Part IV. Electronic Distributed Pull-Tab Systems
Article 1
Electronic Gaming Manufacturers
11VAC20-20-170. Manufacturers of electronic gaming devices: application, qualifications, suspension, revocation, or refusal to renew permit.
A. As used in this section, "manufacturer" means an "electronic gaming manufacturer" as defined in § 18.2-340.16 of the Code of Virginia.
B. Prior to providing any electronic gaming device or distributed pull-tab system, a manufacturer shall submit an application on a form prescribed by the department and receive a permit. A $1,000 application fee payable to the Treasurer of Virginia is required. In addition, a manufacturer must be authorized to conduct business in the Commonwealth of Virginia, which may include registration with the State Corporation Commission, the Department of Taxation, and the Virginia Employment Commission. The actual cost of background investigations for a permit may be billed by the department to an applicant.
C. The department may refuse to issue a permit or may suspend or revoke a permit if an officer, director, employee, agent, or owner:
1. Is operating without a valid license, permit, or certificate as a supplier, network bingo provider, or manufacturer in any state in the United States;
2. Fails or refuses to recall a product as directed by the department;
3. Conducts business with unauthorized entities or is not authorized to conduct business in the Commonwealth of Virginia;
4. Has been convicted of or pleaded nolo contendere to any crime as specified by § 18.2-340.34 B of the Code of Virginia; has had any license, permit, certificate, or other authority related to activities defined as charitable gaming in the Commonwealth suspended or revoked in the Commonwealth or in any other jurisdiction; has failed to file or has been delinquent in excess of one year in the filing of any tax returns or the payment of any taxes due the Commonwealth; or has failed to establish a registered office or registered agent in the Commonwealth if so required by § 13.1-634 or 13.1-763 of the Code of Virginia. As this provision relates to employees or agents, it shall only apply to individuals involved in sales to or solicitations of customers in the Commonwealth of Virginia;
5. Fails to notify the department within 20 days of the occurrence, knowledge, or receipt of the filing of any administrative or legal action relating to charitable gaming or the distribution of a distributed pull-tab system involving or concerning the manufacturer, any officers or directors, employees, agent, or owner during the term of its permit;
6. Fails to provide to the department upon request a current Letter for Company Registration on file with the U.S. Department of Justice if required in accordance with the Gambling Devices Act of 1962 (15 USC §§ 1171 through 1178) for any device that it distributes in the Commonwealth of Virginia;
7. Has been engaged in conduct that would compromise the department's objective of maintaining the highest level of integrity in charitable gaming; or
8. Violates any provision of the Charitable Gaming Law or regulation adopted pursuant thereto.
D. Before denying, suspending, or revoking a manufacturer's permit, the department shall give the manufacturer a statement documenting the grounds for such action and an opportunity for a hearing as outlined in Part VI (11VAC20-20-600 et seq.) of this chapter.
E. A manufacturer shall not distribute a distributed pull-tab system for use by anyone in the Commonwealth of Virginia other than to an authorized social organization, qualified organization operating and conducting electronic gaming in accordance with the Charitable Gaming Law and regulations established thereto or a permitted supplier.
All such distributions shall be documented pursuant to subsection I of this section and reported to the department pursuant to subsection K of this section.
F. No manufacturer of a distributed pull-tab system, the manufacturer's agent, or the manufacturer's employee shall be involved in the management, operation, or conduct of charitable gaming in the Commonwealth of Virginia. No member of a manufacturer's immediate family or person residing in the same household as a manufacturer may be involved in the management, operation, or conduct of charitable gaming of any customer of the manufacturer in the Commonwealth of Virginia. No manufacturer of a distributed pull-tab system, the manufacturer's agent, or the manufacturer's employee may participate in any charitable gaming of any customer of the manufacturer in the Commonwealth of Virginia. For the purposes of this chapter, servicing a distributed pull-tab system shall not be considered conduct or participation.
G. The department shall conduct a background investigation prior to the issuance of a permit to any manufacturer. The investigation may include the following:
1. A search of criminal history records on all officers, directors, and owners;
2. Verification of current compliance with Commonwealth of Virginia tax laws; and
3. Verification of current compliance with Virginia gaming laws or the gaming laws of any other state.
If the officers, directors, or owners are domiciled outside of the Commonwealth of Virginia or have resided in the Commonwealth of Virginia for fewer than five years, a criminal history search conducted by the appropriate authority in any state in which the officers, directors, or owners have resided during the previous five years shall be provided by the applicant.
H. Appropriate information and authorizations shall be provided to the department to verify information cited in subsection F of this section.
I. Manufacturers shall document each distribution of a distributed pull-tab system to any person for use in the Commonwealth of Virginia on an invoice that reflects the following:
1. Name, address, and organization number of the organization or supplier;
2. Date of sale or rental and location where the distributed pull-tab system is shipped or delivered if different from the billing address;
3. Name, form number, and serial number of each deal of electronic gaming;
4. Quantity of deals sold, the cost per deal, the selling price per card, the cash take-in per deal, and the cash payout per deal;
5. Serial number of each electronic gaming device, a description of the physical attributes of the electronic gaming device, the quantity of electronic gaming devices sold or rented, and the physical address to which each electronic gaming device is shipped or delivered;
6. Serial number and description of any other equipment sold or rented that is used to facilitate the distribution, play, and redemption of electronic gaming and the physical address to which the equipment is shipped or delivered ; and
7. For electronic gaming, the gross receipts or ticket sales, prizes paid out, electronic gaming adjusted gross receipts, cost of the use of the distributed pull-tab system, rebates, discounts, refunds, and any other information deemed necessary by the department.
