11VAC5-90-110. Casino gaming facility internal control standards.

A. Accounting records.

1. A facility operator shall maintain complete, accurate, and legible records of all transactions pertaining to the revenues and expenses of the facility.

2. General ledger records shall be maintained on a double entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles in the United States.

3. Subsidiary ledgers and records supporting general ledger records shall be prepared in accordance with generally accepted accounting principles in the United States.

4. Subsidiary ledgers and records shall include, at a minimum, documents that:

a. Support the financial statements and all transactions impacting the financial statements including contracts or agreements with manufacturers, contractors, and management companies;

b. Pertain to proceeds including generation of, accounting for, and transmission into the Gaming Proceeds Fund (§ 58.1-4125 of the Code of Virginia);

c. Identify for each casino game on a week-to-date, month-to-date, and year-to-date basis, the:

(1) Handle;

(2) Payout;

(3) Win amount;

(4) Win percentage; and

(5) Average payout percentage;

d. Identify all costs and expenses associated with the operation of a facility;

e. Are prepared in compliance with the internal controls approved by the department under this chapter; and

f. Relate to:

(1) Loans and other amounts payable by a facility operator;

(2) Player disputes including player complaint forms filed with the department under this section;

(3) Negotiable instruments accepted, deposited, returned as uncollected or ultimately written-off by a facility operator under this chapter; and

(4) Investments in property and equipment for the benefit of a facility.

B. Forms and documents.

1. A form or document required by this chapter, including stored data, shall have:

a. All information placed on the form or document recorded in ink or another permanent form; and

b. The title of the form or document and the name of the facility imprinted or preprinted on it.

2. If under this section multiple copies are required of a form or document, all copies shall have the name of the recipient receiving the copy preprinted on the bottom of the copy in order to differentiate between the copies.

3. If under this section a form or document is required to be accounted for by series number or copies of a form or document are required to be compared for agreement, the responsible department shall report exceptions in writing to the facility's internal audit department not later than two days after identification of the exception.

4. A facility operator may prepare more copies of a form or document than required by this section.

C. Content of internal controls

1. A facility operator shall develop a written description of its administrative and accounting procedures, including the system of internal controls over casino gaming operations.

2. A facility operator's internal controls are subject to review and approval by the department.

3. Internal controls shall, at a minimum, include:

a. Administrative controls and recordkeeping that document the authorization of transactions;

b. Accounting controls that provide reasonable assurance that:

(1) Transactions or financial events that occur in connection with the operation of a casino game are:

(a) Executed in accordance with the facility operator's authorization protocols;

(b) Recorded to permit preparation of financial statements in conformance with generally accepted accounting principles in the United States and the requirements of this chapter; and

(c) Recorded to permit proper and timely reporting and calculation of proceeds and to maintain accountability for assets;

(2) Access to assets is permitted only in accordance with the facility operator's authorization protocols; and

(3) The recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with regard to a discrepancy;

c. Procedures and controls for ensuring:

(1) That a slot machine accurately and timely communicates all required activities and financial details to the:

(a) Department's central monitor and control system; and

(b) Casino management system;

(2) That all functions, duties, and responsibilities are segregated and performed in accordance with sound financial practices by qualified personnel; and

(3) Through the use of a surveillance and a security department, that the facility is secure at all times during normal operation and during any emergency due to malfunctioning equipment, loss of power, natural disaster, or any other cause;

(4) Access controls that address, at a minimum, the:

(a) Content of, and administrative responsibility over, the manual or computerized access control matrix governing employee access to restricted areas;

(b) Issuance of a temporary access credential; and

(5) A record retention policy in accordance with this chapter;

(6) Procedures and controls over the movement of cash and the count room;

(7) Procedures and standards for conducting internal audits; and

(8) Other procedures and controls the department may require to be included in a facility operator's internal controls.

4. A facility operator shall make available a current edition of its department-approved internal controls, in hard copy or through secure computer access, to:

a. All mandatory departments required under this section; and

b. The department's onsite office.

5. A facility operator shall maintain, in hard copy or electronic form, all superseded internal controls together with the written representations required under this section for at least five years after the date the internal controls were superseded.

D. Review of internal controls.

1. At least 60 days before casino gaming operations are to commence, a facility operator shall submit its internal controls to the department for review and written approval.

2. The internal controls shall be accompanied by:

a. A certification by the facility operator's facility general manager or chief legal officer that, to the best of their knowledge, the submitted internal controls conform to the requirements of the casino gaming law, this chapter, and any other law, regulation, or condition of the department related to casino gaming;

b. A certification by the facility operator's director of finance that the submitted internal controls:

(1) Establish a consistent overall system of internal controls;

(2) Provide reasonable assurance that financial reporting conforms to generally accepted accounting principles in the United States; and

(3) Conform to the requirements of the casino gaming law, this chapter, and any other law, regulation, or condition of the department related to casino gaming; and

c. An opinion letter by an independent certified public accountant expressing an opinion as to:

(1) The effectiveness of the design of the submitted system of internal controls over financial reporting;

(2) Whether the submitted system of internal controls conforms to the requirements of the casino gaming law, this chapter, and any other law, regulation, or condition of the department related to casino gaming; and

(3) If applicable, whether a deviation from the requirements of the casino gaming law, this chapter, or any other law, regulation, or condition of the department related to casino gaming identified by the independent certified public accountant in the course of its review of the submitted system of internal controls is material.

3. A facility operator may not commence operations until its internal controls are approved in writing by the director.

4. If the director determines that a submitted internal control is deficient, the:

a. Department shall provide the facility operator with written notice of the deficiency; and

b. Facility operator shall revise the internal control as appropriate and resubmit to the director for review.

5. A facility operator may not implement a change or amendment in its approved internal controls without the prior written approval of the director.

6. A facility operator's initial internal controls submission and a change or amendment to its approved internal controls shall be reviewed and approved in accordance with a process and timeframe developed and implemented by the department.

7. The process developed by the department under subdivision 6 of this subsection shall, at a minimum, require the facility operator to:

a. Submit a redlined copy of any section of the approved internal controls to be changed or amended with added text underlined and deleted text lined out;

b. Document on the redlined copy the date the director approved the section to be changed or amended and the date the revision was submitted to the director for review;

c. Submit a narrative explaining the reason for the change or amendment that includes the facility operator's target date for implementation;

d. Submit the written representations required in subdivision 2 of this subsection with regard to the proposed change or amendment;

e. Maintain a log of all changes or amendments in approved internal controls that includes the initial approval date and the effective date of any change or amendment approved by the director; and

f. Mark each page of approved internal controls with the date on which it was approved by the director.

E. Standard financial and statistical reports.

1. The department may require a facility operator to submit daily, weekly, monthly, quarterly, and annual reports of financial and statistical data.

2. Reports required under this chapter shall be in a form and submitted in accordance with a timeframe specified by the department.

3. Unless otherwise specified by the department, reports to the department shall be signed by the:

a. Facility general manager if the facility operator is a corporation;

b. General partner if the facility operator is a partnership;

c. Manager if the facility operator is a limited liability company;

d. Facility general manager or functional equivalent if the facility operator is any other form of business association; or

e. Owner if the facility operator is a sole proprietorship.

4. A facility operator shall submit a report to the department on the due date specified by the department unless an extension has been approved in writing by the director.

5. The department, on written notice to a facility operator, may require an interim report to be submitted in a form and in accordance with a timeframe specified by the director.

F. Annual audit and other regulatory reports.

1. A facility operator shall cause its annual financial statements to be audited in accordance with generally accepted auditing standards by an independent certified public accountant.

2. The annual financial statements shall be prepared on a comparative basis for the current and prior fiscal year and present financial position and results of operations in conformity with generally accepted accounting principles in the United States.

3. The audited financial statements shall include a footnote reconciling and explaining any difference between the financial statements included in any report submitted to the department under subsection E of this section and the audited financial statements.

4. A facility operator shall with regard to adjustments resulting from the annual audit:

a. Disclose to the department all adjustments whether or not recorded in the accounting records; and

b. Record the adjustment in the accounting records of the year to which the adjustment relates.

5. No later than 90 days after the end of its fiscal year, a facility operator shall submit to the department:

a. A copy of its audited financial statements; and

b. Any management letter or report prepared with regard to the financial statements by its independent certified public accountant.

6. A facility operator shall require the independent certified public accountant auditing its financial statements or other qualified entity approved by the department to render the following additional reports:

a. A report identifying:

(1) Material weaknesses or significant deficiencies in the facility operator's department-approved internal controls noted in the course of the examination of the financial statements; and

(2) Recommendations as to how to eliminate each material weakness or significant deficiency identified; and

b. A report assessing the adequacy and effectiveness of the facility operator's information technology security controls and system configurations with recommendations as to how to eliminate each material weakness or significant deficiency identified.

7. A facility operator shall prepare a written response to the reports required by subdivision 6 of this subsection that includes details as to any corrective action taken.

8. No later than 120 days after the end of its fiscal year, a facility operator shall submit to the department a copy of:

a. The reports required under subdivision 6 of this subsection;

b. The response required under subdivision 7 of this subsection; and

c. Any other report on internal controls or other matters relative to its accounting or operating procedures rendered by its independent certified public accountant.

9. If a facility operator or any of its affiliates are publicly held, the facility operator shall submit to the department a copy of:

a. Any report required to be filed with the Securities and Exchange Department.

b. Any other report required to be filed with a domestic or foreign securities regulatory agency.

10. A report required to be filed under subdivision 9 of this subsection shall be submitted to the department no later than 10 days after the date of filing with the applicable agency.

11. A facility operator shall submit a written report to the department if an independent certified public accountant who is engaged as the principal accountant to audit its financial statements:

a. Resigns;

b. Is dismissed as the facility operator's principal accountant; or

c. Is replaced by another independent certified public accountant as principal accountant.

12. A report required to be filed under subdivision 11 of this subsection shall include:

a. The date of the resignation, dismissal, or new engagement;

b. Whether in connection with the audits of the two most recent years preceding a resignation, dismissal, or new engagement there were any disagreements, resolved or unresolved, with the former accountant on:

(1) Accounting principles or practices;

(2) Financial statement disclosure; or

(3) Auditing scope or procedure;

c. The nature of any disagreement disclosed in subdivision 12 b of this subsection;

d. Whether the principal accountant's report on the financial statements for either of the past two years contained an adverse opinion or disclaimer of opinion or was qualified;

e. The nature of any adverse opinion, disclaimer of opinion, or qualification; and

f. A letter from the former principal accountant addressed to the director stating whether the principal accountant concurs with the statements made by the facility operator in the report to the department submitted under this subsection.

13. A report required to be filed under subdivision 11 of this subsection shall be submitted to the department no later than 10 days after the end of the month in which the resignation, dismissal, or new engagement occurred.

14. No later than seven days after the date of filing with the applicable agency, a facility operator shall file with the department a copy of each Suspicious Activity Report-Casino filed under 31 CFR § 103.21.

15. A facility operator or a director, officer, employee, or agent of a facility operator who reports suspicious activity under 31 CFR § 103.21 may not notify an individual involved in the suspicious activity that the suspicious activity has been reported.

16. No later than seven days after the date of filing with the applicable agency, a facility operator shall file with the department a copy of each Currency Transaction Report by Casino filed under 31 CFR § 103.22.

17. At least 30 days before casino gaming operations are to commence, a facility operator shall submit to the department a copy of its compliance program required under 31 CFR § 103.64.

18. On or before its effective date, a facility operator shall submit to the department any change or amendment to its compliance program required under 31 CFR § 103.64.

G. Record retention.

1. All original books and records shall be:

a. Prepared and maintained in a complete, accurate, and legible form;

b. Stored in a format that ensures readability, regardless of whether the technology or software that created or maintains it has become obsolete;

c. Retained in a secure location equipped with a fire notification system:

(1) At the facility; or

(2) An off-site location approved by the department for the express purpose of document storage;

d. Kept immediately available for inspection by the department during all hours of operation;

e. Organized and indexed in a manner designed to provide immediate accessibility to the department; and

f. Destroyed only after expiration of the minimum retention period required under this section.

2. The department may, on submission of a written request or alternate record retention schedule by a facility operator, authorize destruction prior to the expiration of the minimum retention period required by this chapter.

