PENNSYLVANIA GAMING CONTROL BOARD
[58 PA. CODE CHS. 461, 465 AND 466]
Temporary Regulations; Slot Machine Testing, Accounting and Internal Controls and Slot Computer Systems
[36 Pa.B. 3416]
[Saturday, July 1, 2006]The Pennsylvania Gaming Control Board (Board), under 4 Pa.C.S. § 1203(a) (relating to temporary regulations), adopts temporary regulations to facilitate implementation of 4 Pa.C.S. Part II (relating to gaming), enacted by the act of July 5, 2004 (P. L. 572, No. 71) (Act 71). The Board's temporary regulations will be added to Part VII (relating to Gaming Control Board). Chapters 461 and 466, entitled slot machines and associated equipment and Slot computer systems, are added to Subpart E, entitled slot machine testing, certification and control. Sections 465.12--465.19 are added to Chapter 465, entitled accounting and internal controls, under Subpart E, entitled slot machine testing, certification and control.
Purpose and Background
Under 4 Pa.C.S. § 1203(a), the Board is authorized to promulgate temporary regulations to facilitate the prompt implementation of Act 71. The regulations are necessary to enhance the credibility of the licensed operation of slot machines and associated equipment within this Commonwealth and to carry out the policy and purposes of the Board. To invite public input, the Board published draft regulations on the Board's website and 10-day public comment period was provided.
Under 4 Pa.C.S. § 1203(b), the temporary regulations adopted by the Board expire no later than 3 years following the effective date of Act 71 or upon promulgation of regulations as generally provided by the law. These temporary regulations are not subject to sections 201--205 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201--1208), known as the Commonwealth Documents Law (CDL), or to the Regulatory Review Act (71 P. S. §§ 745.1--745.15).
Financial Impact
Act 71 and the regulations will provide for the implementation and management of gaming within this Commonwealth and the collection of fees and taxes from entities and individuals authorized by the Board to be employed by, provide gaming related services to, or operate gaming facilities. The appropriations from the Commonwealth for the implementation of Act 71 and costs of administering 4 Pa.C.S. Part II will be reimbursed by the licensed entities as specified within Act 71. Individuals and entities that wish to obtain licenses as gaming entities shall pay to the Gaming Fund significant licensing fees to obtain the authority to do business within this Commonwealth. Part of these fees shall reimburse the Board and the Pennsylvania State Police for licensing processes and background investigations. The licensing, registration, certification and permitting of individuals and other classes of applicants will be reimbursed by the applicants through fees established by the Board. It is anticipated that all expenses of the Board and all associated activities shall be reimbursed by the applicants and gaming entities as previously specified. The Board shall have no financial impact on the State budget.
Statutory Authority
The Board is authorized under 4 Pa.C.S. § 1203(a) to adopt and publish temporary regulations to implement the policies and purposes of Act 71.
Regulatory Review
Under 4 Pa.C.S. § 1203(b), the Board's authority to adopt temporary regulations expires 2 years from the effective date of Act 71.
Findings
The Board finds that:
(1) Under 4 Pa.C.S. § 1203(a), the temporary regulations are exempt from the requirements of the Regulatory Review Act and sections 201--205 of the CDL.
(2) A 10-day public comment period was held prior to the adoption of the temporary regulations.
(3) The adoption of the temporary regulations provided by this order is necessary and appropriate for the administration of the authorizing statute.
Order
The Board, acting under the authorizing statute, orders that:
(a) The Board acting under the authority of the Act 71, adopts as its final-form temporary regulations, the draft regulations as amended by resolution at the June 15, 2006, public meeting. The temporary regulations pertain to slot machine testing, accounting and internal controls and slot computer systems.
(b) The temporary regulations of the Board, 58 Pa. Code Chapters 461, 465 and 466, are amended by amending §§ 461.1 and 461.2 and by adding §§ 461.3--461.21, §§ 465.12--465.19 and § 466.1 to read as set forth in Annex A.
(c) The temporary regulations are effective June 15, 2006.
(d) The temporary regulations shall be posted in their entirety on the Board's website and published in the Pennsylvania Bulletin.
