Receipt of Gaming Chips or Plaques from Manufacturer or Distributor; Inventory, Security,

Storage and Destruction of Chips and Plaques (1) When gaming chips or plaques are received from the manufacturer or distributor, they shall be opened and inspected by at least three employees, one of whom shall be from the accounting or auditing department of the gaming licensee, one of whom who shall be from the games department, and one from any mandatory department other than the surveillance department of the gaming licensee. (2) Each gaming licensee shall report to the Bureau promptly after an inspection performed pursuant to 205 CMR 146.02(1) if the inspection discloses any discrepancy between the invoice accompanying the chips and plaques and the actual chips or plaques received or any defects found in such chips or plaques. (3) After inspecting the gaming chips or plaques received, the gaming licensee shall cause to be recorded in a chip inventory ledger (manual or electronic) the assigned alphabetical designation, the denomination of the value chips and gaming plaques received, the number of each denomination of value chip and gaming plaque received, the number and description of all non-value chips received, the date of such receipt, and the signatures of the employees who inspected such chips and plaques. If the chips or plaques are required to have a unique serial number, the numeric number shall also be recorded. If the gaming chips or plaques are not put into active use, the ledger shall also identify the storage location. (4) Any gaming chips or plaques not in active use shall be stored in: (a) An approved vault; (b) The cashiers’ cage; or (c) A comparable secure area, approved by the Bureau, which is adjacent to and accessible exclusively from the gaming floor. (5) Whenever any gaming chips or plaques are removed from or returned to an approved storage area, at least two employees shall be present, one of whom shall be a supervisor from the games or security department, and the following information shall be recorded in the chip inventory ledger together with the date and signatures of the employees involved: (a) The alphabetical designation and, if applicable, any numeric designation; (b) The number and dollar amount for each denomination of value chip or gaming plaque removed or returned; (c) The number and description of the non-value chips removed or returned; (d) The specific storage area being entered; and (e) The reason for the entry into the storage area. (6) At the end of each gaming day, a gaming licensee shall compute and record the unredeemed liability for each denomination of value chips and gaming plaques. At least once every 30 days, at a minimum, each gaming licensee shall inventory all sets of value chips and gaming plaques in its possession and shall record the result of such inventory in the chip inventory ledger. The procedures to be utilized to compute the unredeemed liability and to inventory value chips and gaming plaques shall be submitted to the Bureau. A physical inventory of value chips and gaming plaques not in active use shall only be required annually if the inventory procedures incorporate the sealing of the locked compartment. If a gaming licensee elects to commingle gaming chips, a member of the gaming establishment’s accounting department shall, at least once every six months, inventory all gaming chips of a particular sample and readjust the starting inventory for those gaming chips which are no longer in the possession of the gaming licensee. The adjusted inventory figure shall be recorded in the chip inventory ledger and shall be the new beginning inventory figure for the next six-month period for purposes of computing the daily outstanding chip liability required by 205 CMR 146.02(6). (7) The Bureau shall approve the process for the destruction of chips and plaques. Prior to the destruction of gaming chips and plaques, the gaming licensee shall notify the Bureau, in writing, of the date and the location at which the destruction will be performed, the denomination, number and amount of value chips and plaques to be destroyed, and the description and number of non-value chips to be destroyed. Unless otherwise authorized by the Bureau, the destruction of gaming chips and plaques shall be carried out in the presence of at least two employees of the gaming licensee, one of whom shall be from the accounting department and one of whom shall be from any other mandatory department other than the surveillance department. The denomination, number and amount of value chips and plaques or, in the case of non-value chips, the description and number so destroyed shall be recorded in the chip inventory ledger together with the signatures of the individuals carrying out such destruction, and the date on which the destruction occurred. The gaming licensee shall also maintain a written log of the names and credential numbers of all individuals involved in each such destruction. (8) A gaming licensee shall ensure that at all times there is adequate security, as approved by the Bureau, for all gaming chips and plaques in its possession.