Current through Register Vol. 54, No.43, October 26, 2024
Section 461a.13 - Wide area progressive systems(a) Two or more slot machine licensees may, with the prior written approval of the Board as required under subsection (c), operate a wide area progressive system.(b) A wide area progressive system shall at all times be installed and operated in accordance with relevant requirements of the act and this subpart.(c) A wide area progressive system shall be operated and administered by participating slot machine licensees in accordance with the terms and conditions of a written agreement executed by the participating slot machine licensees. The agreement shall be referred to as a slot system agreement. Slot system agreements must be submitted in writing and approved by the Board prior to implementation.(d) Slot machine licensees participating in a slot system agreement may delegate, in whole or in part, the operation and administration of a wide area progressive system to a licensed manufacturer provided that the slot system agreement is executed by the licensed manufacturer and its express terms are approved by the Board. The persons designated in a slot system agreement as being responsible for the operation and administration of a wide area progressive system shall be referred to as the slot system operator.(e) An agreement between a licensed manufacturer and a slot machine licensee under which a licensed manufacturer sells, leases or services a wide area progressive system will not constitute a slot service agreement unless the agreement also covers operation and administration of the wide area progressive system.(f) Slot system agreements providing for the operation and administration of a wide area progressive system must identify and describe with specificity the duties, responsibilities and authority of each participating slot machine licensee and each slot system operator including all of the following:(1) Details with regard to the terms of compensation for the slot system operator. The agreement must address to what extent, if any, the slot system operator is receiving compensation based directly or indirectly on an interest, percentage or share of a slot machine licensee's revenue, profits or earnings from the operation of the wide area progressive system.(2) Responsibility for the funding and payment of all jackpots, fees and gross terminal revenue taxes associated with the operation of the wide area progressive system.(3) Control and operation of the computer monitoring room required under subsection (g).(4) A description of the process by which significant decisions with regard to the operation of the wide area progressive system are approved and implemented by the participating slot machine licensees and slot system operator.(5) When applicable, the terms of apportionment of responsibility for establishing and servicing any trust agreement associated with any annuity jackpot offered by the wide area progressive system.(6) Responsibility for generating, filing and maintaining the records and reports required under the act and this part.(g) A wide area progressive system shall be controlled and operated from a computer monitoring room. The computer monitoring room must:(1) Be under the sole possession and control of, and maintained and operated by, employees of the slot system operator designated in the slot system agreement for that system. The employees of the slot system operator may be required to obtain a license or permit if the Board determines, after a review of the work being performed, the employees require a license or permit for the protection of the integrity of gaming.(2) Have its monitoring equipment subjected to surveillance coverage either by the surveillance system of a slot machine licensee participating in the slot system agreement or by a dedicated surveillance system maintained by the slot system operator.(3) Be accessible through a locked door. The door must be alarmed in a manner that audibly signals the surveillance monitoring room for the surveillance system elected under paragraph (2).(4) Have a computer monitoring room entry log. The log must be: (i) Kept in the computer monitoring room.(ii) Maintained in a book with bound numbered pages that cannot be readily removed.(iii) Signed by each person entering the computer monitoring room who is not an employee of the slot system operator expressly employed in the computer monitoring room on his assigned shift. Entries must contain all of the following:(A) The date and time of entering and exiting the room.(B) The name, department or employer, when applicable, gaming license or permit number of the person entering and exiting the room and of the person authorizing the entry.(C) The reason for entering the computer monitoring room.(5) Reside within a participating licensed facility or other approved location.(h) A slot system agreement submitted to the Board for approval must be accompanied by a proposed system of internal controls addressing all of the following:(1) Transactions directly or indirectly relating to the payment of progressive jackpots including the establishment, adjustment, transfer or removal of a progressive jackpot amount and the payment of any fees or taxes associated therewith.(2) The name, employer, position and gaming license status of any person involved in the operation and control of the wide area progressive system.(i) The Bureau of Licensing must review the persons identified in subsection (h)(2) and determine, based on an analysis of specific duties and responsibilities, which persons will be licensed to what level in this Commonwealth.(j) A slot system operator may not commence operation and administration of a wide area progressive system under the terms of a slot system agreement until the agreement itself and the internal controls required under subsection (h) have been approved and the slot system operator has complied with any licensing requirements under subsection (i).(k) When a slot system agreement involves payment to a licensed manufacturer, functioning as a slot system operator, of an interest, percentage or share of a slot machine's licensee's revenue, profits or earnings from the operation of a wide area progressive system, the Board will evaluate the slot system agreement to determines if the total amounts paid to the licensed manufacturer under the terms of the agreement are commercially reasonable for the operational and administrative services provided.(l) Each party to a slot system agreement shall be liable for acts, omissions and violations of the act and this part related to its own individual duties and responsibilities under the slot system agreement, unless the slot system agreement specifically provides that the parties will be jointly and severally liable.(m) The Executive Director may waive one or more of the technical requirements applicable to wide area progressive systems adopted by the Board upon a determination that the wide area progressive system as configured nonetheless meets the operational integrity requirements of the act and this part.The provisions of this §461a.13 amended January 31, 2014, effective 2/1/2014, 44 Pa.B. 599; amended November 1, 2019, effective 11/2/2019, 49 Pa.B. 6676.The provisions of this § 461a.13 amended under 4 Pa.C.S. §§ 1202(b)(30), 1207(3), (6), (9) and (21), 1322, 13A02(1), (2) and (4), 13A27, 1602, 1604 and 1608.
This section cited in 58 Pa. Code § 461b.4 (relating to wide area progressive systems); and 58 Pa. Code § 810a.11 (relating to controls).