CHAPTER 8200  HISTORIC HORSE RACING

 

PART Lot 8201  DEFINITIONS

 

          Lot 8201.01  Definitions.  The following words and terms shall have the following meanings when used in this chapter, unless the context clearly indicates otherwise:

 

          (a)  “Applicant” means an individual, association, partnership, joint-venture, corporation, or other type of organization or entity who has submitted an application to obtain a license to offer pari-mutuel wagers on historic horse races from the commission;

 

          (b)  “Breakage” means the odd cents of all redistribution based on each dollar wagered exceeding a sum equal to the next lowest multiple of 10 cents;

 

          (c)  “Commission” means the New Hampshire lottery commission established pursuant to RSA 284:21-a, or its designated staff having authority to perform administrative and clerical functions for the commission;

 

          (d)  Handpay” means a condition where a prize won during a single wager on an historic horse racing terminal exceeds the limit that can be automatically paid by the terminal and requires paperwork to be completed before payment can be made by hand;

 

          (e)  “Historic horse race” means “historic horse race” as defined in RSA 284:22-b, I, namely:

 

“(1)  Any horse race whether running or harness, that was previously conducted at a licensed pari-mutuel facility;

 

(2)  Concluded with official results; and

 

(3)  Concluded without scratches, disqualifications, or dead-heat finishes;”

 

          (f)  “Historic horse racing” means an electronic wagering system used to create and sell pari-mutuel pools from wagers placed on historic horse races, or the otherwise offer pari-mutuel wagers on such races.

 

          (g)  “Historic horse racing (HHR) license” means a license issued in accordance with RSA 284:22-b, II, to offer pari-mutuel wagers on historic horse races;

 

          (h)  “Historic horse racing (HHR) licensee” means a game operator employer licensee that has been granted an HHR license under RSA 284:22-b, II;

 

          (i)  “Independent testing laboratory” means a laboratory, authorized by the commission through a competitive procurement process to perform the functions assigned to it by this chapter;

 

          (j)  “Integrity auditor” means a company authorized by the commission through a competitive procurement process to conduct periodic and regular tests on the validity of pari-mutuel wagers, deductions, and payouts for the applicable historic horse racing event, and provides monthly reporting relative to wagers, takeout, breakage, and patron payouts;

 

          (k)  “Licensee” means “licensee” as defined in RSA 284:22-b, I(b) namely, “any individual, association, partnership, joint-venture, corporation, or other organization or other entity which holds a game operator employer license under RSA 287-D;”

 

          (l)  “Logic area” means a separately locked cabinet area with its own monitored, locked door or other monitored, locked covering that houses electronic components that have the potential to significantly influence the operation of the terminal;

          (m)  “Operations provider” means any individual, association, partnership, joint-venture, corporation, or other organization or other entity involved in conducting, managing, supervising, directing, or running historic horse racing on behalf of a historic horse racing licensee;

 

          (n)  “Party to the application” means:

 

(1)  For sole proprietorship, the applicant;

 

(2)  For a partnership, the applicant and all partners including general, limited, and silent partners;

 

(3)  For a privately held corporation, the applicant and all executive officers, directors, stockholders of record, individuals or organizations holding the beneficial interest in any stock, subscribers to any stock, and individuals or organizations who voted any of the voting stock at the last stockholder’s meeting prior to submitting the application;

 

(4)  For a publicly held corporation, the applicant and all executive officers and directors; or

 

(5)  For any other organization, the applicant and all owners, executive officers, members of the governing board and any other individual or organization holding any membership, financial or ownership interest in the applicant;

 

          (o)  “Seed pool” means a nonrefundable pool of money that may be funded by the licensee in order to ensure that a patron will be paid the minimum amount required on a winning wager placed on historic horse races;

 

          (p)  “Takeout” means the amount an HHR licensee is authorized to withhold from a pari-mutuel wager pursuant to RSA 284:22-b, V;

 

          (q)  “Terminal” means any self-service totalizator machine or other mechanical equipment used by a patron to place a pari-mutuel wager on one or more historic horse races, including hardware, software, communications equipment, and electronic devices that accepts and processes the cashing of wagers, calculates the odds, payouts or both, and records, displays, and stores pari-mutuel wager information; and

 

          (r)  “Terminal provider” means the entity that either manufactures the electronic gaming portion of the terminal, or provides the totalizator portion of the system.

 

Source.  #13330, eff 1-22-22

 

PART Lot 8202  GAME OPERATOR REQUIREMENTS

 

          Lot 8202.01  Eligibility to Offer Pari-mutuel Wagers on Historic Horse Racing.

 

          (a)  Except as otherwise provided by (b)-(d) below, no individual, association, partnership, joint-venture, corporation, or any other type of organization or entity shall offer pari-mutuel wagers on historic horse races without having the following valid licenses:

 

(1)  A game operator employer license issued in accordance with RSA 287-D and Lot 7200; and

 

(2)  An HHR license issued in accordance with RSA 284 and Lot 8202.02 below.

 

          (b)  Pursuant to RSA 284:22-b, II, prior to July 1, 2024, licenses to offer pari-mutuel wagers on historic horse races shall only be authorized to individuals and entities that:

 

(1)  Held a game operator employer license issued in accordance with RSA 287-D and in effect as of May 1, 2020;

 

(2)  Have not transferred or sold the game operator employer license that was in effect as of May 1, 2020 as prohibited by RSA 287-D; and

 

(3)  Have established controls in place and a demonstrated ability to safeguard assets and ensure the integrity of games.

 

          (c)  For HHR licenses issued prior to July 1, 2024, the authorized game operator employer shall only offer pari-mutuel wagers on historic horse races at one of the following locations:

 

(1)  The licensed games of chance facility where the licensee operated games of chance events as of May 1, 2020; or

 

(2)  A licensed games of chance facility where the licensee operates games of chance events located within the city or town where the licensee was authorized to hold games of chance events as of May 1, 2020.

 

          (d)  Prior to July 1, 2024, no HHR licensee shall be permitted to offer pari-mutuel wagering on historic horse races at more games of chance facilities than it was licensed to operate as of May 1, 2020.

 

Source.  #13330, eff 1-22-22

 

          Lot 8202.02  Obtaining a License to Offer Pari-mutuel Wagers on Historic Horse Races.

 

          (a)  A game operator employer shall obtain a license from the commission in accordance with this section prior to offering pari-mutuel wagers on historical horse races.

 

          (b)  Each applicant for an HHR license shall submit the following to the commission at least 90 days prior to the date they wish to begin offering pari-mutuel wagers on historic horse races:

 

(1)  A completed “Application to Offer Wagering on Historic Horse Races” form (9/2021);

 

(2)  For first time applicants or licensees seeking to operate at a new location, a plan of operation that includes:

 

a.  The number of terminals to be operated at the facility broken down by terminal provider, make, and model;

 

b.  A detailed description of the proposed area designated for the sale of pari-mutuel pool, and the placement of terminals within the area, including a drawn-to-scale architectural rendering that describes:

 

1.  The size, construction, and capacity of the area;

 

2.  The number and location of each terminal; and

 

3.  The type and location of surveillance and other security equipment, which shall meet or exceed the requirements set forth in Lot 8205 below;

 

c.  The type, number and denominations of pari-mutuel wagers to be offered;

 

d.  General and game specific information regarding the pari-mutuel wagers, including the mathematical models, methods of calculating payouts, the configuration of pools, how money is allocated to the pools, including seed pools, and pool payout methodology;

 

e.  Documentation from an independent testing laboratory confirming that the terminals comply with the requirements of this chapter;

 

f.  The maintenance and repair procedures that will ensure the integrity of the terminals;

 

g.  A description of the type of data processing, communication, totalizator and transmission equipment to be utilized;

 

h.  A networking diagram detailing the manner in which the machines will be networked with the gaming servers and back office systems;

 

i.  An IT security plan detailing the logical security measures for the gaming system;

 

j.  Safeguards and controls that will be in place relative to the transmission of wagering data to effectuate common wagering pools;

 

k.  A copy of the written internal control policies and procedures designed to ensure effective control over the gaming operation, which shall meet or exceed the applicable requirements set forth in Lot 7206.08;

 

l.  The practices and procedures that will ensure the security, safety, and comfort of patrons in the designated area; and

 

m.  For gaming operations annual gaming revenue of more than $1,000,000, an anti-money laundering (AML) compliance program that complies with the requirements of 31 CFR 1021.210, available as noted in Appendix B, to prevent the licensee from being used to facilitate money laundering and financing of terrorist activities;

 

(3)  A complete list of the parties to the application that includes:

 

a.  Legal name and contact information of each of the parties;

 

b.  The nature and type of ownership interest held;

 

c.  Percent of ownership interest or number of stocks held;

 

d.  How the ownership interest or stocks were obtained; and

 

e.  The conditions under which the party holds and votes or has subscribed for such stock;

 

(4)  The following documents for each party to the application:

 

a.  A completed “Suitability Determination Release of Liability Waiver” form (9/2021);

 

b.  A completed “Multi-Jurisdictional Personal History Disclosure Form” (as accessed and printed on March 2, 2018), available as noted in Appendix B;

 

c.  A completed and notarized “New Hampshire State Police Criminal Records Release Authorization” form (DSSP392 rev. 5/2017) obtained from the commission authorizing the release of the individual’s criminal history record;

 

d.  A complete set of fingerprints taken by a qualified law enforcement agency as follows;

 

1.  If fingerprints are digitally captured via a Livescan device, the original Livescan Site Form; or

 

2.  If fingerprints are captured via ink impressions, the FBI FD-258 fingerprint card issued by the New Hampshire state police;

 

e.  Payment for the criminal history record, payable to the “State of NH – Criminal Records” and in the amount established by the New Hampshire state police;

 

f.  A copy of a credit report issued no more than 3 months prior to the application;

 

g  A copy of the signed and filed tax returns from the prior 3 tax years, including supporting schedules; and

 

h.  Any other information the commission requests that  bears on the subject’s suitability to be associated with racing or charitable gaming in New Hampshire, including, but not limited to, the subject’s character, personal associations, and the extent to which the subject is properly doing, or has done business in the manner in which it purports to operate within and outside of the state of New Hampshire;

 

(5)  For applicants that are organizations, financial statements reviewed or audited by a certified public accountant covering the same 3-year period as the tax returns submitted in accordance with (4)e. above, including a minimum of the following:

 

a.  Balance sheet;

 

b.  Income statement;

 

c.  Cashflow statement; and

 

d  Statement of equity;

 

(6)  For applicants structured as a limited liability corporation (LLC), a copy of the LLC’s operating agreement outlining the company’s ownership, management, and each member’s rights and responsibilities;

 

(7)  When applicable, the names and contact information of any persons or entities upon whom the business relies for financial support, including but not limited to loans or contributions of capital, and a brief description of the financial support being provided;

 

(8)  When applicable, the pertinent details related to any judgements, petitions, relief, or appointments issued to the business or any holding or intermediary companies within the last 10 years;

 

(9)  When applicable, the pertinent details related to a gaming license denial, suspension, or revocation against any party to the application by this or any other state;

 

(10)  A copy of the applicant’s responsible gaming plan that meets the requirements of Lot 8202.04;

 

(11)  Copies of all agreements between the applicant and all historic horse racing vendors, including the terminal provider, and all contracts relating to the operation of the pari-mutuel wagers. The applicant may mark any information that he or she deems confidential or proprietary. The commission shall not disclose any information so marked, unless required by law; and

 

(12)  A letter of credit, bond with surety, or other instrument of financial security in an amount and form sufficient to cover outstanding vouchers together with any indebtedness incurred by the licensee to the state and affected licensed charitable organizations for an average 3-month period. In no instance shall the amount be less than $100,000.

