Kan. Admin. Regs. § 112-108-18 - Tournament chips and tournaments
(a) "Tournament chip" shall mean a chip or
chiplike object issued by a facility manager for use in tournaments at the
facility manager's gaming facility.
(b) Tournament chips shall be designed,
manufactured, approved, and used in accordance with the provisions of this
article applicable to chips, except as follows:
(1) Tournament chips shall be of a shape and
size and have any other specifications necessary to make the chips
distinguishable from other chips used at the gaming facility.
(2) Each side of each tournament chip shall
conspicuously bear the inscription "No Cash Value."
(3) Tournament chips shall not be used, and
facility managers shall not permit their use, in transactions other than the
tournaments for which the chips are issued.
(c) As used in this regulation, entry fees
shall be defined as the total amount paid by a person or on a person's behalf
for participation in a tournament. A tournament shall mean a contest offered
and sponsored by a facility manager 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. These entry fees may be increased
with cash or noncash prizes from the facility manager. Facility managers may
conduct tournaments if all of the following requirements are met:
(1) The facility manager shall notify the
executive director of the planned tournament at least 30 calendar days before
the first day of the event.
(2) The
facility manager shall not conduct the tournament unless approved by the
executive director.
(3) The
facility manager shall conduct the tournament in compliance with all applicable
rules, regulations, and laws.
(4)
The facility manager 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 the following:
(A) The date, time, and type of tournament to
be held;
(B) the amount of the
entry fee, if any;
(C) the minimum
and maximum number of participants;
(D) a description of the tournament
structure, including number of rounds, time period, players per table, and
criteria for determining winners;
(E) the prize structure, including amounts or
percentages, or both, for prize levels; and
(F) procedures for the timely notification of
entrants and the commission and the refunding of entry fees in the event of
cancellation.
(5) No
false or misleading statements, written or oral, shall be made by a facility
manager or its employees or agents regarding any aspect of the tournament, and
all prizes offered in the tournament shall be awarded according to the facility
manager's rules governing the event.
(6) The facility manager's accounting
department shall keep a complete record of the rules of the event and all
amendments to the rules, including criteria for entry and winning, names of all
entrants, all prizes awarded, and prize winners, for at least two years from
the last date of the tournament. This record shall be made readily available to
the commission upon request.
(7)
Entry fees shall accumulate to adjusted gross gaming receipts.
(8) Cash and noncash winnings paid in a
tournament shall be deductible from adjusted gross gaming revenue, but any such
deduction shall not exceed the total entry fees received for the tournament and
noncash winnings shall be deductible only to the dollar value of the amount
actually invoiced to and paid by the facility manager.
(9) Upon the completion of the tournament,
documentation of entrants' names, names of prize winners and amounts won, and
tax-reporting information shall be submitted to the commission.
(10) The facility manager shall designate in
its internal control system an employee position acceptable to the commission
that shall be responsible for ensuring adherence to the requirements in this
regulation.
Notes
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