J. Manufacturers shall ensure that two copies of the detailed invoice are provided to the customer for each distribution of a distributed pull-tab system.
K. Each manufacturer shall provide a report to the department by March 1 of each year on the distribution of a distributed pull-tab system for the fiscal year ending December 31 of the previous year to each organization and permitted supplier in the Commonwealth of Virginia. This report shall be provided to the department via a department-approved electronic medium. The report shall include the name, address, and organization number of each organization and permitted supplier and the following information for each sale or transaction:
1. Deals of electronic games, including purchase price, deal name, deal form number, quantity of electronic gaming in deal, electronic pull-tab price, cash take-in per deal, cash payout per deal, and quantity of deals;
2. Equipment used to facilitate the distribution, play, and redemption of electronic games, including purchase or rental price, description of equipment, quantity of units of each type of equipment, and the physical address to which the equipment is shipped or delivered; and
3. Complete record of all electronic gaming adjusted gross receipts, itemized by organization.
L. A manufacturer that fails to file the annual sales report in accordance with subsection J of this section shall be subject to a penalty of $25 per day for each day following the report's due date until such time as the report is filed.
M. A manufacturer, a manufacturer's agents and employees, members of a manufacturer's immediate family, or persons residing in a manufacturer's household shall not make any loan directly or indirectly to any organization or officer, director, game manager, or entity involved in the management, operation, or conduct of charitable gaming of the manufacturer's customer located in the Commonwealth of Virginia.
N. A manufacturer, a manufacturer's agent, or a manufacturer's employee shall not directly or indirectly provide a rebate, discount, or refund to any person other than an organization that purchases, rents, or leases a distributed pull-tab system from the manufacturer. All such transactions shall be recorded on the manufacturer's account books and invoices provided to the organization.
O. A written agreement specifying the terms of lease or rental shall be required for any equipment used to distribute, play, or redeem electronic gaming provided to an organization or permitted supplier.
P. A manufacturer shall notify the department when an electronic gaming device bearing a device tag affixed by the department is moved from one location to any other location.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
Article 2
General Requirements
11VAC20-20-180. Approval of distributed pull-tab systems, validation systems, point-of-sale stations, and redemption terminals; approval of game themes and sounds.
A. The department shall set manufacturing and testing criteria for all distributed pull-tab systems, validation systems, point-of-sale stations, redemption terminals, and other equipment used in the conduct of charitable gaming. A distributed pull-tab system, validation system, point-of-sale station, redemption terminal, or other equipment shall not be sold, leased, or otherwise furnished to any person in the Commonwealth of Virginia for use in the conduct of charitable gaming until an identical sample system or equipment containing identical software has been certified by a testing facility that has been formally recognized by the department as a testing facility that upholds the standards of integrity established by the department. The testing facility must certify that the distributed pull-tab system and associated hardware and software conform, at a minimum, to the requirements set forth in this chapter. Once the testing facility reports the test results to the department, the department will either approve or disapprove the distributed pull-tab system or system components and inform the manufacturer of the results. If any such system or equipment does not meet the department's criteria, it shall be recalled and shall not be distributed in the Commonwealth of Virginia. The cost of testing shall be borne by the manufacturer of such equipment.
B. No supplier or manufacturer shall knowingly sell or otherwise provide to an organization and no organization shall knowingly use a distributed pull-tab system, validation system, point-of- sale station, redemption terminal, or other equipment used to conduct charitable gaming unless it conforms to the requirements set forth in this chapter.
C. If a defect in a distributed pull-tab system, validation system, point-of-sale station, redemption terminal, or other equipment used to conduct charitable gaming is discovered by or reported to the department, the department shall notify the manufacturer of the system or equipment containing the alleged defect. Should the department, in consultation with the manufacturer, determine that a defect exists and should the department determine the defect affects game security or otherwise threatens public confidence in the game, the department may, with respect to any distributed pull-tab system, validation system, point of sale station, redemption terminal, or other equipment used to conduct charitable gaming still located within the Commonwealth of Virginia, require the supplier or manufacturer to issue a recall of all affected distributed pull-tab systems, validation systems, point-of-sale stations, redemption terminals, or other equipment.
D. All game themes, sounds, and music shall be approved by the department prior to being available for play on an electronic gaming device in the Commonwealth of Virginia.
E. All distributed pull-tab systems and electronic gaming devices, including the device's internal system and records, shall be fully accessible to the department at all times upon request.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
Article 3
System Requirements
11VAC20-20-190. Distributed pull-tab system.
A distributed pull-tab system shall be dedicated primarily to electronic accounting, reporting, and the presentation, randomization, and transmission of electronic gaming to the electronic gaming devices. It shall also be capable of generating the data necessary to provide the reports required within this article or otherwise specified by the department.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-200. Dispensing of electronic pull-tabs.
A distributed pull-tab system shall dispense, upon request, an electronic pull-tab. All games must be played without replacement, drawing from a single finite game set.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-210. Game set requirements.
Each game set shall meet the following minimum requirements:
1. Each game set shall be made up of a finite number of electronic pull-tabs;
2. The game set shall consist of a maximum of 25,000 electronic pull-tabs;
3. All electronic pull-tabs in a particular game set shall be of the same purchase price;
4. The maximum win amount awarded per any one electronic pull-tab shall not exceed the value set forth for pull-tabs by § 18.2-340.33 of the Code of Virginia;
5. Each game set shall be assigned a unique serial number;
6. After randomization, game sets may be broken into subsets of equal size. If game subsets are used, they shall each be assigned a unique serial number and be traceable to a parent game set; and
7. Game sets shall not be commingled.
Statutory Authority
§ 18.2-40.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-220. Game set definition.
