58 Pa. Code § 465a.28 - Merchandise jackpots
(a) A slot
machine licensee may not offer a merchandise jackpot payout unless:
(1) The terms and conditions of the
merchandise jackpot, including the effect on the calculation of the theoretical
payout percentage, comply with the act, this subpart and technical standards on
jackpot payouts approved by the Board and published in the Pennsylvania
Bulletin and posted on the Board's web site.
(2) The Executive Director has approved the
specific offer of the merchandise jackpot. To obtain the Executive Director's
approval, a slot machine licensee shall file a written request with the Bureau
of Gaming Operations containing all of the details related to the merchandise
jackpot payout including:
(i) A detailed
description of the merchandise jackpot.
(ii) A description of the slot machines that
will offer the merchandise jackpot.
(iii) Supporting documentation relating to
the valuation of the merchandise offered as the merchandise jackpot.
(b) A merchandise
jackpot may consist of one of the following:
(1) A payout that consists of both
merchandise and cash.
(2) A payout
of merchandise only with an optional cash payout that the patron may elect to
receive in lieu of receiving the merchandise.
(c) A cash payout made in connection with a
merchandise jackpot shall be made in accordance with §
465a.26 (relating to jackpot and
credit meter payouts).
(d) Prior to
offering a merchandise jackpot, each slot machine licensee shall establish a
comprehensive system of internal controls addressing the payment of a
merchandise jackpot. The internal controls shall be submitted to and approved
by the Board under §
465a.2 (relating to internal
control systems and audit protocols).
(e) Whenever a slot machine licensee offers a
merchandise jackpot consisting of merchandise or an optional cash payment, the
cash equivalent value of the merchandise must equal or exceed the value of the
optional cash payment. The cash equivalent value of the merchandise shall be
determined as follows:
(1) Merchandise that is
sold directly to the public in the normal course of the slot machine licensee's
business shall be recorded at an amount based upon full retail price normally
charged for the item.
(2)
Merchandise which is not offered for sale to the public in the normal course of
the slot machine licensee's business but which is provided directly to the
patron by the slot machine licensee shall be recorded at an amount based upon
the actual cost to the slot machine licensee of providing the item.
(3) Merchandise provided directly or
indirectly to the patron on behalf of a slot machine licensee by a third party
not affiliated with the slot machine licensee shall be recorded at an amount
based upon the actual cost to the slot machine licensee of having the third
party provide the item.
(4)
Merchandise provided directly or indirectly to the patron on behalf of a slot
machine licensee by a third party who is affiliated with the slot machine
licensee shall be recorded by the slot machine licensee in accordance with this
subsection as if the affiliated party were the slot machine licensee.
(f) Slot machine licensees shall
retain and make available to the Board upon request supporting documentation
relating to the acquisition and valuation of merchandise offered as a
merchandise jackpot.
(g) A
merchandise jackpot will be considered to be winnings for the purpose of
calculating gross terminal revenue and the payout percentage of any slot
machine. The value of the merchandise jackpot will be determined as follows:
(1) For a combination of merchandise and
cash, the cash equivalent value of the merchandise as calculated under
subsection (e) plus the amount of cash awarded.
(2) For merchandise or an optional cash
payment in lieu of the merchandise, the value of the award selected by the
winning patron.
(h) Slot
machine licensees shall notify the Department of the slot machines that will be
offering the merchandise jackpot and the value of each merchandise jackpot
awarded.
(i) Advertising of
merchandise jackpots must include the following at a minimum:
(1) An accurate description of the
merchandise jackpot.
(2) The dates
the merchandise jackpot will be offered.
(3) The cash equivalent value of the
merchandise jackpot.
(4) The
optional cash payment that will be offered in lieu of the merchandise, if an
optional cash payment is offered.
(j) Until the merchandise jackpot is won by a
patron, a slot machine licensee may not decrease the probability of winning the
merchandise jackpot, increase the denomination of a slot machine offering the
merchandise jackpot, nor in any other way vary the terms upon which the
merchandise jackpot is offered to the public.
(k) Slot machines which are linked to offer
the same merchandise jackpot must have the same probability of winning that
jackpot.
(l) A slot machine which
offers a merchandise jackpot as a payout which is removed from the gaming floor
shall be returned to or replaced on the gaming floor within 5 days. If the slot
machine is not returned or replaced, the merchandise jackpot shall, within 5
days of the slot machine's removal, be offered as a payout on another slot
machine or slot system approved by the Board which offers the same or a greater
probability of winning the merchandise jackpot, and accepts a denomination of
coin the same or less than the denomination accepted by the slot machine which
was removed.
Notes
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