3. Unless a request for destruction or alternate record retention schedule is submitted in writing and approved in writing by the department, a facility operator shall retain indefinitely original books and records documenting:

a. Ownership of the facility;

b. Internally initiated investigations and due diligence;

c. Personnel matters;

d. Signature cards of current employees; and

e. Destruction of documents including:

(1) The identity of the document;

(2) Period of retention; and

(3) Date of destruction.

4. Unless a request for destruction or alternate record retention schedule is submitted in writing and approved in writing by the department, a facility operator shall retain for a minimum of five years all original books and records not:

a. Identified for indefinite retention under subdivision 3 of this subsection; or

b Subject to an exemption under subdivision 5 of this subsection.

5. Exceptions. The following exceptions apply to the retention period in subdivision 3 of this subsection:

a. A minimum retention period of four years shall apply to documentation pertaining to cashiers' cage transactions;

b. A minimum retention period of three years shall apply to:

(1) Signature cards of terminated employees;

(2) Insurance records relating to claims by players;

(3) Surveillance and security department:

(a) Employee duty logs;

(b) Visitor logs;

(d) Recording logs; and

(e) Equipment malfunction reports; and

(4) Documentation pertaining to gaming tickets or promotional play instruments reported to the department as possibly counterfeit, altered, or tampered with;

c. A minimum retention period of 30 days shall apply to:

(1) Canceled promotional play instruments for which all reconciliations required by the facility operator's approved internal controls have been conducted and resolved;

(2) Voided gaming tickets; and

(3) Gaming tickets redeemed at a location other than a casino gaming machine or ticket redemption unit; and

d. A minimum retention period of seven days shall apply to gaming tickets redeemed at a casino gaming machine or ticket redemption unit.

6. On submission of a written request by the facility operator, the department may approve a location outside the facility to store original books and records.

7. A facility operator requesting to store original books and records outside the facility shall submit to the department:

a. A description of the proposed location, including details with regard to security and fire notification systems;

b. Details with regard to the ownership of the proposed storage facility; and

c. Procedures for department access to original books and records retained at the proposed location.

8. A facility operator may not store books and records outside the facility without the prior written approval of the director.

9. On submission of a written request by a facility operator, the department may approve a microfilm, microfiche, or other suitable media system for the copying and storage of original books and records.

10 A facility operator submitting a system for the copying and storage of original books and records shall demonstrate to the satisfaction of the director that the:

a. Processing, preservation, and maintenance methods to be utilized will make books and records readily available for review and reproduction;

b. Inspection and quality control methods to be utilized will ensure that when books and records are viewed or reproduced they will exhibit a high degree of legibility and readability;

c. Equipment necessary to readily locate, read, and reproduce books and records is available to the department at the facility or approved off-site storage location; and

d Detailed index of all microfilmed, microfiched, or other stored data maintained and arranged to facilitate the immediate location of particular books and records is available to the department at the facility or approved off-site storage location.

11. A facility operator may not utilize a microfilm, microfiche, or other suitable media system for the copying and storage of original books and records without the prior written approval of the department.

12. A facility operator may utilize the services of a contractor for the destruction of books and records permitted to be destroyed under this section.

13. Nothing in this section shall be construed as relieving a facility operator of any obligation to prepare or maintain books and records required by any other federal, state, or local governmental entity.

H. Table of organization.

1. For the purposes of this subsection, the title used to describe a department head is intended to indicate responsibility for the functions of the enumerated department and does not obligate the facility operator to use that particular title.

2. Subject to the requirements of this subsection, a facility operator shall tailor its table of organization to meet its needs and policies.

3. At least 30 days before casino game operations begin, a facility operator shall submit to the department for review and written approval a table of organization depicting all direct and indirect reporting lines for:

a. The facility general manager required by this subsection;

b. Mandatory departments required by this subsection; and

c. The cashiers' cage manager required by this subsection.

4. A facility operator may not commence operations until the table of organization submitted under subsection is approved in writing by the director.

5. A facility operator's table of organization shall include:

a. A system of personnel and chain of command that permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility;

b. The segregation of incompatible functions, duties, and responsibilities so that no individual is in a position to both:

(1) Commit an error or to perpetrate a fraud; and

(2) Conceal the error or fraud in the normal course of the individual's duties;

c. All functions, duties, and responsibilities of qualified personnel;

d. Areas of responsibility that are not so extensive as to be impractical for one individual to monitor;

e. A

facility general manager; and

f. The following mandatory departments and supervisors:

(1) A surveillance department supervised by a director of surveillance who is:

(a) Based for employment purposes at the facility;

(b) Subject to the reporting requirements of this section;

(d) Responsible for the surveillance of all aspects of casino game operations;

(2) An internal audit department supervised by a director of internal audit who is:

(a) Responsible for managing the internal audit function and internal audit employees based at the facility;

(b) Subject to the reporting requirements of section;

(d) Responsible for assessing compliance with approved internal controls, applicable laws and regulations, the reliability of financial reporting, deterring and investigating fraud, and the safeguarding of assets;

(3) An information technology department supervised by a director of information technology who is:

(a) Based for employment purposes at the facility;

(b) The holder of a supplier permit as a key manager; and

(c) Responsible for the quality, reliability, accuracy, and security of all casino and casino management systems and associated equipment and software utilized by the facility operator regardless of whether the data, software, or systems are located in or outside the facility;

(4) A security department supervised by a director of security who is:

(a) Based for employment purposes at the facility;

(b) The holder of a supplier permit as a key manager; and

(5) An accounting department supervised by a director of finance who is:

(a) Based for employment purposes at the facility;

(b) The holder of a supplier permit as a key manager; and

(c) Responsible for all accounting and finance functions, including the control and supervision of cashiers' cage, satellite cages, and count room; and

(6) A gaming operations department supervised by a director of gaming operations who is:

(a) Based for employment purposes at the facility;

(b) The holder of a supplier permit as a key manager; and

6. Nothing in this section shall preclude a facility operator from establishing a casino games department supervised by a director of casino gaming machine operations and a director of table games operations.

7. The director of surveillance and the director of internal audit required by this subsection shall be independent of the facility general manager regarding matters of policy, purpose, responsibility, and authority and shall report to an:

a. Individual based for employment purposes at the facility with no incompatible functions; or

b. Audit committee of:

(1) The facility operator; or

(2) A department-authorized licensed affiliate of the facility operator.

8. The individual or audit committee to whom the director of surveillance and the director of internal audit report under subdivision 7 of this subsection shall also control the hiring, termination, and salary of those directors.

9. The director of surveillance and the director of internal audit may report to the facility general manager with regard to daily operations.

10. Mandatory departments and the supervisors over them shall cooperate with, yet perform independently of, all other mandatory departments and supervisory positions.

11. A facility operator may designate more than one individual to serve jointly as the director of a mandatory department required by this section.

12. A joint director of a mandatory department under subdivision 11 of this subsection shall be:

a. Based for employment purposes at the facility; and

b. Individually and jointly accountable and responsible for the operation of the department.

13. A department that is not mandatory may operate under, or in conjunction with, a mandatory department where the table of organization is consistent with the requirements of this section.

14. A facility operator's cashiers' cage manager shall hold a supplier's permit as a key manager.

15. Unless another key manager required by this section is present at the facility, on any shift for which the cashiers' cage manager is not present in the facility, the cashiers' cage shift manager responsible for the cashiers' cage shall hold a supplier's permit as a key manager.

16. A facility operator may not implement a change in the table of organization approved by the department without the prior written approval of the department.

17. A facility operator shall ensure that an individual employed at the facility is trained in the policies, procedures, and internal controls relevant to the individual's function.

18. If there is a vacancy in the facility general manager position or any mandatory department director position required by this subsection, the following shall apply:

a. No later than five days after the date of a vacancy, a facility operator shall notify the department in writing of:

(1) The vacant position;

(2) The date on which the position will become or became vacant; and

(3) The date on which the facility operator anticipates that the vacancy will be filled on a permanent basis;

b. No later than 30 days after the date of a vacancy, a facility operator shall fill the vacant position on a temporary basis;

c. No later than 120 days after the original date of the vacancy, a facility operator shall fill the vacant position on a permanent basis; and

d. No later than five days after filling a vacancy, a facility operator shall notify the department in writing of:

(1) The vacant position filled;

(2) The name of the individual designated to fill the position;

(3) The date that the vacancy was filled; and

(4) Whether the vacancy has been filled on a temporary or permanent basis.

I. Surveillance system design standards.

1. A facility operator shall install in its facility a surveillance system that complies with the requirements of this subsection and is reviewed and approved by the department.

2. A facility operator's surveillance system shall include:

a. Light sensitive cameras enabled by:

(1) Lenses of sufficient magnification to read a casino gaming machine's reel strip and credit meter;

(2) Lighting that is continuous and of sufficient quality to produce clear video recordings and still pictures; and

(3) 360-degree pan, tilt, and zoom capability, without camera stops, configured to clandestinely monitor and record:

(a) Play and transactions conducted at casino games;

(b) Transactions conducted in the cashiers' cage and any satellite cage, including the face of each individual transacting business with a cashier;

(d) Activity in the count room;

(e) Movement of cash and cash storage boxes within the facility;

(f) Entrances and exits to the facility and the gaming floor;

(g) Activities in all other restricted areas; and

(h) Other areas and events designated by the director;

b. A monitor room located in the facility:

(1) Staffed by employees of the facility operator's surveillance department 24 hours per day; and

(2) Equipped with:

(a) A communication system capable of monitoring all security department communications;

(b) Connections, direct or through a documented communication protocol with the security department, to all facility alarm systems;

(c) A surveillance failure notification system that provides an audible, as well as a visual, notification of any failure in the surveillance system or the digital video recording media storage system;

(d) An emergency power system, tested by the facility operator in the presence of the department at least once a year, that can be used to operate the surveillance system in the event of a power failure;

(e) Computer terminals permitting event notification to, and read only access by authorized surveillance department employees to, the casino management system;

(f) An updated photo library, consisting of photographs that are no more than five years old, of all current employees of the facility;

(g) A copy of the facility operator's gaming floor plan;

(h) A copy of the procedures addressing the evacuation of the facility in the event of fire or other emergency; and

(i) Copies of the surveillance system contingency plans;

c. Digital video recording capability equipped to:

(1) Superimpose the date and time on all monitoring and recording;

(2) Identify and locate, through the use of a meter, counter, or other device or method, a particular event that was recorded;

(3) Identify on video recording disks or other storage media the type of media player and software prerequisite to viewing the digital images; and

(4) Be authenticated through use of an embedded video verification encryption code or watermark;

d. Audio recording capability in the count room that is installed and disclosed to employees of the facility; and

e. An access system that:

(1) Controls:

(a) Physical and logical access to the surveillance system; and

(b) Physical access to the surveillance monitor room; and

(2) Restricts access to the security administration capabilities of the system.

3. A facility operator shall configure its surveillance system to record all areas and transactions required by subdivision 2 a (3) of this subsection to no less than the minimum specifications required by the department.

4. With the approval of the department, a facility operator may configure its surveillance system to record activity in areas of the facility not covered by subdivision 2 a (3) of this subsection at lower specifications than that required by subdivision 3 of this subsection.

5. Except as provided in subdivision 6 of this subsection, a facility operator shall retain surveillance recordings:

a. For a minimum of 14 days for transactions or event in the areas covered by subdivision 3 of this subsection.

b. For a minimum of seven days for transactions or events in the areas covered by subdivision 4 of this subsection; and

6. Upon the request of the department or a law enforcement agency that has proper jurisdiction over the facility, a recording shall be retained and stored in accordance with the directives of the department or law enforcement agency pertaining to that recording.

7. Except as provided in this subsection, the surveillance system shall be under the exclusive control of the facility operator's surveillance department.

8. A facility operator shall provide the department with timely and unfettered access to its surveillance monitor room, surveillance system, and all transmissions.

9. A facility operator shall timely comply with a request from the department to:

a. Use, as necessary, any monitor room in the facility;

b. Display on the monitors in its monitor room or in the department's onsite monitor room any event capable of being captured by the surveillance system;

c. Relinquish control of a camera or monitor;

d. Discontinue monitoring a particular camera or recording activity captured by it;

e. Make a video recording or photograph of any event capable of being captured by the surveillance system; and

f. Restrict or deny access to a recording or photograph.

10. A surveillance system may not be remotely accessed from a location outside the surveillance monitor room without the prior written approval of the department.