If the system has the capability to create a game set from a predefined set of criteria, the criteria must contain the following information:
1. Game identification;
2. Game set version;
3. Manufacturer;
4. Game name;
5. Paytable identification;
6. Purchase price per electronic pull-tab;
7. Subset size;
8. Total number of subsets; and
9. Prize values with an associated index and frequency.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-230. Data required to be available for each game set.
A. The following data shall be available prior to the opening of a game set for distribution and shall be maintained and be viewable both electronically and, if requested, by printed report, upon demand:
1. A unique serial number identifying each game set or subset;
2. A description of the game set sufficient to categorize the game set or subset relative to other game sets;
3. The total number of electronic pull-tabs in the game set;
4. The number of game subsets to be created from the game set and the number of electronic pull-tabs in each subset when applicable;
5. The payout percentage of the entire game set;
6. The purchase price per electronic pull-tab assigned to the game set; and
7. Prize values with an associated index and frequency.
B. The following data shall be available subsequent to the completion of a game set and shall be maintained and viewable both electronically and, if requested, by printed report, upon demand:
1. A unique serial number identifying each game set or subset;
2. Description of the game set sufficient to categorize the game set relative to other game sets;
3. The total number of electronic pull-tabs unsold;
4. The total number of electronic pull-tabs purchased;
5. The time and date that the game set or each game subset became available for play;
6. The time and date that the game set or each game subset was completed or removed from play;
7. Location where game set or subset was played;
8. The final payout percentage of the game set when removed from play; and
9. The purchase price per electronic pull-tab assigned to the game set.
C. In order to provide maximum game integrity, no audit or other determination of the status of any game set or any subset, including a determination of the prizes won or prizes remaining to be won, shall be conducted by anyone while a game set or subset is in play without causing termination of the entire game set or subset. Only upon game set termination shall the details of the associated game set and subsets be revealed to the individual performing the audit.
D. Once terminated, a game set shall not be able to be reopened.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-240. Security requirements.
A. A distributed pull-tab system computer must be in a locked, secure enclosure with key controls in place.
B. A distributed pull-tab system shall provide a means for terminating the game set if information about electronic pull-tabs in an open game set has been accessed or at the discretion of the department. In such cases, traceability of unauthorized access, including time and date, users involved, and any other relevant information shall be available.
C. A distributed pull-tab system shall not permit the alteration of any accounting or significant event information that was communicated from the electronic gaming device without supervised access controls. In the event financial data is changed, an automated audit log must be capable of being produced to document the following:
1. Data element altered;
2. Data element value prior to alteration;
3. Data element value after alteration;
4. Time and date of alteration; and
5. Personnel that performed alteration.
D. A distributed pull-tab system must provide password security or other secure means of ensuring data integrity and enforcing user permissions for all system components through the following means:
1. All programs and data files must only be accessible via the entry of a password that will be known only to authorized personnel;
2. The distributed pull-tab system must have multiple security access levels to control and restrict different classes;
3. The distributed pull-tab system access accounts must be unique when assigned to the authorized personnel and shared accounts amongst authorized personnel must not be allowed;
4. The storage of passwords and personal identification numbers must be in an encrypted, nonreversible form; and
5. A program or report must be available that will list all registered users on the distributed pull-tab system, including the registered user's privilege level.
E. All components of a distributed pull-tab system that allow access to users, other than end- users for game play, must have a password sign-on with two-level codes comprising the personal identification code and a personal password.
1. The personal identification code must have a length of at least six American Standard Code for Information Interchange (ASCII) characters; and
2. The personal password must have a minimum length of six alphanumeric characters, which should include at least one nonalphabetic character.
F. A distributed pull-tab system must have the capability to control potential data corruption that can be created by multiple simultaneous log-ons by system management personnel.
1. A distributed pull-tab system shall specify which of the access levels allow for multiple simultaneous sign-ons by different users and which of the access levels do not allow for multiple sign-ons, and if multiple sign-ons are possible, what restrictions, if any, exist; or
2. If a distributed pull-tab system does not provide adequate control, a comprehensive procedural control document must be drafted for the department's review and approval.
G. Distributed pull-tab system software components or modules shall be verifiable by a secure means at the system level. A distributed pull-tab system shall have the ability to allow for an independent integrity check of the components or modules from an outside source, and an independent integrity check is required for all control programs that may affect the integrity of the distributed pull-tab system. This must be accomplished by being authenticated by a third-party device, which may be embedded within the distributed pull-tab system software or having an interface or procedure for a third-party application to authenticate the component. This integrity check will provide a means for field verification of the distributed pull-tab system components.
H. A distributed pull-tab system may be used to configure and perform security checks on electronic gaming devices, provided such functions do not affect the security, integrity, or outcome of any game and meets the requirements set forth in this chapter regarding program storage devices.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-250. Backup and recovery.
A. A distributed pull-tab system computer shall have a separate physical medium for securely storing game sets or subsets on the computer, which shall be mirrored in real time by a backup medium.
B. All data required to be available or reported by this chapter must be retained for a period of not less than three years from the close of the fiscal year.
C. All storage of critical data shall utilize error checking and be stored on a nonvolatile physical medium.
D. The database shall be stored on redundant media so that no single failure of any portion of the system would result in the loss or corruption of data.
E. In the event of a catastrophic failure when the distributed pull-tab system cannot be restarted in any other way, it shall be possible to reload the distributed pull-tab system from the last viable backup point and fully recover the contents of that backup, to consist of at least the following information:
1. All significant events;
2. All accounting information;
3. Auditing information, including all open game sets and the summary of completed game sets; and
4. Employee files with access levels.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-260. Electronic accounting and reporting.
