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NEW JERSEY REGISTER
VOLUME 38, ISSUE 10
ISSUE DATE: MAY 15, 2006
RULE PROPOSALS
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
Legalized Games Of Chance Control Commission

 

Proposed Amendments: N.J.A.C. 13:47-1.1, 7.2, 7.5, 7.9, 7.23, 8.4, 8.5, 8.14, 8.36, 8.37, 8.38, 8.41, 8.42, 13.1, and 13.6 Proposed New Rules: N.J.A.C. 13:47-5A, 7.20, and 8.35

Bingo and Raffles

Electronic Games of Chance

Authorized By: Legalized Games of Chance Control Commission, Stephen Nolan, Acting Executive Officer, and Deputy Director, Division of Consumer Affairs.

Authority: N.J.S.A. 5:8-6, 5:8-25 and 5:8-51.

Calendar Reference: See Summary below for explanation of exception to calendar requirement.

Proposal Number: PRN 2006-169.

Submit comments by July 14, 2006 to:
Legalized Games of Chance Control Commission
c/o Stephen Nolan, Deputy Director, Division of Consumer Affairs
124 Halsey Street
P.O. Box 46000
Newark, New Jersey 07101

The agency proposal follows:

Summary

The Legalized Games of Chance Control Commission (the Commission) is proposing amendments to the Bingo and Raffles rules, and new rules, at N.J.A.C. 13:47 to provide requirements for electronic games of chance systems generally, and for electronic card-minding systems and electronic instant raffle or pull-tab machines specifically, pursuant to authority granted by P.L. 2005, c. 140 ( N.J.S.A. 5:8-25) which became effective July 7, 2005.

The approximately 6,500 organizations registered with the Commission hold approximately 29,000 licensed bingo occasions per year. An average of 120 players attend each occasion and each player spends an average of $ 22.00 per occasion. For the registered schools, churches, religious organizations, fire companies, and first aid and rescue squads, bingo is a significant method of fundraising. The same is true of senior citizen clubs and associations to a certain extent, but bingo is also an important source of entertainment and social interaction for their members. However, the amount of gross receipts that registered organizations have collected from bingo has been diminishing over the last 10 years, from $ 84,219,873 in 1995 to $ 39,504,800 in 2004.

Electronic card minders, which replicate card faces on a screen, allow players to keep track of a number of cards at one time. They may permit players with certain physical limitations to play by eliminating the need to daub (cover) paper cards, enabling more players to play more cards. Increasing the number of bingo cards sold at an occasion would make the games more rewarding to the organizations, and, if the organizations are offering percentage prizes, to the players. Larger prizes draw more players. The Commission believes that using electronic card minders should result in more profit for the organizations, although it is not possible to estimate the amount of the increase, if any.

Similarly, the Commission anticipates that organizations using electronic pull-tab machines will increase revenue. Electronic pull-tab machines replicate instant raffle tickets on the screen, but with sound, animation and interactive touchscreen technology they are expected to attract more players to play more games.

The proposed amendments and new rules cover generic electronic games of chance systems and the particular systems and devices used to play bingo and instant raffles. The Commission is proposing amendments to N.J.A.C. 13:47-1.1 to expand existing definitions to accommodate the electronic counterpart of traditional paper games and to add definitions of terms unique to electronic games of chance systems, electronic card-minding systems and electronic pull-tab machines.

Electronic games of chance system is the generic term for electronic or computerized equipment and software used to conduct games of chance. An electronic card-minding system is an electronic games of chance system used to conduct bingo games. It consists of electronic card-minding devices, in which electronic representations of bingo cards are stored, and a site system. A site system is the computer hardware, software and peripheral equipment that controls the electronic card-minding devices and collects information related to the bingo games and performs the other functions required to be performed by the system. An electronic pull-tab machine is an electronic games of chance system used to simulate paper instant raffle games and which collects information relating to the games. "Pull tabs" is another name for instant raffles.

The Commission is proposing a new Subchapter 5A setting forth the process for certificating electronic games of chance systems. Proposed new rule N.J.A.C. 13:47-5A.1 requires that electronic games of chance systems be tested in a testing facility or laboratory approved by the Commission before they can be furnished to anyone in the State for conducting games of chance. The proposed new rule sets forth the process by which an equipment supplier or manufacturer licensed by the Commission pursuant to N.J.A.C. 13:47-13.1 may apply for a certification of permissibility for an electronic games of chance system. The applicant, at its expense, must submit the electronic games of chance system to the laboratory for testing, including in the submission all hardware, software, operating manuals and technical information associated with the system. The laboratory tests a system to determine whether it complies with the requirements of the rules.

Proposed new rule N.J.A.C. 13:47-5A.2 sets forth verification and security requirements for electronic games of chance systems and requires that any records generated by player tracking software be maintained for at least a year. The section requires that electronic games of chance systems be configured so that games of chance are played in accordance with the rules established by the Commission for the particular game; for example, the rules for bingo set forth in N.J.A.C. 13:47-7.9.