11. An entrance to a surveillance monitor room may not be visible from the gaming floor.

J. Surveillance department operating procedures

1. At least 60 days before casino gaming operations commence, a facility operator shall submit to the department for review and written approval:

a. A surveillance system meeting the requirements of subsection J of this section, at a minimum, details pertaining to:

(1) Camera configuration inside and outside the facility;

(2) Monitor room configuration;

(3) Video recording format and configuration specifications;

(4) Authentication of digital recordings, including department access to the system's video verification encryption code or watermark;

(5) Audio recording format; and

(6) System access controls; and

b. Surveillance department operating procedures conforming to this section.

2. A facility operator may not commence operations until its surveillance system and surveillance department operating procedures are approved in writing by the department.

3. A facility operator's surveillance department operating procedures shall, at a minimum, require:

a. Coverage of all areas and transactions enumerated in subsection J of this section;

b. Contingency plans addressing:

(1) Full and partial failure of the surveillance system including:

(a) A contact list with telephone numbers for individuals required to be notified in the event of a failure; and

(b) Facility closure protocols; and

(2) Planned shutdown of the surveillance system;

c. A surveillance incident log:

(1) Maintained by monitor room employees in:

(a) A book with bound numbered pages that cannot be readily removed; or

(b) An electronic format equipped with software designed to provide evidentiary and leadership access controls on modification of an entry after it has been entered into the system; and

(2) Documenting the scheduled coverage in subdivision 3 of this subsection and all other nonroutine surveillance activity, including:

(a) Date and time surveillance is commenced;

(b) Name and department identification license or permit number of the individual initiating, performing, or supervising the surveillance;

(d) Whether the suspicious activity involves an alleged regulatory violation or criminal activity;

(e) Name, if known, alias, or description of an individual being monitored;

(f) Description of the activity in which the individual being monitored is engaged;

(g) Reading on a meter, counter, or device that identifies the point on the video recording at which the event was recorded;

(h) Time at which a video recording is commenced and terminated if different than when surveillance is commenced or terminated;

(i) Date and time surveillance is terminated;

(j) Summary of the results of the surveillance; and

(k) Description of the time, date, and cause of any equipment or camera malfunction that occurred during the conduct of surveillance;

d. A surveillance room entry log:

(1) To be signed by an individual entering the surveillance monitor room who is not a surveillance department employee assigned to the monitor room's work shift at the time of entry;

(2) Maintained by monitor room employees in:

(a) A book with bound numbered pages that cannot be readily removed; or

(b) An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and

(3) Documenting the:

(a) Date and time of entering the monitor room;

(b) Entering individual's name and department or affiliation;

(d) Name of the individual authorizing the individual's entry into the monitor room; and

(e) Date and time of exiting the monitor room;

e. That surveillance monitor room employees notify:

(1) Security department supervisory personnel within five minutes of an incident of equipment failure affecting coverage of the facility; and

(2) The department within 30 minutes of an incident of equipment failure affecting coverage of the facility citing:

(a) Date and time;

(b) Cause of the malfunction; and

f. That the facility operator confirms in writing a notice given verbally to the department under subdivision 3 e of this subsection; and

g. That, on a daily basis, the facility operator synchronizes the date and time on the surveillance system to the date and time on the central monitor and control system and the casino management system.

4. A facility operator may not implement a change or amendment in its surveillance system or surveillance department operating procedures approved by the department without the prior written approval of the department.

5. Surveillance department employees shall be reasonably segregated and independent of all other departments at the facility.

6. A surveillance department employee may not transfer to any other department in the facility without the prior written approval of the department.

K. Surveillance department minimum staffing.

1. At least 60 days before casino gaming operations are to commence, a facility operator shall submit its surveillance department minimum staffing plan to the department for review and written approval.

2. A facility operator may not commence operations until its surveillance department minimum staffing plan is approved in writing by the department.

3. A surveillance department minimum staffing plan shall assess, on a per-shift basis, the minimum number of on duty surveillance department employees necessary to:

a. Provide adequate and effective surveillance of all activities in and outside the facility;

b. Ensure the physical safety of employees of and invitees to the facility;

c. Comply with all applicable laws, regulations, and directives of the department and director, including department-approved internal controls and operating procedures;

d. Monitor the facility to ensure that the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility:

(1) An intoxicated individual;

(2) An individual who is mandatorily excluded; and

(3) An individual who is voluntarily excluded;

e. Monitor the gaming floor to ensure that an individual younger than 21 years of age is identified, prohibited from accessing the gaming floor, and, if necessary, immediately removed from the gaming floor; and

f. Monitor the facility to identify potential victims of human trafficking and respond appropriately.

4. A facility operator's proposed surveillance department minimum staffing plan shall consider:

a. Square footage and layout of the facility;

b. Number and configuration of casino gaming machines and other casino gaming activities;

c. Use of fixed and roving security posts;

d. Activity level on a per-shift basis and identify it as slow, normal, or peak;

e. Department supervisory needs; and

f. A limit of one employee per monitor station.

5. A facility operator may not implement a change or amendment in the surveillance department minimum staffing plan approved by the department under subdivision 2 of this subsection without the prior written approval of the department.

L. Security department operating procedures.

1. At least 60 days before casino gaming operations are to commence, a facility operator shall submit to the department for review and written approval its security department operating procedures.

2. A facility operator may not commence operations until its security department operating procedures are approved in writing by the department.

3. A facility operator's security department operating procedures shall, at a minimum, include:

a. A security zone plan for the facility, employing fixed security posts and roving security officers designed to ensure:

(1) The physical safety of employees of and invitees to the facility;

(2) The safeguarding of assets;

(3) Compliance with all applicable laws, regulations, and directives of the department, including department-approved internal controls and operating procedures;

(4) That the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the gaming floor:

(a) An intoxicated individual;

(b) An individual who is mandatorily excluded; and

(5) That an individual younger than 21 years of age is identified, prohibited from accessing the gaming floor, and, if necessary, immediately removed from the gaming floor; and

(6) That potential victims of human trafficking are identified and an appropriate response is made.

b. Procedures and controls addressing:

(1) Facility access controls, including:

(a) An access badge system;

(b) If utilized, specifications pertaining to a computerized access control system; and

(2) A temporary access credential;

(3) Key controls;

(4) Emergency alarm and fire command responsibilities, including communication protocols with the surveillance department;

(5) Evacuation of the facility in the event of fire or other emergency;

(6) The identification and immediate removal of an intoxicated individual, an individual younger than 21 years of age, an individual who is mandatorily excluded, and an individual who is voluntarily excluded;

(7) Player disputes; and

(8) The notice requirements of subdivision 3 d of this subsection;

c. A security department incident log:

(1) Maintained by security department employees in:

(a) A book with bound numbered pages that cannot be readily removed; or

(b) An electronic format equipped with software that prevents modification of an entry after it has been initially entered into the system; and

(2) Documenting the following:

(a) Assignment number of the incident;

(b) Date and time;

(d) Nature of the incident; and

(e) Resolution of the incident; and

d. A requirement that a facility operator notify in the department upon detection of:

(1) An individual engaged in, attempting to engage in, or suspected of cheating, theft, embezzlement, or other illegal activities;

(2) An individual possessing a firearm, electronic control device, dangerous weapon, or other device or object prohibited under this chapter; or

(3) An individual who is:

(a) Younger than 21 years of age;

(b) Intoxicated;

(d) Voluntarily excluded; or

(e) A victim of human trafficking.

M. Security department minimum staffing

1. At least 60 days before casino gaming operations are to commence, a facility operator shall submit its security department minimum staffing plan to the department for review and written approval.

2. A facility operator may not commence operations until its security department minimum staffing plan is approved in writing by the department.

3. A security department minimum staffing plan shall assess, on a per-shift basis, the minimum number of on-duty security department employees necessary to:

a. Ensure the physical safety of employees of and invitees to the facility;

b. Effectively safeguard assets;

c. Comply with all applicable laws and regulations, including department-approved internal controls and operating procedures;

d. Monitor the facility to ensure that the following individuals are identified, prohibited from entering the facility, and, if necessary, immediately removed from the facility:

(1) An intoxicated individual;

(2) An individual who is mandatorily excluded; and

(3) An individual who is voluntarily excluded; and

e. Monitor the gaming floor to identify any individual younger than 21 years of age, prohibit them from accessing the gaming floor, and if necessary, immediately remove them from the gaming floor.

4. A facility operator's proposed security department minimum staffing plan shall consider the:

a. Square footage and layout of the facility;

b. Number and configuration of casino gaming activity;

c. Use of fixed and roving security posts;

d. Activity level on a per-shift basis and identify it as slow, normal, or peak; and

e. Department's supervisory needs.

5. A facility operator may not implement a change or amendment in the security department minimum staffing plan approved by the department without the prior written approval of the department.

N. Internal audit department standards.

1. At least 60 days before casino gaming operations are set to commence, a facility operator shall submit to the department for review and approval internal audit department operating standards and procedures that:

a. Meet the requirements of the casino gaming law, this chapter, and any other law, regulation, or condition of the department related to casino gaming;

b. Conform to this section; and

c. Direct that an internal audit be conducted in accordance with generally accepted auditing standards in the United States.

2. A facility operator's internal audit department operating procedures and standards shall, at a minimum, require the internal audit department to:

a. Work independently of the departments of the facility that are subject to audit;

b. Assess whether the facility's internal controls comply with applicable law and department directives;

c. Test the facility's compliance with its internal controls;

d. Timely report a deficiency in, or noncompliance with, the facility's internal controls to:

(1) The audit committee (material deficiency only);

(2) The facility general manager (material deficiency only);

(3) Management; and

(4) The department;

e. Recommend resolution for eliminating a deficiency in, or noncompliance with, the facility's internal control system;

f. Meet periodically with the audit committee or director of internal audit;

g. Perform audits of:

(1) Unless an alternate risk assessment and audit plan is submitted in writing and approved in writing by the department, all departments of the facility that are designated under subdivisions 3 and 4 of this subsection; and

(2) Any component of the facility designated by the department;

h. Prepare an audit report for each audit conducted;

i. Accurately document the audit process and results in an audit report that, at a minimum, shall include:

(1) Audit objectives;

(2) Audit procedures and scope;

(3) Findings and conclusions;

(4) A recommendation for addressing a deficiency in, or noncompliance with, the facility's internal controls;

(5) Resolution of all exceptions; and

(6) Management's response;

j. Submit audit reports to the department on a schedule specified by the department; and

k. Within 90 days of the issuance of an audit report, verify that:

(1) A deficiency or noncompliance revealed during an audit has been corrected; and

(2) An exception disclosed during an audit has been resolved.

3. The audit department shall audit at least semiannually the functions and operations of the facility's:

a. Cashiers' cage;

b. Main bank;

c. Collection of cash storage boxes;

d. Cash count;

e. Revenue audit;

f. Operations department;

g. Key control; and

h. Table game operations.

4. The audit department shall audit at least annually:

a. Responsible gaming program;

b. Security department;

c. Currency transaction reporting;

d. Suspicious activity reporting;

e. Information technology controls;

f. Accounts payable;

g. Purchasing;

h. Player tracking system; and

i. Surveillance department.

5. The internal audit department shall conduct an audit on an unannounced basis when possible.

O. Access to central monitor and control system equipment

1. Central monitor and control system equipment shall reside in an area physically segregated from other systems and equipment utilized by the facility operator and shall conform to the requirements of the department.

2. At least 10 days before casino gaming operations are to commence, the department shall issue to the facility operator a list of individuals that it has approved to have access to the central monitor and control system equipment.

3. A facility operator may not implement a change or amendment in its approved access list without the prior written approval of the department.

4. A facility operator shall develop and include in the internal controls submitted to and approved by the department under subsection E of this section procedures that address physical access to central monitor and control system equipment located in the facility.

5. Central monitor and control system equipment may be accessed by:

a. An individual on the list described in subdivision 2 of this subsection;

b. A compliance agent of the department; and

c. Department staff authorized by the director.

6. The facility operator's internal controls shall require:

a. All keys that access the segregated area where the central monitor and control system equipment resides to be maintained by representatives of the:

(1) Department; and

(2) Central monitor and control system operator; and

b. An individual requiring access to the segregated area where the central monitor and control system equipment resides who is not included on the department-approved access list maintained under subdivision 2 of this subsection to be:

(1) Authorized by the department; and

(2) At all times, escorted by a department compliance agent, or department staff authorized by the director; and

(3) Reported in the entry log maintained in accordance with subdivision 7 of this subsection.

