Use and requirements of an organization

1. An organization may not install more than ten electronic pull-tab devices in a site. A site must be a permanent location and may not be a temporary location, such as a fairground, special event site, or any site that is not open for forty calendar days in one quarter. Electronic pull-tab devices must be conducted in a designated area where patrons must be twenty-one years of age or older to enter. A device must be clearly labeled so as to inform the public that no one under twenty-one years of age is allowed to play. a. An electronic pull-tab device must be a stand-alone cabinet style device. A device may not be a hand-held portable device or affixed to a bar, counter, or table top. b. An electronic pull-tab device must be used only to play electronic pull tabs. Any other game type may not be played on the device and level of player skill may not be involved in the determination of any pull-tab prize. A device may not be part of a progressive system or employ any other features, such as bonus plays or promotions. An extended play feature may be used in which a player may play without additional consideration. An extended play feature may not interfere with or in any way affect the outcome of any finite game being played. If an extended play feature is used a notification must be provided to the player explaining that an extended play feature is used on the game and that "Extended play features prolong the play of an electronic pull-tab ticket but do not award a prize in addition to the predetermined prize for that ticket." c. Insertion of United States paper currency or the manufacturer's credit ticket voucher must be accepted through the electronic pull-tab device's currency validator to initiate play. d. An electronic pull-tab device may not directly dispense coins, cash, tokens, or anything else of value other than a credit ticket voucher. 2. An organization may not have more than twelve electronic pull-tab game titles selectable for play on an electronic pull-tab device operating system at a site. Only one of the games may be selected for play on an electronic pull-tab device at any given time. A winning line or pattern on an electronic pull tab may be made up of a combination of numbers, letters, or symbols. A winning electronic pull tab may have more than one winning line or pattern. Each winning line or pattern on a winning pull tab constitutes an individual win. Game themes must not contain offensive or obscene graphics, animations, or references. 3. An organization only may conduct electronic pull-tab device activity during the hours when alcoholic beverages may be dispensed according to applicable regulations of the state, county, or city. A device must be programed to not allow play during hours when alcoholic beverages may not be dispensed. 4. The following rules must be posted on or near an electronic pull-tab device and must be visible to the player: a. A player may play only one electronic pull-tab device at a time; b. An electronic pull-tab device may not be reserved. However, a device may be held for an active player for no more than fifteen minutes; c. A credit ticket voucher is only valid and must be redeemed on the same business day as it was printed; d. If a credit ticket voucher leaves the site it is void. The device system must void any outstanding vouchers at the end of the business day; and e. If a person knowingly solicits, provides, or receives any inside information, by any person, by any means, or knowingly uses a fraudulent scheme or technique to cheat or skim involving electronic pull tabs, regardless of the amount gained, the offense is a class C felony. 5. The following rules must be posted on or near a credit ticket voucher redemption kiosk and must be visible to the player: a. A credit ticket voucher or a reissued credit ticket voucher is only valid and must be redeemed on the same business day it was printed. b. If a credit ticket voucher or reissued credit ticket voucher leaves the site it is void. The device system must void any outstanding vouchers at the end of the business day. c. If a person knowingly solicits, provides, or receives any inside information, by any person, by any means, or knowingly uses a fraudulent scheme or technique to cheat or skim involving electronic pull tabs, regardless of the amount gained, the offense is a class C felony. 6. An organization shall maintain custody of all keys to an electronic pull-tab device or credit ticket voucher redemption kiosk. An alcoholic beverage establishment employee may not have access to a device. The keys for each lock on a device or kiosk must be keyed differently, including the lock for a device's or kiosk's outer door and the inner compartments that must separately house the computer logic area and currency validator stacker area. Access to the site server must be restricted to only authorized individuals of the organization. An organization may not provide an independent service technician keys to access an electronic pull-tab device, site server, or kiosk, regardless of whether the electronic pull-tab device operating system is leased. 7. An organization or employee may not modify the assembly or operational functions of an electronic pull tab device. 8. An organization may not post and an electronic pull-tab device may not be capable of displaying any game information relating to electronic pull-tab device activity, including the number of unsold pull tabs or the number and value of prizes remaining in a game. 9. For each manufacturer's electronic pull-tab device operating system and credit ticket voucher redemption kiosk used to conduct electronic pull tabs at a site, an organization shall: a. Withdraw currency and credit ticket vouchers redeemed for credit from each electronic pull-tab device and kiosk within a seven-calendar-day interim period at a site. An electronic pull-tab device operating system must be made nonoperational and electronic pull-tab and kiosk activity at a site must be suspended during the period of time when currency is being withdrawn from a device and credit ticket vouchers are bought back, kiosk cash is being counted, all redeemed credit ticket vouchers are removed, and cash to reimburse the kiosk has been added. b. Generate and print an interim period electronic pull-tab device activity report for a site according to subdivision a of subsection 22 of section 99-01.3-16-09.6. The information from this report must be recorded on an interim period site summary by the organization employee responsible for completing the interim visit. The system-generated interim period electronic pull-tab device activity report must be attached and retained with the completed interim period site summary. c. From the interim period site summary, post to a "summary report - all games," total game activity information, including gross proceeds, prizes, adjusted gross proceeds, cash profit or loss, and cash long or short for all games conducted at a site. The "summary report - all games" must include cumulative totals for gross proceeds, prizes, adjusted gross proceeds, cash profit or loss, and cash long or short. d. Report the total electronic pull-tab activity for all manufacturers each quarter, for all games conducted at a site, on the tax return. Except for cash profit, all game information is taken from the system-generated electronic pull-tab closed game summary report, according to subdivision d of subsection 22 of section 99-01.3-16-09.6. Total cash profit for all games is taken from the "summary report - all games". 