Proposed new rule N.J.A.C. 13:47-5A.3 authorizes the Commission to impose limitations on a certification of permissibility for an electronic games of chance system. Under proposed new rule N.J.A.C. 13:47-5A.4, a certification of permissibility for an electronic games of chance system may cover more than one game if the games are similar in kind. Certifications of permissibility will bear a serial number as provided in proposed new rule N.J.A.C. 13:47-5A.5. Under proposed new rule N.J.A.C. 13:47-5A.6, a certification of permissibility may be cancelled or modified only with notice to the licensee operating a game under the certification and an opportunity for the licensee to be heard. Proposed new rule N.J.A.C. 13:47-5A.7 provides that a license for any kind of game of chance authorizes the conduct of the game only in the manner and to the extent certified to be permissible in the certification of permissibility granted for the game.

The Commission is proposing to amend N.J.A.C. 13:47-7.2 to increase the value of the prizes that may be offered to $ 1,000 for any single game and $ 3,000 in the aggregate for one occasion, as permitted by P.L. 2005, c. 140 enacted on July 7, 2005. The Commission is proposing to amend N.J.A.C. 13:47-7.5 to permit a registered organization to charge a player an additional fee for use of an electronic card-minding device. The proposed amendments to N.J.A.C. 13:47-7.9 add rules for playing bingo games that apply to games played using electronic card-minding devices, including the number of devices and the number of card faces per device a player can use. The amendments also state that an electronic card-minding system may not perform certain functions automatically; a player must continue to perform those functions manually. Electronic card-minding devices of only one manufacturer may be used on any single occasion; they must be enabled for play where the game will be played and there must be backups or replacement batteries for malfunctioning units. Other amendments are proposed to make clear that certain existing rules apply only to paper cards.

At N.J.A.C. 13:47-7.20, which had been reserved, a new rule is proposed to set forth requirements for electronic card-minding systems. The systems must have, among other things, a point of sale station and an internal accounting system capable of tracking and recording sales of devices and of electronic and disposable cards, and must be capable of assuring that no card face, electronic or disposable, duplicates another. The systems must record and retain information about the price of electronic and paper card faces sold, the total amount of sales and the serial numbers and other identifying numbers of cards and devices sold. The systems must be capable of printing receipts for each sale of an electronic or paper card showing information about the transaction and about the cards sold. Electronic card-minding systems must permit bingo games to be played in accordance with the requirements of N.J.A.C. 13:47-7.9. Each system must be capable of verifying winning cards and may not permit a player to play a game or win a prize for a game played on any bingo card not obtained for the occasion from the licensed organization. Electronic card-minding devices may not permit play of more than 54 card faces per game, may not permit insertion or dispensing of coins or tokens, and may not produce music or sound effects. The Commission proposes to amend N.J.A.C. 13:47-7.23 to prohibit any player from selecting particular cards, but a player may select a particular electronic card-minding device because the card-minding device, not the player, selects the particular card faces. N.J.A.C. 13:47-8.4, which sets forth the method of play for instant raffle games, is proposed to be amended to accommodate electronic pull-tabs. The section provides that, in the case of electronic pull-tab games, randomization of the deal is to be accomplished by the electronic games of chance system. The section is also proposed for amendment to reduce the period of time that unsold raffle tickets or, in the case of games played on electronic pull-tab machines, meter records, are to be retained from three years to one year. The Commission believes that experience has shown that it is unnecessarily burdensome for organizations to store the physical tickets for three years so long as the accounting records, including a record of the unsold tickets, are kept for three years as is required by N.J.A.C. 13:47-8.41, proposed to be recodified as N.J.A.C. 13:47-8.42(a) and (b). N.J.A.C. 13:47-8.5 sets forth the method of determining winners of instant raffle games. To accommodate electronically simulated tickets, the proposed amendment provides for the use of cash vouchers to verify a winning instant raffle ticket. The proposed amendment to N.J.A.C. 13:37-8.14 corrects a section reference within the chapter. The proposed new rule N.J.A.C. 13:47-8.35, previously reserved, provides for the operation of electronic pull-tab machines. Electronic pull-tab machines may not make any direct cash payments. Rather, they are required to convert cash that a player inserts in the machine into credits which may be redeemed for cash or used to play the same game or a different game on the same machine. Each credit played is deducted from the deal until the deal is exhausted. A winning ticket augments the player's credits. An electronic pull-tab machine may display numbers, letters or symbols when it is activated by a player touching the screen and, except for visual animation simulating rolling or spinning reels, may display visual animation and sound. Statistical information relating to the game may not be displayed or disclosed.

An electronic pull-tab machine must be capable of printing a cash voucher on a secure printer for credits owed to a player. The voucher must show information about the licensed organization, the machine, the date and time, the ticket and the value of the prize. An electronic pull-tab machine must have hardwired, non-resettable mechanical meters that cannot be accessed without destroying the meter. The meters must keep a permanent cumulative record and a record for each session, of the credits accepted, played and won on the electronic pull-tab machine. The machine must produce an accounting ticket every time the meters are reset showing information about the licensee, the machine, the date and time, the program and the meter readings. Electronic pull-tab machines must be equipped with a surge protector and a back-up power supply capable of maintaining the accuracy of the electronic meters for 30 days.

The Commission proposes to amend N.J.A.C. 13:47-8.36 to permit the flare (information sheet describing the particular game) for each deal on an electronic machine to be displayed on the screen rather than posted. It also proposes to amend N.J.A.C. 13:47-8.37 to make the existing standards for instant raffle tickets set forth in subsection (a) apply specifically to paper instant raffle tickets and to provide standards for electronic instant raffle tickets in a new subsection (b).

