820 KAR 1:032. Pulltab
construction.
RELATES TO: KRS 238.505(5),
238.545(1), (2)
STATUTORY AUTHORITY: KRS
238.515(2), (4), (9), 238.545(1), (2)
NECESSITY, FUNCTION, AND
CONFORMITY: KRS 238.515(2) and (9) require the Office of Charitable Gaming to
establish reasonable standards for the conduct of charitable gaming. KRS
238.545(2) requires the office to establish standards for pulltab construction,
distribution and rules of play. This administrative regulation establishes
standards for the construction and distribution of pulltabs.
Section 1. Conformity of
Pulltabs. (1) A licensed distributor of charitable gaming supplies and
equipment shall distribute in Kentucky only those pulltabs conforming to the
requirements of this administrative regulation.
(2) A licensed charitable
organization shall sell to the public only those pulltabs conforming to the
requirements of this administrative regulation.
Section 2. Pulltab
Construction Standards. (1) Pulltabs shall be constructed so that the concealed
numbers, symbols, or winner protection features cannot be viewed or determined
from the outside of the pulltab using a high intensity lamp of up to and
including 500 watts, with or without utilizing a focusing lens.
(2) The deal shall be
designed, printed, glued, cut and assembled in a manner to prevent
determination of a winning or losing ticket without removing the tabs or
otherwise uncovering the symbols or numbers as intended.
(3) Each pulltab in a deal
shall bear the same serial number. If a seal card is used with a pulltab deal,
the seal card shall bear the same serial number as each pulltab. Only one (1)
serial number shall be used in a deal. A serial number used in a deal of
pulltabs shall not be repeated by the same manufacturer on that same
manufacturer’s form number within a three (3) year period.
(4) If the pulltab utilizes a
window, the numbers or symbols on the pulltab shall be fully visible in the
window and shall be placed so that no part of a symbol or number remains
covered when the tab is removed. Displacement of the symbol to the left or
right in a window may be used for increased game security. Additional security
devices or methods, including a laminate underneath a window, may be used by a
manufacturer.
(5) It shall not be possible
to distinguish winning pulltabs from losing pulltabs through variations in
printing graphics or colors, including those involving different printing
plates.
(6) All winning pulltabs
shall have at least one (1) winner protection feature. In addition, all winning
pulltabs that entitle a player to an instant prize of greater than twenty (20)
dollars shall include an additional form of winner protection. Numeral jar
tickets with colored winning numerals shall not be required to have secondary
winner protection.
(7) All pulltabs shall be
glued on the window edges and between each window. The glue shall be of
sufficient strength and type to prevent the separation or delamination of the
pulltab. For banded tickets, the glue shall be of sufficient strength and
quality to prevent the separation of the band from the ticket.
(8) The window slits on each
break open ticket shall be perforated on at least three cut sides. The ties
shall be of a sufficient thickness or strength to prevent unauthorized peering
under the windows and so that unauthorized peering under the windows can be
detected. It shall not be possible to isolate winning or potential winning
tickets from variations to the size or the appearance of a cut edge of the
pulltab comprising a particular game.
(9) Except as provided in
subsection (10) or (11) of this section, the minimum information that shall be
printed on an unopened pulltab with an overall area of two and five-tenths
(2.5) square inches or more shall be:
(a) The name of the
manufacturer, or its distinctive logo;
(b) The name of the game;
(c) The manufacturer's form
number;
(d) The price per individual
pulltab;
(e) The unique minimum five
(5) digit game serial number, printed on the game information side of the
pulltab; and
(f) The number of winners and
respective winning numbers or symbols, and specific prize amounts.
(10) A pulltab with an
overall area of at least one and six tenths (1.6) square inches unopened but
less than two and five tenths (2.5) square inches unopened shall:
(a) Have printed on it, at a
minimum, the information listed in subsection 9(a), (b), (c), (d), and (e) of
this section; and
(b) Not be required to have
the information listed in subsection (9)(f) of this section.