A. One or more electronic accounting systems shall be required to perform reporting and other functions in support of distributed pull-tab systems. The electronic accounting system shall not interfere with the outcome of any gaming function.
B. The following reporting capabilities must be provided by the electronic accounting system:
1. Electronic pull-tab game set report – game sets in play. An electronic pull-tab game set report must be available on demand for each game set currently in play. Game cards, outcomes, or prizes must not be revealed. The report must contain the following information:
a. A unique serial number identifying each game set or subset;
b. A description of the game set sufficient to categorize the game set or subset relative to other game sets;
c. The total number of electronic pull-tabs in the game set;
d. The number of game subsets to be created from the game set and the number of electronic pull-tabs in each subset when applicable;
e. The theoretical payout percentage of the entire game set;
f. The purchase price per electronic pull-tab assigned to the game set;
g. The time and date that the game set or each game subset became available for play; and
h. The location where the game set or subset is being played.
2. Electronic pull-tab game set report – completed game set. An electronic pull-tab game set report must be available on demand, for each completed game set. The report must contain the following information:
a. A unique serial number identifying each game set or subset;
b. Description of the game set sufficient to categorize the game set relative to other game sets;
c. The total number of electronic pull-tabs unsold;
d. The total number of electronic pull-tabs purchased;
e. The time and date that the game set or each game subset became available for play;
f. The time and date that the game set or each game subset was completed or removed from play;
g. The location where game set or subset was played;
h. The final payout percentage of the game set when removed from play; and
i. The purchase price per electronic pull-tab assigned to the game set.
3. A report that shall indicate all prizes that exceed the threshold that triggers additional procedures to be followed for the purpose of compliance with federal tax reporting requirements. At a minimum, on a daily and monthly basis, the report shall provide the following information per electronic gaming device:
a. The date and time won;
b. The location of prize award; and
c. The amount of each prize occurrence.
4. Liability report. A liability report shall provide a summary of the outstanding funds that carry from business day to business day. At a minimum, this report shall include:
a. Amount of prizes or vouchers that were awarded in dollars and cents, but have not yet been claimed that have not yet expired; and
b. Summary of all outstanding accounts.
C. A distributed pull-tab system shall be capable of providing an electronic file in a format specified by the department on a periodic basis to a location specified by the department. The data to be reported will contain, at a minimum, the following items per session:
1. Organization information;
2. Session date;
3. Total cash in;
4. Total cash out;
5. Total cash played;
6. Total cash won;
7. For all game sets on the system in play or in inventory:
a. Serial number;
b. Description;
c. Ticket price;
d. Number of subsets if applicable;
e. Number of tickets or number of tickets per subset;
f. Theoretical return percentage; and
g. Date game set was opened for play, when applicable; and
8. For all game sets completed or close since the previous reporting date:
a. Serial number;
b. Description;
c. Ticket price;
d. Number of subsets, if applicable;
e. Number of tickets or number of tickets per subset;
f. Theoretical return percentage;
g. Date game set was opened;
h. Date game set was closed;
i. Total tickets sold;
j. Total dollars in;
k. Total prizes paid; and
l. Actual return percentage.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-270. Randomization.
A. As used in this section, unless the context requires a different meaning:
"Card position" means the first card dealt, second card dealt in sequential order.
"Number position" means the first number drawn in sequential order.
B. A distributed pull-tab system shall utilize randomizing procedures in the creation of game sets for electronic pull-tabs or externally generated randomized game sets that have been created using a method previously approved by the department.
C. Any random number generation, shuffling, or randomization of outcomes used in connection with a distributed pull-tab system must be by use of a random number generation application that has successfully passed standard tests for randomness and unpredictability including:
1. Each card position or number position satisfies the 99% confidence limit using the standard chi-squared analysis. "Chi-squared analysis" is the sum of the ratio of the square difference between the expected result and the observed result to the expected result.
2. Each card position or number position does not produce a significant statistic with regard to producing patterns of occurrences. Each card position or number position will be considered random if it meets the 99% confidence level with regard to the "run test" or any similar pattern testing statistic. The "run test" is a mathematical statistic that determines the existence of recurring patterns within a set of data.
3. Each card position or number position is independently chosen without regard to any other card or number drawn within that game play. This test is the "correlation test." Each pair of card positions or number positions is considered random if it meets the 99% confidence level using standard correlation analysis.
4. Each card position or number position is independently chosen without reference to the same card position or number position in the previous game. This test is the "serial correlation test." Each card position or number position is considered random if it meets the 99% confidence level using standard serial correlation analysis.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-280. Communications and network requirements.
A. Where the distributed pull-tab system components are linked with one another in a network, communication protocols shall be used that ensure that erroneous data or signals will not adversely affect the operations of any such system components.
B. All data communication shall incorporate an error detection and correction scheme to ensure the data is transmitted and received accurately.
C. Connections between all components of the distributed pull-tab system shall only be through the use of secure communication protocols that are designed to prevent unauthorized access or tampering, employing Advanced Encryption Standard (AES) or equivalent encryption.
D. A firewall or equivalent hardware device configured to block all inbound and outbound traffic that has not been expressly permitted and is not required for continued use of the distributed pull-tab system must exist between the distributed pull-tab system and any external point of access.
E. The minimum width (size) for encryption keys is 112 bits for symmetric algorithms and 1024 bits for public keys.
F. There must be a secure method implemented for changing the current encryption key set. It is not acceptable to only use the current key set to "encrypt" the next set.
G. There must be a secure method in place for the storage of any encryption keys. Encryption keys must not be stored without being encrypted themselves.
H. If a wireless network is used, wireless products used in conjunction with any gaming system or system component must meet the following minimum standards:
1. Employ a security process that complies with the Federal Information Processing Standard 140-2 (FIPS 140-2); or
2. Employ an alternative method, as approved by the department.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-290. Significant events.