 

          (c)  If elements of the plan of operation are not available until time of construction or operation, the applicant may submit all available materials for consideration, and note what materials are pending and why.  When the available materials otherwise demonstrate compliance, the commission shall grant a preliminary approval conditioned upon final review of all required documents or information.

 

          (d)  Failure to provide information required by this chapter, or as requested by the commission, shall be grounds for the commission to deny the request for an HHR license.

 

          (e)  When the operation of the pari-mutuel wagers and pools are provided via a contract between the HHR licensee and an operations provider, the following shall apply:

 

(1)  No contract between the HHR licensee and the operations provider shall be valid until reviewed by the commission, and found to be in compliance with RSA 284:22-b and this rule

 

(2)  The operations provider shall be subject to the requirements set forth in Lot 8202.02(b)(1)-(4);

 

(3)  The commission shall approve such contracts when:

 

a.  The HHR licensee is in good standing with the commission;

 

b.  The operations provider:

 

1.  Has demonstrated that it would be deemed suitable to be associated with pari-mutuel wagers and charitable gaming in the state of New Hampshire if it were a direct licensee in accordance with RSA 284:15-b, RSA 287-D:11 and Lot 7204; and

 

2.  Is in good standing with the New Hampshire secretary of state;

 

c.  The contract demonstrates that the operations provider will operate in accordance with all applicable laws, rules, and regulations; and

 

d.  The contract requires that the HHR licensee and the operations provider are jointly responsible for ensuring that pari-mutuel wagers and pools on historic horse races operate in compliance with all applicable laws, rules, and regulations;

 

(4)  Prior to operations commencing, the operations provider shall:

 

a.  Complete a criminal background check, prior to any work being performed and every 2 years thereafter, on each employee who will perform any work related to the operation of pari-mutuel wagers on historic horse races in New Hampshire regardless of whether that work takes place at the HHR licensees’ location or remotely;

 

b.  Prohibit any employee who does not meet the provisions of RSA 287-D:14, IX from participating in the operations of New Hampshire pari-mutuel wagers in any form; and

 

c.  Maintain a certified list of all current employees participating in the operations of pari-mutuel wagers on historic horse races in New Hampshire, and make said list available to the commission upon request;

 

(5)  Compensation paid to the operations provider by the HHR licensee shall not be paid from revenue that is otherwise due to the licensed charitable organizations or the State of New Hampshire;

 

(6)  Any contract for the operation of pari-mutuel wagers on historic horse races shall not absolve the HHR licensee of its obligations under law, rule, or regulation, and as such the HHR licensee remains liable for the operation of the pari-mutuel wagers in compliance with all applicable laws, rules, and regulations; and

 

(7)  The commission shall suspend or retract approval of the contract at any time when it determines that the operations provider is not operating in material compliance with New Hampshire laws, rules, or regulations, or the commission determines that any of the conditions set forth in (2) above are no longer being met by the operations provider or the HHR licensee.

 

          (f)  The commission shall issue an HHR license when:

 

(1)  All of the information required by (b) above has been submitted and otherwise meets the requirements of this chapter;

 

(2)  The applicant has demonstrated effective safeguards and internal controls over the operation, and any significant control deficiencies identified during a commission audit have been resolved;

 

(3)  The applicant has established, by clear and convincing evidence, that they possess the financial stability, the integrity, and responsibility to offer gaming to the public; and

 

(4)  Pursuant to RSA 284:15-b, II and RSA 287-D:11, the attorney general determines that the applicant is suitable to be associated with racing and charitable gaming in this state.

 

          (g)  If at any time the information provided to the commission in accordance with this chapter has changed, or is otherwise found to be inaccurate, the HHR licensee shall submit updated or corrected information to the commission within 10 days of the event that resulted in the change, or discovery of the inaccuracy.

 

          (h)  Except as provided in Lot 8202.03 below, authorization to offer pari-mutuel wagers on historic horse races shall expire in conjunction with the licensee’s games of chance license every 5 years, such that authorization granted in conjunction with a 2022 game operator employer license would expire with the game operator’s 2026 license.

 

          (i)  In accordance with RSA 284:22-b, HHR licenses granted in accordance with this chapter shall not be transferred or sold.

 

Source.  #13330, eff 1-22-22

 

Lot 8202.03  Suspensions, Revocations, and Refusals to Renew an HHR License.

 

(a)  Disciplinary measures available to sanction misconduct shall include:

 

(1)  Imposition of an administrative order or fine;

 

(2)  Suspension of a license for a period of up to one year; and

 

(3)  Revocation of a license.

 

          (b)  Prior to taking adjudicative action, the commission shall send to the applicant, licensee, or person practicing without a license a written notice, which states:

 

(1)  The intended action;

 

(2)  The reason(s) for the intended action;

 

(3)  The right to request an administrative appeal; and

 

(4)  In the case of a notice of suspension, that if the deficiencies are not corrected within the specified time, the license shall be deemed revoked.

 

          (c)  Except as otherwise allowed by RSA 541-A:30, III, the commission shall impose disciplinary sanctions only:

 

(1)  After prior notice to the licensee and the opportunity for him or her to be heard per the requirements of RSA 541-A:30, II; or

 

(2)  By agreement in a settlement between the commission and the licensee made pursuant to Lot 200.

 

          (d)  The commission shall apply the following factors to determine whether to take administrative action:

 

(1)  The seriousness of the offense;

 

(2)  Prior disciplinary record(s);

 

(3)  Previous and subsequent patterns of conduct;

 

(4)  Acknowledgment of his or her wrongdoing;

 

(5)  Willingness to cooperate with the commission;

 

(6)  Action taken to correct the problem;

 

(7)  The purpose of the rule or statute that was violated;

 

(8)  The potential harm to public health, safety and welfare, or the integrity of charitable gaming in New Hampshire; and

 

(9)  The nature and extent of the enforcement activities required of the commission as a result of the offense.

 

          (e)  The commission shall select appropriate sanction(s) by choosing the sanction(s) most likely to:

 

(1)  Protect public health, safety or welfare;

 

(2)  Prevent future misconduct;

 

(3)  Correct the attitudinal, educational, or other deficiencies which led to the misconduct;

 

(4)  Encourage the responsible practices of operating a charitable gaming event; and

 

(5)  Ensure the integrity of charitable gaming in New Hampshire.

 

          (f)  Except as provided in (j) below, the following violations shall be considered grounds for revocation of an HHR license:

 

(1)  Failure to comply with the conditions of the HHR license or this chapter, including maintaining a valid game operator employer license;

 

(2)  Failure to take corrective action following the suspension of a game operator employer or HHR license;

 

(3)  An inability or unwillingness to comply with RSA 287-D, Lot 7200, RSA 284, or this chapter, as demonstrated by a pattern of violations;

 

(4)  Failure to comply with the requirements set forth in Lot 7200 or this chapter or any commission order to submit records, bank statements, or any other paraphernalia associated with the operation of historic horse racing;

 

(5)  Providing false information to the commission, including willfully and knowingly making false statements or making false entries in any books or records with respect to any transaction connected with charitable gaming or the holding, operating, and offering of pari-mutuel wagers on any historic horse races;

 

(6)  Failure to remit any fees or other amounts due to the state;

 

(7)  Hindering or obstructing an authorized representative of the commission in the performance of official duties, such as refusing access to the premises, or failing to produce any books, records, or documents for review;

 

(8)  Failure to comply with the terms and conditions of an administrative order issued by the commission in accordance with RSA 287-D:23, VIII;

 

(9)  Failure to pay any sum owed to the commission as a result of administrative, civil or criminal penalties;

 

(10)  Any conduct by the HHR licensee that undermines the public confidence in charitable gaming or serves the interest of organized gambling or crime and criminals in any manner;

 

(11)  Manipulating the outcome of any game or otherwise compromising the integrity of charitable gaming or historic horse racing;

 

(12) Participating in illegal activities including possessing illegal gambling equipment, or permitting illegal gambling in the premises;

 

(13)  Willfully and knowingly conducting business with unauthorized entities or individuals;

 

(14)  Any material violation of RSA 287-D or RSA 284, as it applies to charitable gaming, historic horse racing, or this chapter; or

 

(15)  Operating games or wagers without a valid license or other governmental authority in any state or commonwealth in the United States.

 

          (g)  Upon the effective date of the revocation, the HHR licensee shall immediately cease holding itself out to the public as an HHR licensee of the commission, and cease engaging in any act for which HHR licensing is required.

 

          (h)  Failure to comply with (g) above shall constitute separate grounds for further disciplinary action.

 

          (i)  If an HHR license has been revoked, the commission shall not issue a subsequent HHR license until:

 

(1)  The passage of the amount of time specified in the revocation order;

 

(2)  The HHR licensee submits an application in accordance with this chapter;

 

(3)  The HHR licensee demonstrates that the cause for revocation no longer exists; and

 

(4) The HHR licensee demonstrates that any corrective actions that were ordered by the commission have been fully implemented.

 

          (j)  Grounds for a suspension shall exist when one or more violations are grounds for HHR license revocation, as set forth in (f) above, but the HHR licensee did not act with the intent to deceive, and the deficiencies can be corrected to conform to applicable requirements.

 

          (k)  Upon the effective date of the suspension, the HHR licensee shall immediately cease engaging in any act for which an HHR license is required until the commission grants reinstatement pursuant to (n) below.

 

          (l)  Failure to comply with (k) above shall constitute separate grounds for further disciplinary action.

 

          (m)  The minimum period for suspension shall be that amount of time necessary for the HHR licensee to take corrective action ordered by the commission and return to compliance.