The Commission proposes to amend N.J.A.C. 13:47-8.38 to limit to paper tickets the prohibition against extending credit to a registered organization for the purchase of instant raffle tickets. Recognizing the substantial investment required to acquire an electronic pull-tab machine, which in effect contains the tickets, the Commission proposes to add a new subsection (b) that would permit a registered organization to purchase an electronic pull-tab machine on credit in accordance with N.J.A.C. 13:47-8.14. As stated above, the Commission proposes to recodify the present provisions of N.J.A.C. 13:47-8.41 as N.J.A.C. 13:47-8.42(a) and (b).

The proposed amendments to N.J.A.C. 13:47-13.1 apply the licensing procedure for distributors and suppliers of equipment to manufacturers of electronic games of chance systems as well and provide that equipment includes electronic games of chance systems. The Commission also proposes an amendment to clarify that the licensing procedure applies also to suppliers of personnel for games of chance.

N.J.A.C. 13:47-13.6 provides for licenses for approved manufacturers and distributors of equipment and sets forth the licensing fees. The Commission proposes to amend the section to use the term "instant raffle equipment supplier," which is defined to mean both a manufacturer and a distributor of instant raffle equipment or services. Accordingly, proposed amendments to subsections (c) and (d) delete the word "manufacturer" and substitute "instant raffle equipment supplier." Using the defined term "instant raffle equipment supplier" makes subsections (e) and (f), which apply to distributors, superfluous. The Commission proposes to delete the present subsections (e) and (f) and substitute provisions for license fees and renewal fees for distributors of electronic games of chance systems not otherwise licensed under this section, anticipating that, in the future, electronic games of chance systems may be used to play games other than bingo and instant raffles. The Commission has authorized increases in certain fees which will be the subject of a separate rulemaking. The fees included in this proposal reflect the increased amounts authorized by the Commission. The proposed amendments to N.J.A.C. 13:47-13.6 provide for an increase in the annual license fee for instant raffle equipment suppliers to $ 3,000, from $ 1,500 for manufacturers and $ 1,000 for distributors, and sets the annual licensing fee for manufacturers of electronic games of chance systems other than bingo and instant raffles at $ 3,000, and for distributors of electronic games of chance systems other than bingo and instant raffles at $ 1,000. In this section, the Commission is also proposing a fee for the use of electronic card-minding systems of $ 25.00 for the first 10 devices and an additional $ 10.00 for up to an additional 10 devices. The fee must be accompanied by a statement disclosing information about the distributor, or registered organization if it owns the system; the organization conducting the games of chance; the location where the games are conducted; the number of the certification of permissibility issued for the electronic card-minding system used for conducting the games; and the number of devices used.

Social Impact

The Commission believes that the proposed amendments and new rules will benefit the members of the public who play games of chance, particularly bingo and instant raffles, and the organizations that hold the games to raise money for their charitable or civic purposes. There are approximately 6,500 organizations registered with the Commission. Approximately 3,480,000 players attend bingo occasions each year.

Economic Impact

The approximately 6,500 organizations registered with the Commission to be eligible to be licensed to conduct bingo and raffles games are expected to benefit from the proposed amendments and new rules providing for electronic games of chance. The costs of purchasing or renting electronic systems may exceed the costs for paper and the increase in the permissible value of prizes that may be offered for any single game or any occasion may increase the total value of prizes an organization may award over the course of time, but the Commission believes that the use of electronic games of chance and the increase in the value of prizes should increase the number of games played and hence the amount of profits that registered organizations can realize. The costs of testing electronic games of chance systems and the fees for certification and licensing will have an impact on applicants for certifications of permissibility, but the Commission believes that the charges are necessary to cover the costs of administration of the process. The additional fee that may be charged to players for use of electronic card minding devices will have an impact on players, but it will help defray any extra costs an organization may have. A player has the option to use traditional paper bingo cards.

Federal Standards Statement

A Federal standards analysis is not required because there are no Federal laws or standards applicable to the proposed amendments and new rules.

Jobs Impact

The Commission believes that the proposed amendments and new rules will neither increase nor decrease the number of jobs in the State. While the visuals and variety of games available through electronics may generate interest in playing bingo and instant raffles, the nature of electronic games of chance systems is that more games can be played without additional staffing.

Agriculture Industry Impact

The proposed amendments and new rules will not have any impact on the agriculture industry in the State.

Regulatory Flexibility Analysis

Although manufacturers of electronic games of chance systems tend to be large enterprises, equipment suppliers and registered organizations may be considered to be small businesses, as defined under the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq. Equipment suppliers are required to obtain a certification of permissibility for electronic games of chance systems to be used in the State, the process for which includes having systems tested for compliance with the Commission's rules.

The proposed amendments and new rules require that a serial number be assigned to each electronic games of chance system and peripheral electronic device. Electronic games of chance systems must have specified capabilities, including capturing, storing and printing information about the systems and devices themselves and about sales of cards and tickets. The systems must also be capable of verifying winning cards and tickets and of printing cash vouchers in the case of electronic pull-tab machines and receipts for sales. The proposed amendments and new rules impose security requirements for electronic games of chance systems to prevent access to the internal parts so that the hardware, software and mechanical meters cannot be tampered with.