The following significant events, if applicable, shall be collected from the electronic gaming device or point of sale and communicated to the system for storage and a report of the occurrence of the significant event must be made available upon request:
1. Power resets or power failure.
2. Communication loss between an electronic gaming device and any component of the distributed pull-tab system.
3. Electronic gaming device jackpot (any award in excess of the single win limit of the electronic gaming device).
4. Door openings (any external door that accesses a critical area of the electronic gaming device).
5. Bill validator errors:
a. Stacker full (if supported); and
b. Bill jam.
6. Printer errors:
a. Printer empty; and
b. Printer disconnect or failure.
7. Corruption of the electronic gaming device RAM or program storage device.
8. Any other significant events as defined by the protocol employed by the distributed pull-tab system.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-300. Validation system and redemption.
A distributed pull-tab system may utilize a voucher validation system to facilitate gaming transactions. The validation system may be entirely integrated into a distributed pull-tab system or exist as a separate entity.
1. A distributed pull-tab system may allow voucher out only; vouchers shall not be inserted, scanned, or used in any way at the electronic gaming device for redemption.
2. The validation system must process voucher redemption correctly according to the secure communication protocol implemented.
3. The algorithm or method used by the validation system or distributed pull-tab system to generate the voucher validation numbers must guarantee an insignificant percentage of repetitive validation numbers.
4. The validation system must retrieve the voucher information correctly based on the secure communication protocol implemented and store the voucher information in a database. The voucher record on the host system must contain, at a minimum, the following voucher information:
a. Validation number;
b. Date and time the electronic gaming device printed the voucher;
c. Value of voucher in dollars and cents;
d. Status of voucher;
e. Date and time the voucher will expire;
f. Serial number of electronic gaming device; and
g. Location name or site identifier.
5. The validation system or distributed pull-tab system must have the ability to identify the following occurrences and notify the cashier when the following conditions exist:
a. Voucher cannot be found on file;
b. Voucher has already been paid; or
c. Amount of the voucher differs from the amount on file (requirement may be met by display of voucher amount for confirmation by cashier during the redemption process).
6. If the connection between the validation system and the distributed pull-tab system fails, an alternate method or procedure of payment must be available and shall include the ability to identify duplicate vouchers and prevent fraud by redeeming vouchers that were previously issued by the electronic gaming device.
7. The following reports related to vouchers shall be generated on demand:
a. Voucher Issuance Report shall be available from the validation system that shows all vouchers generated by an electronic gaming device; and
b. Voucher Redemption Report shall detail individual vouchers and the sum of the vouchers paid by the validation terminal or point of sale by session and shall include the following information:
(1) The date and time of the transaction;
(2) The dollar value of the transaction;
(3) The validation number;
(4) A transaction number; and
(5) The point-of-sale identification number or name.
8. The validation system database must be encrypted and password protected and should possess an unalterable user audit trail to prevent unauthorized access.
9. The normal operation of any device that holds voucher information shall not have any options or method that may compromise voucher information. Any device that holds voucher information in its memory shall not allow removal of the information unless it has first transferred that information to the ticketing database or other secured component of the validation system.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-310. Point of sale; validation terminal.
A. A distributed pull-tab system may utilize a point-of-sale or validation terminal that is capable of facilitating the sale of the organization's pull tab outcomes or used for the redemption of credits from player accounts or vouchers. The point of sale may be entirely integrated into a distributed pull-tab system or exist as a separate entity.
B. Point-of-sale use is only permissible when the device is linked to an approved validation system or distributed pull-tab system.
C. If a distributed pull-tab system utilizes a point of sale, it shall be capable of printing a receipt for each sale, void, or redemption. The receipt shall contain the following information:
1. Date and time of the transaction;
2. Dollar value of the transaction;
3. Validation number, if applicable;
4. Quantity of associated products, if applicable;
5. Transaction number;
6. Account number, if applicable; and
7. Point-of-sale identification number or name.
D. The following point-of-sale or validation terminal reports shall be generated on demand:
1. Sales transaction history report shall show all sales and voids by session and include the following information:
a. Date and time of the transaction;
b. Dollar value of the transaction;
c. Quantity of associated products;
d. Transaction number; and
e. Point of sale identification number or name.
2. Voucher redemption report shall detail individual voucher redemptions paid by the validation terminal or point of sale by session and include the following information:
a. Date and time of the transaction;
b. Dollar value of the transaction;
c. Validation number;
d. Transaction number; and
e. Point of sale identification number or name.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-320. Location of equipment.
All equipment used to facilitate the distribution, play, or redemption of electronic games must be physically located within the boundaries of the Commonwealth of Virginia. This includes the distributed pull-tab system, electronic gaming devices, redemption terminals, and point-of-sale stations.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
Article 4
Electronic Gaming Devices
11VAC20-20-330. Electronic gaming device general requirements.
A. Each electronic gaming device shall bear a tamper evident seal and individual serial number affixed by the department.
B. An electronic gaming device shall only be used for electronic gaming.
C. In addition to a video monitor or touch screen, each electronic gaming device may have one or more of the following: a bill acceptor, printer, and electromechanical buttons for activating the game and providing player input, including a means for the player to make selections and choices in games.
D. For each electronic gaming device, there shall be located anywhere within the distributed pull-tab system, nonvolatile memory or its equivalent. The memory shall be maintained in a secure location for the purpose of storing and preserving a set of critical data that has been error checked in accordance with the critical memory requirements of this chapter.