(e) The temporary regulations shall be subject to amendment as deemed necessary by the Board in accordance with the purpose of Act 71 and to further the intent of Act 71.
(f) The Chairperson of the Board shall certify this order and deposit the regulations with the Legislative Reference Bureau as required by law.
THOMAS A. DECKER,
ChairpersonFiscal Note: 125-31. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 58. RECREATION
PART VII. GAMING CONTROL BOARD
Subpart E. SLOT MACHINE TESTING, APPROVAL AND CONTROL
CHAPTER 461. SLOT MACHINES AND ASSOCIATED EQUIPMENT § 461.1. Definitions.
The following words and terms, when used in this subpart, have the following meanings, unless the context clearly indicates otherwise:
Double-up--An optional wager on a slot machine in which the player has a mathematically equal probability of winning or losing the wager.
Modification--A change or alteration in a slot machine or associated equipment that affects the manner or mode of play or operation of the slot machine or associated equipment.
(i) The term includes a change to control or graphics programs and to the theoretical hold percentage.
(ii) In the case of slot machines, the term does not include:
(A) A conversion.
(B) Replacement of one approved component with an identical component.
(iii) In the case of a wide-area progressive system, the term includes:
(A) A change in a system name or theme.
(B) A change in the odds to win the progressive payout.
(C) A change in the reset amount.
(D) A change in the progessive rate.
(E) A change in the wager necessary to win the progressive payout.
Progressive--A slot machine that offers a jackpot that may increase in value based upon wagers as the slot machine is played. Progressive slot machines may stand alone, be linked at a licensed facility or be part of a wide area progressive system.
Randomness--The observed unpredictability and absence of pattern in a set of elements or events that have definite probabilities of occurrence.
Skill--The application of intelligence and specific knowledge to achieve the best result when a slot machine offers a choice of options during game play.
Slot Lab--The Gaming Laboratory Operations Bureau of the Board.
Strategy choice--A particular play option on a slot machine that requires the use of skill to consistently achieve the best result.
Theme--A concept, subject matter and methodology of design.
Wager--Placing at risk in a slot machine a coin, bill, ticket, gaming voucher, coupon, or similar object or, upon payment of any consideration, including the use of cashless funds transfer systems and external bonusing systems.
§ 461.2. Protocol requirements.
In accordance with section 1324 of the act (relating to protocol information), manufacturer licensees and supplier licensees shall be required to enable all slot machine terminals to communicate with the Department's central control computer for the purpose of transmitting auditing program information and activating and disabling slot machine terminals.
§ 461.3. Testing and approval generally.
(a) In accordance with section 1320 of the act (relating to slot machine testing and certification standards), the Board will determine the manner and scope in which slot machine terminals are to be tested and approved prior to operation and use in a licensed facility in this Commonwealth.
(b) All slot machines operated in this Commonwealth must be approved by the Board.
(c) The Board has the authority to require one or more of the following procedures with respect to testing and certifying a slot machine:
(1) An abbreviated testing and approval process in accordance with § 461.4(f) (relating to submission for testing and approval).
(2) Testing and approval in accordance with § 461.4(h).
(3) Utilize the services of slot machine testing facility to conduct the testing until a slot machine testing facility is created by the Board.
(d) On or before July 5, 2007, the Board will establish and maintain an independent slot machine testing facility. The cost of establishment and operation of the facility shall be paid by each manufacturer licensee in accordance with a schedule adopted by the Board.
(e) The Board will require payment of all costs for the testing and approval of all slot machines and associated equipment through procedures prescribed by the Board.
(f) The Board will require a manufacturer licensee seeking approval of a slot machine or associated equipment to pay all costs of transportation, inspection and testing.
§ 461.4. Submission for testing and approval.
(a) A slot machine or associated equipment identified in subsection (b) (collectively referred to as ''products'' or ''equipment, device or software''), or a modification thereto, may not be offered for sale, lease or distribution for ultimate use by a slot machine licensee in this Commonwealth unless a prototype identical in all mechanical, electrical, electronic and other respects has been tested and approved by the Board. When an applicant for, or holder of, a slot machine license develops software or a system that is functionally equivalent to any of the slot systems enumerated in subsection (b), that software or system shall be subject to the testing and approval process of this subpart to the same extent as if the software or system were developed by an applicant for, or holder of, a manufacturer license. Any reference in this subpart to the responsibilities of a manufacturer applies to an applicant for, or holder of, a slot machine license developing software or systems subject to testing and approval under this subpart.