Detailed records generated by electronic games of chance systems are required to be maintained by the registered organizations using the systems. The obligation of registered organizations to retain unused instant raffle tickets is proposed to be reduced from three years to one year, although accounting records are still required to be kept for three years.

Bingo and instant raffle games played with electronic games of chance systems are subject to the same rules as games played with paper cards and tickets plus additional rules that are unique to the electronic medium. The costs of compliance with the proposed amendments and new rule are discussed in the Economic Impact above. The Commission does not anticipate that professional services will be necessary in order to comply with the proposed amendments and new rule. Uniform rules for all operators are necessary to ensure fair play. Therefore, there is no basis for different compliance requirements based on business size.

Smart Growth Impact

The Commission believes the proposed amendments and new rules will not have any impact upon the achievement of smart growth or upon the implementation of the State Development and Redevelopment Plan.

Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):

13:47-1.1 Words and phrases defined

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

"Bingo card" means a card or the electronic representation of a card stored in an electronic card minding device containing five lines of numbers or other designations, five or more in one line, with each line being identified by a letter printed at the top of the line in the following order B, I, N, G, O.

"Bingo equipment" means the receptacle and numbered objects to be drawn from it, the master board upon which such objects are placed as drawn, the cards or sheets bearing numbers or other designations to be covered and the objects used to cover them, the boards or signs, however operated, used to announce or display the numbers or designations as they are drawn, public address systems, and all other articles essential to the operation, conduct and playing of bingo, including electronic card minding systems.

"Cash voucher" means a voucher produced by an electronic pull tab machine that reflects the result of bona fide play of the machine.

"Check sum" or "digital signature" means a method by which data, as in a software application, is expressed in a calculated number which is used to verify the accuracy of the data or a copy of the data.

"Deal" means [a package sealed by the manufacturer consisting of one game of] a finite pool of instant raffle tickets or credits with the same serial number. Each ticket or credit within a deal represents an equal share of the deal. Each deal shall have a predetermined size (number of total tickets or credits available within the pool), a predetermined number of winning and losing tickets or credits within the pool (a predetermined winner ratio), and a predetermined percentage of payout. Once the size of a deal is predetermined, the deal shall not be manipulated or regenerated to alter the size of the deal.

"Electronic card minding device" or "card minding device" means an electronic device that is used by a bingo player to mark representations of bingo card faces stored in the device.

"Electronic card minding system" means an electronic games of chance system used to conduct bingo games which consists of electronic card minding devices and a site system.

"Electronic device" means that component of an electronic games of chance system consisting of a computerized device that is used by a player to play a game of chance using proprietary software and hardware separately or in conjunction with commonly available software and computers.

"Electronic games of chance system" means any electronic or computerized device and related hardware and software that is interfaced with or connected to equipment used to conduct games of chance.

"Electronic pull tab machine" means an electronic device that uses video images to simulate the paper instant raffle or pull tab game.

"Instant raffle equipment" means any ticket, equipment or device, including an electronic pull tab machine, designed and approved for use in conducting, or in connection with the conduct of, any instant raffle game.

"Instant raffle game" or "pull tab" means a non-draw raffle game in which a player purchases shares, tickets or rights to participate which are drawn or selected at random from a single finite deal and the winner(s) is determined by a previously determined prize designation which has been obscured from the player's view until a tab or other opaque covering has been removed.

"Instant raffle ticket" means a folded and banded paper ticket or a paper card with perforated break-open tabs, the face of which is covered or otherwise hidden from view to conceal a number, letter, symbol, or set of numbers, letters or symbols, some of which have been designated in advance as prize winners, or the electronic representation of a ticket stored in an electronic device.

"Model number" means a name and/or number designated by the manufacturer that indicates the unique structural design of an electronic games of chance system or system component.

"Player tracking software" means computer software that may be located on an electronic games of chance system that is used to identify or track certain characteristics of players, including personal data and purchasing habits of players at premises at which games of chance are played.

"Secondary component" means additional software or hardware components, provided by the manufacturer that are part of or are connected to an electronic games of chance system.

"Site system" means the computer hardware, software, and peripheral equipment that is located at the bingo premises, is controlled by the registered organization, and interfaces with, connects with, controls or defines the operational parameters of card-minding devices and must include, but is not limited to, the following components: point of sale station, a caller station verifier, required printers, dial-up modem, proprietary executable software, report generation software and an accounting system and database.

SUBCHAPTER 5A. CERTIFICATION OF PERMISSIBILITY: ELECTRONIC GAMES OF CHANCE SYSTEMS

13:47-5A.1 Approval of electronic games of chance systems

(a) An electronic games of chance system shall not be sold, leased, or otherwise furnished to any person in this State for use in conducting games of chance unless an electronic games of chance system having the identical proprietary software and the identical components has first been tested by a testing facility approved by the Control Commission.

(b) A person approved by the Control Commission pursuant to N.J.A.C. 13:47-13.1 through 13.9 desiring to obtain certification of permissibility for an electronic games of chance system shall submit an application for certification to the Control Commission on a form provided by the Control Commission setting forth the name, address, telephone number of a contact person for the manufacturer of the electronic games of chance system proposed for use and such other information as the Control Commission may require, together with the non-refundable application fee of $ 1,000 payable by check or money order to the order of the Control Commission.