E. An electronic gaming device shall not have any switches, jumpers, wire posts, or other means of manipulation that could affect the operation or outcome of a game. The electronic gaming device may not have any functions or parameters adjustable through any separate video display or input codes except for the adjustment of features that are wholly cosmetic.
F. An electronic gaming device shall not have any of the following attributes: spinning or mechanical reels, pull handle, sounds or music solely intended to entice a player to play, flashing lights, tower light, top box, coin tray, ticket acceptance, hopper, coin acceptor, enhanced animation, cabinet or payglass artwork, or any other attribute identified by the department.
G. An electronic gaming device shall be robust enough to withstand forced illegal entry that would leave behind physical evidence of the attempted entry or such entry that causes an error code that is displayed and transmitted to the distributed pull-tab system. Any such entry attempt shall inhibit game play until cleared and shall not affect the subsequent play or any other play, prize, or aspect of the game.
H. The quantity of electronic gaming devices present at a social organization's location at which electronic gaming is operated and conducted shall not exceed the number authorized by the department for such location.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-340. Cabinet wiring.
A. Proof of Underwriter Laboratories (UL) or equivalent certification shall be required for all submitted electronic devices.
B. An electronic gaming device shall be designed so that power and data cables into and out of the electronic gaming device can be routed so that the cables are not accessible to the general public.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-350. Electronic gaming device identification.
An electronic gaming device shall have a permanently affixed device identifier that cannot be removed without leaving evidence of tampering. This device identifier shall be affixed to the exterior of the electronic gaming device and shall include the following information:
1. The manufacturer name;
2. A unique serial number;
3. The electronic gaming device model number;
4. The date of manufacture; and
5. Any other information required by the department.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-360. Doors; compartments.
A. If an electronic gaming device possesses an external door that allows access to the interior of the machine the following rules shall apply:
1. Doors and their associated hinges shall be capable of withstanding determined illegal efforts to gain access to the inside of the electronic gaming device and shall leave evidence of tampering if an illegal entry is made;
2. All external doors shall be locked and monitored by door access sensors that shall detect and report all external door openings by way of an audible alarm, on-screen display, or both;
3. The electronic gaming device shall cease play when any external door is opened;
4. It shall not be possible to disable a door open sensor when the machine's door is closed without leaving evidence of tampering;
5. The sensor system shall register a door as being open when the door is moved from its fully closed and locked position; and
6. Door open conditions shall be recorded in an electronic log that includes a date and time stamp.
B. Electronic gaming devices that contain control programs located within an accessible area shall have a separate internal locked logic compartment that shall be keyed differently than the front door access lock. The logic compartment shall be a locked cabinet area with its own locked door that houses critical electronic components that have the potential to significantly influence the operation of the electronic gaming device. There may be more than one such logic area in an electronic gaming device. Electronic component items that are required to be housed in one or more logic areas are:
1. Central processing units and other electronic components involved in the operation and calculation or display of game play;
2. Communication controller electronics and components housing the communication program storage media or the communication board for the online system may reside outside the electronic gaming device; and
3. Logic compartment door open conditions shall be recorded in a log that includes a date and time stamp.
C. Electronic gaming devices that do not contain a door shall have adequate security for any panels or entry points that allow access to the interior of the device.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-370. Memory clear.
A. Following the initiation of a memory reset procedure utilizing a certified reset method, the program shall execute a routine that initializes the entire contents of memory to the default state. For electronic gaming devices that allow for partial memory clears, the methodology in doing so must be accurate and the game application must validate the uncleared portions of memory. The electronic gaming device display after a memory reset shall not be the top award.
B. It shall not be possible to change a configuration setting that causes an alteration or obstruction to the electronic accounting meters without a memory clear.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-380. Critical memory.
A. Critical memory shall be used to store all data that is considered vital to the continued operation of the electronic gaming device. Critical memory storage shall be maintained by a methodology that enables errors to be identified and corrected in most circumstances. This methodology may involve signatures, checksums, partial checksums, multiple copies, timestamps, or use of validity codes. This includes:
1. All electronic meters required in 11VAC20-20-440 E;
2. Current unused credits;
3. Electronic gaming device or game configuration data;
4. Recall of all wagers and other information necessary to fully reconstruct the game outcome associated with the last 10 plays;
5. Software state, which is the last state the electronic gaming device software was in before interruption; and
6. Error conditions that may have occurred on the electronic gaming device that may include:
a. Memory error or control program error;
b. Low memory battery, for batteries external to the memory itself or low power source;
c. Program error or authentication mismatch; and
d. Power reset.
B. Comprehensive checks of critical memory shall be made continually to test for possible corruption. In addition, all critical memory:
1. Shall have the ability to retain data for a minimum of 180 days after power is discontinued from the electronic gaming device. If the method used is an off-chip battery source, it shall recharge itself to its full potential in a maximum of 24 hours. The shelf life shall be at least five years. Memory that uses an off-chip back-up power source to retain its contents when the main power is switched off shall have a detection system that will provide a method for software to interpret and act upon a low battery condition;
2. Shall only be cleared by a department certified memory clear method; and
3. Shall result in an error if the control program detects an unrecoverable memory error.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-390. Program storage devices.
A. All program storage devices (writable/nonwritable), including erasable programmable read only memory (EPROM), DVD, CD-ROM, compact flash, and any other type of program storage device shall be clearly marked with sufficient information to identify the software and revision level of the information stored in the devices.
