316 NAC 54-102. GENERAL RESTRICTIONS

REG-54-102 GENERAL RESTRICTIONS 102.01 Distributors are required to obtain an annual license in accordance with §77-3003. The application will be provided by DOR and no fee is required. Changes to information contained on the license application throughout the year will be reported to DOR. 102.02 Operators are required to obtain an annual license in accordance with §77-3002. The application will be provided by DOR and no fee is required. If an operator has more than one location, it must obtain a license for each location. Such license will be prominently displayed near the location of the cash devices. Changes to information contained on the license application throughout the year will be reported to DOR. 102.02A If a retail establishment owns a device outright they will be required to be licensed as both a distributor and operator. A single application may be completed, but they will receive two licenses. They will be responsible for all tasks and duties which would otherwise be required of a distributor under these regulations. 102.03 Age Restrictions. Individuals under the age of nineteen (19) cannot play or participate in any way with a cash device. A winner’s age must be verified prior to receiving payment. 102.04 Unacceptable forms of payment include: credit card, charge card, debit card. 102.05 Location Limitations 102.05A A licensed operator may operate no more than four (4) cash devices in one retail location, unless the location meets the square footage thresholds set forth below. Devices are not permitted in mobile retail locations, or any location that can be made mobile in short order, or pop up retail locations. 102.05B An operator may be allowed to operate one (1) additional cash device for every 1,000 square feet over 4,000 square feet. Square Feet Number of Permissible Devices 0 to 4,999 4 5,000 to 5,999 1 (total of 5) 6,000 to 6,999 1 (total of 6) 7,000 to 7,999 1 (total of 7) 8,000 to 8,999 1 (total of 8) 9,000 to 9,999 1 (total of 9) 10,000 to 10,999 1 (total of 10) 11,000 to 11,999 1 (total of 11) 12,000 to 12,999 1 (total of 12) 13,000 to 13,999 1 (total of 13) 14,000 to 14,999 1 (total of 14) 15,000 or more 1 (maximum total of 15) 102.05C Square footage does not include parking areas and outdoor patio areas or any other similar areas as determined by DOR. 102.05D In situations where a single building holds multiple retail establishments, each separate retail establishment will be entitled to its allotment of devices as a licensed operator. The square footage will be based on its separate and distinct square footage in accordance with the limitations described in the regulations. Devices for the establishment may only be placed within their separate retail space. In order to qualify as a separate retail establishment operating in the same building, the following factors will be considered: physical walls separating the businesses, dedicated entrances and exits to the outside, whether a sales tax permit has been obtained, separate points of sale, diversity of merchandise, whether the business issues receipts for sales, the number of dedicated employees on duty, level of business activity being conducted in the space, the space for the business within the building is contiguous, and whether there are distinct owners or officers of the businesses within the shared building. 102.05E Square footage will be verified through the operator’s license application. The operator will be required to provide proof of square footage as stated above. The application may include the following: 102.05E(1) Documentation from the county assessor or its website, the Nebraska Liquor Control Commission or its website, or a copy of the lease describing where the device will be placed, showing the square footage of the entire retail establishment. If none of these options is sufficient, then the applicant will contact DOR to determine suitable documentation; 102.05E(2) A diagram showing the dimensions of the areas to be included in the calculation of square footage per the requirements set forth in 54-102; 102.05E(3) If documentation provided to DOR in the application is later determined to be inaccurate, intentionally or unintentionally, and the square footage is incorrect, DOR has the opportunity to recalculate the square footage and adjust the maximum number of permissible cash devices at the location. 102.05F Distributors may be permitted to have more than 15 cash devices at their business office or warehouse location so long as the they are not accessible to the general public for playing and they are subject to inspection during normal business hours by DOR representatives just as any operator location would be. Distributors will follow the same decal application procedures for these locations, but the device limit will be waived. 102.06 Decal and Placement 102.06A No device may be placed in operation without having a valid decal affixed prominently on the front of the device where it is visible at all times so DOR representatives need not move a device to see the decal. After the first of the year, the previous year’s decals must be removed entirely, or covered entirely by placing the current year’s decal over it. If a device has more than one playing station, each station must have a valid decal. 102.06B This decal must display the year-long period for which it is valid, and be distinct from any other decals provided by DOR through other programs. 102.06C Distributors and operators are responsible for reporting any occasion they discover where a decal has been defaced, removed, stolen, or otherwise tampered with to DOR within 24 hours after discovery. Distributors and operators may be subject to penalty if DOR is not notified and DOR discovers a missing, defaced, or otherwise tampered with decal. If DOR determines the decal requires replacement, the distributor may be required to purchase a new decal at full cost if DOR determines that the decal was intentionally removed or defaced by the distributor, operator, or agent of either. Generally speaking, a defaced decal is one where the DOR logo and decal number have been rendered unreadable. 102.07 The Cash Device Tip Line phone number must be placed prominently on the front of the device at or above the bill acceptor and be visible at all times. The phone number will be provided by DOR. 102.08 Investigations by DOR 102.08A DOR’s investigators or other authorized personnel have the authority to enter any premises where cash devices are present during normal business hours or if it appears customers are still present. 102.8B All operators and distributors must comply with all requests for records and documentation made by DOR relating to cash devices. 102.8C Failing to comply with a request for documentation or records by DOR; or altering, falsifying, or otherwise destroying any records of any cash device not otherwise permitted by these regulations is strictly prohibited. Failing to comply with requests by DOR may be grounds for not issuing a decal in the following year. 102.8D Investigations may result in administrative actions as allowable under the Act. (Neb. Rev. Stat. §§ 77-3001, 77-3002, 77-3003, 77-3003.01 77-3003.02, 77-3006. November 4, 2020.)