(c) The Control Commission shall notify the applicant of the facilities authorized for testing. The manufacturer of the electronic games of chance system shall submit the system to one of the authorized facilities for testing. Submissions shall include all associated hardware, software, written operating manuals and technical information in order to allow the testing facility and the Control Commission to determine whether the electronic games of chance system complies with applicable requirements established by the Control Commission. The approved testing facility shall perform such tests as shall be necessary to determine that the system meets applicable requirements.

(d) Upon conclusion of testing, the laboratory shall provide the Control Commission with a report that contains findings, conclusions and a determination whether the electronic games of chance system meets the applicable requirements of the Control Commission set forth in N.J.A.C. 13:47.

(e) The Control Commission shall notify the applicant of its decision to certify or withhold certification of the system.

(f) The Control Commission shall not be liable for any damage or destruction of the electronic games of chance system submitted for testing.

(g) The applicant shall pay directly to the testing laboratory any and all costs associated with testing the electronic games of chance system, including shipping and handling.

(h) If granted, approval extends only to the specific games of chance system or component approved. Any modification must be approved by the Control Commission. Any addition of software applications or modifications by anyone other than a licensed manufacturer or its designated representative to an approved electronic games of chance system is prohibited.

(i) Once an electronic games of chance system or component has been approved, the Control Commission may retain the system or component for further testing and evaluation for as long as the Control Commission deems necessary. The manufacturer shall make provisions to retrieve the system or component if requested by the Control Commission, at the manufacturer's expense. Failure to do so will result in the manufacturer relinquishing its rights to the system or component and the Control Commission shall dispose of the system or component as it deems appropriate.

13:47-5A.2 Requirements for electronic games of chance systems

(a) An electronic games of chance system shall have dial-up capability, so that the Control Commission may remotely verify the operation, compliance and internal accounting systems at any time. The manufacturer shall provide to the Control Commission all current protocols, passwords, and any other required information needed to access the system. Any and all reports maintained or generated by the electronic games of chance system shall be capable of being downloaded or otherwise accessed via the modem. A check sum number or digital signature shall be obtained for the proprietary software submitted for testing to be used to verify proprietary software compliance at playing locations.

(b) Except for the release of the information to the Control Commission in accordance with (a) above, the manufacturer shall secure all protocols, passwords, and any other required information needed to access its system and such information shall not be accessible so that it is not able to be altered.

(c) If an electronic games of chance system includes player tracking software, records generated by the use of the player tracking software are subject to review by the Control Commission. The records shall be maintained by the registered organization for a period of not less than 12 months. Player tracking records shall at all times be the property of the registered organization and neither the manufacturer nor the distributor shall utilize or make available to any person, other than the Control Commission or as otherwise authorized by law, the information contained within the player tracking software without the express written permission of the registered organization.

(d) An electronic games of chance system shall permit the games of chance to be played in accordance with the rules established by the Control Commission.

(e) An electronic games of chance system shall be designed with sufficient security safeguards so as to permit verification that all proprietary software components are authentic copies of the approved software components and all functioning components of the electronic games of chance system are operating with identical copies of approved software programs. The system shall also have sufficient security safeguards so that any restrictions or requirements authorized by the Control Commission or any approved proprietary software are protected from alteration by unauthorized personnel.

13:47-5A.3 Right to restrict specific terms of certification

Any certification of permissibility for an electronic games of chance system may restrict the number of places or the number of specific kinds of games that may be held, operated or conducted by any one licensee, directly or indirectly, and by the imposition of such other controls as the Control Commission shall deem suitable and proper.

13:47-5A.4 Amendments of certifications

Certifications of permissibility for an electronic games of chance system may be granted by the Control Commission in terms applicable to more than one of certain named or described games, all of which are similar in specific kind, and such certifications may be amended from time to time to include additional games differently named or described, but similar in specific kind to those previously certified.

13:47-5A.5 Numbering of certifications

Each certification of permissibility granted by the Control Commission shall bear a serial number. That number shall be included in the description of the game to be licensed in the application for license and in the license certification when issued.

13:47-5A.6 Cancellation of certification

(a) Any certification of permissibility may be cancelled and vacated or modified by the Control Commission in its sound discretion at any time, either specifically as to a particular license or licenses, or generally as to all licenses issued on the basis of the particular certification. Those licenses affected shall, 30 days after the cancellation and vacation, no longer authorize the holding, operation or conduct of the game which was the subject of the certification, or, in the case of the modification of a certification, shall authorize the holding, operating and conduct of the game only in the manner specified in the modified certification.

(b) Before any cancellation and vacation or modification of a certification shall occur, any licensee operating a game under such certification shall be given notice and afforded an opportunity to be heard by the Control Commission.

13:47-5A.7 Games authorized only in respect to particular certification

Any license issued to authorize the holding, operation and conduct of any kind of game of chance shall be deemed to authorize such holding, operation and conduct only in the manner and to the extent certified as permissible by the certification of permissibility granted with respect to such game.

13:47-7.2 Amount of prize limitation

(a) No prize may be offered or awarded in excess of the sum or value of [$ 250.00] $ 1,000 for a single game, nor may the aggregate of all prizes offered and awarded in all games held on one occasion exceed [$ 1,000] $ 3,000, except as provided in (b) below.

(b)-(c) (No change.)