B. Program storage devices shall meet the following requirements:
1. Program storage, including CD-ROM, shall meet the following rules:
a. The control program shall authenticate all critical files by employing a hashing algorithm that produces a "message digest" output of at least 128 bits at minimum, as certified by the recognized independent test laboratory and agreed upon by the department. Any message digest shall be stored on a read-only memory device within the electronic gaming device. Any message digest that resides on any other medium shall be encrypted using a public/private key algorithm with a minimum of a 512-bit key or an equivalent encryption algorithm with similar security certified by the independent test laboratory and agreed upon by the department.
b. The electronic gaming device shall authenticate all critical files against the stored message digests. In the event of a failed authentication, the electronic gaming device should immediately enter an error condition with the appropriate indication, such as an audible signal, on-screen display, or both. This error shall require operator intervention to clear. The electronic gaming device shall display specific error information and shall not clear until the file authenticates properly or the electronic gaming device's memory is cleared, the game is restarted, and all files authenticate correctly.
2. CD-ROM specific based program storage shall:
a. Not be a rewritable disk; and
b. The "write session" shall be closed to prevent any further writing to the storage device.
C. Electronic gaming devices where the control program is capable of being erased and reprogrammed without being removed from the electronic gaming device or other equipment or related peripheral devices shall meet the following requirements:
1. Reprogrammable program storage shall only write to alterable storage media containing data, files, and programs that are not critical to the basic operation of the game.
2. Notwithstanding subdivision 1 of this subsection, data may be written to media containing critical data, files, and programs provided that:
a. A log of all information that is added, deleted, and modified be stored on the media;
b. The control program verifies the validity of all data, files, and programs that reside on the media using the methods required herein;
c. The electronic gaming device's program contains appropriate security to prevent unauthorized modifications; and
d. The electronic gaming device's program does not allow game play while the media containing the critical data, files, and programs is being modified.
D. The control program shall ensure the integrity of all critical program components during the execution of said components and the first time the files are loaded for use even if only partially loaded. Space that is not critical to machine security (e.g., video or sound) is not required to be validated, although the department recommends a method be in place for the files to be tested for corruption. If any of the video or sound files contain payout amounts or other information needed by the player, the files are to be considered critical.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-400. Touch screens.
Any touch screen must meet the following rules:
1. A touch screen shall be accurate once calibrated;
2. A touch screen shall be able to be recalibrated; and
3. A touch screen shall have no hidden or undocumented buttons or touch points anywhere on the touch screen, except as provided for by the game rules that affect game play.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-410. Bill acceptors.
A. An electronic gaming device may have a mechanism that accepts United States currency and provides a method to enable the electronic gaming device software to interpret and act appropriately upon a valid or invalid input.
B. An acceptance device shall be electronically based and be configured to ensure that it only accepts valid bills and rejects all others in a highly accurate manner.
C. A bill input system shall be constructed in a manner that protects against vandalism, abuse, or fraudulent activity. In addition, a bill acceptance device shall only register credits when:
1. The bill has passed the point where it is accepted and stacked; and
2. The bill acceptor has sent the "irrevocably stacked" message to the machine.
D. A bill acceptor shall communicate to the electronic gaming device using a bidirectional protocol.
E. A bill acceptor shall be designed to prevent the use of cheating methods such as stringing, the insertion of foreign objects, and any other manipulation that may be deemed as a cheating technique.
F. If a bill acceptor is designed to be factory set only, it shall not be possible to access or conduct maintenance or adjustments to that bill acceptor in the field, other than:
1. The selection of bills and their limits;
2. Changing of a certified erasable programmable read-only memory or downloading of certified software;
3. The method for adjustment of the tolerance level for accepting bills of varying quality should not be accessible from the exterior of the electronic gaming device. Adjustments of the tolerance level should only be allowed with adequate levels of security in place. This can be accomplished through lock and key, physical switch settings, or other accepted methods approved on a case-by-case basis;
4. The maintenance, adjustment, and repair per approved factory procedures; and
5. The options that set the direction or orientation of bill acceptance.
G. An electronic gaming device equipped with a bill acceptor shall have the capability of detecting and displaying an error condition for the following events:
1. Stacker full (it is recommended that an explicit "stacker full" error message not be utilized since this may cause a security issue);
2. Bill jams;
3. Bill acceptor door open. If a bill acceptor door is a machine door, a door open signal is sufficient;
4. Stacker door open; and
5. Stacker removed.
H. An electronic gaming device equipped with a bill acceptor shall maintain sufficient electronic metering to be able to report the following:
1. Total monetary value of all bills accepted;
2. Total number of all bills accepted;
3. A breakdown of the bills accepted for each denomination; and
4. The value of the last five items accepted by the bill acceptor.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-420. Payment by voucher printers.
A. If the electronic gaming device has a printer that is used to issue payment to the player by issuing a printed voucher for any unused game plays or winnings, the electronic gaming device shall meet the following rules:
1. The printer shall be located in a secure area of the electronic gaming device, but shall not be located in the logic area or any cash storage area. The bill acceptor stacker or logic areas containing critical electronic components shall not be accessed when the printer paper is changed; and
2. Data printed on a voucher shall include the following information regarding each voucher printed:
a. Value of unused game plays or winnings in United States currency, in numerical form;
b. Time the voucher was printed;
c. Date the voucher was printed;
d. Location name or site identifier;
e. Serial number of electronic gaming device;
f. Unique validation number or barcode if used in conjunction with a validation system; and
g. Expiration date and time.
B. If the electronic gaming device is capable of printing a duplicate voucher, the duplicate voucher shall clearly state the word "DUPLICATE" on its face.
C. The printer shall use printer paper containing security features such as a watermark as approved by the department.
D. A printer shall have mechanisms to allow the electronic gaming device to interpret and act upon the following conditions that must disable the game, and produce an error condition that requires attendant intervention to resume play:
1. Out of paper;
2. Printer jam or failure; and
3. Printer disconnect. The electronic gaming device may detect this error condition when the game tries to print.
E. An electronic gaming device that uses a voucher printer shall maintain a minimum of the last 25 transactions in critical memory. All voucher transactions shall be logged with a date and time stamp.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
11VAC20-20-430. Payment by account.
