination of symbols or numbers that was designated in advance of

the game as a winning combination. There may be multiple winning combinations

in each game. All games shall be played without replacement.

      (2)

An

electronic pulltab game shall:

      (a) Be a version of a paper pulltab game that is played on

an electronic pulltab device;

      (b) Have a predetermined, finite number of winning and

losing tickets, not to exceed 25,000 tickets per game set;

      (c) Charge the same price for each ticket in a game set;

      (d) Require that a player press a button or perform some

other function to purchase or open an electronic pulltab ticket;

      (e) Comply with KRS Chapter 238, 820 KAR 1:001, 820

KAR 1:032, 820 KAR 1:036,[all applicable statutes] and this

administrative regulation[regulations governing pulltab games];

      (f) Comply with prize limits set forth in KRS 238.545(2);

      (g) Have a unique serial number for each game set that shall

not be regenerated. Each pulltab in a game set shall bear the same serial

number and only one (1) serial number shall be used in a game set. After

randomization, game sets may be broken into subsets of equal size. If game

subsets are used, they shall each be assigned a unique serial number and be

traceable to a parent game set. If a seal card is used with a pulltab game set,

the seal card shall bear the same serial number as each pulltab; and

      (h) Have an electronic flare or seal card, viewable upon

player request, that displays the name of the game, manufacturer’s name or

logo, manufacturer’s form number, the game serial number, the predetermined

finite number of tickets in the game, and the prize structure, and the cost per

play.

      (3) An electronic pulltab game shall[;

      (i)] not contain vertical or horizontal

spinning reels or other representations that mimic a video slot machine.

      (4) An electronic pulltab game[;

and

      (j)] may have visual or audio

enhancements to provide information about the game being played if the

component does not affect the outcome of a game and if any game theme, visual enhancement,

sound, or music is approved by the department prior to being available for play

on an electronic pulltab device.

      (5)[(3)] The available games,

flare, and rules of play shall be displayed on the electronic pulltab device's

video screen upon player request.

      (6)[(4)]

Any number of game themes may be selectable for play on any given electronic

pulltab device. Only one (1) of the game themes shall be playable at a time.

      (7)[(5)]

The results of the electronic pulltab shall be shown to the player using a

video display. Results shall not be shown by using[No]

rolling, flashing, or spinning animations, reels, or other

representations that mimic a video slot machine[are permitted].

      (8)[(6)]

Any sound or music solely intended to entice a player to play shall be

prohibited. Any sound or music emitted by an electronic pulltab device shall not

be played at a level sufficient to disturb other players or patrons.

      (9)[(7)]

An electronic pulltab device shall have one (1) or more buttons,

electromechanical or touch screen, to facilitate the following functions:

      (a)

Viewing of the game "help" screens;

      (b)

Viewing of the game rules including the flare or seal card;

      (c)

Initiating game play;

      (d)

Cash-out or logout; and

      (e)

Purchasing or revealing the pulltab.

      (10)[(8)]

Each electronic pulltab shall be initially displayed so that the

numbers, letters, or symbols on the pulltab are concealed. Each electronic pulltab

game shall require the player to press a "play", "purchase",

"open", or equivalent button to initiate the purchase of an

electronic pulltab. A player may have the option of opening each individual line,

row, or column of each electronic pulltab or may choose to "open all".

      (11)[(9)] Following play of an

electronic pulltab, the result shall be clearly shown on the video display

along with any prizes that may have been awarded. Prizes shall be added as a

credit to the player’s account.

      (12)[(10)]

An available player account balance shall be collected by the player by

pressing the "cash-out" button or "logoff" button on the

electronic pulltab device and taking the device, the receipt, or, if allowed, a

player account card to the point of sale station.

      (13)[(11)]

Game themes shall not contain obscene or offensive graphics, animations, or

references.[The department shall determine what constitutes obscene or

offensive graphics, animations, or references.]

      (14)[(12)]

An

electronic pulltab game shall not be capable of displaying the number of

electronic pulltabs that remain in the game set, or the number of winners or

losers that have been drawn or still remain in the game set, while the game set

is still open for play.

 

      Section

7. Randomization of Electronic Pulltabs. (1) An electronic pulltab system shall

utilize randomizing procedures in the creation of game sets for electronic

pulltabs, or utilize externally generated randomized game sets. After

randomization, game sets may be broken into game subsets of equal size which

shall be assigned a unique serial number.

      (2)

Winning electronic pulltabs shall be distributed randomly among all other

pulltabs in a game set to eliminate any pattern between game sets, or portions

of game sets.