(b) For the purposes of this section, slot machines and associated equipment which shall be submitted for testing and Board approval include:
(1) Slot machines, including bill validators and printers.
(2) Slot monitoring systems, to the extent the system interfaces with slot machines and related systems.
(3) Casino management systems, to the extent the system interfaces with slot machines and related systems.
(4) Player tracking systems, to the extent the system interfaces with slot machines and related systems.
(5) Progressive systems, including wide area progressive systems.
(6) Gaming voucher systems.
(7) External bonusing systems.
(8) Cashless funds transfer systems.
(9) Machines performing gaming voucher, coupon or jackpot payout transactions.
(10) Coupon systems, to the extent the system interfaces with slot machines and related systems.
(11) Other associated equipment as required by the Board.
(c) Slot machine prototypes and associated equipment prototypes, and any modifications thereto, which are subject to testing and approval under this section will be evaluated by the Board for overall operational integrity and compliance with the act, this subpart and any technical standards adopted by the Board. In addition, with regard to any slot machine, or modification thereto, the Board will test for compatibility and compliance with the central control computer and protocol specifications approved by the Department including the ability to communicate with the central control computer for the purpose of transmitting auditing program information, real time information retrieval and activation and disabling of slot machines.
(d) The Board may periodically prescribe for completion by an applicant for, or holder of, a manufacturer license a standard product submission checklist, together with supplemental product specific submission checklists, to facilitate the examination and analysis of a prototype or modification.
(e) The Board may periodically prescribe certification requirements, to be executed by the chief engineer of the applicant for, or holder of, a manufacturer license or the engineer in charge of the division of the manufacturer responsible for producing the product submitted, unless otherwise noted, to obtain sufficient assurances from the manufacturer that the product was properly and completely tested by the manufacturer prior to its submission to the Board.
(f) Notwithstanding the terms of subsection (c), the Board may utilize an abbreviated testing and approval process in accordance with section 1320 of the act (relating to slot machine testing and certification standards).
(g) When an applicant for, or holder of, a manufacturer license seeks to utilize, during the applicable period, the abbreviated testing and approval process for a slot machine prototype, associated equipment prototype or any modification thereto, it shall submit to the Board's Slot Lab the following:
(1) A prototype of the equipment, device or software accompanied by a written request for abbreviated testing and approval which identifies the jurisdiction within the United States upon which the applicant for, or holder of, a manufacturer license proposes the Board rely (''named jurisdiction''). The manufacturer shall transport the equipment, device or software at its own expense and deliver it to the offices of the Board's Slot Lab.
(2) A certification executed by the chief engineer of the applicant for, or holder of, a manufacturer license or the engineer in charge of the division of the manufacturer responsible for producing the equipment, device or software submitted (''professional'') asserting that:
(i) The specific prototype or modification is identical in all mechanical, electrical, electronic and other respects to one which has been tested and approved by the testing facility operated by the named jurisdiction or a private testing facility on behalf of the named jurisdiction.
(ii) The manufacturer is licensed in good standing in the named jurisdiction and that the subject product has all regulatory approvals prerequisite to sale or distribution in the named jurisdiction.
(iii) In the professional's opinion, the testing standards of the named jurisdiction are comprehensive and thorough and provide similar adequate safeguards as those required by this subpart.
(iv) In the professional's opinion, the equipment, device or software complies with the act, this subpart and any technical standards adopted by the Board including requirements related to the central control computer.
(3) An executed copy of a current product submission checklist, and any product specific supplemental submission checklists applicable to the submitted equipment, device or software unless a substantially similar checklist was filed with the named jurisdiction and is included in the submission package required by paragraph (4).