 

          (n)  The commission shall reinstate a suspended HHR license when:

 

(1)  The HHR licensee submits to the commission a written request for the HHR license to be reinstated with documentation demonstrating that all of the corrective actions ordered by the commission have been taken; and

 

(2)  The commission determines that all corrective actions have, in fact, been taken and the HHR licensee has returned to compliance.

 

          (o)  If the commission does not grant the request for reinstatement it shall so notify the petitioner and provide the opportunity for a hearing.

 

          (p)  A suspension shall have no effect upon the expiration of an HHR license.

 

          (q)  If, after receiving a request for an HHR license, the commission has information that indicates that a reason, as set forth in (f) above, exists to refuse the request, the commission shall inform the applicant of the information and offer an opportunity for the applicant to respond to the information prior to a decision being made on the application.

 

          (r)  The commission shall not issue an HHR license until such time as the reason(s) for the refusal have been corrected.

 

          (s)  Within 15 days of the date on the notice issued pursuant to (b) above, the recipient of the notice shall submit a written response to the commission that indicates that the recipient either:

 

(1)  Waives their right to an adjudicative hearing; or

 

(2)  Requests an adjudicative hearing.

 

          (t)  If the commission receives a written request for an adjudicative hearing in accordance with (d) above, the commission shall proceed in accordance with the provisions of RSA 541-A, and Lot 200 as they apply to adjudicative proceedings.

 

          (u)  If a recipient of a notice fails to submit a response in accordance with (s) above, the recipient shall be deemed to have waived the right to an adjudicative hearing, and the penalty shall be affirmed.

 

          (v)  If a recipient of a notice submits a request for an adjudicative hearing in accordance with (s) above, no action shall be imposed on the individual pending the completion of an adjudicative process conducted in accordance with RSA 541-A:31 through 36, and Lot 200.

 

          (w)  If any participant who receives notice of an adjudicative hearing fails to appear at the hearing, the hearings officer shall hear the evidence and testimony of the participant(s) attending the hearing and render an opinion based thereon.

 

          (x)  Any person aggrieved by a decision of the commission to deny, suspend, or revoke an HHR license may apply to the commission for a rehearing within 15 business days of the decision.

 

          (y)  The commission shall provide all notices and conduct all hearings in accordance with the requirements set forth in RSA 541-A, Lot 200, and this part, as applicable.

 

Source.  #13330, eff 1-22-22

 

          Lot 8202.04  Responsible Gaming Plan.

 

          (a)  Each HHR licensee shall post and make readily available to its patrons a copy of its responsible gaming plan that outlines the HHR licensee’s efforts to:

 

(1)  Identify problem gamblers;

 

(2)  Take steps to prevent such individuals from continuing to engage in gambling; and

 

(3)  Provide education and assistance to these individuals to address problem gambling activity.

 

          (b)  The HHR licensee shall include the following in its responsible gaming plan:

 

(1)  Materials related to problem gaming, and resources available to patrons expressing concerns about problem gaming;

 

(2)  Options available for patrons to self-exclude from wagering for a specified time period or permanently;

 

(3)  The following requirements:

 

a.  The conspicuous posting of a sign where pari-mutuel wagers are conducted that bears a toll-free number provided by the Council for Responsible Gambling or other organizations that provide assistance to problem gamblers;

 

b.  Providing of informational leaflets or other similar materials to patrons expressing concerns about problem gambling, house-imposed player limits, and self-exclusion plans; and

 

c.  Including in the HHR licensee’s promotional and marketing materials information on problem gambling and organizations that provide assistance to problem gamblers;

 

(4)  If the licensee becomes aware of a patron who has suffered significant financial losses in repeated visits to the licensee’s facilities, provide such patron with information on organizations that provide assistance to problem gamblers;

 

(5)  If the HHR licensee holds a license from the New Hampshire liquor commission to serve alcoholic beverages, training for employees to identify patrons who have consumed excessive amounts of alcohol to prevent such patrons from continuing to engage in wagering activity while impaired;

 

(6)  Partnership with the New Hampshire council for responsible gambling, the National Council on Problem Gambling, or other similar organization to identify and promote best practices for preventing problem gambling;

 

(7)  Training of employees who have contact with patrons, as well as administrative and corporate staff members, to be aware of and respond to situations where a patron exhibits warning signs of a gambling problem or where a patron discloses they may have a gambling problem; and

 

(8)  Policies to ensure that any request by a patron who wishes to self-exclude from the licensee’s facilities is honored by the licensee.

 

Source.  #13330, eff 1-22-22

 

PART Lot 8203  OPERATIONAL REQUIREMENTS FOR HISTORIC HORSE RACING

 

          Lot 8203.01  General Requirements for the Operation of Historic Horse Racing.

 

          (a)  Pari-mutuel wagers on historic horse races shall only take place in a designated area within the enclosure of the facility at which the licensee holds its licensed activities under RSA 287-D.

 

          (b)  In addition to the requirement in (a) above, prior to July 1, 2024:

 

(1)  The sale of pari-mutuel wagers on historic horse races shall only take place within the city or town in which the game operator employer held its license on May 1, 2020; and

 

(2)  The locations authorized by the commission shall be the same in number and municipality as the game operator employer licenses that existed as of May 1, 2020.

 

          (c)  The sale of pari-mutuel wagers on historic horse races shall only take place:

 

(1)  In conjunction with, and during the same hours of operation as the licensee’s games of chance events; and

 

(2)  In designated areas that are established in such a way as to control access by the general public, and prevent entry by any patron who is younger than 18 years of age, or who is otherwise not permitted to place wagers.

 

          (d)  For each game date, the HHR licensee shall contract with 2 charitable organizations licensed in accordance with RSA 287-D.

 

          (e)  In accordance with RSA 284:23, I(d), charitable organizations from within the executive council district where the licensee is located shall be given preference, and no charitable organization shall be eligible to receive revenue from more than 10 game events per calendar year.

 

          (f)  The licensed charities shall share in the revenue generated from historic horse racing and games of chance at a given game event as follows:

 

(1)  Prior to January 1, 2024, the revenue shall be shared in accordance with the following;

 

a.  Charitable organization that had games of chance game dated calendar year 2020 shall be classified as Tier I organizations;

 

b.  Charitable organizations that did not hold a license in calendar year 2020 shall be classified as Tier II organization;

 

c.  Except as provided in d. below:

 

1.  Tier I organizations shall receive 100 percent of games of chance revenue designated for charitable allocations, and 50 percent of the historic horse racing revenue designated for charitable allocations; and

 

2.  Tier II organizations shall receive 0 percent of games of chance revenue designated for charitable allocations, and 50 percent of the historic horse racing revenue designated for charitable allocations;

 

d.  If the licensee cannot schedule a Tier I and a Tier II on a given game date, the charitable allocation of revenue from games of chance and historic horse racing shall be split evenly between the charitable organizations; and

 

(2)  As of January 1, 2024, the revenue from HHR and GOC shall be shared equally by the 2 licensed charitable organizations.

 

          (g)  Pursuant to RSA 287-D:18, the HHR licensee may only assess a rental fee for the portion of the game floor utilized by games of chance activities. No fee of any kind may be assessed for HHR related activities.

 

          (h)  A valid license issued in accordance with RSA 287-D shall be required for any person who:

 

(1)  Is party to, engages in, or supervises others in the operation of historic horse racing in any capacity;

 

(2)  Has access to sensitive areas relative to historic horse racing, including the internal components of the terminal, or the areas where the surveillance and operating systems are housed; or

 

(3)  Has authority to sign checks or withdraw funds from the historic horse racing accounts.

 

          (i)  The HHR licensee shall develop, implement, and adhere to written internal control policies and procedures designed to ensure effective control over the gaming operation by discouraging and protecting against illicit behavior and safeguarding the integrity of the games.

 

          (j)  The internal controls required by (i) above shall meet or exceed the requirements set forth in Lot 7206.08.

 

          (k)  Pursuant to RSA 287-D:14, XVIII, no historic horse racing game shall be offered for play unless the game has been approved by the commission in accordance with Lot 8204 below.

 

          (l)  An HHR licensee shall maintain at least 2 wagering devices offering the same type of pari-mutuel wager on all historic horse races, such that they are competing for a common pari-mutuel pool or set of pools.

 

          (m)  The portion of the active gaming area allocated for the operation of historic horse racing shall not exceed 70 percent, with the remaining 30 percent allocated to games of chance. To be considered an active gaming area, the games of chance area shall be staffed or capable of being staffed upon demand, and ready for immediate or on-demand play.

 

          (n)  For locations with more than 50 wagering devices, no more than 55 percent of all wagering devices at a given location shall be from any single totalizator system.

 

          (o)  Total takeout from historic horse racing shall not exceed 6.33 times the gross gaming revenue for games of chance as assessed annually for the first year of operation and quarterly thereafter. For the first year of operation, the measure of gross gaming revenue shall be the based on the greater of the licensee’s annualized average of revenue for the period from January 1, 2021 to June 30, 2021, or the actual gross gaming revenue for games of chance.

 

          (p)  In the event gross revenue from historic horse racing exceeds the limit set by (o) above, the licensee shall contribute a portion of its allotment to the charitable organizations that hosted game events within the assessed period in accordance with the following:

 

(1)  The HHR licensee shall retain 50 percent of the take-out; and

 

(2)  The remaining 25 percent of the HHR licensee’s allotment shall be equally distributed to the hosting charitable organizations, such that total charity allotment equals 33.75 percent of total takeout.

          (q)  The HHR licensee shall:

 

(1)  Conspicuously post or otherwise make the following information available within the terminal for patrons to access and review;

 

a.  A general explanation of pari-mutuel wagers offered on historic horse races, including handicapping options; and

 

b.  An explanation of each betting pool offered;

 

(2)  Provide terminals that are accessible to handicapped persons; and

 

(3)  Prohibit patrons from using electronic or other assistive devices to aid them in determining the outcome of a race prior to placing a bet.

 

          (r)  Each HHR licensee shall maintain complete records of all pari-mutuel transactions on historic horse races, including the amounts wagered at each terminal.

 

          (s)  A copy of the wagering records shall be retained and safeguarded for a period of no less than 2 years, and made available upon request from the commission.

 

Source.  #13330, eff 1-22-22

 

          Lot 8203.02  Wagers, Pools, and Payouts.

 

          (a)  All wagers offered on historic horse races shall:

 

(1)  Be under the pari-mutuel system of wagering;

 

(2)  Not adversely affect the integrity of historic horse racing or pari-mutuel wagering in the state of New Hampshire; and

 

(3)  Comply with RSA 284:22-b and this chapter.

 

          (b)  The maximum wager shall not exceed $25.