7. The department shall maintain an entry log for the segregated area where the central monitor and control system equipment resides that is:

a. Kept inside the segregated area in a book with bound numbered pages that cannot be readily removed; and

b. Utilized by an individual entering the segregated area to record:

(1) Date and time of entering;

(2) Entering individual's name and department or affiliation;

(3) Reason for entering;

(4) Name of the individual authorizing the individual's entry into the segregated area; and

(5) Date and time of exiting.

P. Cashiers' cage design standards.

1. A facility operator shall have on, adjacent, or proximate to the gaming floor a physical structure known as a cashiers' cage to house the cashiers and to serve as the central location in the facility for:

a. The custody of the cash, accounting records, and forms and documents required under this chapter to conduct casino gaming operations;

b. The initial financial consolidation of all transactions pertaining to casino gaming activity; and

c. Other functions normally associated with the operation of a cashiers' cage.

2. A cashiers' cage shall include the following design features:

a. A manually triggered silent alarm system connected:

(1) Directly to the security department; or

(2) Directly, or through a documented communication protocol, to the monitor room of the surveillance department;

b. A double door entry and exit system that will not permit an individual to pass through the second door until the first door is securely locked, as follows:

(1) The first door leading from the gaming floor shall be controlled by the security department, the surveillance department, or a department-approved computerized access control system;

(2) The second door leading into the cashiers' cage shall be controlled by the cashiers' cage or a department-approved computerized access control system;

(3) The double door entry and exit system shall be equipped with surveillance capability sufficient to allow monitoring of:

(a) All ingress and egress; and

(b) The interior compartment; and

(4) Both doors of the double door entry and exit system shall be equipped with:

(a) Separate locks with a key or release mechanism that is different on each door; and

(b) Locks that are operational in the event of a power failure; and

c. Any entrance to the cashiers' cage that is not a double door entry and exit system shall be equipped as an alarmed emergency exit door.

3. As approved by the department, a facility may have one or more satellite cages physically separate from the cashiers' cage that:

a. May perform all of the functions of a cashiers' cage; and

b. Shall be equipped with an alarm system.

4. A facility operator shall make readily available to the department:

a. An access control matrix indicating which employee job descriptions are authorized to have access to the cashiers' cage and any satellite cage; and

b. A list of employees, with department identification number, who are authorized:

(1) To have access to the:

(a) Cashiers' cage and any satellite cage;

(b) Keys to the manual locks securing the double door entry and exit system; and

(2) To activate or deactivate alarm systems for the cashiers' cage and any satellite cage; and

(3) To grant access to the cashiers' cage and any satellite cage through the access control matrix or a computerized access control system.

Q. Accounting controls for a cashiers' cage.

1. A facility operator may only conduct gaming-related transactions with individuals at its cashiers' cage and any satellite cage during the hours of operation approved by the department for the facility.

2. A facility operator shall at all times maintain in its cashiers' cage a reserve cash bankroll sufficient to pay all winning wagers.

3. A facility operator shall:

a. Compute its reserve cash bankroll requirement based on a calendar year; and

b. Submit its computation to the department:

(1) At least 30 days prior to the commencement of casino gaming operations; and

(2) On or before January 30 of each year subsequent to the year in which operations are commenced.

4. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures that address the segregation of the cashiers' cage and the general conduct of cashiers' cage transactions.

5. A facility operator's internal controls shall require:

a. The cashiers' cage and any satellite cage to be physically segregated by personnel and function as follows:

(1) General cashiers shall be responsible for:

(a) An individual imprest inventory of cash;

(b) Receipt and payout of cash, negotiable instruments, gaming tickets, and other documentation from and to players subject to the limitations imposed under this chapter;

(d) Other functions designated by the facility operator that are not incompatible with the functions of a general cashier; and

(2) Main bank cashiers shall be responsible for:

(a) Receipt of cash, negotiable instruments, gaming tickets, jackpot, and other documentation from general cashiers in exchange for cash or documentation;

(b) Replenishment of ticket redemption units and automated jackpot payout machines;

(d) Receipt of cash and documentation from the count room;

(e) Preparation of the overall cashiers' cage reconciliation;

(f) Preparation of bank deposits;

(g) Compliance with reserve cash bankroll requirements; and

(h) Other functions designated by the facility operator that are not incompatible with the functions of a main bank cashier;

b. Each general cashier and main bank cashier to prepare a cashier count sheet on each shift:

(1) Recording the amount of the inventory in the window or bank;

(2) Reconciling the total closing inventory with the total opening inventory; and

(3) Including the signature of the:

(a) Outgoing general or main bank cashier; and

(b) Incoming general or main bank cashier;

c. At the end of the gaming day, the cashiers' cage is to forward a copy of each cashiers' count sheet and related documentation to the accounting department for:

(1) Agreement of opening and closing inventories; and

(2) Comparison of forms or documents; and

d. No more than 48 hours after the discovery of an employee's unresolved cage or count room overage or shortage of $500 or more, a facility operator shall submit a written report to the department describing:

(1) The reason for the overage or shortage and corrective action taken or adjustment made; or

(2) That a notice of investigation is ongoing and the written report will be submitted within the following 48 hours.

R. Checks accepted from a player.

1. A facility operator may accept a negotiable instrument in the form of a check meeting the requirements of this regulation from a player to enable the player to take part in gaming.

2. A facility operator may accept a check only during the hours of operation approved by the department for the facility.

3. A facility operator may accept a personal check that is:

a. Made payable to the facility operator;

b. Drawn on a bank, savings and loan association, or credit union subject to federal or State banking regulation;

c. Drawn for a specific amount;

d. Currently dated, not postdated; and

e. Payable on demand.

4. Subject to the requirements of subdivision 5 of this subsection, a facility operator may accept a check issued by a:

a. Facility operator; or

b. Person that:

(1) Is an affiliate of the facility operator; and

(2) Holds a valid gaming license in another jurisdiction.

5. A facility operator shall only accept a check under subdivision 4 of this subsection that has been issued to an individual as:

a. Employment compensation; or

b. A payout in connection with casino gaming activity.

6. A facility operator may not:

a. Except as provided under subdivision 3 of this subsection, accept a check that is payable to an individual, including:

(1) A Social Security check;

(2) An unemployment insurance check;

(3) A disability payment check; or

(4) A public assistance check; or

b. Except for a check issued under subdivision 5 of this subsection, accept from a player a check or multiple checks that in the aggregate exceed $50,000 during a gaming day.

7. For a personal check equaling or exceeding $5,000, a facility operator shall confirm the availability of funds by:

a. Directly contacting the bank, savings and loan association, or credit union upon which the check is drawn;

b. Obtaining an authorization and guarantee of the check from a check verification and warranty service holding a service permit as a contractor under this chapter; or

c. Alternating procedures addressing acceptance and verification of personal checks submitted in writing and approved by the department.

8. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures addressing the acceptance and verification of checks meeting the requirements of this subsection.

9. A facility operator's internal controls shall require a check accepted from a player by a general cashier to be:

a. If a personal check other than an electronic check, restrictively endorsed "for deposit only" to the bank account designated for this purpose by the facility operator and:

(1) Initialed by the accepting general cashier;

(2) Date and time stamped;

(3) Documented on the face of the check the number on the player's government-issued photographic identification; and

(4) If a personal check equaling or exceeding $5,000, confirmed for availability of funds under subdivision 7 of this subsection;

b. Verified for signature authenticity by a general cashier who shall:

(1) Obtain from the player one form of identification that is a valid, unexpired government-issued photographic identification; and

(2) Satisfactorily compare the:

(a) Signature of the player on the personal check or endorsing the payroll or payout check with the signature on an identification credential; and

(b) Player's physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the player;

c. If presented by a player as a payroll or payout check under subdivision 5 of this subsection, confirmed to have been issued as employment compensation or as a payout in connection with casino gaming activity; and

d. Immediately exchanged for:

(1) Cash;

(2) If the facility operator has the capability, a gaming ticket;

(3) A chip or plaque;

(4) A player account in accordance with this chapter; or

(5) At the request of the individual, a combination of subdivisions 9 d (1), 9 d (2), and 9 d (3) of this subsection.

S. Wire transfers.

1. A facility operator may accept a negotiable instrument in the form of a wire transfer from a player to enable the player to take part in gaming.

2. A facility operator shall record in its cashiers' cage accountability any funds accepted by wire transfer with no documented business purpose other than to enable a player to take part in gaming within 24 hours of receipt of the wire transfer.

3. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures addressing the acceptance, verification, and sending of wire transfers meeting the requirements of this subsection.

4. A facility operator's internal controls shall:

a. Require preparation of a cashiers' cage wire transfer log to record the following information pertaining to a wire transfer accepted by a facility operator on behalf of a player:

(1) A sequential number assigned by the facility operator to the wire transfer accepted;

(2) Date and time notice of the wire transfer was received;

(3) Name of the financial institution to which the funds were sent;

(4) Amount transferred;

(5) Name of the player for whose benefit the funds were accepted;

(6) The name of the financial institution from which the funds were transferred;

(7) The method by which the facility operator was notified of the receipt of the wire transfer;

(8) If noticed by telephone, the name and title of the individual providing notice;

(9) The signature of the cashiers' cage employee receiving and recording the information required by this section; and

(10) If applicable, a notation that the wire transfer has been returned under subdivision 5 of this subsection;

b. Require that a cashiers' cage supervisor other than the cashiers' cage employee who initially documented acceptance of the wire transfer:

(1) Independently confirm:

(a) Date, time, and method by which the facility operator was notified of the wire transfer; and

(b) If noticed by telephone, the name and title of the individual providing notice;

(2) Record the date and time of confirmation in the wire transfer log; and

(3) Sign the wire transfer log as completing the confirmation process;

c. Document the procedures used to:

(1) Establish, verify, and document the identity of a player sending a wire transfer;

(2) Make the wire transfer proceeds available to a player at the cashiers' cage; and

(3) Adjust the cashiers' cage accountability;

d. Require preparation of a cashiers' cage wire transfer log to record the following information pertaining to a wire transfer sent by a facility operator on behalf of a player:

(1) A sequential number assigned by the facility operator to the wire transfer sent;

(2) Name of the player;

(3) Date of the transaction;

(4) Amount wired;

(5) Source of funds;

(6) The name and address of the financial institution to which the funds were wired;

(7) Account number to which the funds are credited;

(8) If the request to send a wire transfer is made in person at the cashiers' cage, the signature of the player;

(9) If the request to send a wire transfer is not made in person at the cashiers' cage, documentation supporting the receipt of a request by the facility operator to send a wire transfer on behalf of a player;

(10) The signature of the cashiers' cage employee receiving and recording the information required by this regulation; and

(11) The signature of the cashiers' cage supervisor or accounting department supervisor authorizing the wire transfer; and

e. Document the procedures used to:

(1) Establish, verify, and document the identity of a player requesting that a wire transfer be sent;

(2) Send the wire transfer; and

(3) Adjust the cashiers' cage accountability.

5. A facility operator shall take immediate action to return to a player by wire transfer funds initially accepted by wire transfer under the following circumstances:

a. The wired funds received by the facility operator have no documented business purpose other than to enable a player to take part in gaming;

b. All or a substantial portion of the wired funds remain in the facility operator's cashiers' cage accountability more than 14 days following transfer to that accountability; and

c. The player has engaged in minimal or no casino gaming play since receipt of the wire transfer.

6. A wire transfer returned in accordance with subdivision 5 of this subsection shall be sent to the same individual, financial institution, and account number from which the funds were debited.

7. Return of a wire transfer shall be recorded in the wire transfer log maintained under subdivision 4 of this subsection.

T. Cash equivalents.

1. A facility operator may accept a negotiable instrument in the form of a cash equivalent from a player to enable the player to take part in gaming.

2. A facility operator may accept a cash equivalent only during the hours of operation approved by the department for the facility.

3. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures addressing the acceptance and verification of cash equivalents meeting the requirements of this chapter.