(4) Copies of the submission package, and any amendments thereto, filed with the named jurisdiction, copies of any correspondence, review letters or approvals issued by the testing facility operated by the named jurisdiction or a private testing facility on behalf of the named jurisdiction and, as applicable, a copy of the final regulatory approval issued by the named jurisdiction.
(5) The manufacturer shall disclose with specificity to the Board any conditions or limitations placed by the named jurisdiction on the operation or placement of the equipment, device or software at the time of approval or subsequently thereafter.
(6) When a slot machine prototype, or a modification thereto is submitted, the manufacturer shall submit a complete, comprehensive and technically accurate description of the manner in which the slot machine was tested for compatibility and compliance with the central control computer and protocol specifications approved by the Department including the ability to communicate with the central control computer for the purpose of transmitting auditing program information, real time information retrieval and activation and disabling of slot machines.
(7) Any hardware, software and other equipment, inclusive of technical support and maintenance applicable thereto, required by the Board's Slot Lab to conduct the abbreviated testing and approval process contemplated by the act, this subpart and technical standards adopted by the Board. The testing equipment and services required by this paragraph shall be provided at no cost to the Board.
(8) Additional documentation requested by the Board.
(h) When an applicant for, or holder of, a manufacturer license seeks Board approval of a slot machine prototype, associated equipment prototype, or any modification thereto for which the abbreviated testing process in subsection (f) is not applicable, it shall submit to the Board's Slot Lab the following:
(1) A prototype of the equipment, device or software accompanied by a written request for testing and approval. The manufacturer shall transport the equipment, device or software at its own expense and deliver it to the offices of the Board's Slot Lab in accordance with instructions provided.
(2) Certifications required under subsection (e) providing assurances from the manufacturer that the product was properly and completely tested and emulated by the manufacturer prior to its submission to the Board and that the product, device or software complies with the act, this subpart and any technical standards adopted by the Board, including any applicable requirements related to the central control computer.
(3) An executed copy of a current product submission checklist, and any product specific supplemental submission checklists applicable to the submitted equipment, device or software.
(4) A complete, comprehensive and technically accurate description of the equipment, device or software, accompanied by applicable diagrams, schematics and specifications, together with documentation with regard to the manner in which the product was tested and emulated by the manufacturer prior to its submission to the Board.
(5) Any hardware, software and other equipment, inclusive of technical support and maintenance applicable thereto, required by the Board's Slot Lab to conduct the testing and approval process contemplated by the act, this subpart and any technical standards adopted by the Board. The testing equipment and services required by this paragraph shall be provided at no cost to the Board.
(6) In the case of a slot machine prototype, the following additional information shall be submitted:
(i) A copy of all executable software, including data and graphics information, on electronically readable, unalterable media.
(ii) A copy of all source code for programs that cannot be reasonably demonstrated to have any use other than in a slot machine, on electronically readable, unalterable media.
(iii) A copy of all graphical images displayed on the slot machine including reel strips, rules, instructions and paytables.
(iv) A mathematical explanation of the theoretical return to the player, listing all assumptions, all steps in the formula from the first principles through to the final results of all calculations including bonus pays and, when a game requires or permits player skill in the theoretical derivations of the payout return, the source of strategy.
(v) Hardware block diagrams of the major subsystems.
(vi) A complete set of schematics for all subsystems.
(vii) A wiring harness connection diagram.
(viii) A technical and an operator manual.
(ix) A description of all security methodologies incorporated into the design of the slot machine including, when applicable, encryption methodology for all alterable media, auto-authentication of software and recovery capability of the slot machine for power interruption.
(x) For all meters required by this subpart or any technical standards adopted by the Board, a cross reference of product meters to the required meters, if necessary.
(xi) A description of all tower light functions indicating the corresponding condition.
(xii) A description of all error conditions and the corresponding action required by the operator.
(xiii) A description of the use and function of all available dip switch settings or configurable options.
(xiv) A description of the pseudo random number generator or generators used to determine game outcome, including a detailed explanation of operational methodology, and a description of the manner by which the pseudo random number generator and random number selection process is impervious to outside influences, interference from electro-magnetic, electro-static, and radio frequencies, and influence from ancillary equipment via data communications. Test results in support of representations shall be submitted. For the purposes of this section, ''game outcome'' means the results of a wager.