 

          (c)  Wagers made under this chapter shall be made with cash or any other means approved by the commission.

 

          (d)  The wager less takeout shall be placed in pari-mutuel pools found to be in compliance with RSA 284 and this chapter.

 

          (e)  The outcome of each wager shall be based solely on the outcome of the historic horse race or races, and no random elements shall determine the outcome of the patron’s wager.

 

          (f)  The payout on any wager shall not be less than the amount wagered, or greater than the amount available in the applicable pari-mutuel pool(s) together with any associated seed pool(s).

 

          (g)  The pari-mutuel pools shall be funded and maintained in a manner and method that ensures that the amount available in the pari-mutuel pool(s) together with any associated seed pool(s) at any given time is sufficient to ensure that a patron will be paid the minimum amount required on a winning wager.

 

          (h)  All prizes awarded from a historic horse race wager shall be awarded from an existing pari-mutuel pool(s) consisting only of money wagered by patrons, together with funds in any associated seed pool(s).

 

          (i)  Controls shall be in place to ensure that depletion of the pari-mutuel pools, plus funds in any associated seed pool(s), below an amount required to pay all winning tickets shall be detected at the time of depletion.

 

(j)  The HHR licensee shall immediately notify the commission in the event of the suspension of wagering activity of any historic horse racing pari-mutuel pool(s).

 

          (k)  Wagers shall not be conducted in a manner in which the amount retained by the HHR licensee, also known as the takeout, is dependent upon the outcome of any particular race or the success of any particular wager.

 

          (l)  The cash value of free bets and promotional credits shall be exempted from the revenue subject to charity allocation and payments to the state so long as the cash value of such promotions does not exceed 15 percent of the total revenue from historic horse racing for the given month. HHR licensees may provide free bets and promotional credits in excess of this allowance, however, the cash value of the free bets or promotional credits in excess of the allowance shall be included in the accounting of gross revenue subject to charity and state allocations.

 

          (m)  Winning pari-mutuel wagers shall be processed according to U.S. Internal Revenue Service reporting requirements for the taxation of pari-mutuel horse racing.

 

Source.  #13330, eff 1-22-22

 

          Lot 8203.03  Distribution of Revenue.

 

          (a)  As set forth in RSA 284:22-b, V, the HHR licensee shall collect a takeout on all historic horse racing pari-mutuel pools at a rate of not greater than 12 percent.

 

          (b)  In accordance with RSA 284:23, I(d), the HHR licensee shall distribute 25 percent of the takeout as following:

 

(1)  The 2 charitable organizations sponsoring the event shall share in 35 percent of the funds; and

 

(2)  The remaining 65 percent of the funds shall be paid to the commission monthly.

 

          (c)  When calculating the charitable organization’s share of the revenue, the HHR licensee shall round up to the nearest penny.

 

          (d)  The licensee shall distribute and report the revenue from historic horse racing with the revenue distribution and reporting for games of chance, as set forth in Lot 7208.02 and Lot 7208.03.

 

          (e)  In accordance with RSA 284:22-b, V, the HHR licensee shall submit 100 percent of the breakage collected from winning wagers to the commission for problem gambling services with the exception that breakage resulting from a wager of less than one dollar shall be returned to the pool.

 

Source.  #13330, eff 1-22-22

 

PART Lot 8204  REQUIREMENTS OF THE HISTORIC HORSE RACING TERMINALS

 

          Lot 8204.01  General Requirements.

 

          (a)  All terminals and related equipment shall be subject to inspection by the commission.

 

          (b)  Each terminal used for wagering on historical horse racing shall:

 

(1)  Be tested by an independent testing laboratory to ensure its integrity, proper working order, and compliance with RSA 284 and this chapter. Any material modifications made to the terminal shall require re-testing;

 

(2)  Use only race data from a pari-mutuel facility, within the United States or other regulatory jurisdictions recognized by the commission, licensed at the time the race was actually held;

 

(3)  Provide race information that is current as of the day the horse race was actually run;

 

(4)  Not accept a wager in excess of $25.00; and

 

(5)  Not be in the nature of a slot machine.

 

          (c)  A terminal shall not be considered to be in the nature of a slot machine when it precludes the use of random elements to determine the outcome of a wager, other than the selection of a race or races from a database of races, all wagers and payout calculations are pari-mutuel in nature, and do not include any interest of the licensee other than the authorized takeout and breakage retention.

 

Source.  #13330, eff 1-22-22

 

          Lot 8204.02  Commission of Historic Horse Racing Games and Displays.

 

          (a)  An HHR licensee or the terminal provider shall submit a written request to the commission for permission to offer pari-mutuel wagering on historic horse races.

 

          (b)  The written request shall include a detailed description of the following:

 

(1)  The rules that apply to the pari-mutuel wager(s);

 

(2)  The detailed method of calculating payouts and breakage;

 

(3)  The method by which seed pools will be used to ensure that sufficient funds exist at all times to pay winning wagers;

 

(4)  The method by which player money will be transferred from a closed pari-mutuel pool to an open pari-mutuel pool;

 

(5)  The method of determining a game outcome;

 

(6)  Available wagering denominations;

 

(7)  Minimum wager amount;

 

(8)  Maximum wager amount;

 

(9)  The amount of takeout for each wager;

 

(10) Payout calculations set forth in sufficient detail to audit a payout through manual calculation;

 

(11)  The minimum payouts and the method of guaranteeing minimum payouts;

 

(12)  The method of mapping payouts to an entertaining display on the wagering terminal; and

 

(13)  Any other information provided to an independent testing laboratory for use in the testing of the pari-mutuel wagers.

 

          (c)  The commission shall approve a request when:

 

(1)  The request includes all of the information required by (b) above to adequately assess the request; and

 

(2)  The proposed historic horse races, games and displays meet the requirements set forth in RSA 284:22-b and this chapter.

 

          (d)  An HHR licensee shall not offer a new or modified display or game without prior approval of the commission as set forth in this chapter.

 

          (e)  The HHR licensee shall permit access to the commission’s designated integrity auditor for the conduct of an annual validation of the race data utilized by the terminals.

 

          (f)  The licensee shall be responsible for the cost of the service provided by the integrity audit.

 

Source.  #13330, eff 1-22-22

 

          Lot 8204.03  Equipment Requirements for Pari-mutuel Wagers on Historic Horse Races.

 

          (a)  Wagers on historic horse races shall be offered on terminals that include a cabinet in which the electronics and other operating components are located.

 

          (b)  The terminal shall:

 

(1)  Protect against electrostatic interference by being grounded so that static discharge energy does not permanently damage or inhibit the normal operation of the electronics or other components within the wagering terminal;

 

(2)  Have the capacity to recover and complete any interrupted wager without loss or corruption of any control or critical data information in the event that a temporary disruption of the normal operation of a wagering terminal occurs as a result of an electrostatic discharge;

 

(3)  Be tested to a maximum discharge severity level of 27 kV air discharge;

 

(4)  Not be adversely affected, other than during resets, by surges or dips of up to 20 percent of the supply voltage, or be protected from such surges by an uninterrupted power supply;

 

(5)  When designed such that a surge or dip of up to 20 percent of the supply voltage causes a reset, such a surge or dip does not result in damage to the equipment or loss or corruption of data, and upon reset, the game returns to its previous state or returns to a game completion state, provided the game history and all credit and accounting meters comprehend a completed game;

 

(6)  Have an on/off switch that controls the electrical current installed in a readily accessible location within the interior of the terminal so that power cannot be disconnected from outside of the terminal using the on/off switch;

 

(7)  Be designed so that power and data cables into and out of the terminal can be routed so that they are not accessible to the general public. Security-related wires and cables that are routed into a logic area shall be securely fastened within the interior of the terminal;

 

(8)  Have an identification badge affixed to the exterior of the terminal by the terminal provider that is not removable without leaving evidence of tampering, and includes the following information:

 

a.  The name of the terminal provider;

 

b.  A unique serial number;

 

c.  The terminal model number; and

 

d.  The date of manufacture;

 

(9)  Have an external tower light located conspicuously on the top of the terminal that automatically illuminates when a patron has won an amount that the terminal cannot automatically pay, or when an error condition has occurred;

 

(10)  Be constructed of materials that are designed to allow only authorized access to the inside of the terminal. The terminal and its locks, doors, and associated hinges shall be capable of withstanding determined and unauthorized efforts to gain access to the inside of the terminal and shall be designed to leave evidence of tampering if such an entry is made;

 

(11)  Have external doors that are locked and monitored by door access sensors, and when opened, the door access sensors:

 

a.  Cause game wagering activity to cease;

 

b.  Disable all currency acceptance;

 

c.  Enter an error condition;

 

d.  Illuminate the tower light at a minimum; and

 

e.  Record the error condition;

 

(12)  Have external doors designed so that it is not possible to insert a device into the terminal that will disable a “door open” sensor without leaving evidence of tampering when the door of the terminal is shut;

 

(13)  Have a sensor system that provides notification that an external door is open when the door is moved from its fully closed and locked position, provided power is supplied to the device;

 

(14)  Have one or more logic areas to house the following electronic components:

 

a.  A central processing unit and any program storage device that contains software that may affect the integrity of wagers, including the game accounting, system communication, and peripheral firmware devices involved in or that significantly influence the operation and calculation of game play, game display, game result determination, or game accounting, revenue, or security;

 

b. Communication controller electronics and components housing the communication program storage device; and

 

c.  The nonvolatile memory backup device, which if located in the logic area, is kept within a locked logic area; and

 

(15)  If the terminal is accepting currency, have a currency storage area that:

 

a.  Is separately keyed;

 

b.  Fitted with sensors that indicate “door open/close” or “stacker receptacle removed”; and

 

c.  Secured by 2 locks before the currency can be removed, which are located on the relevant outer door and on at least 1 other door.

 

          (c)  The communication system shall comply with International Game Technology’s (IGT’s) slot accounting system (SAS) 6.03 protocol specifications, available as noted in Appendix B, for:

 

(1)  Ticket in/ticket out (TITO), which allows a player to easily move money from 1 machine to another regardless of the terminal’s denomination or terminal provider; and

 

(2)  A back office system(s), which compiles certain data from terminals at the facility into a single reporting mechanism.

 

          (d)  Critical memory storage shall be maintained by a methodology that enables errors to be identified, including signatures, checksums, partial checksums, multiple copies, timestamps, effective use of validity codes, or any combination of these methods.

 

          (e)  Comprehensive checks of critical memory shall be made following game initiation but prior to display of game outcome to the patron.