      (3)

Any random number generation, shuffling, or randomization of outcomes used in

connection with an electronic pulltab system shall be by use of a random number

generation application that has successfully passed standard tests for

randomness and unpredictability.

 

      Section

8. Flares and Seal Cards for Electronic Pulltabs. (1) Every game set shall

include a flare or a seal card. The manufacturer shall include on the

electronic flare or seal card the following information:

      (a)

The name of the game;

      (b)

The manufacturer's name or logo;

      (c)

The manufacturer's form number;

      (d)

The game set serial number;

      (e)

The predetermined finite number of tickets within the game set;

      (f)

The prize structure, including a description of the number of winning pulltabs

by denomination, and amounts, if any, dedicated to the prize pool in a seal

card game with a cumulative prize, or a carryover or progressive prize; and

      (g)

The cost per play of an electronic pulltab within the game set.

      (2)

Every game set of electronic pulltabs shall contain electronic rules of play.

 

      Section

9. Electronic Accounting and Reporting. (1) One (1) or more electronic internal

accounting systems shall be required to perform recordkeeping, reporting, and

other functions in support of an electronic pulltab system. The electronic

internal accounting system shall not interfere with the outcome of any gaming

function.

      (2)

The electronic internal accounting system shall be capable of recording and

retaining for a period of not less than three (3) years the following

information:

      (a)

The name and license number of the organization utilizing an electronic pulltab

system; and

      (b)

For each gaming occasion:

      1.

The date and time of each log-on and log-off of an organization;

      2.

The total amount of all monetary transactions regarding electronic

pulltabs and electronic pulltab devices at each gaming occasion;

      3.

The total number of electronic pulltab devices sold or provided at each gaming

occasion;

      4.

The serial number of each hand-held electronic pulltab device sold or provided;

      5.

The terminal number for each fixed base electronic pulltab device sold or

provided;

      6.

The name, serial number, price, and predetermined finite number of tickets

within each game set available for play at each gaming occasion;

      7.

The total number of electronic pulltabs played from each game set at each

gaming occasion;

      8.

All prize payouts for each game set per gaming occasion; and

      9. All wagers and other

information necessary to fully reconstruct a game outcome.

      (3) The information required by subsection (2) of this section shall

be secure and shall not be accessible for alteration. Information pertaining to

the number of electronic pulltabs that remain in an open game set, or the

number of winners or losers that have been drawn or still remain in an open

game set shall not be accessible to the licensed organization or the licensed

distributor.

      (4)

The electronic pulltab system's[system] central

computer system shall maintain a printable, permanent record of all

transactions involving each device and each closed electronic pulltab game

played on each device.

      (5)

An electronic pulltab system shall have report generation software with the

capability to print all information required to be maintained on the system’s

active or archived databases, and pursuant to the restrictions related to

information available on open game sets.[Reporting shall be in a

format requested by the department.]

      (6)

All data required to be available or reported by this administrative regulation

shall be retained for a period of not less than three (3) years.

 

      Section

10. Manufacturer Requirements. (1) Each manufacturer selling, leasing, or

otherwise furnishing electronic pulltab devices, site systems, point of sale

stations, secondary components, and electronic pulltabs shall maintain a log or

other record showing the following:

      (a)

The name, address, and license number of the distributor to whom the electronic

pulltab devices, site systems[system], point of

sale stations[station], secondary components, or

electronic pulltabs were sold, leased, or otherwise furnished;

      (b)

The date of the transaction with the distributor;

      (c)

The model, version, and serial number of each hand-held electronic pulltab

device, if applicable;

      (d)

The account number or terminal number of each fixed base electronic pulltab

device, if applicable;

      (e)

The quantity of each type of electronic pulltab device;

      (f)

The model and version number of the system software;

      (g)

The name, form number, and serial number of each game set of electronic

pulltabs; and

      (h)

The quantity of game sets sold, the cost per game set, the selling price per

ticket, the cash take-in per game set, and the cash payout per game set.

      (2)

A manufacturer selling, leasing, or otherwise providing electronic pulltab

devices, site systems[system], point of sale

stations, or secondary components to a distributor shall provide the

distributor with an invoice or other documentation that contains, at a minimum,

the following information:

      (a) The manufacturer

name, address, and license number;

      (b)

The distributor name, address, and license number;

      (c)

The address to which the shipment was delivered;

      (d)

The date of sale or credit and the time period covered by the invoice;

      (e)

The conditions of the sale or credit;

      (f)

A description of the type and the quantity of electronic pulltab[pulltabs]

devices, site systems, point of sale stations, and secondary components provided;

      (g)

The total invoice amount;

      (h)

The name of the person who ordered the supplies;

      (i)

The name of the person making the delivery;

      (j)

The date of delivery or date the item was picked up for sale or credit;

      (k)

The place or manner of delivery; and

      (l)

The name and signature of the person taking delivery, if any.