(xv) Any specialized hardware, software or testing equipment, inclusive of technical support and maintenance, needed to complete the evaluation, which may include an emulator for a specified microprocessor, PCs, extender cables for CPU boards, target reel strips and door defeats. The testing equipment and services required by this paragraph shall be provided at no cost to the Board.
(xvi) A compiler, or reasonable access to a compiler, for the purpose of building applicable code modules.
(xvii) All program storage media including eproms, eeproms, and any type of alterable media for all slot machine software.
(xviii) Technical specifications for any microprocessor or microcontroller.
(xix) A complete, comprehensive and technically accurate description of the manner in which the slot machine was tested for compatibility and compliance with the central control computer and protocol specifications approved by the Department including the ability to communicate with the central control computer for the purpose of transmitting auditing program information, real time information retrieval and activation and disabling of slot machines.
(xx) Additional documentation as requested by the Board.
(7) In the case of a modification to a slot machine prototype, including a change in theme, the following additional information shall be submitted:
(i) A complete, comprehensive and technically accurate description of the proposed modification to the slot machine prototype, accompanied by applicable diagrams, schematics and specifications.
(ii) When a change in theme is involved, a copy of all graphical images displayed on the slot machine including reel strips, rules, instructions and paytables.
(iii) When a change in the manner in which the theoretical payout percentage is achieved is involved, a mathematical explanation of the theoretical return to the player, listing all assumptions, all steps in the formula from the first principles through to the final results of all calculations including bonus pays and, when a game requires or permits player skill in the theoretical derivations of the payout return, the source of strategy.
(iv) A complete, comprehensive and technically accurate description of the manner in which the slot machine was tested for compatibility and compliance with the central control computer and protocol specifications approved by the Department including the ability to communicate with the central control computer for the purpose of transmitting auditing program information, real time information retrieval and activation and disabling of slot machines.
(v) Additional documentation as requested by the Board.
(8) In the case of a slot monitoring system, casino management system, player tracking system, wide area progressive system, gaming voucher system, external bonusing system, cashless funds transfer system, automated gaming voucher, coupon redemption or jackpot payout machine, coupon system or any other equipment or system required to be tested and approved under subsection (b):
(i) A technical and an operator manual.
(ii) A description of all security methodologies incorporated into the design of the system to include, when applicable, password protection, encryption methodology and its application, auto-authentication, network redundancy, back-up and recovery procedures.
(iii) A complete schematic or network diagram of the system's major components accompanied by a description of each component's functionality and a software object report. The description must disclose the functions performed by each component.
(iv) A description of the data flow, in narrative and in schematic form, including specifics with regard to data cabling and, when appropriate, communications methodology for multi-site applications.
(v) A list of all computer operating systems and third party software incorporated into the system together with a description of their interoperability.
(vi) System software and hardware installation procedures.
(vii) A list of all system reports available.
(viii) When applicable, features for each system which may include patron and employee card functions, promotions, reconciliation procedures and patron services.
(ix) A description of any interoperability testing including test results for each submitted system's connection to, as applicable, slot machines, voucher, coupon redemption and jackpot payout machines, computerized systems for counting money, vouchers and coupons. This list must identify the tested products by manufacturer, model and software identification and version number.
(x) A narrative describing the method used to authenticate software.
(xi) When requested by the Board, all source code.
(xii) When applicable, a complete, comprehensive and accurate description, accompanied by applicable diagrams, schematics and specifications, of the creation of a voucher and the redemption options available.
(xiii) When applicable, a complete, comprehensive and technically accurate description, accompanied by applicable diagrams, schematics and specifications, of the creation of a coupon and the redemption options available.
(xiv) Any specialized hardware, software or other equipment, inclusive of technical support and maintenance applicable thereto, required by the Board's Slot Lab to conduct the testing and approval process contemplated by the act, this subpart and technical standards adopted by the Board. The testing equipment and services required by this paragraph shall be provided at no cost to the Board.
(xv) Additional documentation requested by the Board.