4. A facility operator's internal controls shall:

a. Enumerate the type of cash equivalents complying with this chapter to be accepted;

b. Detail the specific verification procedures required by each issuer;

c. Require that a general cashier:

(1) Perform the specific verification procedures required by each issuer;

(2) Prepare and maintain documentation evidencing the verification of a cash equivalent accepted; and

(3) Examine a cash equivalent for counterfeiting, forgery, or alteration;

d. Detail the criteria for cashiers' cage supervisor involvement in the verification process; and

e. Include procedures for verifying the authenticity of a player's signature on a cash equivalent in conformance with the signature authentication procedures in subdivision R 9 of this section.

U. Player accounts.

1. In this subsection, "on-premises player account transactions" includes transactions that occur at an off-site customer service location approved by the department under subsection OO of this section.

2. A facility operator may establish a player account to enable the player to take part in gaming, which shall be subject to the following requirements:

a. The information necessary to initiate a player account shall be recorded and maintained for a period of five years and shall include at least:

(1) Player's legal name;

(2) Player's date of birth;

(3) Player's residential address (other than a post office box) and mailing address if different;

(4) Player's phone number;

(5) Player's active email address; and

(6) Verification that the player is not prohibited by the gaming law or this chapter from participating in casino gaming.

b. A facility operator shall record the player's acceptance of the terms and conditions and privacy policy and acknowledgment that the information provided is accurate and the player is prohibited from allowing any other person to access or use the player's account.

c. A player may have only one player account for each facility operator.

3. A facility operator shall perform all procedures required by this subsection before depositing funds accepted by means of check, wire transfer, cash equivalent, or other negotiable instrument into a player account. A player account may also be funded using:

a. A debit card;

b. An electronic bank transfer, including a transfer through third parties;

c. An online or mobile payment systems that supports online money transfers;

d. Winnings or payouts;

e. Bonuses and promotions;

f. A reloadable prepaid card that has been verified as being issued to the player and is nontransferable; or

g. Any other means approved by the department.

4. A facility operator may accept an on-premises player account transaction only during the hours of operation approved by the department.

5. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures addressing the acceptance of player account transactions meeting the requirements of this subsection.

6. A facility operator's internal controls shall:

a. Address player account set-up and administration, including:

(1) The procedures utilized to create a unique access code to, and a unique player identification number for, a player account; and

(2) The controls employed to secure a player's access code;

b. Require on-premises acceptance of player account deposits at:

(1) The cashiers' cage; or

(2) An off-site customer service location;

c. Require preparation of a receipt documenting the:

(1) Amount deposited;

(2) Date of the deposit; and

(3) Signature of the general cashier accepting the player account deposit;

d. Provide for full or partial on-premises withdrawal from a player account:

(1) By a player at the cashiers' cage; or

(2) Upon receipt by the facility operator of a written request for withdrawal for which validity has been established; and

e. Include procedures for documenting on-premises acceptance of and withdrawal from a player account including a verification of the authenticity of a player's signature on a player account transaction document in conformance with the signature authentication procedures in subdivision R 9 of this section.

7. Funds may be withdrawn from a player account through:

a. Wagers;

b. Checks drawn on the facility operator's account, cashier's check, wire transfer, or money order by the facility operator made payable to the player and issued directly or delivered to the player's address on file with the facility operator;

c. Credits to the player's debit card;

d. Electronic bank transfers, including transfers through third parties;

e. Online or mobile payment systems that support online money transfers;

f. Reloadable prepaid card, which has been verified as being issued to the player and is nontransferable; or

g. Any other means approved by the department.

8. A player's request for withdrawal of funds (i.e., deposited and cleared funds or funds won) in the individual's player account shall be completed within 10 days unless there is a pending unresolved player dispute or investigation prompted by a player dispute or the director. Funds for withdrawal may be withheld from withdrawal until the funding transaction clears or the chargeback period ends.

9. All adjustments to a player account for individual amounts of $500 or less shall be periodically reviewed by the facility operator consistent with the facility operator's internal control standards. All other adjustments shall be authorized by the facility operator's management before being entered.

10. A facility operator shall not allow the transfer of funds or credits between players.

11. Each transaction with respect to a player account between a player and facility operator shall be confirmed by email, telephone, text message, or other means agreed upon by the player and facility operator.

12. A facility operator shall provide an account statement to a player on demand. An account statement shall include detailed account activity for at least six months preceding the 24-hour period before the request. In addition, facility operators shall, upon request, be capable of providing to a player a summary statement of all player activity during the previous 12 months.

13. A facility operator shall provide an account statement of player account activity shall upon:

a. Submission of a signed request for the statement at the cashiers' cage or off-site customer service location; and

b. Establishing the authenticity of the player's identity or signature on the request for the statement in accordance with the identity or signature authentication procedures in the internal controls submitted to and approved by the department.

14. The statement of player account activity required under this subsection shall summarize, at a minimum, a player's activity during the month prior to the date of the request for a statement and include the:

a. Player's beginning credit balance;

b. Credits earned during the month;

c. Credits transferred to a casino game;

d. Credits transferred from a casino game to a player account; and

e. Player's ending credit balance.

15. The statement of player account activity required under this subsection need not include promotional play credits transferred to a player without regard to the identity of the player.

16. A facility operator shall suspend wagers from being made and immediately reverify a player's identification upon reasonable suspicion that the player's identification or player account has been compromised.

17. A facility operator shall offer an easily accessible method for a player to close the player's account. Any balance remaining in an account closed by a player shall be refunded pursuant to the facility operator's internal control standards within 10 days of notice from the player.

18. A facility operator shall suspend a player account if:

a. The player asks for suspension for a specified period not less than 72 hours as a self-limiting measure;

b. Required by the director; or

c. The facility operator knows or has reason to know of:

(1) Illegal activity related to the account;

(2) A negative account balance;

(3) Five failed Automated Clearing House deposit attempts within a 24-hour period; or

(4) A violation of the terms and conditions that has taken place on the player's account.

19. When a player account is suspended, the player shall be prevented from:

a. Wagering;

b. Depositing funds, unless the reason for the deposit is to clear a negative balance that resulted in the suspension;

c. Withdrawing funds, unless the reason for the suspension would not prohibit a withdrawal;

d. Making changes to the player account; or

e. Removing the player account from the facility operator.

20. A suspended player account may be restored:

a. Upon expiration of the time period established by the player;

b. When permission is granted by the director; or

c. When the facility operator has lifted the suspended status.

21. If a player account is inactive or dormant for five years:

a. The facility operator shall attempt to contact the account holder by mail, phone, and electronic mail;

b. If the account holder does not respond to the facility operator; the facility operator shall close the account; and

c. Any funds remaining in the account at the time of closing shall be paid 50% to the facility operator and 50% to the Commonwealth's general fund.

22. A facility operator shall ensure that account holders are made aware of the provisions of this subsection prior to opening a player account.

V. Returned checks.

1. All checks returned after deposit shall be:

a. Returned directly to an accounting department employee with no incompatible functions; and

b. Maintained by a check bank cashier with no incompatible functions.

2. A facility operator shall:

a. Limit collection efforts pertaining to a returned check to the following persons:

(1) A gaming employee or key manager of the accounting department with no incompatible functions; or

(2) An attorney representing the facility operator;

b. Inform the employee or attorney authorized to conduct collection efforts of any verbal or written communication with a player regarding collection efforts;

c. Document all collection efforts in the player's account file; and

d. Send a statement to a player at reasonable intervals.

3. After reasonable collection efforts, returned checks may be considered uncollectible for accounting purposes if the write off is authorized by the:

a. Facility general manager;

b. Director of finance or other designated key manager approved by the department; and

c. Committee of employees with no incompatible functions.

W. Accounting controls in a check bank.

1. A facility operator shall record in a player's account file all transactions related to the player, including:

a. Transactions recorded in chronological order;

b. Documentation of:

(1) For counter checks, the date, amount, and series number;

(2) For each substitution check:

(a) The date, amount, and check number of the substitute check; and

(b) The series number of the counter check or check number of the replacement check returned to the player;

(3) For each consolidation check:

(a) The date, amount, and check number of the consolidation check; and

(b) The series numbers of the counter check or check number of the replacement check returned to the player;

(4) For each redemption check:

(a) The date, amount, and check number of the redemption check;

(b) An indication as to whether the redemption was partial or full; and

(5) Date, amount, and series or check number of each check:

(a) Deposited; and

(b) Returned;

(6) If a check has been returned, the reason for its return;

(7) Player's account balance after each transaction;

(8) Date, amount, and series or check number of a check that has been partially or completely written off by the facility operator; and

(9) If a write off, the reason for the write off.

2. A facility operator shall maintain original copies of counter checks and replacement checks accepted in substitution, consolidation, and redemption transactions in its check bank.

3. A facility operator's check bank shall prepare and maintain for each shift, manually or by computer, a log of all counter checks exchanged and of all replacement checks received in substitution, consolidation, and redemption transactions that includes the following:

a. The balance of the checks on hand in the check bank at the beginning of each shift;

b. For counter checks accepted and for replacement checks received in substitution, consolidation, or redemption on the shift:

(1) Date of the check;

(2) Name of the drawer of the check;

(3) Amount of the check;

(4) If a counter check, the series number;

(5) If a replacement check, the check number; and

(6) If applicable, an indication that the check was accepted in a substitution, consolidation, or redemption transaction;

c. For checks deposited, substituted, consolidated, or redeemed by a player on the shift:

(1) Date on which the check was deposited, substituted, consolidated, or redeemed;

(2) Name of the drawer of the check;

(3) Amount of the check;

(4) If a counter check, the series number;

(5) If a replacement check, the check number; and

(6) An indication as to whether the check was deposited, substituted, consolidated, or redeemed; and

d. The balance of the checks on hand in the check bank at the end of each shift.

4. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures addressing the facility operator's accounting controls over the check bank, including end of shift and end of gaming day deposits and reconciliations.

X. Prohibition on the wagering with cash, credit cards, or debit cards.

1. A casino game may not be played or activated in any way by insertion, directly or indirectly, or use of:

a: Cash;

b. Credit card;

c. Debit card; or

d. Electronic transfer of funds from a credit card or debit card.

2. A casino game may be played only with tokens, chips, or electronic tickets or cards purchased from the facility operator.

3. It shall not be considered a violation of this subdivision to:

a. Use cash, a credit card, a debit card, or an electronic transfer of funds from a credit card or debit card to purchase from the facility operator tokens, chips, or electronic tickets or cards;

b. Convert cash, promotional play instruments, or electronic tickets or cards to purchase tokens or chips at a table game; or

c. Use cash to engage in sports betting in a sports betting facility within the casino gaming facility.

Y. Player tracking system.

1. A facility operator shall utilize a player tracking system meeting the requirements of this subsection.

2. A facility operator may not collect or monitor the activity of an individual who it knows, suspects, or has reason to know or suspect is:

a. Younger than 21 years of age;

b. Mandatorily excluded; or

c. Voluntarily excluded.

3. A facility operator shall provide a player with a record of casino game spending levels if:

a. The player:

(1) Has registered with the facility for inclusion in the player tracking system; and

(2) Submits a signed request for the spending level documentation at:

(a) The cashiers' cage; or

(b) Other location at the facility approved by the department; and

b. The identification of the player and the authenticity of the player's signature on the request is established by an employee satisfactorily comparing the:

(1) Player's information recorded on the spending level request documentation with the information contained on the valid, unexpired government-issued photographic identification presented by the player; and

(2) Player's physical appearance with the photograph contained on the valid, unexpired government-issued photographic identification presented by the player.

Z. Gaming ticket.

1. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures addressing the issuance and redemption of a gaming ticket in compliance with this subsection and 11VAC5-90-150 W.

2. A facility operator's internal controls shall:

a. Include procedures and controls to maintain a record of all unredeemed gaming tickets for a minimum of one year from the date of issuance of the gaming ticket unless a request to remove or relocate system records is submitted in writing and approved in writing by the department; and

b. Address the following events:

(1) Calculation and transmittal by the facility operator of its outstanding expired unredeemed gaming ticket balance to the Commonwealth of Virginia;

(2) An election by a facility operator to pay a gaming ticket when the gaming ticket system is inoperable or otherwise unable to verify the validity of the gaming ticket at the time of payment; and

(3) An election by a facility operator to pay a gaming ticket where the gaming ticket system fails to verify and electronically cancel the gaming ticket when it is presented by the player and scanned for verification.

