Mich. Admin. Code R. 432.639c - Progressive jackpots

Rule 639c.

(1) An internet gaming operator or its internet gaming platform provider may offer a progressive jackpot that increases uniformly in value as the internet game is played based upon an approved rate of progression and is awarded for a specific outcome or event.

(2) The rules governing the award and the value of the progressive award must be readily available to individuals and authorized participants.

(3) An internet gaming operator or its internet gaming platform provider must obtain approval from the board in the form and manner prescribed by the board before offering, modifying, or transferring a progressive jackpot on software approved by the board under these rules.

(4) Two or more linked internet games offering the same progressive jackpot may be of different denominations or have different minimum internet wagers required to win the progressive jackpot, or both, if the probability of winning the progressive jackpot is directly proportional to the minimum internet wager required to win that jackpot. For example, if on the same link, a nickel game requires 20 credits (a $1.00 wager), a quarter game requires 8 credits (a $2.00 wager), and a dollar game requires 3 credits (a $3.00 wager) to win the progressive jackpot, the probability of a winning internet wager must be 3 times more likely on a linked dollar game than on the linked nickel game, and twice as likely on a linked quarter game than on the linked nickel game. Similarly, if among 3 linked quarter denomination games, the first required 2 credits (a 50 cent wager), the second required 4 credits (a $1.00 wager), and the third required 8 credits (a $2.00 wager) to play for the progressive jackpot, on each wager, the probability of winning the jackpot would be twice as likely on the second game than on the first game, and 4 times more likely on the third game than on the first game.

(5) The internet gaming operator or its internet gaming platform provider, or both must ensure that progressive jackpot awards that have a reset amount greater than $5,000.00 are reconciled at least once a month in accordance with approved internal controls unless otherwise required by the board.

(6) An internet gaming operator or its internet gaming platform provider, or both must maintain a detailed record of the monthly reconciliation. An internet gaming operator or its internet gaming platform provider, or both must also reconcile a progressive jackpot before a transfer or modification.

(7) The internet gaming operator or its internet gaming platform provider, or both must investigate the reason for any progressive amount variance exceeding $100.00 and file an incident report with the board that must include corrective actions proposed or taken to resolve the variance.

(8) An internet gaming operator or its internet gaming platform provider, or both must remove or make the progressive game unavailable to individuals and authorized participants for all occurrences in which a game malfunctions or if otherwise required by the board.

(9) The internet gaming operator or its internet gaming platform provider, or both that chooses to restore a progressive jackpot previously made unavailable pursuant to this rule, must restore the entire progressive jackpot amount. The amount restored must include the entire jackpot, including the seed amount and all previously collected authorized participant contributions.

(10) An internet gaming operator may remove or transfer a progressive jackpot upon obtaining board approval as provided for in this rule and after notification to individuals and authorized participants, which notification must be given not less than 10 days before a transfer or not less than 30 days before a removal.

(11) If a wide area progressive offered on the internet is removed, it must be restored or transferred by the internet gaming platform provider or internet gaming supplier as applicable. The amount restored or transferred must include the entire jackpot, including the seed amount and all previously collected authorized participant contributions.

Notes

Mich. Admin. Code R. 432.639c

2020 MR 22, Eff. 12/2/2020