(9) In the case of a modification to any of the systems identified in paragraph (8), the following additional information shall be submitted:
(i) A complete, comprehensive and technically accurate description of the proposed modification to the system, accompanied by applicable diagrams, schematics and specifications.
(ii) A brief narrative disclosing the purpose for the modification.
(iii) Additional documentation as requested by the Board.
(i) At the conclusion of any testing of a prototype or modification by the Board's Slot Lab, but prior to a decision to approve a prototype or modification, the Board may require a trial period of scope and duration it deems appropriate to assess the operation of the prototype or modification in a live gaming environment. The conduct of the test period shall be subject to compliance by the licensed manufacturer, any applicable licensed supplier, and the slot machine licensee with specific terms and conditions as required by the Board, which may include development and implementation of product specific accounting and internal controls, periodic data reporting to the Board and compliance with any technical standards on trial periods or the prototype or modification adopted by the Board. The Board may authorize the receipt of compensation by a licensed manufacturer or licensed supplier during the trial period. The Board may order termination of the trial period if it determines that the licensed manufacturer, any applicable licensed supplier or the slot machine licensee conducting the trial period has not complied with the terms and conditions required by the Board or that the product is not performing as expected.
(j) At the conclusion of any testing of a prototype or modification, the Board's Slot Lab will report to the Board the results of its testing. Upon receipt of the Slot Lab's report, the Board will approve, approve with conditions or reject the submitted prototype or modification, require additional testing or a trial period under subsection (i). Board approval of a prototype or modification does not constitute a guarantee of the prototype or modification's safety.
(k) A slot machine licensee is prohibited from installing in its licensed facility any slot machine or associated equipment, or modification thereto, required to be tested and approved under subsection (b) unless the equipment, device or software has been approved by the Board. A slot machine licensee may not modify, alter or tamper with any approved slot machine or associated equipment.
(l) Notwithstanding subsection (k), when a modification to a slot machine prototype or associated equipment prototype is required on an emergency basis to prevent cheating or malfunction, upon the written request of a licensed manufacturer in the manner prescribed by the Board, which request must expressly detail the name and employer of any persons to be involved in the installation of a modification and the manner in which it is to be effected, the Board may, in writing, authorize installation of a modification prior to the completion of the testing and approval process required by this subpart. Within 15 days of receipt of any authorization to install an emergency modification, the manufacturer shall submit the modification for full testing and approval in accordance with this subpart.
(m) Concurrent with the initial receipt of slot machines, an applicant for, or holder of, a slot machine license shall file a slot machine master list as required by § 463.5 (relating to slot machine master list).
(n) The testing of equipment, devices or software under this subpart may require the dismantling of the product and testing that may result in damage to, or destruction of, one or more systems or components. Once submitted for testing, equipment, devices or software will not be returned to the manufacturer unless otherwise determined by the Board.
§ 461.5. Slot machine conversions.
(a) Definition. The following term, when used in this section, has the following meaning, unless the context clearly indicates otherwise:
Conversion--A change or alteration to a slot machine that does not affect the manner or mode of play or operation of the slot machine.
(b) Records of conversion. A slot machine licensee shall:
(1) Maintain complete and accurate records of all conversions.
(2) Give prior notice of a slot machine conversion to the Board's Slot Lab in writing in the manner prescribed by the Board.
(3) Notice the Department in accordance with § 463.6 (relating to notice to central computer system).
§ 461.6. Revocations.
If subsequent to the approval of a slot machine prototype, associated equipment prototype, or modification thereto, the Board determines that the equipment, device or software approved by the Board meets either of the following criteria, the Board may take action it deems appropriate, including revocation of the approval or imposition of additional conditions:
(1) The equipment, device or software is not in compliance with the act, this subpart or technical standards adopted by the Board.
(2) With regard to any slot machine, or modification thereto, the equipment, device or software is not compatible with, or compliant with the central control computer and protocol specifications approved by the Department or is unable to communicate with the central control computer for the purpose of transmitting auditing program information, real time information retrieval and activation and disabling of slot machines.
§ 461.7. Slot machine minimum design standards.
(a) A slot machine is any mechanical or electrical contrivance, terminal, machine or other device as defined in § 401.4 (relating to definitions).