      (3) A manufacturer

providing electronic pulltabs to a distributor for distribution to a licensed

charitable organization shall provide the distributor with an invoice or other

documentation that contains, at a minimum, the following information:

      (a) The manufacturer

name, address, and license number;

      (b)

The distributor name, address, and license number;

      (c)

The organization name, address, and license number;

      (d)

The date of sale or credit and the time period covered by the invoice;

      (e)

The conditions of the sale or credit;

      (f)

The quantity of electronic pulltabs sold including the number of game sets, the

name of each game set, the number of tickets per game set, and the serial number

and form number of the game set; and

      (g)

The total invoice amount.

      (4) The manufacturer

shall maintain physical or electronic copies of the documentation required by

this section for a period of not less than three (3) years.

      (5)

A manufacturer shall supply any available financial reports to distributors and

organizations, upon request, that provide detailed pulltab sales activity for

the requesting distributor or organization for a selected date range.

 

      Section

11. Distributor Requirements. (1) Before initial use by a charitable

organization, the distributor shall ascertain that the particular electronic

pulltab system, electronic pulltab device, and associated software version are

approved by the department for use in Kentucky.

      (2)

A distributor shall not display, use, or otherwise furnish an electronic

pulltab device, site system, or secondary component which has in any manner

been marked, defaced, or tampered with, or which is otherwise intended to

deceive the public or affect a person’s chances of winning.

      (3)

Before the complete removal of any electronic pulltab system, the distributor

shall supply a copy of the data files to each charitable organization which

used the electronic pulltab system and to the department.

      (4)

Each distributor selling, leasing, or otherwise furnishing electronic pulltab

devices, site systems, point of sale stations, secondary components, or[and]

electronic pulltabs shall maintain a log or other record showing the following

information, if applicable:

      (a)

The name of the location, physical address, telephone number, and facility

license number, if applicable, where the electronic pulltab devices, site systems[system],

point of sale stations, and secondary components are located for play;

      (b)

A description, including the quantity, of all electronic pulltab devices, site systems[system],

point of sale stations, and secondary components at each playing location;

      (c)

The date any electronic pulltab device, site system, point of sale station, or

secondary component was installed in or removed from a playing location;

      (d)

The model, version, and serial numbers or terminal numbers of the electronic

pulltab devices, site systems[system], point of

sale stations, and secondary components, if applicable;

      (e)

The name and license number of the charitable organization or distributor to

whom the electronic pulltab devices, site systems[system],

point of sale stations, or secondary components were sold, leased, or otherwise

furnished;

      (f)

The name and license number of the manufacturer or distributor from whom the

electronic pulltab devices, site systems[system],

point of sale stations, and secondary components were purchased, leased, or

otherwise obtained;

      (g)

Each contract, lease, or purchase agreement between a distributor and the

charitable organization or other distributor to which the electronic pulltab

devices, site systems[system], point of sale

stations, or secondary components are furnished; and

      (h)

The total dollar amount of electronic pulltab device, site system, point of

sale station, and secondary component sales or lease transactions regarding

each charitable organization to which the equipment was furnished during each

calendar quarter.

      (5)

A distributor selling, leasing, or otherwise providing electronic pulltab

devices, site systems[system], point of sale

stations, or secondary components to a licensed charitable organization shall

provide the organization with an invoice or other documentation that contains,

at a minimum, the following information:

      (a) The manufacturer

name, address, and license number;

      (b)

The distributor name, address, and license number;

      (c)

The organization name, address, and license number;

      (d)

The date of sale or credit and the time period covered by the invoice;

      (e)

The conditions of the sale or credit;

      (f)

A description of the type and the quantity of electronic pulltab devices, site

systems, point of sale stations, and secondary components provided;

      (g)

The total invoice amount;

      (h)

The name of the person who ordered the supplies;

      (i)

The name of the person making the delivery;

      (j)

The date of delivery or date the item was picked up for sale or credit;

      (k)

The place or manner of delivery; and

      (l)

The name and signature of the person taking delivery, if any.