 

          (f)  An unrecoverable corruption of critical memory shall result in an error state which will:

 

(1)  Not be automatically cleared;

 

(2)  Cause the terminal to cease further functioning;

 

(3)  Cause any communication external to the terminal to immediately cease; and

 

(4)  Require restoration or clearing of software state by an authorized person.

 

          (g)  If critical memory is maintained in nonvolatile memory on the terminal and not by the server based system, then:

 

(1)  The terminal shall have the ability to retain data for all critical memory as defined in this section and be capable of maintaining the accuracy of the data for 30 days after power is discontinued from the terminal;

 

(2)  For rechargeable battery types only, if the battery backup is used as an off-chip battery source, it shall recharge itself to its full potential in a maximum of 24 hours, and the shelf life of the battery shall be at least 5 years;

 

(3)  Nonvolatile memory that uses an off-chip backup power source to retain its contents when the main power is switched off shall:

 

a.  Have a detection system that will provide a method for software to interpret and act upon a low battery condition before the battery reaches a level where it is no longer capable of maintaining the memory in question; and

 

b. Require access to the locked logic area or other secure method to clear nonvolatile memory; and

 

(4)  Following the initiation of a nonvolatile memory reset procedure:

 

a.  The game program shall execute a routine that initializes all bits in critical nonvolatile memory to the default state; and

 

b.  All memory locations intended to be cleared as per the nonvolatile memory clear process shall be fully reset in all cases.

 

          (h)  The following shall apply to critical memory of a server-based game:

 

(1)  Critical memory of a server-based game may be maintained by the server, terminal, or some combination thereof;

 

(2)  The critical memory related to each wagering device shall:

 

 

a.  Be kept independent to all other wagering devices so that, if corruption occurs in any single wagering device’s critical memory, no other wagering devices are affected by that corrupt memory state; and

 

b.  Utilize unique identification, such as serial number or other unique wagering device hardware identifier, to clearly identify which physical wagering device the critical memory represents.

 

          (i)  All terminals shall be equipped with a device, mechanism, or method for retaining the value of the meter information specified in Lot 8204.05 in the event of a loss of power to the terminal. Storage and retrieval of the accounting meters from a server is an acceptable method of retrieval.

 

          (j)  Configuration setting changes shall not cause an obstruction to the meters.

 

          (k)  If the terminal is in a test, diagnostic, or demonstration mode, any test that incorporates credits entering or leaving the terminal shall be completed prior to resumption of normal operation.

 

          (l)  There shall not be any mode other than normal wagering operation that debits or credits any of the electronic meters.

 

 (m)  Terminals shall not allow any information contained in a communication to or from the online monitoring system that is intended to be protected, including validation information, secure PINs, credentials, or secure seeds and keys, to be viewable through any display mechanism supported by the terminal.

 

          (n)  All program storage devices shall:

 

(1)  Be housed within a fully enclosed and locked logic compartment;

 

(2)  Validate themselves during each processor reset; and

 

(3)  Validate themselves the first time they are used.

 

          (o)  Program storage devices that do not have the ability to be modified while installed in the terminal during normal operation shall be clearly marked with information to identify the software and revision level of the information stored in the devices.

 

          (p)  Terminals shall have the ability for an independent testing laboratory to perform an integrity check of all software that might affect the integrity of the game using a third party verification tool.

 

          (q)  If a winning amount is in excess of the thresholds established in the Internal Revenue Service reporting requirements, the terminal shall cease operation and require attendant interaction to proceed.

 

          (r)  Terminals shall be capable of detecting and displaying the following errors:

 

(1)  Open door conditions;

 

(2)  Nonvolatile memory errors;

 

(3)  Low nonvolatile memory battery for batteries external to the nonvolatile memory itself for low power source;

 

(4)  Program error or authentication mismatch;

 

(5)  Display device errors;

 

(6)  The identification of an invalid bill or voucher; and

 

(7)  Loss of communication to the totalizator system.

 

          (s)  To protect the integrity of the game, when a terminal error condition is detected, the terminal shall secure itself by:

 

(1)  Ceasing play and requiring operator intervention prior to returning to normal play;

 

(2)  Display an appropriate error message;

 

(3)  Disable bill and voucher acceptance;

 

(4)  Sound an alarm, illuminate the tower light, display the error on screen, or any combination thereof;

 

(5)  Communicate the error condition to an online monitoring and control system; and

 

(6)  If the terminal is powered down with an unresolved error condition, remain in error mode unless power down is used as a part of the error reset procedure.

 

          (t)  Upon resolution of an error condition, a terminal may return to a wager completion state, provided the game history, wagering credits, and other meters display the completed wager properly.

 

          (u)  Terminals shall not be adversely affected by the simultaneous or sequential activation of various terminal inputs and outputs.

 

          (v)  Test, diagnostic, or demonstration modes on a terminal shall:

 

(1)  Be entered only from an attendant following appropriate instructions;

 

(2)  Not be accessible to a patron; and

 

(3)  Be indicated on the terminal via an appropriate message.

 

          (w)  Upon exiting from test, diagnostic, or demonstration mode, a terminal shall return to its previous state.

 

          (x)  Video monitor touch screens on terminals shall:

 

(1)  Be accurate to terminal provider specifications for touch point sensitivity;

 

(2)  Be able to be calibrated without access to the terminal cabinet other than opening the main door, and once calibrated shall maintain accuracy for at least the video touch screen terminal provider’s recommended maintenance period; and

 

(3)  Have no hidden or undocumented buttons or touch points anywhere on the screen that affect wagers or that impact the outcome of the game, except as provided by the game rules.

 

          (y)  Paper currency acceptors used in a terminal shall:

 

(1)  Be electronically based;

 

(2)  Detect the entry of bills or vouchers inserted into the paper currency acceptor and provide a method to enable the terminal software to interpret and act appropriately upon a valid or invalid input;

 

(3)  Be configured to ensure the acceptance of only valid bills or vouchers and reject all other items;

 

(4)  Return to the patron all rejected bills or vouchers, and any other item inserted into the acceptor;

 

(5)  Be constructed in a manner that protects against vandalism, abuse, or fraudulent activity;

 

(6)  Register the actual monetary value or appropriate number of credits received for the denomination used on the patron’s credit meter for each valid bill or voucher;

 

(7)  Register credits only when the bill or other note has passed the point where it is accepted or stacked and the acceptor has sent an “irrevocably stacked” message to the terminal;

 

(8)  Be designed to prevent the use of fraudulent crediting, the insertion of foreign objects, and any other fraudulent technique;

 

(9)  Implement a method of detecting counterfeit bills;

 

(10)  Only accept bills or vouchers when the terminal is enabled for play;

 

(11)  Have the capability to detect and display any supported error conditions;

 

(12)  Shall communicate with the terminal using a bi-directional protocol;

 

(13)  Be located in a locked area of the terminal that requires the opening of locked door for access. The paper currency acceptor shall not be located in the logic area. Only the bill or voucher insertion area shall be accessible by the patron;

 

(14)  Have a secure stacker that shall:

 

a.  Deposit into the stacker all accepted items;

 

b.  Be attached to the terminal in such a manner that it cannot be easily removed by physical force; and

 

c.  Have a separate keyed lock to access the stacker area. The keyed lock shall be separate from the main door, and a separate keyed lock shall be required to remove the bills from the stacker; and

 

(15)  Have a bill validator that shall:

 

a.  Retain in its memory and have the ability to display the information required of the last 25 items accepted by the bill validator;

 

b.  Have a recall log that may be combined or maintained separately by item type. If combined, the type of item accepted shall be recorded with the respective timestamp; and

 

c.  Give proper credit or return the bill or note if power failure occurs during acceptance of a bill or note.

 

          (z)  Available credit may be collected from the terminal by the patron at any time other than during:

 

(1)  A game being wagered;

 

(2)  Audit mode;

 

(3)  Test mode;

 

(4)  A credit meter or win meter increment; or

 

(5)  An error condition.

 

          (aa)  Each terminal that accepts currency shall be equipped with a printer that:

 

(1)  Is used to make payments to the patron by issuing a printed voucher;

 

(2)  Prints only one copy to the patron and retains information on the last 25 printed vouchers;

 

(3)  Is housed in a locked area of the terminal but shall not be located within the logic area or the drop box; and

 

(4)  Allows control program software to interpret and act upon all error conditions.

 

          (ab)  The terminal shall transmit the following data to an online system that records the following information regarding each payout ticket or voucher printed:

 

(1)  The value of credits in local monetary units in numerical form;

 

(2)  The time of day the ticket or voucher was printed, showing hours and minutes;

 

(3)  The date indicating the day, month, and year that the ticket or voucher was issued;

 

(4)  The terminal number; and

 

(5)  A unique ticket or voucher validation number.

 

          (ac)  Terminals shall be capable of displaying wager recall, which shall:

 

(1)  Include the last 10 wagers on the terminal, including at least 50 intermediary steps within those wagers, including free spins and bonus games;

 

(2)  Be retrievable on the terminal via an external key-switch or other secure method not available to the patron; and

 

(3)  Provide all information required to fully reconstruct the wagers, including:

 

a.  Initial credits or ending credits associated with the wager;

 

b.  Credits wagered;

 

c.  Credits won;

 

d.  Entertaining game display symbol combinations and credits paid whether the outcome resulted in a win or a loss;

 

e.  Representation in a graphical or text format;

 

f.  Final wager outcome, including all patron choices and all bonus features; and

 

g.  As an optional feature, display of values as currency in place of credits.

 

          (ad)  Server-stored information shall be backed up no less often than once per day to one of the following locations approved by the commission based on industry standards for logical and physical security:

 

(1)  An offsite storage facility; or

 

(2)  Through a cloud service provider.

 

          (ae)  The server and offsite backup storage shall be accessible to the commission and subject to third-party checks and validation.

 

Source.  #13330, eff 1-22-22

 

          Lot 8204.04  Ticket and Voucher Requirements.

 

          (a)  Terminals shall not dispense currency. Payment to patrons shall only be accomplished by means of a printed voucher.

 

          (b)  All vouchers shall contain the following printed information at a minimum:

 

(1)  The HHR licensee’s name and site identifier, which may be contained on the ticket stock itself;

 

(2)  Terminal number or cashier booth location;

 

(3)  Date and time stated in a time format according to the local time zone;

 

(4)  Alpha and numeric dollar amount;

 

(5)  Ticket or voucher sequence number;

 

(6)  Validation number;

 

(7)  Bar code or any machine-readable code representing the validation number;

 

(8)  Type of transaction or other method of differentiating voucher types. If the voucher is a non-cashable item, the ticket shall explicitly express that it has “no cash value”; and

 

(9)  The expiration period from date of issue, or date and time the ticket or voucher will expire according to the local time zone. This information may be contained on the ticket stock itself.