(b) A slot machine is prohibited from being set to pay out less than the theoretical payout percentage, which shall be no less than 85% but not equal or exceed 100%. The theoretical payout percentage for the total value of slot machine wagers will be calculated using the following criteria:
(1) The defined set of all symbols that will be displayed using spinning reels or video displays or both.
(2) The finite set of all possible combinations which shall be known as the cycle of the game. All possible combinations in a slot machine cycle shall be independent of each other and of all possible combinations from cycles in other slot machines.
(3) The value of each winning combination that corresponds with the set from paragraph (2) which, whether by reason of skill or application of the element of chance, or both, may deliver or entitle the person playing the slot machine to a jackpot.
(4) A payout of merchandise or anything of value provided a cash equivalent award for the merchandise is offered. The value of the cash equivalent will contribute to the calculation of the theoretical payout percentage.
(5) A payout in the form of an annuity will contribute to the calculation of the theoretical payout percentage by dividing the initial or reset amount of the jackpot payout by the number of years over which the jackpot will be paid.
(6) The odds of any winning combination may not exceed 50 million to 1.
(c) The calculation of the theoretical payout percentage will not include:
(1) The amount of any progressive jackpot in excess of the initial or reset amount.
(2) A cash or noncash complimentary issued under § 465.8 (relating to complimentary services or items).
(3) A payout of merchandise or anything of value when a cash equivalent award is not offered.
(d) A play offered by a slot machine may not have a theoretical payout percentage which is less than, when calculated to one hundredth of a percentage point, the theoretical payout percentage for any other play offered by that slot machine which is activated by a slot machine wager in a lesser amount than the slot machine wager required for that play. Notwithstanding the foregoing, the theoretical payout percentage of one or more particular plays may be less than the theoretical payout percentage of one or more plays which require a lesser wager provided that:
(1) The aggregate total of the decreases in the theoretical payout percentage for plays offered by the slot machine is not more than 1/2 of 1%.
(2) The theoretical payout percentage for every play offered by the slot machine is equal to or greater than the theoretical payout percentage for the play that requires the lowest possible wager that will activate the slot machine.
(e) In addition to the requirements of subsections (b), (c) and (d), the volatility of a slot machine must verify that the theoretical payout percentage equals or exceeds the minimum payout requirement of 85% within 10 million plays. The criteria used to calculate the volatility must be in accordance with technical standards applicable to volatility adopted by the Board.
(f) The selection from the set of all possible combinations of symbols shall be made applying a pseudo random number generator. At a minimum, each pseudo random number generator must adhere to the following criteria:
(1) The random selection process must meet a 95% confidence interval.
(2) As determined by the Board, it must pass a standard chi-squared test for goodness of fit.
(3) Each possible slot machine combination which produces winning or losing slot machine outcomes must be available for random selection at the initiation of each play.
(4) A slot machine payout percentage that may be affected by reason of skill must meet the theoretical payout requirements of this subpart when evaluated by the Board using a method of play that will provide the greatest return to the player.
(5) Once a random selection process has occurred, the slot machine must:
(i) Display an accurate representation of this randomly selected outcome.
(ii) Not make a secondary decision which affects the result shown to the person playing the slot machine.
(g) A slot machine is prohibited from automatically altering any function of the slot machine based on internal computation of the hold percentage.
(h) The available winning combinations and applicable rules of play for a slot machine shall be available at all times the slot machine is idle to the patron playing the slot machine. The award schedule of available winning combinations may not include possible aggregate awards achievable from free plays. A slot machine that includes a strategy choice must provide mathematically sufficient information for a patron to use optimal skill. Information regarding a strategy choice need not be made available for any strategy decisions whenever the patron is not required, in addition to the initial wager, to make an additional wager and, when as a result of playing a strategy choice, the patron can not lose any credits earned thus far during that game play.
(i) Unless otherwise authorized by the Board, each slot machine approved for use in a licensed facility must be equipped with the following meters. The meters must comply with any technical standards adopted by the Board. The required meters must continuously and automatically increment in units equal to the denomination of the slot machine or, in the case of a slot machine configured for multidenomination play, must display the required information in dollars and cents.
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