      (6) A distributor

providing electronic pulltabs to a licensed charitable organization shall

provide the organization with an invoice or other documentation that contains,

at a minimum, the following information:

      (a) The manufacturer

name, address, and license number;

      (b)

The distributor name, address, and license number;

      (c)

The organization name, address, and license number;

      (d)

The date of sale or credit and the time period covered by the invoice;

      (e)

The conditions of the sale or credit;

      (f)

The quantity of electronic pulltabs sold including the number of game sets, the

name of each game set, the number of tickets per game set, and the serial

number and form number of the game set; and

      (g)

The total invoice amount.

      (7) An invoice not

challenged within seven (7) days of delivery shall be deemed accurate. Any

challenge to an invoice shall be made in writing to the distributor and a copy

shall be sent to the department.

      (8)

The distributor shall maintain physical or electronic copies of the

documentation required by this section for a period of not less than three (3)

years.

      (9)

A

distributor shall deliver electronic pulltab devices, site systems[system], point of sale

stations, and secondary components to an agreed secure location or to an

identified person.

 

      Section

12. Charitable Organization Requirements. (1) Before initial use, the

organization shall ascertain that the particular electronic pulltab system,

electronic pulltab device, and associated software version are approved by the

department for use in Kentucky.

      (2)

An organization shall not display, use, or otherwise furnish an electronic

pulltab device, site system, or secondary component which has in any manner

been marked, defaced, or tampered with, or which is otherwise intended to

deceive the public or affect a person’s chances of winning.

      (3)

The use of electronic pulltab devices shall only be allowed at an authorized

location, which shall be limited to the following:

      (a)

On or in the premises of a licensed charitable

organization;

      (b) In a licensed charitable gaming facility; or

      (c) With prior approval of the department, at any authorized

charity fundraising event conducted by a licensed charitable organization at an

off-site location.

      (4) All electronic pulltab games shall be sold and played at

the authorized locations and shall not be linked to other authorized locations.

      (5) Electronic pulltab games shall not be transferred

electronically or otherwise to any other location by the licensed organization.

      (6) An organization may remove from play a device that a

player has not maintained in an activated mode for a specified period of time

determined by the organization. The organization shall provide the notice in

its house rules and shall allow the player to cash-out.

      (7) Before purchasing or being provided with an electronic

pulltab device, a player shall present proof that the player is at least

eighteen (18) years of age. Proof shall be in the form of a picture

identification card that includes the player’s date of birth. If an organization

uses a self-service point of sale kiosk, identification shall be presented and

verified at the door.

      (8) Each player shall be limited to the use of one (1) electronic

pulltab device at a time.

      (9)

If a player’s electronic pulltab device malfunctions during a game, it shall[may]

be repaired or the credits shall[may] be

transferred to another electronic pulltab device.

      (10)

The department shall be allowed access to examine and inspect any part of an

electronic pulltab system. The department shall be granted access to all

electronic pulltab devices in use by a charitable organization.

      (11)

The organization shall reasonably ensure that the connection to the electronic

pulltab system's[system] central computer system is

operational at all times.

      (12)

If the organization sells electronic pulltab devices for a discounted price, or

gives them away as a promotion, the site system shall be programmed to account

for the discounted item and priced separately from those sold at the regular

price. A generic discount key shall not be allowed.

      (13)

The organization shall print a Total Sales Activity Report For

Electronic Pulltab Devices at the end of each gaming occasion and

maintain it with the occasion records. The Total Sales Activity Report For

Electronic Pulltab Devices shall be completed in the format of Form

CG-EPD.

      (14)

A manufacturer’s representative or distributor's representative may be present

during a gaming occasion only to consult, demonstrate, and train the

organization on the operation of the electronic pulltab system.

 

      Section

13. Incorporation by Reference. (1) Form CG-EPD, "Total Sales

Activity Report For Electronic Pulltab Devices[Device

Total Sales Activity Report]", 8/15[5/15],

is incorporated by reference.

      (2)

This material may be inspected, copied, or obtained, subject to applicable

copyright law, at the Department of Charitable Gaming, Public Protection

Cabinet, 132 Brighton Park Boulevard, Frankfort, Kentucky 40601, Monday through

Friday, 8 a.m. to 4:30 p.m.

 

SCOTT

JONES, Commissioner

AMBROSE

WILSON IV, Secretary

      APPROVED

BY AGENCY: June 12, 2015

      FILED

WITH LRC: June 12, 2015 at 4 p.m.

      CONTACT

PERSON: Noelle J. Bailey, General Counsel, Department of Charitable Gaming, 132

Brighton Park Boulevard, Frankfort, Kentucky 40601, phone (502) 573-5528, fax

(502) 573-6625.
Read Entire Law on www.lrc.ky.gov