GAC works to clarify video line-game rules
By Paul Tash
Montana Tavern Times
The majority of the Gaming Advisory Council meeting May 19 in Helena focused on proposed administrative rules to govern the new video line games passed by the 2011 Legislature.
Rick Ask, Gambling Control Division administrator, led the discussion on the proposed rules. His agency is responsible for developing the rules, but the GCD seeks recommendations from the Council and interested parties to help it write the rules.
One of the proposed rules that drew interest from the Council was one defining expiration dates, or “stale dates.” The proposed rule states that players have 48 hours from the time they print a winning ticket voucher to redeem it for cash (currently no expiration date exists for gaming machine vouchers). However, the proposed rule allows operators to cash tickets after 48 hours if they choose.
The rule proposes that language be printed on the vouchers stating, “Promptly present your ticket vouchers for payment – Tickets become invalid after 48 hours.”
Ask said he had heard from industry representatives that the proposed language was too long to fit on one line on some older dot matrix printers. Ask said he was agreeable to shortening the required language, possibly to include just the last part of it: “Tickets become invalid after 48 hours.”
“We're committed (to new language) that is very clear and one line,” he said.
Staff attorney Cregg Coughlin reminded the Council that GCD's “paramount concern is that of the player” and that some sort of notice on the ticket and signage in the gaming establishment will be required as stated in the legislation.
Council member Steve Morris questioned whether operators should have discretion on cashing tickets outside the 48-hour window.
“Do we run into a problem by leaving (ticket redemption) to the discretion of the operator?” he asked.
Council chairman John Tooke, owner of the Golden Spur Casino in Miles City, said he “didn't see it as a big problem.”
“We keep track of the (non-redeemed vouchers) because they are such an anomaly,” he said.
Ask said the rule was specifically written to allow operator discretion in redeeming tickets to keep it “a business decision” for the operator.
Neil Peterson, executive director for the Gaming Industry Association, said the reason behind the stale date rule was to prevent some counterfeiting by folks who, given enough time, would attempt to duplicate tickets or alter the amount of the tickets.
But, he said, “from time to time there's a good customer who unknowingly takes a ticket home.” That is a circumstance when operators could choose to cash the ticket after the 48-hour expiration date.
Peterson added that proposed rule could “spell it out” that ticket redemption after 48-hours is up to the operator. Current proposed language simply says that a ticket voucher “may be deemed invalid” if presented for payment after 48 hours.
Council member Tim Carson drew a laugh when he said, "Nobody's going to read (the language on) the ticket. They're only looking at the cash amount.”
Morris suggested that if preventing counterfeiting is the main goal of the state date rule, “maybe the ticket shouldn't leave the building.”
New council member Jed Fitch added that if counterfeiting tickets is a problem, “it would behoove the operator” to prominently disclose the expiration date.
Chairman Tooke then summed up the comments by saying that while the 48-hour stale date is a “rather delicate approach,” it's a place to start “and see how it goes.”
Steve Arntzen, from Century Gaming, suggested to the Council that the signage required in the gaming establishments notifying players of the ticket stale date should be of minimum size to ensure the signs are large enough to be easily seen.
He encouraged “specific language” in the rule stating the smallest a stale-date notice can be.
Carson agreed, adding the rule should address just the minimum size allowed, not a maximum size.
“If you wanted to paint it on the side of your building, you should be able to do that,” he said, drawing some laughter from the crowd.
Carson also suggested that the 48-hour stale date rule be implemented “at the first of the year with the introduction of line games.”
The GCD will take the suggestions under consideration, Ask said.
Another rule that drew interest from the Council was one clarifying advertising restrictions for line games. The proposed rule now states that advertising for line games can't “make any explicit or implicit reference to illegal gambling devices, including equipment associated with illegal gambling devices, such as mechanical gambling machine arms.”
Though Ask said the language is referring to slot machines, some Council members and others urged the GCD to specify in the rule that advertisements can't include the words “slot” or “slot-like.”
“It would be much easier to say that you can't (use those words),” Carson said.
Agreeing with that sentiment was Mark Staples, Montana Tavern Association's government affairs counsel. He urged the GCD to “err on the side of caution” and specify that the word “slot” in any form cannot be used in advertisements for line games.
Ask said he was agreeable to that.
“If it provides more clarity to the operator,” he said, “we can include it.”
Responding to another question on advertising from Morris, Ask confirmed that numbers and symbols can be used in line-game advertising.
Other concerns arising at the Council meeting included a request from Carson and others that the line-game rules clarify that complete animation of the numbers and symbols that appear in the games be allowed.
Carson wanted to ensure that game manufacturers can create numbers and symbols that behave in a variety of ways in the games, including spinning, dropping down, or simply appearing – “we don't want to limit ourselves technology-wise.”
That animation acceptance would also allow manufacturers to bring in games from out of state that already have those animations, thus reducing some costs, added GIA's Peterson.
The Council also heard suggestions that the administrative rules specify that only qualified, independent labs “approved by the state” should be allowed to verify the line games' math. Coughlin said that suggestion could be accomplished by requiring the labs to get an associated business license, which requires approval from the state.
Finally, the Council recommended that the rules add the language that all games in a gaming machine must remain “available for play,” at the suggestion of Arntzen. He said that language would prohibit operators from turning off poker and keno games on a machine, leaving just line games to play.
“That falls outside the spirit of the bill,” he said, which mandates “multi-game” cabinets that include line games, poker games and keno games.
MTA's Staples agreed with that suggestion.
“I applaud the caution,” he said.
Chairman Tooke then led the discussion to the problem of internet gambling as a Council topic for the next biennium.
Ask said that although internet gambling is specifically prohibited in Montana, it's a “complicated topic for the division.”
“We're not going to be kicking in doors … arresting the guy in his underwear playing internet poker,” he said.
“We're going to have to deal with it sometime,” Tooke said. “We should put it at the top of the radar screen before we get run over.”
Arntzen asked how Montana would respond if the federal government legalized internet gambling.
Ask responded that any legalization language would have an “opt-out option” to allow state to continue prohibiting internet gambling.
At the close of the meeting, Peterson thanked “Rick and his staff for their hard work with the rules.”
Tooke also lauded Ask, saying “the business-like manner you run the show up here is commendable.
At the start of the meeting, three new Council members were announced. They are Rep. Max Yates from Butte, Sen. Jon Sonju from Kalispell, and Fitch, Beaverhead County attorney from Dillon. Leaving the Council are Sen. Joe Tropila from Great Falls and Rep. Pat Noonan from Butte.
Also, member Mark Kennedy was elected chairman to replace Tooke, who remains on the Council as vice chairman.
The Council set its next meeting for Sept. 16 in Missoula.