13:47-7.5 Charge for playing bingo

(a) The fee for admission to a room or place in which bingo is to be held, operated or conducted shall not exceed $ 5.00. This fee shall entitle a person to at least one card allowing such person to participate without additional charge in all regular games to be played on that occasion. There may be an additional fee for the use of an electronic card minding device, but such fee shall not be charged on the basis of the number of cards played.

(b)-(f) (No change.)

13:47-7.9 Equipment; general operation of bingo

(a) (No change.)

(b) The electronic card minding system of only one manufacturer may be used on any single occasion.

Recodify existing (b)-(h) as (c)-(i) (No change in text.)

(j) A bingo player shall not use more than one electronic card minding device at one occasion.

(k) A bingo player shall not play more than 54 card faces per electronic card minding device per game.

(l) The bingo player using an electronic card minding device shall input each number or symbol called by the licensed authorized organization into the memory of the card minding device by use of a separate and distinct action for each number or symbol called. Automatic making of numbers or symbols is prohibited.

(m) The bingo player shall notify the licensed organization when a winning pattern or "bingo" occurs by means that do not utilize the card minding device or the associated system.

(n) Electronic card minding devices shall be loaded or enabled for play on the premises where the game will be played.

(o) No electronic card minding device shall be voided after the call of the first number of the second game of the occasion.

(p) The registered organization conducting the game shall assure that adequate backup units or batteries are available to replace defective or malfunctioning electronic card minding devices.

[(i)] (q) No licensed organization shall reserve or allow to be reserved any specific bingo card for use by players except modified paper cards for use by legally blind or otherwise disabled players. Nothing in this subsection shall be construed to prohibit the acceptance of the charge for admission to the room or place where bingo is to be played or for cards to participate in any game played on a bingo occasion in advance of the time or date of the occasion provided a receipt in the form prescribed in N.J.A.C. 13:47-7.5(b) is issued to the purchaser.

[(j)] (r) Modified paper cards used by legally blind or otherwise disabled players shall be commercially produced by a manufacturer approved by the Control Commission.

[(k)] (s) A licensed organization shall have and exercise the right to inspect, accept or reject, with due cause, any personal paper bingo card used by a legally blind or otherwise disabled player.

Recodify existing (l)-(n) as (t)-(v) (No change in text.)

13:47-7.20 [(Reserved)] Electronic card minding systems requirements

(a) Each site system shall include a point of sale station and an internal accounting system that is capable of recording the registered organization's sale of card minding devices and disposable bingo cards and guarantee that no bingo card, whether electronic or disposable, is the duplicate of another.

(b) Each site system shall ensure that an internal accounting system records and retains the following information for a period of not less than 12 months:

1. The serial number of each bingo card sold for card minding device use;

2. The price of each card or card package sold;

3. The total amount of the card minding device sales for each occasion;

4. The total number of card faces sold for use with card minding devices for each occasion;

5. The serial number of each portable electronic card minding device sold; and

6. The terminal number or account number associated with each fixed-base card minding device sold.

(c) Each site system shall ensure that the applicable point of sale station is capable of printing a receipt for each sale or void of an electronic or paper card face product that includes, at a minimum, the following information:

1. The date and time of the transaction;

2. The dollar value of the transaction and quantity of associated products;

3. The sequential transaction number; and

4. The session in which the product was sold.

(d) Each site system shall ensure that the applicable point of sale station is capable of printing a receipt for each sale or void of an electronic product that includes, at a minimum, the following information in addition to the information in (c) above:

1. Each card face permutation number;

2. The serial number of each portable card minding device sold; and

3. The terminal number or account number for each fixed-base card minding device sold.

(e) The electronic card minding system shall permit the bingo games to be played in accordance with the requirements of N.J.A.C. 13:47-7.9.

(f) Each site system shall include a caller station verifier that is able to verify winning cards. The caller station verifier shall be capable of posting all balls called for verification purposes and print an ordered list of the called balls.

(g) The electronic card minding system shall not allow a card-minding device to be used to obtain a bingo prize for any bingo game other than for a game within the bingo occasion for which the card-minding device was sold.

(h) A card minding device shall not allow any bingo games or card faces to be available for play other than those obtained by the patron from the licensed organization.

(i) A card minding device shall not be capable of playing in excess of 54 card faces per game.

(j) A card minding system shall not include any device into which currency, coins or tokens may be inserted or from which currency, coins or tokens, or any receipt for monetary value, can be dispensed or which, once provided to a person participating in bingo, is capable of communicating with other such devices.

(k) A card minding system shall not produce audible music or enhanced sound effects.

13:47-7.23 Selection of cards

[(a) Each player shall have the right to select his or her own card or cards for regular games from the deck, group or series of cards and shall be entitled to select any card in the deck, group or series of cards that has not already been selected by a player.]

(a) No player shall be entitled to select his or her own card or cards.

(b) (No change.)

(c) Each player shall have the right to select his or her electronic card minding device in which electronic representations of a card are stored from the devices available for the games and not already selected by a player.

SUBCHAPTER 8. CONDUCT OF RAFFLES

13:47-8.4 Method of play

(a)-(b) (No change.)

(c) In any instant raffle game, including those using seal cards and commingled deals:

1. All instant raffle tickets in a particular deal shall be placed in a receptacle and the deal shall be thoroughly mixed prior to being offered for sale to the public or, in the case of electronic pull tab games, the deal shall be randomized by the electronic games of chance system;

2.-3. (No change.)

(d)-(f) (No change.)

