Mich. Admin. Code R. 432.611

Current through Vol. 24-22, December 15, 2024

Section R. 432.611 - Definitions

Rule 611. As used in these rules:

(a) "Act" means the lawful internet gaming act, 2019 PA 152, MCL 432.301 to MCL 432.322.

(b) "Affiliate" means a person that, directly or indirectly, through 1 or more intermediaries, controls or is controlled by an internet gaming operator.

(c) "Affiliate marketer" means a person involved in promoting, marketing, and directing business to online gaming sites who is compensated based on the volume of customer referrals to an online gaming site or customer activity, including but not limited to, number of registrations, number of depositing registrations, or wagering activity, or both.

(d) "Agent" means any individual who is employed by any agency of this state, other than the board, the state police, or attorney general, and who is assigned to perform full-time services on behalf of or for the benefit of the board regardless of the title or position held by that individual.

(e) "Authorized game" means any internet game that the board determines to be suitable for use for wagering through the internet, which must include, but need not be limited to, poker, blackjack, cards, slots, games played with dice or tiles, or both, such as roulette, craps, pai gow, and other games typically offered at a casino. An authorized game does not include any of the following: pick numbers or other lottery games typically offered by the bureau of lottery under the McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47; a lawful fantasy contest; or any lawful internet sports betting.

(f) "Authorized participant session" means the period of time that an authorized participant is logged on to an internet gaming platform.

(g) "Conflict of interest" means a situation, relationship, or association in which the private interest of employees, agents, and contractors of the board may influence the judgment of the employee, agent, or contractor in the performance of his or her public duty under the act.

(h) "Contractor" means any individual not employed by this state who performs services on behalf of or for the benefit of the board and requires unescorted access to board facilities.

(i) "Excluded person" means any individual who has been involuntarily placed in the responsible gaming database by the executive director and who is prohibited from establishing an internet wagering account or participating in internet wagering, or both, offered under the act or these rules.

(j) "Executive Director" means the executive director of the Michigan gaming control board, appointed under section 4 of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.204.

(k) "Game server" means a server that contains game software and control programs.

(l) "Internet gaming network" means the linking of authorized participants of 1 or more Internet gaming operators to participate in peer-to-peer gaming in this state. An internet gaming network does not include linking of authorized participants pursuant to a multijurisdictional internet gaming agreement entered into in accordance with the act.

(m) "Interactive gaming system" means the hardware, software, firmware, communications technology and other equipment that allows an authorized participant to remotely bet or wager through the internet or a similarly distributed networking environment, and the corresponding equipment related to game outcome determination, the display of the game and game outcomes, and other similar information necessary to facilitate play of the game. The internet gaming platform provides the authorized participant with the means to play authorized games. The internet gaming platform provides the internet gaming operator with the means to review internet wagering accounts, disable games, generate various gaming/financial transaction and account reports, input outcomes for live internet games, and set any configurable parameters. The term does not include computer equipment or communications technology used by an authorized participant to access the interactive gaming system. Unless otherwise specified in these rules, the term internet gaming platform includes the entire interactive gaming system inclusive of remote gaming systems.

(n) "Key person" means any of the following except as otherwise provided in paragraph (vii):

(i) A director of the applicant.

(ii) A managerial employee of the applicant that performs the function of principal executive officer, principal operations officer, or principal accounting officer.

(iii) A person who holds more than 5% ownership interest in the applicant.

(iv) An affiliate of the applicant.

(v) A director of an affiliate of the applicant.

(vi) A managerial employee of an affiliate of an applicant that performs the function of principal executive officer, principal operations officer, or principal accounting officer.

(vii) "Key person" does not include an elected or appointed representative of any applicant or licensee that is a federally recognized Indian tribe located in this state unless the representative is also a full-time employee of the applicants or licensees internet gaming operations. A key person for an Indian tribe includes a primary management official of the applicant who has management responsibilities for the applicants internet gaming operations.

(o) "Licensee" means a person who holds a license under the act.

(p) "Live game" means a game conducted by a gaming attendant (e.g., dealer, croupier, etc.) or other gaming equipment (e.g., an automated roulette wheel, ball blower, or gaming device), or both, in a live game environment in which authorized participants have the ability to review game play and communicate game decisions through the internet gaming platform. Live games include, but are not limited to, live card games, live table games, and live play of gaming devices, and other live authorized games.