(11) A pulltab with an
overall area of less than one and six-tenths (1.6) square inches unopened
shall:
(a) Have printed on it, at a
minimum, the information listed in subsection (9)(a) and (e) of this section;
and
(b) Not be required to have
the information listed in subsection (9)(b), (c), (d), or (f) of this section.
Section 3. Randomization.
Winning pulltabs shall be distributed and mixed among all other pulltabs in a
deal to eliminate any pattern between deals, or portions of deals. The pulltab
deal shall be assembled so that the winning pulltabs cannot be distinguished.
Winning tickets shall be randomly distributed throughout the deal. Banded
tickets packaged in bags, rather than boxes, shall be subject to these requirements.
Section 4. Packaging and
Distribution. (1)(a) Each deal's package, box, or other container shall be
sealed or taped at every entry point at the manufacturer’s factory with a
tamper resistant seal or tape.
(b) The seal or tape shall be
visible under the shrink-wrap or from outside the container and shall be
constructed to guarantee that, if the container is opened or otherwise tampered
with, evidence of the opening or tampering will be easily detected.
(c) The seal or tape shall
include a warning to the purchaser that the deal may have been tampered with if
the package, box, or other container is received by the purchaser with the seal
or tape broken.
(d) If the deal is packaged
in a plastic bag, the entry point shall be completely sealed by the application
of heat or adhesive. The warning may be imprinted in the plastic.
(2) A deal's serial number
shall be clearly and legibly placed on:
(a) The outside of the deal's
package, box, or other container; or
(b) On the inside of the
deal's package, box, or other container if it is clearly visible from the
outside of the package, box, or other container.
(3) Manufacturers shall print
on or affix to the outside of the package or container of pulltabs or include
inside the package or container, in bold print of sufficient size to be easily
read, a message that states substantially the following: "tickets must be
removed from this packaging container and thoroughly mixed prior to sale to the
public."
(4) Manufacturers shall
include with every deal of pulltabs a bar code label that contains at a minimum
the name of the manufacturer or its distinctive logo, the game form number, and
the game serial number. The bar code label shall be visible from the outside of
the package, box, or other container.
Section 5. Flares and Seal
Cards. (1) Every deal of pulltabs shall contain a flare or a seal card that has
printed on it, by the manufacturer, 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 serial number;
(e) The ticket count;
(f) The prize structure,
including a description of the number of winning pulltabs by denomination, with
their respective winning symbols or number combinations, and amounts 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.
(2) Every deal of pulltabs
shall contain instructions on how to play the game.
Section 6. Cumulative Games,
and Carryover or Progressive Games. (1) The amount dedicated to the cumulative
prize pool, or the carryover or progressive jackpot, shall be predetermined by
the manufacturer and built into the payout structure for the game. The
dedicated amount shall be printed by the manufacturer on either the flare or
seal card for each game or on each ticket in each game.
(2) All games contributing to
the cumulative prize pool, or the carryover or progressive jackpot, shall be of
the same form number.
(3) The flare or seal card
for the carryover or progressive jackpot shall contain an area in which the
current amount of the carryover or progressive jackpot can be posted.
(4) If a carryover or
progressive pulltab game uses a progressive jackpot prize card that is separate
from the jackpot seal, the jackpot card shall contain prize space for the organization
to record the serial numbers of all games contributing to the jackpot prize.
(5) If a carryover or progressive pulltab
game uses a jackpot prize card that is separate from the jackpot seal card, each
deal of the game shall possess both a seal card and a jackpot prize card that
has the serial number of the deal affixed to it by the manufacturer.
(6) In a carryover or progressive pulltab
game, the organization shall either start a new jackpot card with each deal or
use the original jackpot card until won. The organization shall maintain each
jackpot card used pursuant to 820 KAR 1:036, Section 2(15).
(7) A progressive pulltab game shall not
be designed by the manufacturer to give any player odds greater than a fifty
(50) percent chance to win the progressive jackpot.
Section 7. Event Games. (1)
An event game shall not contain a "last sale" feature.