(g) If a registered organization closes a game in which some instant raffle tickets remain unsold, the organization shall retain all unsold raffle tickets or, in the case of games on electronic pull tab machines, shall retain the meter records, for a period of [three] one year[s].

13:47-8.5 Method of determining winners; announcement

(a)-(c) (No change.)

(d) In an instant raffle game, when a winning instant raffle ticket, or cash voucher, is presented, the organization redeeming the instant raffle ticket or cash voucher shall verify, before paying the prize, that the serial number and form number on the ticket are identical to the serial number and form number of the instant raffle deal currently in play at that particular location.

(e)-(f) (No change.)

13:47-8.14 Equipment

(a) (No change.)

(b) An organization shall not use equipment for the conducting of a raffle unless:

1.-2. (No change.)

3. The equipment is being purchased by the organization on conditional sale or other installment purchase arrangement in accordance with [Section 6.16] N.J.A.C. 13:47-6.17, [(]Price of supplies; interest[) of this Chapter]; or

4. (No change.)

13:47-8.35 [(Reserved)] Electronic pull tab machines; general operation

(a) Electronic pull tab machines shall operate in a manner such that:

1. A player shall insert cash into the machine and select the game to play;

2. The machine shall convert the cash to credits of equal value from a single finite deal; and

3. The player shall touch the screen in a manner to activate the machine to display numbers, letters or symbols or a combination or sequence of numbers, letters or

(b) Electronic pull tab machines may be loaded with more than one deal so that players may play different games on the same machine.

(c) Electronic pull tab machines shall not have any direct cash payments.

(d) Each credit represents an equal share of the deal.

(e) The player may redeem the credit balance for cash at any time or may continue to play the same game or a different game on the same machine.

(f) Each credit played shall be subtracted or deducted from the deal until the deal is exhausted.

(g) Electronic pull tab machines shall not display any visual animation that simulates rolling or spinning reels.

(h) Except for the flare, an electronic pull tab machine shall not disclose or display on the screen any statistical information relating to the game.

(i) Electronic pull tab machines shall be capable of printing a cash voucher for all credits owed to a player containing the following information:

1. The name and identification number of the licensed organization;

2. The machine serial number;

3. The current date;

4. The time of day in hours and minutes in a 24-hour format;

5. The ticket form number and serial number; and

6. The value of the prize in words and numbers.

(j) The printing mechanism of the electronic pull tab machine shall be located in a locked area of the machine to ensure safekeeping of the audit copy and shall prevent further play if, for any reason, the machine is not capable of producing a valid ticket.

(k) The electronic pull tab machine shall have hardwired, non-resettable mechanical meters which shall be manufactured in such a way as to prevent access to the internal parts without destroying the meter and which shall be housed in a readily accessible locked machine area.

(l) The electronic pull tab machine meters shall keep a cumulative permanent record of:

1. The total credits accepted by the machine;

2. The total credits played;

3. The total credits won; and

4. The total credits paid.

(m) The electronic pull tab machine shall have meters that keep records of the following for each session:

1. The total credits in mechanism(s);

2. The total credits;

3. The total credits played;

4. The total credits won; and

5. The total credits paid.

(n) Whenever electronic meters are reset, each electronic pull tab machine must produce a full accounting ticket both before and after each resetting. The tickets must be in the format approved by the Control Commission and contain:

1. The name and identification number of the licensee;

2. The machine serial number;

3. The time of day in hours and minutes in a 24-hour format;

4. The current date;

5. The program name and revision number; and

6. The electronic meter readings required by the Control Commission.

(o) The electronic pull tab machine and any peripheral electronic device must have an identification tag permanently affixed to the machine by the manufacturer. The tag must be at a location approved by the Control Commission and must include the following information:

1. The manufacturer;

2. The serial number;

3. The model; and

4. The date of manufacture.

(p) The electronic pull tab machine shall be equipped with a surge protector that will feed all A.C. electrical current to the machine and a back-up power supply capable of maintaining for a 30-day period the accuracy of all electronic meters, date, and time during power fluctuations and loss. The battery must be in a state of charge during normal operation of the machine.

13:47-8.36 Instant raffle game: flare; contents; posting; replacement

(a) The flare for each instant raffle deal in play shall be conspicuously posted in full view of the players at the location where the instant raffle game is held, operated or conducted, except that the flare for each deal to be played on an electronic pull tab machine may be displayed on the screen.

(b)-(e) (No change.)

13:47-8.37 Instant raffle ticket: standards

(a) All paper instant raffle tickets sold in this State shall conform to the following standards:

1.-13. (No change.)

(b) An electronic instant raffle ticket shall conform to the following standards:

1. The ticket shall be displayed on the screen of an electronic device in such a manner as to prevent determination of a winning or losing ticket without rubbing the play area or otherwise uncovering the symbols or numbers;

2. All winning electronic instant raffle tickets in a deal shall be displayed on the screen on a completely random basis;

3. The information required under (a)4 above to be shown on the ticket shall be shown on the screen on which the electronic ticket is displayed, but need not be on the face of the simulated ticket; and

4. The screen shall indicate what a winning ticket must show.

13:47-8.38 Instant raffle game: sales; credit [prohibition]; disposition

(a) A manufacturer or distributor shall not offer or extend credit to a registered organization for the purchase of paper instant raffle tickets. Registered organizations shall pay for instant raffle tickets on the date of delivery by check drawn on the registered organization's games of chance account. Manufacturers and distributors shall not accept cash or post-dated checks from registered organizations.