(q) "Live game environment" means a physical location that utilizes live video streaming technology to provide live games to a remote player device that permits the authorized participant to participate in live streamed games, interact with game attendants, and interact with fellow authorized participants.

(r) "Peer-to-peer gaming" means all gaming activity, such as poker, where authorized participants are directly competing against each other but not the licensee.

(s) "Prohibited person" means any excluded person, any voluntarily-excluded person, and all of the following:

(i) An individual who is under the age of 21.

(ii) Any employee of, or appointee to, the Michigan gaming control board.

(iii)Employees of an internet gaming operator. An employee of an internet gaming operator shall not create an internet wagering account or place an internet wager with the internet gaming operator for which he or she is employed unless using a test account under R 432.639a.

(iv) Employees of an internet gaming platform provider. An employee of an internet gaming platform provider shall not create an internet wagering account or place an internet wager with the internet gaming operator for which the internet gaming platform provider supplies the internet gaming platform unless using a test account under R 432.639a.

(v) Employees or appointees of a tribal gaming regulatory agency with jurisdiction over internet gaming being operated under the tribes gaming ordinance and the Indian gaming regulatory act, 18 USC 1166 to 1168 and 25 USC 2701 to 2721.

(vi) Occupational licensees and applicants. Occupational licensees and applicants shall not place wagers with the internet gaming operator or internet gaming platform provider for which they are employed or for which they had to qualify.

(vii) An individual not in an authorized location to make a wager.

(viii) An individual placing an internet wager on behalf of another

(ix) An individual wagering in violation of state, tribal, or federal law.

(x) Other prohibited persons as determined by the board.

(t) "Publicly traded corporation" means any corporation or other legal entity regulated by the U.S. Securities and Exchange Commission under the securities exchange act of 1934, 15 USC 78a to 78qq, or securities act of 1933, 15 USC 77a to 77aa.

(u) "Random number generator" or "RNG" means a computational or physical device, algorithm, or system designed to produce numbers in a manner indistinguishable from random selection. .

(v) "Remote gaming system" means hardware and software used to provide authorized internet games to an authorized participant on an internet gaming platform. The remote gaming system may contain features common to game offerings, game configurations, the random number generator, and reporting. The remote gaming system may be a standalone system or integrated within another part of the internet gaming platform.

(w) "Remote player device" means an authorized participant-owned device that at a minimum will be used for the execution of game play. Examples of a remote player device include a personal computer, mobile phone, tablet, etc.

(x) "Secure transaction file" means a file that contains data that cannot be modified without detection.

(y) "Self-authentication process" means a method used by a system to verify the validity of software and includes the following:

(i) The method requires the calculation of an output digest that is compared to a secure embedded value.

(ii) The output digest must be of 128-bit complexity, at a minimum.

(iii) Software is authenticated if the calculated digest equals the secure embedded value.

(z) "Self-exclusion list" means a list of individuals who voluntarily excluded themselves from establishing or maintaining an internet wagering account with an internet gaming operator or internet gaming platform provider.

(aa) "Strong authentication" means a method that has been demonstrated to the satisfaction of the board to effectively provide higher security than a username and password alone.

(bb) "Suspended account" means an internet wagering account that has been temporarily disabled from engaging in wagering activity.

(cc) "Targeted mailing" means an advertisement or promotional offer from an internet gaming operator or an internet gaming supplier directed to an individual on the basis of specific criteria, such as being a member or former member of a rewards club or a participant in social games. "Targeted mailing" does not include mass communication, including mailings or e-mailings, made to an entire area or zip code or targeted list, nor does it include an advertisement that arrives in a packet of 5 or more non-gaming advertisements, if the packet of advertisements is addressed to "resident," "occupant," or some similar wording and not to a specific individual. "Targeted mailing" further does not include any "pop-up" advertisement that appears on an individuals computer or mobile device on the basis of his or her IP Address.

(dd) "Theoretical return to player" or "RTP" means the expected percentage of bets or wagers that a specific game will return to the player in the long run. The RTP can be calculated via either a theoretical or simulated approach. The method used for calculation depends on the game type.

(ee) "Things of value" means anything of value that may be used to place an internet wager.

(ff) "Voluntarily-excluded person" means any individual whose name is included, at his or her own request, in the responsible gaming database or on a self-exclusion list, or both.

Mich. Admin. Code R. 432.611

2020 MR 22, Eff. 12/2/2020