(2) The number of winners and
the prize amounts shall be built into the payout structure for the game by the
manufacturer.
(3) An event ticket prize
shall not exceed the individual ticket prize limit for a pulltab game.
(4) The prize for an event
pulltab game shall not be considered a bingo prize.
Section 8. Multipackaged
Pulltab Deals. Every package shall be played for the deal to show the stated
profit. Each package may contain individual winners if desired. If each package
contains a winner, the game shall contain a method of verifying from which
package the winner was sold.
Section 9. Tracking by
Manufacturer. Every manufacturer of pulltabs shall maintain records sufficient
to track each deal of pulltabs, by serial number and form number, from the
manufacturer to the next point of sale for thirty-six (36) months. The records
shall be subject to inspection by office staff.
Section 10. Tracking by
Distributor. (1) Every distributor of pulltabs shall maintain records
sufficient to track each deal of pulltabs, by serial number and form number,
from purchase by the distributor to the next point of sale for thirty-six (36)
months. The records shall be subject to inspection by office staff.
(2) For sales in the
Commonwealth of Kentucky, or to residents of Kentucky, the records required
under this section shall be deemed sufficient if the distributor records the
name of the purchaser and makes and retains a copy of the Kentucky charitable
gaming license or exemption number of the purchaser at the next point of sale.
(3) For sales outside the
Commonwealth of Kentucky to nonresidents of Kentucky, the records required
under this section shall be deemed sufficient if the distributor makes and retains
a copy of a state charitable gaming license or a valid state identification
card of the purchaser which contains the name, address, date of birth, and
state identification number of the purchaser at the next point of sale.
Section 11. Requirements of
Distributor Invoice. (1) Distributors selling pulltabs to charitable
organizations or other distributors shall provide the charitable organization
or other distributor with an invoice that contains, at a minimum, the following
information:
(a) The purchaser’s name,
address, and license number;
(b) The address to which the
shipment was delivered;
(c) The date of sale or
credit;
(d) The conditions of the
sale or credit;
(e) The quantity of pulltabs
sold including the number of the deals, the name of each deal, the tickets per
deal, and the serial number and form number of the deal;
(f) The total invoice amount;
(g) The name of the person
who ordered the supplies;
(h) The name of the person
making the delivery;
(i) The date of delivery or
date item was picked up for sale or credit;
(j) The place or manner of
delivery; and
(k) The name and signature of
the person taking delivery, if any.
(2) A distributor may deliver pulltabs to
an agreed place or to an identified person. 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 office.
Section 12. Defects. (1) If a
defect in packaging or construction of a pulltab is discovered by an
organization, the defect shall be reported to the distributor within fifteen
(15) days. The distributor shall correct the defect, or replace the defective
items, within a reasonable time, if possible.
(2) If the office, in consultation
with the manufacturer, determines that a defect actually exists, and the defect
affects game security or otherwise threatens public confidence in the game, the
office shall, with respect to pulltabs for use in Kentucky, require the manufacturer
to:
(a) Recall the pulltabs
affected that have not been sold at retail to licensed organizations; or
(b) Issue a total recall of
all affected deals.
(3) In choosing and directing
a particular recall in accordance with subsection (2) of this section, the office
shall be guided in each circumstance by any combination of the following
factors:
(a) The nature of the defect;
(b) Whether the defect
affected game security;
(c) Whether the defect
affected game playability;
(d) Whether the defect was
limited to a specific number of deals of a particular form number;
(e) Whether the defect was
easily detectable by a charitable organization;
(f) Whether the defect was
easily detectable by members of the general public;
(g) Whether the defect
threatens public confidence in the game; or
(h) Whether the defect is
capable of being used to adversely affect the fair play of the game.
(4) In
consultation with the manufacturer, the office shall determine a specific date
for the recall to be completed and whether the manufacturer is required to
reimburse the organization or distributor. (32 Ky.R. 800; 1640; eff. 3-31-2006;
33 Ky.R. 3516; 34 Ky.R. 60; 257; eff. 8-31-07.)