 

          (c)  Payment on valid pari-mutuel tickets, including tickets where refunds are ordered, shall be made only upon presentation and surrender of valid pari-mutuel tickets to the HHR licensee.

 

          (d)  All moneys collected during the previous year of pari-mutuel pool tickets and vouchers which have not been redeemed shall be paid to the state treasurer, and be subject to the requirements of RSA 284:31.

 

          (e)  A system shall be used to validate the payout ticket or voucher, and the ticket or voucher information on the central system shall be retained for 2 calendar years after a voucher is valid at that location.

 

          (f)  Payment by voucher as a method of credit redemption shall only be permissible when the terminal is linked to a computerized voucher validation system, which is able to identify a duplicate ticket or voucher to prevent fraud.

 

          (g)  Validation numbers shall be masked when viewable through any display supported by the terminal such that the entirety of the validation number is not visible.

 

          (h)  Vouchers may be inserted in any terminal participating in the validation system providing that no credits are issued to the terminal prior to confirmation of voucher validity.

          (i)  The offline voucher redemption may be validated as an internal control process. A manual handpay may be conducted for the offline voucher value.

 

          (j)  All prizes, tickets, and vouchers shall be paid upon presentation or request by the player during regular business hours.

 

          (k)  The HHR licensee shall maintain an electronic record of all outstanding vouchers for a period of at least 2 years in a format that is accessible to the lottery commission.

 

Source.  #13330, eff 1-22-22

 

          Lot 8204.05  Accounting and Occurrence Meter Requirements.

 

          (a)  The required accounting meters and related reporting shall be as follows:

 

(1)  Coin in, which shall accumulate the total value of all wagers, whether the wagered amount results from the insertion of bills or vouchers or deduction from a credit meter;

 

(2)  Coin out, which shall accumulate the total value of all amounts directly paid by the terminal as a result of winning wagers, whether the payback is made to a credit meter or any other means;

 

(3)  Attendant paid jackpot, which shall accumulate the total value of credits paid by an attendant resulting from a single wager, the amount of which is not capable of being paid by the wagering terminal itself;

 

(4)  Attendant paid canceled credit, which shall accumulate the total value paid by an attendant resulting from a patron-initiated cash-out that exceeds the physical or configured capability of the terminal to make the proper payout amount;

 

(5)  Bill in, which shall accumulate the total value of currency accepted. Each wagering terminal shall have a specific occurrence meter for each denomination of currency accepted that records the number of bills accepted of each denomination;

 

(6)  Voucher in, which shall accumulate the total value of all wagering terminal vouchers accepted by the device;

 

(7)  Voucher out, which shall accumulate the total value of all wagering terminal vouchers issued by the device;

 

(8)  Cashless account transfer in, or wagering account transfer (WAT) in , which accumulates the total value of cashable credits electronically transferred to the gaming device from a wagering account by means of an external connection between the device and a cashless wagering system;

 

(9)  Cashless account transfer out, or WAT out), which shall accumulate the total value of cashable credits electronically transferred from the gaming device to a wagering account by means of an external connection between the device and a cashless wagering system;

 

(10)  Non-cashable electronic promotion in (NCEP In), which shall accumulate the total value of non-cashable credits electronically transferred to the gaming device from a promotional account by means of an external connection between the device and a cashless wagering system from vouchers accepted by the terminal;

 

(11)  Cashable electronic promotion in (CEP In), which shall accumulate the total value of cashable credits electronically transferred to the gaming device from a promotional account by means of an external connection between the device and cashless wagering system;

 

(12)  Non-cashable electronic promotion out (NCEP Out), which shall accumulate the total value of non-cashable credits electronically transferred from the gaming device to a promotional account by means of an external connection between the device and a cashless wagering system;

 

(13)  Cashable electronic promotion out (CEP Out), which shall accumulate the total value of cashable credits electronically transferred from the gaming device to a promotional account by means of an external connection between the device and a cashless wagering system;

 

(14)  Coupon promotion in, which shall accumulate the total value of all gaming device promotional non-cashable coupons accepted by the device;

 

(15)  Coupon cashable in, which shall accumulate the total value of all gaming device promotional cashable coupons accepted by the device; and

 

(16)  Coupon promotion out, which shall accumulate the total value of all gaming device promotional non-cashable coupons issued by the device.

 

          (b)  Additional required occurrence meters shall be as follows:

 

(1)  Cashable promotional credits wagered, which shall accumulate the total value of promotional cashable credits that are wagered. This shall include credits that are transferred to the machine electronically or through the acceptance of a coupon or voucher;

 

(2) Non-cashable promotional credits wagered, which shall accumulate the total value of promotional non-cashable credits that are wagered. This shall include credits that are transferred to the machine electronically or through the acceptance of a coupon or voucher;

 

(3)  Games wagered, which shall accumulate the number of wagers placed; and

 

(4)  Games won, which shall accumulate the number of wagers resulting in a win to the patron.

 

          (c)  Electronic accounting meters shall maintain and calculate data to at least 10 digits in length.

 

          (d)  Electronic accounting meters shall be maintained in credit units equal to the denomination or in dollars and cents.

 

          (e)  If the electronic accounting meter is maintained in dollars and cents, eight digits shall be used for the dollar amount and 2 digits shall be used for the cents amount.

 

          (f)  Devices configured for multi-denomination wagers shall display the units in dollars and cents at all times.

 

          (g)  Any time the meter exceeds a value it is not capable of supporting, the meter shall roll over to zero.

 

          (h)  Occurrence meters shall be at least 8 digits in length but are not required to automatically roll over.

 

          (i)  Meters shall be identified so that they can be clearly understood in accordance with their function.

 

          (j)  Meters may be on the server instead of the terminal.

 

Source.  #13330, eff 1-22-22

 

          Lot 8204.06  Historic Horse Race Specifications and Selection Requirements.

 

          (a)  The outcome of any wager shall be derived from the result of one or more historic horse races.

 

          (b)  All historic horse races shall be chosen at random from a database of actual, historic horse races having valid historic horse race results with details recorded at the same level as other races in the database, and  include:

 

(1)  Horse names;

 

(2)  Race location;

 

(3)  Race date;

 

(4)  Jockey name or identifier;

 

(5)  Race number; and

 

(6)  Official order of finish.

 

          (c)  In the case where a random number generator is used to select the historic horse races for a wager, all possible races or sets of races in the database for the currently specified pari-mutuel wager shall be available for selection.

 

Source.  #13330, eff 1-22-22

 

          Lot 8204.07  Wagering Terminal Historic Race Display.

 

          (a)  All wagering terminals shall:

 

(1)  Clearly identify the entertaining game theme, if any, being used to offer pari-mutuel wagers on historic horse races; and

 

(2)  Make the following information available to the patron:

 

a.  All paytable information, rules of play, and help screen information;.

 

b.  The award that will be paid to the patron when the patron obtains a specific win; and

 

c.  The rules of any features or interactive functions that may occur as part of the entertaining display of the wager and its outcome;

 

(3)  Display the race data in graphic or other discernible format, and in a reasonable manner as to not discourage patrons who wish to handicap from doing so; and

 

(4)  Allows the patron to compare all of their picks against the true order of finish.

 

          (b)  Prior to the patron making his or her wager selections, the terminal shall:

 

(1)  Make true and accurate past performance information available on each horse in each historic horse race; and

 

(2)  Not display any information that would allow the patron to identify the historic race on which the patron is wagering, including:

 

a.  The location of the race;

 

b.  The date on which the race was run;

 

c.  The names of the horses in the race; or

 

d.  The names of the jockeys who rode the horses in the race.

          (c)  In addition to the requirement of (b)(2) above, the terminal may also display the wager and its outcome as part of an entertaining display or game, provided the wager functions according to the pari-mutuel wagering pool specifications provided by the HHR licensee to the commission.

 

          (d)  After the results of a patron’s wager are determined, the terminal shall display:

 

(1)  The patron’s selections;

 

(2)  The identity and official results of each race; and

 

(3)  A replay or recreation of the race or races, or a portion thereof, whether by digital, animated, or graphical depiction or by way of a video recording.

 

          (e)  The video display required by (d)(3) above shall be of a size and quality that allows the player to reasonably view and determine the outcome of the horse race or races.

 

          (f)  Approximate odds or payouts for each wagering pool shall be posted or made available on each terminal for viewing by patrons at intervals of no more than 90 seconds.

 

          (g)  The display shall clearly indicate whether awards are designated in credits or currency.

 

          (h)  All wagering terminals shall display or otherwise make available the following information to the patron at all times the wagering terminal is available for patron wager input:

 

(1)  The patron’s current credit balance in currency or credits;

 

(2)  The current bet amount;

 

(3)  The amount won for the last completed game until the next game starts or betting options are modified;

 

 

(4)  The patron options selected for the last completed game until the next game starts or a new selection is made; and

 

(5)  An affixed disclaimer stating “Malfunction Voids All Pays” or some equivalent wording. This may be presented as a decal or sign on the terminal.

 

          (i)  The default game display upon terminal reset shall not exclusively show false winning outcomes.

 

          (j)  Entertaining game features that simulate bonus or free games shall meet the following requirements:

 

(1)  The initiation of a bonus or free game shall only be based on the result of the wager placed by the patron on the result of the historic horse race selected for the wager;

 

(2)  The bonus or free game shall not require additional money to be wagered by the patron;

 

(3)  The entertaining display shall make it clear to the patron that the patron is in bonus mode to avoid the possibility of the patron unknowingly leaving the wagering terminal while in a bonus mode; and

 

(4)  If the bonus or free game requires an input from the patron, the terminal shall provide a means to complete the bonus or free game from a touch screen or hard button.

 

          (k)  Electronic metering displays shall:

 

(1)  At all times include all credits or cash available for the patron to wager or cash out unless the terminal is in an error or malfunction state. This information is not required when the patron is viewing a menu or help screen item;

 

(2)  Reflect the value of every prize at the end of a wager and add it to the patron’s credit meter, except for handpays; and

 

(3)  Show the cash value collected by the patron upon a cashout unless the terminal is in an error or malfunction state.

 

          (l)  A wager is complete when the final transfer to the patron’s credit meter takes place or when all credits wagered are lost.

 

Source.  #13330, eff 1-22-22

 

          Lot 8204.08  Required Reports, Audits and Inspections.

 

          (a)  All systems used for pari-mutuel wagering on historic horse races shall provide financial reports for individual approved wager model configurations and total pool amounts for each pool.