3. A facility operator shall redeem at its cashiers' cage a gaming ticket of $5,000 or more by:

a. Cash or check; or

b. Check on the request of the player.

4. A facility operator shall immediately report to the department evidence that a gaming ticket has been counterfeited, tampered with, or altered in any way that would affect the integrity, fairness, or reliability of the gaming ticket.

5. A facility operator shall, in a form and in a timeframe specified by the department, submit a report to the department detailing any adjustment made to the amount of a gaming ticket.

AA. Promotional play.

1. A facility operator may:

a. Issue promotional play if it is not awarded as cashable credit; and

b. Utilize a promotional play system that has been tested, certified, and approved under this chapter.

2. A facility operator may not issue to a player promotional play equaling or exceeding $5,000 per gaming day without specific approval from the facility general manager.

3. A facility operator shall fully and accurately disclose the material terms of all promotional play offers involving casino gaming at the time any such offer is advertised and provide full disclosure of the terms of and limitations on the offer before the player provides anything of value in exchange for the offer.

4. If the material terms of a promotional play offer cannot be fully and accurately disclosed within the constraints of a particular advertising medium, the material terms and conditions shall be accessed by hyperlink that takes the individual directly to the material terms or directs the individual to the site to access the offer or bonus terms and in reasonably prominent size.

5. No promotional play available to a player who sets up a new player account may contain terms that delay full implementation of the offer by the facility operator for a period of longer than 90 days, regardless of the number or amount of wagers in that period by the player.

6. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures addressing the requirements of this subsection and:

a. Methods utilized to:

(1) Issue promotional play; and

(2) Redeem promotional play; and

b. A promotion play instrument, including a requirement that it document:

(1) Name or trade name of the facility operator;

(2) Amount in noncashable credits;

(3) Unique series number automatically generated by the promotional play system;

(4) Locations where a promotional instrument may be redeemed and any restrictions applicable to redemption;

(5) A bar code or magnetic strip that enables the promotional play system to identify the numeric information required by this section; and

(6) Notice to the player of the terms of expiration.

7. A facility operator shall immediately report to the department evidence that a promotional play instrument has been counterfeited, tampered with, or altered in any way that would affect the integrity, fairness, or reliability of the promotional play instrument.

8. A facility operator shall submit to the department in a form and in accordance with a timeframe specified by the department a quarterly report summarizing:

a. Promotional play awarded for the period, including:

(1) Total amount in promotional play awarded in noncashable credits; and

(2) Other forms of promotional play; and

b. Promotional play redeemed by players for the period, including:

(1) Total amount in promotional play redeemed in noncashable credits; and

(2) Other forms of promotional play redeemed.

BB. Ticket redemption unit.

1. A facility operator may utilize a ticket redemption unit meeting the requirements of this section.

2. A facility operator shall locate a ticket redemption unit on the gaming floor subject to the surveillance coverage requirements of this section.

3. A facility operator shall develop and include in the internal controls submitted and approved by the department procedures addressing a ticket redemption unit.

4. A facility operator's internal controls shall address:

a. Distribution of cash to a ticket redemption unit;

b. Removal of gaming tickets and cash accepted by a ticket redemption unit;

c. Reconciliations associated with the replenishment process;

d. Directing a player attempting to redeem a gaming ticket of $5,000 or more to the cashiers' cage.

CC. Jackpot payout.

1. A facility operator shall utilize a multipurpose jackpot or credit meter payout document meeting the requirements of this subsection to pay:

a. A jackpot not totally and automatically paid by a casino gaming machine; or

b. Credits accumulated by a player on a casino gaming machine if:

(1) The number of accumulated credits exceeds the amount that may be paid utilizing a gaming ticket under this section;

(2) Due to malfunction, the credits cannot be paid by the casino gaming machine; or

(3) A single jackpot event requires the filing of IRS Form W-2G, Certain Gambling Winnings.

2. A facility operator shall:

a. Prepare and timely file IRS Form W-2G, Certain Gambling Winnings, in accordance with IRS rules and regulations; and

b. Immediately report to the department any incident in which a casino gaming machine fails to lock up and preclude play following a single jackpot event of $1,200 or more.

3. A facility operator shall pay a jackpot or credit meter payout of:

a. $50,000 or more by check; and

b. Less than $50,000 by:

(1) Cash or check; or

(2) On the request of a player, any combination of cash, gaming ticket, check, or other method of payment approved by the department.

4. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures addressing the payment of a jackpot or credit meter payout not totally and automatically paid by a casino gaming machine.

5. A facility operator's internal controls shall include:

a. The use of a two-part computer-generated jackpot or credit meter payout document initiated on the request of a gaming operations department attendant or gaming operations department supervisor or above after verifying the:

(1) Winning combination of characters on the casino game and the amount of the jackpot; or

(2) Number of accumulated credits;

b. Its alternate verification procedure for jackpot or credit meter payouts;

c. A provision that only the preparer is required to sign the jackpot or credit meter payout document if:

(1) A jackpot or credit meter payout is less than $10,000;

(2) A casino or casino management system can independently verify a jackpot or credit meter payout;

(3) The casino or casino management system and the central monitor and control system are fully operational; and

(4) Overrides or adjustments are not required;

d. A requirement that, if a jackpot or credit meter payout is $15,000 or more but less than $35,000, a security department employee or a gaming operations department supervisor or above other than the preparer of the document sign the jackpot or credit meter payout document after verifying the payment of the jackpot or credit meter payout to the player and:

(1) Winning combination of characters on the casino gaming machine and the amount of the jackpot; or

(2) Number of accumulated credits;

e. A provision that if a jackpot or credit meter payout document generated incompliance with this subsection is requested by a gaming operations department supervisor or above, the verification required by this subsection may be completed by a gaming operations department attendant, a gaming operations department supervisor or above, or a security department employee;

f. A requirement that if a jackpot or credit meter payout is $35,000 or more, an operations department shift manager or higher level operations department employee other than the preparer of the document sign the jackpot or credit meter payout document after verifying the payment of the jackpot or credit meter payout to the player and:

(1) Winning combination of characters on the casino gaming machine and amount of the jackpot; or

(2) Number of accumulated credits;

g. A provision that if a jackpot or credit meter payout document required in compliance with this subsection is requested by a gaming operations department shift manager or higher level gaming operations department employee, the verification required by this subsection may be completed by a gaming operations department attendant, a gaming operations department supervisor or above, or a security department employee;

h. A requirement that the following information be on a two-part computer-generated jackpot or credit meter payout document:

(1) Date and time;

(2) Asset number of the casino gaming machine or table game on which the jackpot was registered or credits accumulated;

(3) Winning combination of characters constituting the jackpot or a code corresponding to the winning combination of characters constituting the jackpot or an indication that a credit meter payout is to be made;

(4) Amount to be paid;

(5) Unique transaction number generated by the casino management system;

(6) Signature or identification code of the preparer of the document;

(7) If the payout is $1,200 or more, the signature or identification code of a verifying witness in accordance with this regulation; and

(8) Unless an automated jackpot payout machine or a cash wallet is utilized to affect the payment, the signature or identification code of the cashier issuing the funds;

i. If utilized, procedures and controls applicable to a jackpot or credit meter payout:

(1) Using an automated jackpot payout machine meeting the requirements of subsection EE of this section; and

(2) By a gaming operations department attendant from a cash wallet impressed with $10,000 or less;

j. If utilized, procedures and controls to be implemented if the facility operator resets the casino gaming machine or credit meter before the player is paid;

k. A requirement that the surveillance department:

(1) Be notified of a jackpot or credit meter payout of $25,000 or more;

(2) Log all notices regarding a jackpot or credit meter payout in the surveillance log required under this section; and

(3) Obtain and retain a photograph of the face of the player receiving the payout;

l. Details pertaining to:

(1) Payment of a jackpot or credit meter payout at the:

(a) Cashiers' cage;

(b) Casino gaming machine; and

(2) The use of an accounting drop box; and

(3) Audit procedures to be performed by the facility operator's accounting department at the conclusion of each gaming day;

m. Procedures addressing unclaimed jackpots or accumulated credits abandoned on a casino game;

n. Details that establish the ability of the casino or casino management system to:

(1) Ensure that a two-part computer-generated jackpot or credit meter payout document is not susceptible to change or deletion from the system after preparation;

(2) Process and document system overrides or adjustments to jackpot or credit meter payouts, including:

(a) Overrides or adjustments where the payout requested does not match the payout amount sent from the casino gaming machine to the casino or casino management system; and

(b) Identification of the level of employee having override authority; and

(3) Process voided jackpot or credit meter payout documents; and

o. Procedures utilized to issue a manual jackpot or credit meter payout document that:

(1) Are to be used only when the casino or casino management system is unable to generate a jackpot or credit meter payout document;

(2) Conform to the jackpot payout or credit meter payout verification and signature requirements of this regulation;

(3) Involve use of a three-part serially prenumbered manual jackpot or credit meter payout document residing in a book, wiz machine, or functional equivalent;

(4) Require manual jackpot or credit meter payout books or their functional equivalent to be maintained in a secured locked cabinet in the cashiers' cage; and

(5) Require the key to the cabinet to be:

(a) Controlled by the security department or the accounting department; and

(b) Limited to sign out by a gaming operations department supervisor or above.

DD. Annuity jackpot.

1. In this subsection, unless the context clearly indicates otherwise,

"Discount rate" means a discount rate equal to the United States Treasury constant maturity rate for 20-year United States government securities for the week ending prior to the date of the jackpot, as identified in the applicable H.15 Statistical Release issued by the Federal Reserve Board plus 0.5%.

2. A facility operator may not offer an annuity jackpot without the prior written approval of the department.

3. A facility operator submitting a request for approval of an annuity jackpot to the department shall submit details pertaining to the annuity jackpot, including:

a. The specific terms of:

(1) The annuity; and

(2) Any cash payout option;

b. The written trust agreement supporting the trust fund used to make future cash payments on the annuity jackpot, including details pertaining to:

(1) Administration and funding of the trust agreement;

(2) Liability for payments owed to a player; and

(3) Designation of a trustee;

c. Internal controls addressing the offer and award of an annuity jackpot; and

d. Documentation supporting that the average payout percentage on the casino gaming machine offering the annuity jackpot will comply with this subsection.

4. A facility operator that offers an annuity jackpot payable over 10 years or more may offer a player the option to be paid in a single cash payout provided that payout is equal to the present value of the annuity jackpot as calculated in subdivision 5 of this subsection.

5. The present value of a cash payout option on an annuity jackpot shall be determined by:

a. Applying the discount rate to each of the future annuity jackpot payments;

b. Multiplying the number of years until each jackpot payment would otherwise have been received; and

c. Adding to that amount the amount of the first cash payment that would otherwise have been received.

6. A facility operator shall pay a cash payout requested by a player in lieu of an annuity jackpot in accordance with subsection CC of this section.

7. A facility operator shall develop and include in the internal controls submitted to and approved procedures addressing the offer and award of an annuity jackpot.

8. A facility operator's internal controls shall include:

a. Procedures to be followed by a player to exercise a cash payout option; and

b. Procedures utilized to document payment of an annuity jackpot.

EE. Merchandise jackpot.

1. A facility operator may not offer a merchandise jackpot without the prior written approval of the department.

2. A facility operator submitting a request for approval of a merchandise jackpot to the department shall submit details pertaining to the merchandise jackpot, including:

a. The specific terms of:

(1) The merchandise offer; and

(2) Any cash payout option;

b. Documentation supporting the acquisition of the merchandise and its cash equivalent value under subdivision 4 of this subsection;

c. Internal controls addressing the offer and award of a merchandise jackpot; and

d. Documentation supporting that the average payout percentage on the casino gaming machine offering the merchandise jackpot will comply with this subsection.

3. If a facility operator offers a merchandise jackpot consisting of merchandise or an optional cash payout, the optional cash payout shall equal the cash equivalent value of the merchandise determined in accordance with subdivision 5 of this subsection.

4. The cash equivalent value of merchandise shall be determined as follows:

a. Merchandise that the facility operator sells directly to the public in the normal course of business shall be valued at an amount equal to the full retail price normally charged for the merchandise;

b. Merchandise that the facility operator does not sell directly to the public in the normal course of business, but that is provided directly to a player by the facility operator, shall be valued at an amount equal to the actual cost to the facility operator of the merchandise;

c. Merchandise that is provided directly or indirectly to a player on behalf of a facility operator by a third party not related to the facility operator shall be valued at an amount equal to the actual cost to the facility operator of having the third party provide the merchandise; and

d. Merchandise that is provided directly or indirectly to a player on behalf of a facility operator by a third party who is related to the facility operator shall be valued as if the related party were the facility operator under subdivisions 4 a and 4 b of this subsection.