10. An organization shall have a rental agreement conforming to section 99-01.3-02-06. 11. An organization shall maintain an access log prescribed by the attorney general for each electronic pull-tab device and kiosk. A person who accesses a device or kiosk shall record the reason for access and date and initial the log. An organization shall retain a log in each device or kiosk during the quarter of activity. 12. Credit ticket vouchers redeemed for cash, may be paid by an organization employee when on duty, by an alcoholic beverage establishment employee, or by a kiosk. 13. For the redemption of credit ticket vouchers by organization employees at a site, an organization shall maintain one cash bank for each manufacturer's electronic pull-tab device operating system. 14. An organization may provide an alcoholic beverage establishment with a temporary loan to enable an alcoholic beverage establishment employee to redeem a credit ticket voucher. A loan and any increase in the loan must be made by check payable to the alcoholic beverage establishment and be interest free. An organization may not access, count, or take custody of the loaned money. The duration of the loan must be until the organization discontinues conducting electronic pull tabs at the site. When the alcoholic beverage establishment repays the loan, the organization shall deposit the funds in its gaming account and the deposit slip must reference the site, source of funds, and amount. The amount reimbursed to an alcoholic beverage establishment must equal the dollar value of redeemed credit ticket vouchers which the alcoholic beverage establishment provides to an organization. An organization employee may not use an alcoholic beverage establishment's loan for redeeming a credit ticket voucher. 15. If a theft of currency occurs from an electronic pull-tab device or a credit ticket voucher redemption kiosk at a site, an organization immediately shall discontinue electronic pull-tab activity at the site associated with that manufacturer's devices and kiosk, contact their distributor, and generate an interim period electronic pull-tab device activity report according to subdivision a of subsection 22 of section 99-01.3-16-09.6. The organization shall provide a copy of all of this information to a local law enforcement agency and the attorney general. 16. A game must be conducted and played through an electronic pull-tab device as follows: a. Each electronic pull-tab deal must contain a fixed number of tickets. The maximum number of pull tab tickets per electronic deal may not exceed fifteen thousand and the minimum may not be less than two thousand. (1) All electronic pull tabs in a particular deal must be of the same purchase price and may not exceed the maximum two dollars sale price per pull tab as set forth by North Dakota Century Code section 53-06.1-08; (2) The maximum prize amount awarded for a winning combination of numbers, letters, or symbols on each electronic pull tab may not exceed five hundred dollars as set forth by North Dakota Century Code section 53-06.1-08; (3) A deal must have at least two top tier winning pull tabs; (4) Each deal may not pay out more than ninety percent of gross proceeds; (5) Each deal must be assigned a unique serial number; and (6) Each deal must be assigned a unique state gaming stamp number by the distributor prior to delivery to the organization site server. b. For the start of each electronic pull-tab game, at least two, and no more than two electronic pull-tab deals must be commingled on the site server for each game. The game deals must be identical, which includes game identification, deal version, manufacturer, game name, total number of electronic pull tabs, purchase price per electronic pull-tab ticket, and prize structure. c. For each electronic pull-tab game, when the unsold tickets of the original starting identical two deals reach two thousand pull-tab tickets remaining, at least one full deal but no more than one additional identical deal of the same game must be automatically downloaded onto the site server and commingled with the remaining two thousand tickets of that game. Each time the two thousand ticket threshold is reached, an additional deal must automatically be downloaded and commingled with the remaining electronic pull-tab tickets in the game continuously throughout the entire quarter. d. An electronic pull-tab game may not be closed during a quarter unless approved by the attorney general and all games of the same manufacturer at a site must be closed at the same time within fourteen calendar days from the end of the quarter or by the end of the quarter. An organization may start new games for the next quarter within fourteen days before the next quarter begins; however, it may not start new games and end the games within this fourteen-calendar-day period. Once closed, a game and its deals cannot be reopened. e. For each interim visit or when the electronic pull-tab games are closed an employee shall buy back all credit ticket vouchers from the organization employee cash bank from an alcoholic beverage establishment and all credit ticket vouchers must be removed from a kiosk and the kiosk cash bank reimbursed. The game must be reported on a tax return for the site at which it was closed. f. At the end of each month, within a reasonable time, an independent auditor of the organization shall reconcile the summary report - all games to the monthly interim audit report according to subdivision c of subsection 22 of section 99-01.3-16-09.6. At the end of the quarter, after all games have been closed, the independent auditor shall reconcile the summary report - all games to the electronic pull-tab closed game summary report according to subdivision d of subsection 22 of section 99-01.3-16-09.6. The electronic pull-tab closed game summary report may not be generated or printed prior to all electronic pull-tab games being closed. Doing so will cause immediate and automatic termination of all games. All reconciliations must be dated and initialed by the independent auditor. 17. If a site closes or if an organization discontinues gaming at a site, it must generate an interim period electronic pull-tab device activity report according to subdivision a of subsection 22 of section 99-01.3-16-09.6, close all electronic pull-tab games, and generate an electronic pull-tab closed game summary report according to subdivision d of subsection 22 of section 99-01.3-16-09.6. 18. The organization immediately shall shut down an electronic pull-tab device operating system and notify the attorney general if it detects or discovers any defect, malfunction, or problem with an electronic pull-tab operating system, electronic pull-tab device, kiosk, or electronic pull- tab game that affects the security or the integrity of the game. The organization shall also immediately notify their distributor of the defect, malfunction, or problem.