820 KAR 1:032. Pulltab construction

Link to law: http://www.lrc.ky.gov/kar/820/001/032.htm
Published: 2015

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      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.)