A. Credit may be added to a player account via a cashier or point of sale station. Credit may also be added by any supporting electronic gaming device through credits won or bills.
B. Money may be removed from a player account either through downloading of credits to the electronic gaming device or by cashing out at a cashier's or point-of-sale station.
C. All monetary transactions between a supporting electronic gaming device and the distributed pull-tab system must be secured by means of a card insertion into a magnetic card reader and personal identification number (PIN) entry or by other protected means.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.
Article 5
Game Requirements
11VAC20-20-440. Game play requirements.
A. A player receives an electronic pull-tab in return for consideration. A player wins if the player's electronic pull-tab contains a combination of symbols or numbers that was designated in advance of the game as a winning combination. There may be multiple winning combinations in each game. Electronic versions of instant bingo and pull-tabs, as authorized by the department, shall only utilize electronic gaming devices that allow players to play electronic pull-tabs. An electronic gaming device shall meet the following minimum requirements:
1. A player may purchase an opportunity to play an electronic pull-tab by:
a. Insertion of United States currency (bills only);
b. Purchase made at a point of sale terminal; or
c. Withdrawing deposits available in a player account.
2. The available games, flare, and rules of play shall be displayed on the electronic gaming device's video screen. Rules of play shall include all winning combinations.
3. Any number of game themes may be selectable for play on any given electronic gaming device. Only one of the game themes shall be playable at any given time.
4. An electronic gaming device shall be clearly labeled so as to inform the public that no one younger than 21 years of age is allowed to play.
5. An electronic gaming device shall not be capable of displaying any enticing animation while in an idle state. An electronic gaming device may use simple display elements or screen savers to prevent monitor damage.
6. The results of the electronic pull-tab shall be shown to the player using a video display. No rolling, flashing, or spinning animations are permitted. No rotating reels marked into horizontal segments by varying symbols are permitted.
7. Any sound or music solely intended to entice a player to play is prohibited. Any sound or music emitted by an electronic gaming device must not be played at a level sufficient to disturb other players or patrons.
8. The electronic gaming device shall have one or more buttons, electromechanical or touch screen, to facilitate the following functions:
a. Viewing of the game "help" screens;
b. Viewing of the game rules;
c. Initiating game play;
d. Cashout or logout; and
e. One or more buttons designated to reveal the pull-tab or instant bingo windows.
9. Following play on an electronic gaming device, the result shall be clearly shown on the video display along with any prizes that may have been awarded. Prizes may be dispensed in the form of:
a. Voucher;
b. Added to the machine balance meter; or
c. Added to the player's account balance.
10. An available balance may be collected from the electronic gaming device by the player pressing the "cashout" button or logging off of the electronic gaming device at any time other than during:
a. A game being played;
b. While in an audit mode or screen;
c. Any door open;
d. Test mode;
e. A machine balance meter or win meter incrementation unless the entire amount is placed on the meter when the "cashout" button is pressed; or
f. An error condition.
11. The default electronic gaming device display, upon entering game play mode, shall not be the top award.
B. An electronic gaming device shall not have hardware or software that determines the outcome of any electronic pull-tab, produce its own outcome, or affect the order of electronic pull-tabs as dispensed from the distributed pull-tab system. The game outcome shall be determined by the distributed pull-tab system as outlined within this chapter.
C. Game themes shall not contain obscene or offensive graphics, animations, or references. The department shall determine what constitutes obscene or offensive graphics, animations, or references.
D. Prior to approval for use, each electronic gaming device must meet the following specifications with respect to its operation:
1. After accepting an allowable cash payment from the player, the player shall press a "play" button to initiate a game.
2. The electronic gaming device shall not display in any manner, the number of electronic pull-tabs of each finite category, or how many cards remain.
3. Awards of merchandise prizes in lieu of cash are prohibited.
4. The player must interact with the device to initiate a game and reveal a win or loss. This may involve a button press on the console or on the touch screen.
5. The electronic pull-tab must be initially displayed with a cover and require player interaction to reveal the symbols and game outcome.
6. In no event may an electronic gaming device simulate play of roulette, poker, keno, lotto or lottery, twenty-one, blackjack, or any other card game, or simulate play of any type of slot machine game, regardless of whether the machine has a payback feature or extra play awards.
7. Card symbols such as ace, king, queen, or heart are acceptable, provided the device abides by the prohibition in subdivision 6 of this subsection.
8. Games must not contain any elements of skill.
E. Each electronic gaming device must meet the following specifications with respect to its metering system:
1. An electronic gaming device shall contain electronic metering whereby meters record and display on the video screen the following information at a minimum:
a. Total cash in for the bill acceptor if equipped with a bill acceptor;
b. Total cash played;
c. Total cash won;
d. Total cash removed from electronic gaming device;
e. Total count of electronic pull-tabs played; and
f. Total count of electronic pull-tabs won.
2. An electronic meter shall be capable of maintaining correct totals and be of no less than 10 digits in length.
3. An electronic gaming device shall not be capable of displaying the number of electronic pull-tabs that remain in the game set or the number of winners or losers that have been drawn or still remain in the game set while the game set is still being played.
4. An electronic meter shall not be capable of being automatically reset or cleared, whether due to an error in any aspect of the meter's or a game's operation or otherwise.
5. Currency meters shall be maintained in dollars and cents.
Statutory Authority
§ 18.2-340.15 of the Code of Virginia.
Historical Notes
Derived from Virginia Register Volume 39, Issue 14, eff. March 29, 2023.