5. For the purpose of determining adjusted gross receipts, the cash equivalent value of any merchandise paid as, or as a portion of, a jackpot shall be included in total winnings paid.

6. A facility operator shall pay a cash payout portion of a merchandise jackpot and a cash payout requested by a player in lieu of a merchandise jackpot in accordance with subsection DD of this section.

7. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures addressing the offer and award of a merchandise jackpot.

8. A facility operator's internal controls shall include:

a. Procedures to be followed by a player to exercise a cash payout option; and

b. Procedures utilized to document payment of a merchandise jackpot.

FF. Automated jackpot payout machine.

1. A facility operator may utilize an automated jackpot payout machine meeting the requirements of this subsection.

2. A facility operator may locate an automated jackpot payout machine on the gaming floor subject to the surveillance coverage requirements of this section.

3. A facility operator shall configure an automated jackpot payout machine to process only a jackpot or credit meter payout of less than $50,000.

5. A facility operator's internal controls shall include procedures and controls documenting:

a. A jackpot or credit meter payout transaction at an automated jackpot payout machine; and

b. Reconciliation and replenishment of an automated jackpot payout machine.

GG. Access to bill validators, cash storage, and table game drop boxes.

1. Access.

a. A facility operator shall control access to a bill validator, a cash storage box housed in a slot machine, table game, or other casino game drop box in accordance with this subsection.

b. Access to a bill validator shall be controlled by:

(1) At least one lock; and

(2) A key to the lock that is required to be maintained by the security department.

c. The cash storage box shall be secured to a bill validator by two separate locks, the keys to which are different from each other, and, for the lock on the belly door or main door of the casino gaming machine:

(1) The key shall be controlled by the casino gaming machine department in:

(a) A manual key box; or

(b) An automated key tracking system;

(2) Immediately prior to the commencement of the drop, the casino gaming machine department may issue its belly door or main door key to the accounting department;

(3) A key transferred from the casino gaming machine department to the accounting department shall be returned immediately following the conclusion of the drop;

(4) The facility operator shall establish sign in and sign out procedures in its internal controls documenting the transfers; and

(5) If an automated key tracking system is used, a facility operator shall require dual access from the security department and accounting department to obtain keys.

d. The lock on the release mechanism securing the cash storage box to the bill validator shall be controlled by the security department.

e. Access to the contents of a cash storage box shall be controlled by:

(1) At least one lock; and

(2) A key to the lock that is required to be maintained by the accounting department.

2. Control. A facility operator shall either:

a. Assign to a cash storage box an asset number that:

(1) Is permanently imprinted or affixed to the outside of the cash storage box; and

(2) Corresponds to the asset number of the casino gaming machine in which the cash storage box is installed; or

b. With the written approval of the department, utilize a computerized system for:

(1) Assigning a unique identification number to a cash storage box; and

(2) Attributing it to the casino gaming machine in which the cash storage box is installed.

3. A facility operator shall ensure that an asset number or unique identification number on a cash storage box is clearly visible to:

a. An employee involved in removing or replacing a cash storage box; and

b. The surveillance department.

4. A facility operator may maintain an emergency cash storage box without an asset number or a unique identification number if:

a. The word "emergency" is permanently imprinted or affixed on the box; and

b. When put into use, the cash storage box is temporarily marked with the asset number of the casino gaming machine in which it is installed.

5. Table game drop box.

a. A table game shall have a secure tamper-resistant table game drop box attached to it in which the following shall be deposited:

(1) Copies of fill request slips, fill slips, and table inventory slips; and

(2) Other table game wagering instruments approved by the department.

b. A table game drop box shall have:

(1) One lock securing the contents deposited into it;

(2) A separate lock securing the table game drop box to the gaming table, the key to which must be different from the keys to the locks securing the contents of the table game drop box;

(3) A slot opening through which currency, value chips, or poker rake chips for nonbanking games, other table game wagering instruments approved by the department, and required instruments can be inserted into it;

(4) A mechanical device that automatically closes and locks the slot opening upon removal of the table game drop box from the gaming table; and

(5) Permanently imprinted or impressed thereon, and clearly visible to surveillance, either:

(a) A number corresponding to a unique permanent number on the gaming table to which the table game drop box is attached and at least one letter indicating the type of game; and

(b) The word "emergency".

c. In addition to the requirements of subdivision 5 b (5) of this subsection, a table game drop box may also be identified by a bar code label that is securely affixed to the table game drop box and shall be:

(1) At a minimum, encoded with the information required by subdivision 5 b (5) of this subsection; and

(2) Prepared in accordance with the facility operator's approved internal controls.

d. The security department shall control the key used to release a table game drop box from a table game in a manual key box or an automated key tracking system.

(1) Immediately prior to the commencement of the table game count process, the security department may issue its release key to the count room supervisor for the purpose of resetting the release mechanism on empty table game drop boxes;

(2) A key transferred by the security department shall be immediately returned after the conclusion of the table game drop box count;

(3) In its internal controls, a facility operator shall establish sign-in and sign-out procedures governing key transfers and control of a key during breaks taken by count room personnel; and

(4) If an automated key tracking system is used, a facility operator shall require dual access from the security department and accounting department to obtain keys.

e. The keys to the table game drop box locks required under subdivision 5 b (1) of this subsection shall be controlled by the accounting department.

f. Before using a table game drop box labeled "Emergency" for a table game, a facility manager shall:

(1) Obtain verbal approval of department compliance personnel; and

(2) Temporarily mark the emergency table game drop box with the number of the gaming table and at least one letter indicating the game type.

HH. Collection of cash storage and table game drop boxes.

1. At least 30 days before casino gaming operations are to commence, a facility operator shall submit to the department in writing a drop schedule setting forth:

a. Specific pick-up days and times for collection of cash storage and table game drop boxes and requirements that:

(1) Cash storage boxes may not be commingled with table game drop boxes;

(2) Unless a drop box is from a table game pit that was never opened for gaming on that gaming day, table game drop boxes shall be collected once each gaming day; and

(3) The facility operator shall notify the department by telephone and in writing one hour in advance of changes to the table game drop box collection schedule.

b. Specifications as to what areas of the gaming floor will be covered on each pick-up day; and

c. Specific transportation routes to be utilized from the gaming floor to the count room on each pick-up day.

2. A facility operator shall notify the department:

a. In writing of a permanent change in the drop schedule including a pick-up day or time, area of the floor to be dropped, or transportation route; and

b. Prior to any temporary deviation from the drop schedule.

3. A facility operator shall make readily available to the department:

a. An access control matrix indicating which employee job descriptions are authorized to participate in the cash storage and table game drop box collection process; and

b. A list of employees, with license numbers, who are authorized to participate in the cash storage and table game drop box collection process.

4. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures addressing the collection of cash storage and table game drop boxes.

5. A facility operator's internal controls shall:

a. Detail the actual procedures to be performed and documentation to be generated by drop team employees collecting cash storage and table game drop boxes:

(1) In accordance with the drop schedule; and

(2) On an emergency basis; and

b. Require:

(1) Cash storage and table game drop boxes to be transported directly to, and secured in:

(a) The count room; or

(b) A trolley storage area approved by the department;

(2) The cash storage and table game drop box collection process to involve the participation of at least three employees, at least one of whom is an employee of the security department.

(3) Prior to the movement of a trolley containing cash storage boxes from the gaming floor into the count room, an accounting department supervisor to verify that the number of cash storage boxes being transported from the gaming floor equals the number of cash storage boxes scheduled for collection that day;

(4) Prior to the movement of a trolley containing table game drop boxes from the gaming floor into the count room, an accounting department supervisor or floorperson or above to verify that the number of table game drop boxes being transported from the gaming floor equals the number of table game drop boxes scheduled for collection; and

(5) Prior to changing the type of table game offered or removing a casino gaming machine or table game from the gaming floor, that an emergency drop shall be conducted.

6. A facility operator shall transport cash storage and table game drop boxes in an enclosed trolley secured by one lock that has a key that is controlled by the security department.

7. A facility operator shall store cash storage and table game drop boxes not attached to a bill validator, including emergency cash storage and table game drop boxes that are not actively in use:

a. In the count room in an area approved by the department;

b. In a trolley storage area approved by the department; or

c. In another location at the facility approved by the department.

8. The cabinet or trolley used for storage under subdivision 7 of this subsection shall be secured by one lock that has a key which is controlled by the security department in:

a. A manual key box; or

b. An automated key tracking system.

9. Immediately prior to the commencement of the count process, the security department may issue its key to the storage cabinet or trolley required under subdivision 7 of this subsection to a count room supervisor for the purpose of allowing count room personnel to gain access to the cash storage or table game drop boxes to be counted.

10. A trolley storage area utilized to store cash storage or table game drop boxes prior to the count process shall meet the design standards for a count room under subsection JJ of this section.

II. Count room design standards.

1. A facility operator shall have a count room designated, designed, and used for counting the contents of cash storage and table game drop boxes at a location approved by the department.

2. A count room shall:

a. Be constructed of materials and have an interior design that provides maximum security over the assets stored, and the activities conducted in, the room;

b. Meet the surveillance requirements of subsection J of this section, including audio coverage of the count process; and

c. Be constructed with doors equipped with:

(1) An alarm system that tracks all ingress to and egress from the room and that:

(a) Directly alerts the security department; or

(b) Directly, or through a documented communications protocol, alerts the surveillance department; and

(2) A locking mechanism with key backup, or a key that is:

(a) Different from the key to any other door to the count room;

(b) Different from the keys to the locks securing each cash storage and table game drop box; and

3. A facility operator shall install in its count room a table constructed of clear glass or similar transparent material to be used for the emptying, counting, and recording of the contents of cash storage and table game drop boxes.

JJ. Accounting controls for a count room.

1. At least 30 days before casino gaming operations are to commence, a facility operator shall submit to the department a count schedule setting forth the specific times during which cash storage and table game drop boxes are to be counted and recorded.

2. A facility operator shall notify the department in writing of any:

a. Permanent change in the count schedule; and

b. Temporary deviation from the count schedule.

3. Count frequency.

a. A facility operator shall count the contents of each cash storage box at least once every seven days unless an alternative count schedule is submitted in writing to and approved in writing by the department.

b. A facility operator shall count the contents of each table game drop box at least once each gaming day unless an alternative count schedule is submitted to, and approved in writing by, the department.

c. Unless no gaming is conducted or otherwise offered at the casino gaming facility, a facility operator shall count the contents of each table game drop box at least once each gaming day.

d. The following shall be counted and recorded separately:

(1) Table game drop boxes from banking games; and

(2) Table game drop boxes from nonbanking games.

4. A facility operator shall develop and include in the internal controls submitted to and approved by the department procedures to address the counting and recording of cash storage and table game drop boxes.

5. A facility operator's internal controls shall:

a. Detail all hardware, software, and related equipment utilized by the facility operator to conduct the count;

b. Detail the actual procedures to be performed and documentation to be generated by:

(1) Count team employees conducting the counting process; and

(2) The main bank cashier in verifying and accepting the count;

c. Require computerized equipment utilized to count and strap currency, gaming tickets, and promotional play instruments to:

(1) Conduct two separate counts;

(2) If the separate counts are not in agreement, document the discrepancy;

(3) Be capable of determining the amount of a gaming ticket or promotional play instrument by independently examining information printed on the gaming ticket or promotional play instrument and:

(a) Calculating the amount internally; or

(b) Obtaining the amount directly from a gaming ticket system or promotional play system in a secure manner; and

(4) If a gaming ticket system or promotional play system is utilized to obtain the amount of a gaming ticket or promotional play instrument, require the system to perform a calculation or integrity check to ensure that the amount of the gaming ticket or promotional play instrument has not been altered in the system in any manner since the time of issuance;

d. Require a count room employee to:

(1) Wear a one-piece, pocketless garment;

(2) Carry only a handbag or other container constructed of transparent material; and

(3) Remove the count room employee's hands from, or return them to, a position on or above the count table or counting equipment only after holding the backs and palms of the hands straight out and exposing them to the view of other employees of the count team and a surveillance camera; and

e. Prior to the commencement of the count, require a count room employee to notify the surveillance department and receive confirmation that recording of the count process has commenced.

