R 432.1841 Wide area progressive system authorization.

Rule 841. (1) A wide area progressive system cannot be linked to another jurisdiction unless the board has approved multijurisdictional gaming for casino licensees. This rule authorizes the use of a wide area progressive system. (2) Unless otherwise allowed by the board in writing, each EGD on the wide area progressive system must have the same probability of hitting the combination that awards the progressive jackpot. (3) The wide area progressive system must have all the following: (a) The ability to monitor entry into the front door of each networked EGD and the logic area of each networked EGD and report it to the wide area progressive central system immediately. (b) Encryption of all communication packets between each location and the wide area progressive central system. (c) Either contain or be linked to a progressive display showing the wide area progressive jackpot to all players who are playing a progressive EGD and may potentially win the wide area progressive jackpot. (d) Automated real-time meter reading data. When requested to do so, the wide area progressive system must return meter readings on the first device attached to the wide area progressive system within 5 minutes of the meter acquisition request. This limitation does not apply to the length of time it takes the wide area progressive central system to calculate and print reports, but rather only to the time it takes to gather data used for the process. Manual reading of meter values must not be substituted for these requirements. (e) The ability to suspend play on the wide area progressive system if a communication failure in the system cannot be corrected within 24 consecutive hours. If a communication failure occurs in a wide area progressive system, the supplier licensee operating the wide area progressive system shall take a reading during the time the wide area progressive system is down to make sure that the jackpot amount is the same at all locations connected to the wide area progressive system when restoring the wide area progressive system. (f) A log of all events for a period of not less than 60 days. (g) Jackpot verification procedures must include the following: (i) Notification to the board when a progressive jackpot is won before the supplier licensee inspects the EDG with the winning progressive jackpot. The inspection must include examining the EPROM or equivalent electronic storage mediums, the error events received by the wide area progressive central system, and other data that could reasonably be used to ascertain the validity of the progressive jackpot. (ii) Reports that clearly demonstrate the method of arriving at the progressive jackpot payoff amount. The reports must include wagers beginning at the polling cycle immediately following the previous jackpot and include all wagers up to and including the polling cycle, including the jackpot signal. Wagers before the jackpot signal is received are used in calculating the progressive amount before the current jackpot. Wagers after the jackpot signal is received are used in calculating the progressive amount of the next jackpot. (iii) When 2 jackpots occur in the same polling cycle they are determined to have occurred simultaneously and, therefore, each winner receives the full amount shown on the meter, unless another method of resolution has been approved in advance by the board. (h) Submission to the board of any wide area progressive system occurs in the following 2 phases: (i) The initial phase, wherein the underlying EGDs and communication hardware are tested and approved or rejected by the board. (ii) The on-site testing phase, wherein a field inspection is conducted at the wide area progressive central system site and multiple field sites to ensure compliance with the act and these rules. Operation of the wide area progressive system is authorized only after the board is satisfied that it meets both the initial approval and on-site testing requirements, and other requirements that the board may impose to ensure the integrity, security, and legal operation of the wide area progressive system. (5) A supplier licensee authorized to provide a wide area progressive system shall supply reports in the manner and form required by the board that support and verify the economic activity on the wide area progressive system. These reports include, but are not limited to, the following: (a) An aggregate report that shows only the balancing of the wide area progressive system with regard to system-wide totals. (b) A detailed report that identifies each EGD on a polling station and indicates for each EGD, summarized by location, the coin-in and coin-out totals as the terms are commonly understood in the industry. (6) A supplier licensee, when invoicing a participating casino, shall be given a document identifying all the following: (a) Each EGD in the wide area progressive system. (b) The wagers on each EGD that contributed to the progressive jackpot for the period for which an invoice is remitted. (c) Other information required by the board to document the validity of the participating casino’s contributions to the progressive jackpot amount. (7) A supplier licensee authorized by the board to provide a wide area progressive system shall obtain written approval from the board for all the following: (a) The methods of funding the progressive jackpot pool. (b) The calculation and receipt of payments from participating casinos. (c) The equipment and services associated with the wide area progressive system including, but not limited to, software, hardware, servicing, and maintenance of the wide area progressive system. (8) In calculating gross receipts, a casino licensee shall deduct its contributions to wide area progressive jackpots awarded during the month. The deducted amount must be listed on the detailed accounting records provided to the casino licensee by the supplier licensee, if applicable, that provides the wide area progressive system. A casino licensee's contribution is based on the wagered amounts from that casino licensee's EGDs on the wide area progressive system, compared to the total amount of coins in the whole wide area progressive system for the time period or periods between the progressive jackpot or jackpots awarded. (9) Except where prohibited by law, if a casino licensee ceases operations and a wide area progressive jackpot is awarded after the last day of the final month of operation of the casino licensee, the casino licensee may file an amended tax return or make claim for a gaming tax refund based on the licensee’s contributions to the particular progressive jackpot pool. (10) The wide area progressive central system for the wide area progressive system must be located within this state unless otherwise approved in writing by the board. The office containing the wide area progressive central system must be equipped with a surveillance system that has been approved by the board. The supplier licensee authorized to provide a wide area progressive system shall be required to limit access to the wide area progressive central system office and keep and maintain an entry and exit log for the office in a manner approved by the board. The board shall, at all times, have the right to immediate access to the office containing the wide area progressive central system and access to the system itself. (11) A supplier licensee authorized to provide a wide area progressive system shall not allow any individual to work on any component of the wide area progressive central system until the individual has demonstrated that they are qualified and experienced in the construction, software, hardware, and all internal and external components of the wide area progressive central system and has attained at least a level 2 occupational license from the board. (12) The supplier licensee authorized to provide a wide area progressive system shall supply a copy of all leases and contractual agreements relating to the wide area progressive system if requested by the board. (13) The wide area progressive system prize fund, which is the amount of money contributed by the participating casinos must be audited, in accordance with generally accepted auditing standards, for the fiscal year that the supplier licensee is authorized to provide the wide area progressive system, by an independent accountant licensed by the state board of accountancy and approved by the board. The report must be submitted to the board on completion of the audit or 90 days after the conclusion of the supplier licensee’s fiscal year, whichever occurs first. The supplier licensee providing the wide area progressive system pays for the cost of the audit. (14) The supplier licensee who provides a wide area progressive system shall maintain, in a restricted account, a reserve consisting of cash, United States government treasury securities, approved debt instruments, or combination of not less than the sum of both of the following: (a) The aggregate remaining balances owed on all jackpots previously won by patrons through the wide area progressive system. (b) An amount sufficient to fully fund the present value of all amounts currently reflected on the progressive meters of the wide area progressive systems. (15) A supplier licensee that provides a wide area progressive system shall not reduce, eliminate, or transfer the amount on a wide area progressive EGD jackpot meter or a wide area progressive EGD jackpot unless 1 of the following circumstances exist: (a) A player wins the wide area progressive jackpot. (b) The supplier licensee adjusts the wide area progressive EGD jackpot meter to correct a malfunction or to prevent the display of an amount greater than a limit imposed by the board and the supplier licensee documents the adjustment and the reasons for it and notifies the board in writing as soon as practicable. (c) The casino licensee's gaming operations at an establishment cease for any reason other than a temporary closure where the same casino licensee resumes gaming operations at the same establishment within 30 days. (d)The supplier licensee distributes the amount to another wide area progressive EGD jackpot in accordance with the casino licensee’s board approved internal controls. (e) The board, for good cause, approves in writing before a transfer, a reduction, elimination, distribution, or procedure not otherwise addressed in this rule or the casino licensee’s internal controls.