Tournament Chips and Tournaments

PURPOSE: This rule establishes the process for offering tournaments for play and the use of tournament chips. (1) As used in this rule, tournament chip means a chip issued by a licensee for use in tournaments at the licensee’s gaming establishment. (2) Tournament chips shall be designed, manufactured, approved, and used in accordance with the provisions of rules in this chapter applicable to chips, except as follows: (A) Tournament chips shall be of a shape and size and have such other specifications so as to be distinguishable from other chips used in the Class B licensee’s gaming operation; (B) Each side of each tournament chip shall conspicuously bear the inscription—“No Cash Value”; (C) Tournament chips shall not be used, and licensees shall not permit their use in transactions other than the tournaments for which they are issued; and (D) The provisions of 11 CSR 45-5.170 shall not apply to tournament chips. (3) As used in this rule, entry fees shall be defined as the total amount paid by patrons for participation in a tournament and any amounts awarded by the Class B licensee to patrons from previous tournament play for participation in that tournament. A tournament is a contest offered and sponsored by a Class B licensee in which patrons may be assessed an entry fee or be required to meet some other criteria to compete against one another in a gambling game or series of gambling games in which winning patrons receive a portion or all of the entry fees, if any, which may be increased with cash or non-cash prizes from the Class B licensee. Class B licensees may conduct tournaments provided— (A) The licensee shall notify the gaming agent in charge at that property and the commission tax section of the planned tournament at least ten (10) calendar days before the first day of the event; (B) A copy of the tournament rules shall be submitted to the gaming agent in charge at that property and the commission tax section at least ten (10) calendar days before the first day of the event; (C) The licensee shall conduct the tournament in compliance with all applicable rules, regulations, and laws; (D) The licensee shall maintain written, dated rules governing the event, and the rules shall be immediately available to the public and the commission upon request. Tournament rules shall at a minimum include: 1. The date, time, and type of tournament to be held; 2. The amount of the entry fee, if any; 3. The minimum and maximum number of participants; 4. A description of the tournament structure, i.e., number of rounds, time period, players per table, and criteria for determining winner(s); 5. The prize structure, including amounts and/or percentages for prize levels; and 6. Procedures for the timely notification of entrants and the gaming agent in charge at the property and the refunding of entry fees in the event of cancellation; (E) No false or misleading statements, written or oral, shall be made by a licensee or its employees or agents regarding any aspect of the tournament, and all prizes offered in the tournament shall be awarded according to the Class B licensee’s rules governing the event. Tournaments shall not be structured or conducted in a manner that reflects negatively on the licensee, the commission, or the integrity of gaming in Missouri; (F) The Class B licensee’s accounting department shall keep a complete record of the rules of the event and all amendments thereto, including criteria for entry and winning, names of all entrants, all prizes awarded and prize winners, source documentation evidencing the payout amounts which shall be signed by the prize winners, for a minimum of two (2) years from the last date of the tournament and shall be made readily available to the commission upon request; (G) Entry fees shall be subject to the adjusted gross receipts tax pursuant to section 313.822, RSMo. At least eighty percent (80%) of all entry fees must be returned to tournament participants as winnings; (H) The total entry fees shall be reported as adjusted gross receipts for a tournament and no portion shall be held in abeyance to be applied to a future tournament or another tournament in the same series of tournaments; and (I) Cash and non-cash winnings paid in a tournament shall be deductible from adjusted gross revenue, but any such deduction shall not exceed the total entry fees received for the tournament and non-cash winnings shall be deductible only to the dollar value thereof actually invoiced to and paid by the licensee. (4) Free tournaments are considered tournaments and promotional activities as defined in 11 CSR 45-5.181 and shall comply with both 11 CSR 45-5.180 and 11 CSR 45-5.181. AUTHORITY: sections 313.004, 313.807, and 313.817, RSMo 2016, and section 313.805, RSMo Supp. 2023.* Emergency rule filed Sept. 1, 1993, effective Sept. 20, 1993, expired Jan. 17, 1994. Emergency rule filed Jan. 5, 1994, effective Jan. 18, 1994, expired Jan. 30, 1994. Original rule filed Sept. 1, 1993, effective Jan. 31, 1994. Amended: Filed Nov. 10, 1997, effective June 30, 1998. Amended: Filed May 6, 1999, effective Dec. 30, 1999. Amended: Filed July 9, 2004, effective Jan. 30, 2005. Amended: Filed June 30, 2005, effective Jan. 30, 2006. Amended: Filed Aug. 30, 2006, effective March 30, 2007. Amended: Filed July 31, 2014, effective Feb. 28, 2015. Amended: Filed June 29, 2023, effective Feb. 29, 2024. *Original authority: 313.004, RSMo 1993, amended 1994, 2014; 313.805, RSMo 1991, amended 1992, 1993, 1994, 2000, 2008, 2010, 2021, 2022; 313.807, RSMo 1991, amended 1993, 2000, 2012; and 313.817, RSMo 1991, amended 1992, 1993, 2000, 2008, 2014, 2016.