23 CAR § 358-421. Operation of an intercasino-linked system

(a) Definitions. As used in this section: (1) “Commission” means the Arkansas Racing Commission or the commission’s designee; (2) “Licensed establishment” means the gaming establishment of a licensee; (3)(A) “Licensee” means a person or entity licensed to conduct a casino gaming operation. (B) The term does not include a person or entity licensed as a holder of a security or other ownership interest in the operation, or as an officer, director, or key employee of the operation, or due to any other relationship or involvement with the operation; (4) “Operator” means any casino gaming operation that operates an intercasino-linked system for affiliates; and (5) “System” means an intercasino-linked system. (b) In addition to any other requirements set forth in this part, all operators of systems and licensed establishments shall comply with the following requirements: (1)(A) All systems shall be connected only to gaming devices or games that have been approved by the commission, that comply with this part, and that are operated in licensed gaming establishments. (B) The exposure for play of games or devices that are part of a system shall be limited as follows: (i) In the case of systems with fixed payoff schedules that exceed two hundred fifty thousand dollars ($250,000) or in the case of systems with progressive payoff schedules that are expected to exceed two hundred fifty thousand dollars ($250,000), installations are limited to casino gaming operations having gross revenue of one million dollars ($1,000,000) or more for the twelve (12) months ended June 30 each year; or (ii) In the case of systems with fixed payoff schedules of two hundred fifty thousand dollars ($250,000) or less, systems with progressive payoff schedules that are expected to be two hundred fifty thousand dollars ($250,000) or less, or systems without payoff schedules, installations are permitted at any casino gaming operation. (C)(i) Notwithstanding the foregoing, any games or machines connected to an intercasino-linked system at the time this subpart is adopted may continue to be operated as part of the intercasino-linked system. (ii) Additionally, upon a showing of adequate surveillance and internal control procedures by a licensee, the commission may waive the provisions of this subsection, provided that such waiver is not inconsistent with any license conditions placed on the operator or licensee and that such waiver is confirmed in writing; (2)(A) The operator or licensee, whichever may be liable for payment of the amount in dispute, shall be responsible for any patron dispute arising at the licensed establishment with respect to any system and the gaming devices or games connected thereto. (B) This fact shall be disclosed to the patron at the time of the dispute. (C) Licensees and operators shall cooperate in the resolution of patron disputes arising at the licensee’s establishment; (3) Operators of systems featuring progressive payoff schedules shall, upon request, disclose to the commission and all licensees who have contracted to use their systems, on a confidential basis, the rate of progression of all progressive payoff schedules and, if applicable, any reset funds of their systems; (4) Operators shall provide the commission prior to commencing operations of the system a list of all persons who may access the main computer or data communications components of their systems, and any changes to that list shall be provided within ten (10) days to the commission; (5) At the request of the commission, an operator shall provide and maintain, at its sole expense and at such location as the commission may designate, a terminal and printer for the purpose of monitoring information regarding the system, including but not limited to: (A) The current progressive payoff schedules; (B) Reset funds; (C) The real-time date and time; (D) The number and location of gaming devices and games connected to the system; (E) The names of persons accessing the main computer or data communication components of the system; (F) The identification of functions being performed by such persons; (G) The audible notification of any progressive payoff schedule won; and (H) The identification of the: (i) Location; (ii) Machine number; and (iii) Amount of any progressive payoff schedule won; (6) The operator shall provide in writing to each participating licensed establishment its method for determining the pro rata share of a system payout for purposes of gross revenue deductibility; and (7) Operators shall retain and provide commission agents, upon request, all records pertaining to their intercasino-linked systems including, without limitation, all: (A) Progressive payoff schedule payout verification documents; (B) Exception reports; (C) End-of-day reports; (D) Progressive payoff schedule reports; (E) Computer room visitors’ logs; (F) Machine performance reports; (G) Weekly reconciliation reports; (H) Contribution to progressive payoff schedule reports; and (I) Tax-sharing methodology. (c) Failure to comply with any of the requirements set forth in subsection (b) of this section shall be an unsuitable method of operation. (d) The commission may, upon request of an operator or an applicant for licensing as an operator, and for good cause, waive any of the requirements set forth in this subpart. (e) Operators shall maintain the records required by this section for at least five (5) years after they are made unless the commission approves otherwise in writing.