 

          (b)  The reports required by (a) above shall be delivered to the commission and its designated integrity auditor by a delivery method and electronic format acceptable by the commission no later than 8 hours after the conclusion of all operations for the day, with information current since the end of the last wagering day, and include:

 

(1)  Current values of each pari-mutuel wagering pool;

 

(2)  Total amounts wagered for all pools;

 

(3)  Total amounts won by patrons for all pools;

 

(4)  Total amount of the takeout for all pools;

 

(5)  Total breakage for each pool;

 

(6)  Total amount wagered at each terminal;

 

(7)  Total amount won by patrons at a terminal;

 

(8)  The amount wagered on each mathematical model configuration and the amount won from each mathematical model configuration offered at a terminal;

 

(9)  Total amount of each type of financial instrument inserted into a terminal;

 

(10)  Total amount cashed out in voucher or handpays at a terminal;

 

(11)  Taxable win events including:

 

a.  Time and date of win;

 

b.  Wagering terminal identification number;

 

c.  Amount wagered resulting in taxable win;

 

d.  Taxable amount won; and

 

e.  Withholding amount; and

 

(12)  A complete detailed list of pari-mutuel wagering transactions per day per location per math method per pool.

 

          (c)  Each HHR licensee shall annually submit to the commission on or before June 1 an annual financial report that includes, at a minimum:

 

(1)  A balance sheet;

 

(2)  An income statement;

 

(3)  A statement of changes in retained earnings; and

 

(4)  A statement of changes in financial position and the applicable notes to those financial statements for the prior year’s operations of the person, association, or corporation.

 

          (d)  The annual financial report required by (c) above shall:

 

(1)  Be reviewed or audited by a certified public accountant licensed to practice in the state of New Hampshire in accordance with RSA 309-A; and

 

(2)  Conform to the general standards of accounting principles as set forth in Ac 504..

 

          (e)  On an annual basis, the HHR licensee or the terminal provider(s) under contract with the licensee shall obtain and submit a SOC 1 SSAE 18 Type 2 report issued by a licensed CPA.

 

          (f)  The HHR licensee shall include historic horse racing when fulfilling its requirement under Lot 7207.04(p) relative to the minimum bankroll analysis.

 

          (g)  The commission or its authorized representatives may, at any time, conduct an audit or inspection of the financial reports, software, terminals, or other equipment used by an HHR licensee in conducting operations under this chapter.

 

Source.  #13330, eff 1-22-22

 

PART Lot 8205  SURVEILLANCE SYSTEMS REQUIREMENTS

 

          Lot 8205.01  Categories of Licensees.

 

          (a)  For purposes of this part, licensees shall be categorized based on annual gross gaming revenue (GGR) during the preceding calendar year as follows:

 

(1)  Category A refers to gaming operations with an annual GGR of $25 million or more;

 

(2)  Category B refers to gaming operations with an annual GGR of more than $10 million, but less than $25 million; and

 

(3)  Category C refers to gaming operations with annual GGR of $10 million or less.

 

          (b)  The annual GGR shall be determined as follows:

 

(1)  For game rooms that operated for a full year during the preceding calendar year, annual GGR shall be the actual GGR of the preceding calendar year;

 

(2)  For game rooms that did not operate for a full year during the preceding calendar year, the partial year’s revenue shall be projected over the course of a full year to determine the appropriate license category; and

 

(3)  For new game rooms that have not begun operation, annual GGR shall be based on the activity of similar game rooms based on size and location.

 

Source.  #13330, eff 1-22-22

 

          Lot 8205.02  Surveillance System Plan.

 

          (a)  Gaming operations shall not commence without a written surveillance plan included as part of the game operator’s system of internal controls.

 

          (b)  The surveillance plan shall address, at a minimum, the following elements:

 

(1)  A detailed description of all surveillance system components;

 

(2)  A floorplan that shows the placement of all surveillance equipment in and around the facility and all gaming equipment on the gaming floor;

 

(3)  The policies and procedures utilized for the operation of the surveillance system, which include how access to the surveillance room will be limited;

 

(4)  A training and qualifications program demonstrating that surveillance operations personnel are trained to recognize abnormalities and violations in procedures, including documentation of on-going training;

 

(5)  A list of persons or positions authorized to access the secure location or surveillance room;

 

(6)  A preventive maintenance program, which ensures that the entire surveillance system is maintained in proper working order, and that transparent covers over surveillance system cameras are cleaned in accordance with a routine maintenance schedule;

 

(7)  The contingency plan that will be utilized to safeguard assets and ensure gaming integrity in the event of a power failure or camera malfunction; and

 

(8)  A written procedure for the storage and identification of all video or digital recordings the game operator is required to retain.

 

          (c)  The GOE shall provide written notification to the commission, within 10 days of a change to any portion of their surveillance system plan specifying:

 

(1)  What the changes were;

 

(2)  When the change occurred or took effect; and

 

(3)  How the change will affect their surveillance system as a whole.

 

Source.  #13330, eff 1-22-22

 

          Lot 8205.03  Surveillance System Standards.

 

          (a)  The surveillance system shall be maintained and operated from:

 

(1)  A surveillance room for all category A licensees; and

 

(2)  A secure location for all category B and C licensees.

 

          (b)  For the purposes of this section:

 

(1)  A surveillance room refers to a secure room(s) within the licensed gaming establishment used primarily for the surveillance of the gaming area; and

 

(2)  A secure location refers to an area within the licensed gaming establishment, such as a closet, where surveillance equipment is housed and operated.

 

          (c)  The entrance to the surveillance room or secured location shall be located so that it is not readily accessible by either game room employees who work primarily on the game room floor or the general public, and whenever possible, the entrance shall be located as to not to be visible from the game floor.

 

          (d)  Access to the surveillance room or secure location shall be limited to individuals who are:

 

(1)  Licensed in accordance with RSA 287-D, and authorized to have access in accordance with the policies set forth in the game room’s surveillance system plan;

 

(2)  An agent of the commission; and

 

(3)  Accompanied by an individual authorized in accordance with (1) above.

 

          (e)  Any agent of the commission shall be provided immediate access to the surveillance room or secure location upon request and presentation of proper identification.

 

          (f)  The GOE shall maintain a sign-in log, and require any individuals who enter the surveillance room or secure location, other than authorized personnel, to sign the log.

 

          (g)  The sign-in log required by (f) above shall be maintained in a bound book with numbered pages that can’t be readily removed, and include a minimum of the following:

 

(1)  The date and time of entry;

 

(2)  The entering person's name, and department or affiliation;

 

(3)  The reason for entering the surveillance room or secure location;

 

(4)  The name of the person authorizing the person's entry into the surveillance room or secure location; and

 

(5)  The date and time of exiting.

 

          (h)  The GOE shall ensure surveillance staff are trained in the use of the equipment, knowledge of the games, and house rules so as identify unusual activities or behaviors, and prevent theft.

 

          (i)  Except as allowed by (j) below, for all category A game rooms, the surveillance room shall be attended at all times by personnel trained in the use of the equipment, and knowledgeable of the games and house rules.

 

          (j)  When necessary, the surveillance room may be unattended for periods of time not to exceed one hour in any 8-hour period to allow meal and rest breaks.

 

          (k)  For all category B and C game rooms, there shall be at least one person on the property at all times with a working knowledge and the ability to operate the surveillance equipment, and who can provide immediate access to the secured location to commission agents.

 

          (l)  The surveillance system shall:

 

(1)  Include sufficient numbers of monitors and recording devices to simultaneously display and record multiple gaming and count room activities;

 

(2)  Include date and time generators that possess the capability to display the date and time of recorded events on digital/video recordings. The displayed date and time shall not significantly obstruct the recorded view;

 

(3)  Record at 30 frames/images per second or its equivalent, full screen, in real time. Cameras not required by these surveillance standards shall provide a minimum of 7.5, full screen frames per second;

 

(4)  Not include the use of multiplexing and quad recording devices for required surveillance; and

 

(5)  Monitor and record with sufficient clarity to identify employees and customers in all areas where games are played and currency is counted, verified, sorted, stacked, or stored, including monitoring and recording all table game drop boxes, safes, and counting surfaces, and all cashier personnel.

 

          (m)  Each video camera required by these standards shall:

 

(1)  Be installed in a manner that will prevent it from being readily obstructed, tampered with or disabled by patrons or employees. No employee shall intentionally obstruct surveillance system equipment; and

 

(2)  Possess the capability of having its picture displayed on a video monitor and recorded.

 

          (n)  The surveillance system shall include sufficient numbers of monitors and recorders to simultaneously display and record multiple gaming and count room activities, and record the views of all dedicated cameras and motion activated dedicated cameras.

 

          (o)  Where a Pan-Tilt-Zoom (PTZ) camera is used to observe gaming and gaming-related activities, the camera shall be placed behind a smoked dome, one-way mirror or similar materials that conceal the camera from view.

 

          (p)  Continuous lighting that is of sufficient quality to produce clear recordings and still picture reproductions is required in all areas where camera coverage is required.

 

          (q)  For all category A game rooms, surveillance room equipment shall have total override capability over all other satellite surveillance equipment located outside the surveillance room.

 

          (r)  The GOE shall immediately notify the commission in writing of any such camera(s) that has malfunctioned for more than 24-hours

 

          (s)  The GOE shall make a reasonable effort to repair each malfunction of surveillance system equipment required by these standards within 72-hours after the malfunction is discovered.

 

          (t)  In the event of a dedicated camera malfunction, the GOE shall, upon identification of the malfunction, provide alternative camera coverage or other security measures, such as additional supervisory or security personnel, to protect the subject activity. If other security measures are taken, the GOE shall immediately contact the commission who will determine whether the other security measures are adequate.

 

          (u)  The GOE shall maintain a malfunction and repair log that documents each malfunction and repair of the surveillance system, and retain the log for a minimum of 2 years after the date of the last entry in it.

 

          (v)  The malfunction and repair log shall include a minimum of the following:

 

(1)  The time, date and nature of each malfunction;

 

(2)  The efforts expended to repair the malfunction and the date of each effort;

 

(3)  The reasons for any delays in repairing the malfunction;

 

(4)  The date the malfunction is repaired; 

 

(5)  Where applicable, any alternative security measures that were taken while the system was being repaired; and

 

(6)  Reference, by date and time, any communication with the commission concerning any malfunction or corrective action.

 

 

          (w)  In the event of a power loss to the surveillance system, the GOE shall utilize a contingency plan that consists of a minimum of the following:

 

(1)  All category A game rooms shall have an auxiliary or backup power source available and capable of providing immediate restoration of power to all elements of the surveillance system that enable surveillance personnel to observe the table games remaining open for play and all areas covered by dedicated cameras. Auxiliary or backup power sources such as an uninterrupted power supply (UPS) system, backup generator, or an alternate utility supplier, shall satisfy this requirement; and

 

(2)  All category B and C game rooms shall implement alternative security measures in lieu of an auxiliary or back-up power Source.