(b) A manufacturer or distributor may extend credit to a registered organization for the purchase of an electronic pull tab machine in accordance with N.J.A.C. 13:47-8.14.

Recodify existing (b) and (c) as (c) and (d) (No change in text.)

13:47-8.41 (Reserved)

13:47-[8.41]8.42 Instant raffle game: recordkeeping; organization [records]; manufacturer; distributor

(a) An organization shall retain accounting records for three years from the last date on which the instant raffle game was conducted[. The], including records [shall include] of the following:

1. [The flares] Flares;

2. [All redeemed] Redeemed defaced winning instant raffle tickets;

3. [All unsold] Unsold instant raffle tickets;

4.-6. (No change.)

(b) (No change.)

[13:47-8.42 Instant raffle game: recordkeeping; manufacturer; distributor]

[(a)] (c) (No change in text.)

13:47-13.1 Application

(a) An applicant desiring to manufacture, provide or supply equipment, including electronic games of chance systems, or to supply personnel for an armchair race, bingo, casino night, raffle or instant raffle for use in, or in connection with, holding, operating or conducting an armchair race, bingo, casino night, raffle or instant raffle game shall first be approved by the Control Commission.

(b)-(f) (No change.)

(g) Each applicant desiring to provide equipment, including electronic games of chance systems, or to supply personnel to be used in or in connection with an armchair race, a bingo, a casino night, or a raffle shall forward together with Form 11, a nonrefundable application fee of $ 100.00 by check or money order made payable to the order of the Legalized Games of Chance Control Commission.

(h) Each applicant desiring to [supply] be an instant raffle equipment supplier shall forward, together with a completed Form 22, a non-refundable application fee of $ 100.00 by check or money order made payable to the order of the Legalized Games of Chance Control Commission.

13:47-13.6 Approval; time limitations; renewal; fees

(a)-(b) (No change.)

(c) Upon notification of approval by the Control Commission, each [manufacturer of] instant raffle equipment supplier shall forward an annual licensing fee of [$ 1,500] $ 3,000 by certified check or money order made payable to the order of the Legalized Games of Chance Control Commission. The approval to supply instant raffle equipment and personnel when granted shall be valid for one year.

(d) Prior to the expiration of the current annual license period, each licensed [manufacturer of] instant raffle equipment supplier shall submit an application for license renewal together with the annual license renewal fee.

[(e) Upon notification of approval by the Commission, each distributor of instant raffle equipment shall forward an annual licensing fee of $ 1,000 by certified check or money order made payable to the order of the Legalized Games of Chance Control Commission. The approval to supply instant raffle equipment when granted shall be valid for one year.

(f) Prior to the expiration of the current annual license period, each licensed distributor of instant raffle equipment shall submit an application for license renewal together with the annual license renewal fee.]

(e) Upon notification of approval by the Control Commission, each manufacturer of electronic games of chance systems who is not otherwise required to be licensed under this section shall forward an annual licensing fee of $ 3,000 by check or money order made payable to the order of the Legalized Games of Chance Control Commission. The approval to supply games of chance systems when granted shall be valid for one year.

(f) Prior to the expiration of the current annual license period, each licensed manufacturer of electronic games of chance systems who is not otherwise licensed under this section shall submit an application for license renewal together with the annual license renewal fee of $ 3,000 payable by check or money order made payable to the order of the Legalized Games of Chance Control Commission.

(g) Upon notification of approval by the Control Commission, each distributor of electronic games of chance systems who is not otherwise required to be licensed under this section shall forward an annual licensing fee of $ 1,000 by check or money order made payable to the order of the Legalized Games of Chance Control Commission. The approval to supply electronic games of chance systems when granted shall be valid for one year.

(h) Prior to the expiration of the current annual license period, each licensed distributor of electronic games of chance systems who is not otherwise licensed under this section shall submit an application for license renewal together with the annual license renewal fee of $ 1,000 by check or money order made payable to the order of the Legalized Games of Chance Control Commission.

(i) Each licensed distributor of electronic games of chance systems, or, if a system is owned by a licensed organization, the licensed organization, in addition to the use fee required under N.J.A.C. 13:47-4.9, shall pay a fee for the use of the electronic games of chance systems as follows:

1. For use of electronic card minding systems, a $ 25.00 fee, in the form of a check payable to the Legalized Games of Chance Control Commission, for each occasion on which electronic card minding devices are used in the conduct of games of chance. If more than 10 electronic card minding devices are used on an occasion, an additional $ 10.00 shall be paid for each additional 10 electronic devices, or any fraction thereof, used. The fee shall be paid no later than the 10th day of the month immediately following the month in which the electronic card minding system was used for the holding, operating or conducting of bingo games together with a statement disclosing:

i. The date and amount of payment received and description of method of payment;

ii. The name and identification number of the distributor or registered organization, as the case may be;

iii. The name and identification number of each organization and the number of the organization's license for conducting the games of chance;

iv. The location of premises where the games were conducted;

v. The date when the games were conducted;

vi. The number on the certification of permissibility issued for the electronic card minding system used for conducting the games; and

vii. The number of devices used for conducting the games.

[(g)] (j) (No change in text.)



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