Add the following
after section 3.1.1: "Gaming licensees may operate multi-site progressive
gaming devices, also known as wide area progressives (WAP). WAPs shall consist
of networks of linked gaming devices within Massachusetts and/or between
Massachusetts and other casinos licensed in other states of the United States.
This section shall apply to WAPs used at both slot machines and table games.
2. The person designated in a slot system
agreement responsible for the operation and administration of a WAP shall be
referred to as a slot system operator and shall be licensed under
205 CMR 143.00 as a gaming
vendor primary.
a. More than one slot system
operator may be involved in the operation and administration of a WAP. A slot
system operator may be involved in the operation and administration of more
than one WAP.
b. An agreement
between a slot system manufacturer and a casino licensee pursuant to which the
slot system manufacturer agrees to sell, lease, or service, but not operate or
administer WAP components, shall not be considered a slot system agreement. A
separate agreement maybe entered between the slot system manufacturer and each
casino licensee participating in the WAP.
3. Each slot system agreement shall
specifically identify and describe the role, authority, and responsibilities of
each participating casino and each slot system operator in the conduct of the
WAP. The agreement shall comply with GLI-12 or specifically identify where it
deviates from the GLI-12 standards. The agreement shall include the following:
a. A description of the WAP, including the
process by which significant decisions that affect the operation of the game
are approved and implemented by each casino or slot system operator;
b. If applicable, the casino or slot system
operator responsible for establishing and serving as trustee of a trust for a
WAP offering an annuity jackpot;
c.
The casino or slot system operator initially responsible for the funding and
payment of all jackpots, fees, and taxes associated with the operation of the
WAP; and
d. The casino or slot
system operator responsible for generating, maintaining and filing all records
and reports required by M.G.L. c. 23K and any applicable rules or regulations
of the Commission.
e. The method to
ensure the accurate accounting of all contributions;
f. The method to ensure that each
participating state's tax laws are adhered to; Said method to include a
description for determining the pro rata share of a system
payout for purposes of gross revenue deductibility and its method for
determining the proportionate share of gaming taxes and fees owed by the
operator to the casino. In calculating gross revenue, a casino may deduct its
pro rata share of a payout from a game played in a WAP system.
The amount of the deduction must be determined based upon the written agreement
among the licensed gaming establishments participating in the WAP system and
the operator of the system. All cash prizes and the value of noncash prizes
awarded during a contest or tournament conducted in conjunction with a WAP
system are also deductible on apro rata basis, to the extent
of the compensation received for the right to participate in that contest or
tournament. The deductions may be taken only by those participating licensed
gaming establishments that held an active gaming license at any time during the
month in which the payout was awarded.
g. Procedures to address dispute
resolution;
h. Procedures to accept
additional participants once the link is established in casinos of more than
one state;
i. Procedures to ensure
the multistate progressive system operator is credentialed in all participating
states;
j. The method for
withdrawal from the WAP, including the specific method in which progressive
values are transferred when removing or replacing machines. At the minimum,
said method should account for the transfer of jackpots, less the reset value,
to other progressive slot machine jackpots of similar progressive wager and
probability at the same facility within 30 days from the removal date. In the
event that a similar progressive jackpot at the same facility is unavailable,
other transfers shall be allowed. A Commission representative shall be notified
in writing prior to a removal or transfer.
k. Multistate progressive system parameter
requirements including:
i. Maximum odds for
obtaining the multistate jackpot;
ii. The base amount of the multistate jackpot
award;
iii. The reset amount of the
multistate jackpot award;
iv. The
rate of increment of the multistate jackpot award;
v. The hidden rate, which means the increment
rate for one or more reserve pools used to fund the next reset amount when
applicable;
vi. The minimum wager
required to qualify for the progressive jackpot; and
vii. Any other parameter as may be required
in order to ensure the proper accounting and auditing of the multistate
progressive system.
l.
Procedures for the independent reconciliation of the multistate jackpot amount
when won.
m. Each gaming licensee
or slot system operator seeking approval to participate in a WAP shall confirm
to the Commission that they have in place a system of accounting and internal
controls that satisfy the requirements of M.G.L. c. 23K and any applicable
rules or regulations concerning the operation of slot machines and WAPs. The
internal controls shall include a list of each employee serving in a slot
system operator position title.
n.
Each WAP shall be controlled and operated from a computer monitoring room
subject to inspection by the Commission. The computer monitoring room for a WAP
shall:
i. Be under the sole possession and
control of, and maintained and operated by, employees of the slot system
operator designated in the slot system agreement for that slot
system;
ii. Have continuous
surveillance coverage of the operation of the slot system and its equipment in
a manner approved by the Commission. Said surveillance coverage shall include
the secure retention of recordings for a period of no less than 30 days or for
such longer period if requested by the Commission if particular recordings are
determined to hold evidentiary value;
iii. Have a Computer Monitoring Room Entry
Log, which the Log shall be:
(i) Kept in the
computer monitoring room;
(ii)
Maintained in a book with bound numbered pages that cannot be readily removed
or in an electronic format as approved by the Commission; and
(iii) Signed by each person whose presence is
not expressly authorized and identified in the internal controls of the
computer monitoring room slot system operator, with each Log entry containing,
at a minimum, the following information:
- The date and time entering the computer monitoring
room;
- The entering person's name, his or her department or employer
and, if applicable, his or her employee license number;
- The reason for entering the computer monitoring room;
- The name of the person authorizing the person's entry into
the computer monitoring room; and
- The date and time of exiting the computer monitoring
room;
- Be readily accessible to Commission personnel 24 hours a
day;
- Be housed in a facility approved by the Commission that is
owned or leased by a slot system operator; and
- Be designed in a manner that assures that the multi-casino
progressive slot system shall not be disrupted."