 

          (x)  Alternative measures allowed by (w)(2) above may include additional supervisory or security personnel, to protect the subject activity. If other security measures are taken, the GOE shall immediately contact the commission who will determine whether the other security measures are adequate.

 

          (y)  The GOE shall establish and maintain a surveillance system so that a failure of any part or component will not result in the cessation of more than 50 percent of the surveillance coverage of the gaming area.

 

Source.  #13330, eff 1-22-22

 

          Lot 8205.04  Digital or Video Recording Standards.

 

          (a)  All monitoring through surveillance cameras shall be recorded whenever the gaming room is open for play.

 

          (b)  The surveillance system shall record all transmissions from cameras used to observe the following locations, persons, or transactions:

 

(1)  All gaming tables whether active or inactive;

 

(2)  Each transaction conducted at a cashiering location;

 

(3)  Main bank areas where gross revenue functions are performed;

 

(4)  The execution of fills and credits at the chip bank;

 

(5)  The collection of drop boxes, cash storage boxes, and the count of the contents therein;

 

(6)  The inspection and distribution to gaming pits of cards, dice and tiles;

 

(7)  The retrieval of cards, dice, and tiles from gaming pits at the end of the gaming day and their delivery to the location designated for inspection, cancellation, destruction or, if applicable, reuse;

(8)  Each transaction conducted at an automated bill breaker, voucher/coupon redemption, and jackpot payout machine, as well as each replenishment or other servicing of any such machines; and

 

(9)  The entrances and exits to the game room, count rooms, and all locations where critical hardware and software is housed.

 

          (c)  The path that any cash and cash equivalent is transported to or from the game floor to any area where it is counted, sorted or stored shall be under continuous surveillance.

 

          (d)  Recording media, which shall be replaced immediately upon the manifestation of any significant degradation in the quality of the images or sound, if applicable, recorded thereon, provided, however, where videotape is utilized, it shall be used for no more than one year.

 

          (e)  The digital or video surveillance system shall include, at a minimum, the following:

 

(1)  Light sensitive cameras, with lenses of sufficient magnification to allow the operator to read information on gaming chips, dice, tiles, symbols and credit meters on electronic terminals, and employee credentials, and with 360 degree pan, tile and zoom capabilities without camera stops to effectively and clandestinely monitor in detail and from vantage points the following:

 

a.  The gaming conducted at each gaming table, and the activities in the pit area;

 

b.  The gaming conducted at the HHR wagering terminals;

 

c.  The operations conducted at and in the cashiers' cage, and each office ancillary thereto;

 

d.  The operations conducted at automated coupon redemption machines;

 

e.  The count processes conducted in the count rooms;

 

f.  The movement and storage of cash, gaming chips and plaques, drop boxes, bill validator boxes, and the cash storage boxes, drop boxes, and drop buckets associated with HHR wagering devices and other electronic gaming terminals;

 

g.  The entrances and exits to the game room, the count rooms, and all locations where critical hardware and software is housed; and

 

h.  The operation of automated jackpot payout machines, gaming voucher redemption machines, gaming voucher systems, and electronic transfer credit systems.

 

(2)  Be of sufficient clarity to identify:

 

a.  Employees and customers;

 

b.  Table numbers;

 

c.  Cash denominations;

 

d.  Card values, including pips, face cards, and suits;

 

e.  Chip values, and where applicable, the number of chips in a rack; and

 

f.  Game outcomes;

 

(3)  Allow for the clear, unobstructed views of cashier transactions, table games where cash wagers are accepted, and the counting of money from storage boxes removed from a gaming table;

(4)  Video recording equipment which, at a minimum, shall:

 

a.  Permit the preservation and viewing of a clear copy of the transmission produced by any camera connected to the system;

 

b.  Be capable of superimposing the time and date of the transmission on each recording made by the video recording equipment;

 

c.  Enable the operator to identify and locate, through the use of a meter, counter or other device or method, a particular event that was recorded; and

 

d.  Record in color, and include audio capability in the count room;

 

(5)  An emergency power system that can be used to operate the system in the event of a power failure, such power system to be tested at 12-month intervals subject to more frequent re-testing upon failure of a test; and

 

(6)  A preventive maintenance program that ensures that the entire system is maintained in proper working order and that transparent covers over system cameras are cleaned in accordance with a routine maintenance schedule; and

 

(7)  Recording media, which shall be replaced immediately upon the manifestation of any significant degradation in the quality of the images or sound. Where videotape is utilized, it shall be used for no more than one year.

 

          (f)  When surveillance is conducted, surveillance personnel shall maintain and securely store a surveillance log documenting a minimum of the following surveillance activities:

 

(1)  Date and time commenced and terminated;

 

(2)  Activities observed and performed; and

 

(3)  The name or license credentials of each person who initiates, performs, or supervises the surveillance.

 

          (g)  A summary of the results of surveillance conducted of suspicious activity should be maintained in a separate log.

 

          (h)  Except when provided a written notice by the commission requesting the records to be retained as part of an ongoing investigation, all recordings required by these standards, shall be retained for a minimum of 45 days.

 

          (i)  Recordings involving suspected or confirmed gaming crimes, unlawful activity, or actions of investigations by management personnel shall be retained indefinitely until released by the commission, and a copy of any report and digital/video recording shall be forwarded to the commission.

 

          (j)  All recordings shall have a primary and backup copy stored on suitable non-volatile media to prevent the loss of images in the event of a hardware failure.

 

          (k)  Category A and B licensees shall have the capability to produce a still copy or photograph of the images depicted on a video recording.  This may be accomplished using a digital or video printer, still camera or other available means.

 

          (l)  The game room shall maintain a digital or video library logs to demonstrate compliance with the storage, identification, and retention standards required in this section.

 

          (m)  Duly authenticated copies of digital records shall be provided to a commission agent upon request, and at the expense of the licensee.

 

          (n)  The media storage system shall be configured so that a failure of any single component will not result in the loss of any data from the media storage system, and have a failure notification system that provides an audible, as well as a visual notification of any failure in the surveillance system or the media storage system.

 

Source.  #13330, eff 1-22-22

 

          Lot 8205.05  Additional Requirements for Surveillance of HHR Wagering Terminals.  Each HHR wagering device located within a gaming room shall be monitored simultaneously and on a continuous basis by cameras with enough resolution to readily identify the symbols, or other machine indication used to determine game outcome or malfunction, all patrons and employees at the HHR wagering device, and their access to secured areas of the machine including logic areas and cash boxes

 

Source.  #13330, eff 1-22-22

 

          Lot 8205.06  Additional Requirements for Surveillance of Table Games.

 

          (a)  Each table game offered within a gaming room shall be monitored by dedicated cameras that provide coverage of:

 

(1)  The table surface, sufficient that the card values and suits can be clearly identified;

 

(2)  An overall view of the entire table with sufficient clarity to identify patrons and dealers; and

 

(3)  A separate, dedicated camera positioned to view the playing surface, including chips and currency inserted into the drop box opening, and the number and denominations of all chips and lammer buttons in the chip tray, and any additions or removals of chips or lammers to or from the chip tray.

 

          (b)  The surveillance system of a game room operating 3 or more table games shall be capable of monitoring and recording:

 

(1)  Each table game area, with sufficient clarity to identify patrons and dealers; and

 

(2)  Each table game surface, with sufficient coverage and clarity to simultaneously view the table bank and determine the configuration of wagers, card values and game outcome. 

 

          (c)  Each table game with a potential jackpot of $25,000 or more shall be recorded and monitored by dedicated cameras that provide coverage of:

 

(1)  The table surface, sufficient that the card values and card suits can be clearly identified;

 

(2)  An overall view of the entire table with sufficient clarity to identify patrons and dealer; and

 

(3)  A view of the progressive meter jackpot amount. If several tables are linked to the same progressive jackpot meter, only one meter need be recorded.

 

          (d)  For the purposes of this section, craps, roulette or money wheels shall not be included in the table count.

 

          (e)  All craps tables shall have 2 dedicated cross view cameras covering both ends of the table.

 

          (f)  All roulette areas shall have one overhead dedicated camera covering the roulette wheel and one dedicated camera covering the play of the table.

 

          (g)  All big wheel games shall have one dedicated camera viewing the wheel.

 

Source.  #13330, eff 1-22-22

 

          Lot 8205.07  Additional Requirements for Card Games.  The surveillance system shall monitor and record the general activities in each card room with sufficient coverage to view the patrons, dealers, and activities on the card table surface, and be capable of identifying the employees performing the different functions.

 

Source.  #13330, eff 1-22-22

 

          Lot 8205.08  Additional Requirements for the Cage, Vault and Count Room.

 

          (a)  The following additional requirements shall apply to the surveillance of the cage and vault areas:

 

(1)  The surveillance system shall possess the capability to monitor and record a general overview of activities occurring in each cage and vault area, with sufficient clarity to identify employees within the cage and patrons and employees at the counter areas;

 

(2)  Each cashier station shall be equipped with one dedicated overhead camera covering the transaction area to provide an overview of cash transactions and include the customer, the employee, and the surrounding area; and

 

(3)  The cage or vault area in which fills and credits are transacted shall be monitored by a dedicated camera or motion-activated dedicated camera that provides coverage with sufficient clarity to identify chip values and the amounts on the fill and credit slips. Controls provided by a computerized fill and credit system shall be deemed an adequate alternative to viewing the fill and credit slips.

 

          (b)  The following additional requirements shall apply to the surveillance of the count room:

 

(1)  The surveillance system shall possess the capability to monitor and record all areas where cash or cash equivalent may be stored or counted, including:

 

a.  The count room;

 

b.  All doors to the count room; and

 

c.  All areas where uncounted cash or cash equivalent may be stored during the drop and count process;

 

(2)  The surveillance system shall possess the capability to monitor and record the count room, including:

 

a.  All doors to the room;

 

b.  All drop boxes, safes, and counting surfaces; and

 

c.  All count team personnel;

 

(3)  A dedicated camera shall be utilized to continuously monitor and record the counting surface during the count;

 

(4)  Coverage of scales shall be sufficiently clear to view any attempted manipulation of the recorded data;

 

(5)  Monitoring and recording of the table games drop box storage rack or area shall be by either a dedicated camera or a motion-detector activated camera; and

 

(6)  For count rooms utilizing currency counters and currency sorters, the surveillance system shall possess the capability to monitor and record all areas where currency is sorted, stacked, counted, verified or stored during the count process. Coverage of the currency counting machines and currency sorting machines shall be sufficiently clear to view the currency input, output and reject areas.