6. Table game drop box count requirements.

a. The department may require that the table game drop box be conducted in the presence of a department compliance representative.

b. After the contents of each table game drop box from a banking table game are counted, a member of the count team shall record on a three-part Daily Banking Table Game Count Report or electronic equivalent prepared on a computer system, the:

(1) Value of each denomination of currency counted;

(2) Total value of all denominations of currency counted;

(3) Gaming date of the items being recorded;

(4) Total number of banking table game drop boxes opened and counted; and

(5) Current date.

c. After the contents of each table game drop box from a nonbanking table game are counted, a member of the count team shall record on a three-part Daily Nonbanking Table Game Count Report or electronic equivalent prepared on a computer system the:

(1) Value of poker rake chips counted;

(2) Value of value chips counted;

(3) Total value of poker rake chips and value chips counted;

(4) Gaming date of the items being recorded;

(5) Total number of nonbanking table game drop boxes opened and counted; and

(6) Current date.

d. After the preparation of the Daily Banking Table Game Count Report and the Daily Nonbanking Table Game Count Report, the count team members and the count room supervisor shall sign the reports attesting to the accuracy of the information recorded thereon.

e. After the contents of all table game drop boxes have been counted, all cash, value chips, and poker rake chips shall be presented in the count room by a count team member to a main bank cashier or cage supervisor who, prior to having access to the information recorded on the Daily Banking Table Game Count Report and Daily Nonbanking Table Game Count Report, and in the presence of the count team members and, if required, a department compliance representative, shall recount the currency, value chips, and poker rake chips as follows:

(1) The main bank cashier or cage supervisor may bulk count all strapped currency;

(2) The department compliance representative may direct that currency straps be recounted by the main bank cashier or cage supervisor if a discrepancy is discovered during the initial bulk recount; and

(3) All partial straps, loose currency, mutilated or torn currency, value chips, and poker rake chips shall be recounted by the main bank cashier or cage supervisor.

f. Upon completion of the recount, the main bank cashier or cage supervisor shall attest to the accuracy of the count by signature on the Daily Banking Table Game Count Report and Daily Nonbanking Table Game Count Report.

g. The Daily Banking Table Game Count Report and the Daily Nonbanking Table Game Count Report shall be distributed as follows:

(1) Immediately after leaving the count room, the count room supervisor shall deliver the original to revenue audit or place it in a secure locked box controlled by revenue audit;

(2) The department compliance representative who observed the count shall retain the second copy; and

(3) The cage supervisor or main bank cashier shall retain the third copy.

h. Immediately after leaving the count room, the count room supervisor shall deliver any additional documents contained in the table game drop boxes to revenue audit or place the documents in a secured locked box controlled by revenue audit, including:

(1) Requests for fills;

(2) Fill slips; and

(3) Table inventory slips.

i. A count room employee shall conduct a thorough inspection of the count room and all counting equipment in the count room to verify that no currency, chips, checks, vouchers, coupons, or other documentation remains in the room.

7. A gaming ticket or promotional play instrument accepted by a cash storage or table game drop box shall be counted and included in the calculation of proceeds without regard to the validity of the gaming ticket or promotional play instrument.

8. A promotional play instrument that is not canceled upon acceptance or during the count process shall be canceled prior to the conclusion of the count.

9. A facility operator shall report in writing to the department within seven days of the count:

a. Any variance between the actual count of cash, gaming tickets, and promotional play instruments in a cash storage box as determined in the count room and the amount for that particular cash storage box recorded on the:

(1) Facility operator's casino gaming machine; and

(2) If the data has been made available to the facility operator, the central monitor and control system;

b. The reason for the variance; and

c. Corrective action taken or adjustments made.

KK. Player complaints.

1. A facility operator shall attempt to timely resolve a dispute with a player concerning operation of a casino game, or payment of alleged winnings by establishing a process that includes:

a. Developing and publishing procedures by which a player may file a complaint with the facility operator in person, in writing, online, or by other means concerning operation of a casino game or payment of alleged winnings;

b. Responding to any such complaint in writing, via email, or via live chat within 15 days of the filing of the complaint, and if a player requests relief in a complaint and the requested relief or part thereof will not be granted, including in the response to the complaint the reasons for the denial of relief with specificity; and

c. If the response to a complaint is that additional information is needed, providing the player the form and nature of the information that is necessary, and when the additional information is received, responding to the complaint within seven days of receipt of the additional information.

2. A facility operator that is unable to resolve a dispute with a player within three days of notice of the dispute shall notify the department of the dispute.

3. On receipt of notice by the facility operator of the dispute, the department shall provide the player with a department player complaint form together with instructions for completing and submitting the form.

4. The department shall investigate a complaint submitted to the department and notify the player and facility operator of its determination.

5. The department may provide a player with a complaint form at any time upon request.

6. All complaints received by a facility operator from a player and the facility operator's responses to complaints, including email and live chat transcripts, shall be retained by the facility operator for at least four years and made available to the department within seven days of any request from the department.

LL. Possession of a weapon in a facility.

1. Except as otherwise provided in this subsection, an individual may not possess in a facility a firearm, stun weapon as defined in § 18.2-308.1 of the Code of Virginia; other dangerous weapon, including any defined in § 18.2-308 of the Code of Virginia; or other device or object designed to be used to inflict pain or cause injury.

2. The prohibition in subdivision 1 of this subsection:

a. Applies to all employees and contractors of the facility operator including security department employees; and

b. Does not apply to:

(1) An on-duty officer or agent of a local, state, or federal law-enforcement agency having proper jurisdiction over the facility when the officer or agent is acting in an official capacity;

(2) An individual who is employed by an armored car company or other entity that is under contract with the facility to transport cash or a cash equivalent; or

(3) An individual authorized by the department to possess a weapon or device identified in subdivision 1 of this subsection.

3. An individual requesting department authorization to possess a weapon identified in subdivision 1 of this subsection in a facility shall submit to the department in writing a request documenting:

a. A compelling need to possess a weapon in the facility;

b. That the individual is lawfully in possession of the weapon under applicable federal and state law; and

c. That the individual has received training in the possession and use of the weapon.

MM. Signs.

1. A facility operator shall construct all signs required under this chapter using a color scheme and font size reasonably expected to produce a sign that is readily visible to and readable by an individual entering the facility.

2. A facility operator shall post signs containing the following messages in a conspicuous location not more than 20 feet from each customer entrance to the facility: "An individual, including an off-duty officer or agent of a local, state or federal law enforcement agency, may not possess a weapon or other device designed to be used to inflict pain or cause injury in (name of facility) without the prior written approval of the Virginia Lottery."

NN. Acceptance of tips or gratuities.

1. Except as otherwise provided in this subsection:

a. A supervisory gaming employee of a facility is prohibited from soliciting or accepting a tip or gratuity directly from a player;

b. A gaming employee is prohibited from soliciting a tip or gratuity from a player; and

c. A facility operator may permit an employee who is authorized to accept a gratuity from a player to accept a gaming ticket if the gaming ticket is redeemed:

(1) At the cashiers' cage; and

(2) With approval of the employee's department supervisor, if the amount of the gaming ticket exceeds $100.

2. At least 30 days before table game operations are to commence, a facility operator shall submit to the department for approval internal controls relating to the acceptance of tips or gratuities by dealers at banking and nonbanking table games.

3. Except as provided in subdivision 7 of this subsection, a dealer shall immediately deposit all tips and gratuities into a transparent locked box reserved for tips and gratuities, and:

a. If roulette chips are received as a tips or gratuity, the marker button indicating the specific value of the roulette chips may not be removed until after the dealer, in the presence of a floorperson or above, has converted the roulette chips into value chips that shall then be immediately deposited in the transparent locked box reserved for tips and gratuities;

b. Tip and gratuities shall be:

(1) Collected and accounted for at least once each gaming day; and

(2) Placed in a common pool for distribution pro rata among all dealers in accordance with subdivision 5 of this subsection; and

c. A facility operator may include dealer supervisors in the common pool.

4. Upon receipt of a tip or gratuity from a player, the dealer shall extend the dealer's arm in an overt motion and deposit the tip or gratuity in the locked box reserved for tips and gratuities.

5. Tips and gratuities placed in a common pool shall be distributed pro rata among the dealers in the pool based on the number of hours worked and based on any standards for distribution established by a facility operator, which may include:

a. Hours of vacation time, personal leave time, or any other authorized leave of absence in the number of hours worked by each employee; and

b. Different full-time or part-time employees.

6. A distribution of tips and gratuities from a common pool shall occur no more than once every seven calendar days.

7. Notwithstanding the requirements of subdivision 3 of this subsection, a facility operator that offers the game of poker:

a. May establish a separate common pool for tips and gratuities received by its poker dealers; or

b. If it allows a poker dealer to retain the poker dealer's own tips and gratuities, shall require:

(1) Tips and gratuities received by a poker dealer to be deposited in a transparent locked box assigned to the particular dealer; and

(2) That the transparent locked box be moved from table to table with the dealer.

8. If a facility operator elects to follow the requirements of subdivision 7 b of this subsection, at the end of the poker dealer's shift:

a. The dealer shall take the transparent locked box assigned to the dealer to a cage cashier; and

b. The cage cashier shall open the container and count the tips and gratuities in the presence of the poker dealer, and record the total amount of the tips and gratuities received by the dealer, and:

(1) Return the tips and gratuities to the dealer; or

(2) Retain all or a portion of the tips and gratuities for inclusion in the dealer's paycheck.

9. If a facility operator elects to follow the requirements of subdivision 7 b of this subsection and has established a gaming industry tip and compliance agreement, subdivision 8 of this subsection does not apply.

10. A facility operator shall specify in its internal controls how dealer tips and gratuities will be reported to the Internal Revenue Service.

OO. Off-site customer service location.

1. A facility operator may establish an off-site customer service location for a player to create a player account and make a deposit under subsection U of this section.

2. A facility operator that uses an off-site customer service location shall have internal controls that require:

a. Establishment of a compliance program that is updated to include the off-site customer service location operation;

b. Identification of the:

(1) Address of the off-site customer service location;

(2) Date the off-site customer service location is expected to open;

(3) Name and contact information of the off-site customer service location manager;

(4) Off-site customer service location telephone numbers;

(5) Off-site customer service location normal hours of operation; and

(6) An organization chart listing all positions that will have responsibility over Virginia operations related to the off-site customer service location;

c. Commencement of operations at an off-site customer service location operation only after receiving department approval;

d. An Off-Site Customer Service Location Report to be maintained by the licensee and updated quarterly to include the following for each off-site customer service location:

(1) Address and telephone numbers;

(2) If applicable, opening and closing date;

(3) Name of the off-site customer service location manager;

(4) Off-site customer service location normal hours of operation; and

(5) Year-to-date and previous calendar year dollar amounts of the following Virginia-specific transactions received or disbursed and controlled by the off-site customer service location:

(a) Cash deposits, noncash deposits, and total deposits; and

(b) Cash withdrawals, noncash withdrawals, and total withdrawals;

e. An Off-Site Customer Service Location Report to be submitted to the department no later than 30 days after the end of the calendar year;

f. An off-site customer service location to maintain the following records for Virginia casino gaming operations:

(1) A separate monthly log, by day, of all funds deposited and withdrawn that includes:

(a) Player's name on an account to which the funds are being applied;

(b) Name of the individual making the payment;

(d) Amount of deposit or withdrawal;

(e) Whether the transfer of funds was made by cash, check, or other financial instrument; and

(f) New ending account balance; and

(2) Monthly record of currency exchange rate gains and losses and money changer fees in conjunction with a player's transactions that includes:

(a) Player's name;

(b) Date of receipt; and

g. Any costs associated with the department's audit or review of an off-site customer service location operation to be reimbursed by the facility operator to the department.

3. An off-site customer service location may not open until the department approves:

a. The internal controls required by this subsection; and

b. An activation request submitted by the facility to the department.

Statutory Authority

§§ 58.1-4101 and 58.1-4102 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 38, Issue 13, eff. March 16, 2022; Errata 38:17 VA.R. 2335 April 11, 2022; Errata 39:9 VA.R. 1289 December 19, 2022.

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