SGC-37-16-00020-P Monitoring, Control Systems and Validation

9/14/16 N.Y. St. Reg. SGC-37-16-00020-P

NEW YORK STATE REGISTER

VOLUME XXXVIII, ISSUE 37

September 14, 2016

RULE MAKING ACTIVITIES

NEW YORK STATE GAMING COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. SGC-37-16-00020-P

Monitoring, Control Systems and Validation

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

Addition of Part 5317 to Title 9 NYCRR.

Statutory authority:

Racing, Pari-Mutuel Wagering and Breeding Law, sections 104(19), 1307(1) and 1335(8)

Subject:

Monitoring, control systems and validation.

Purpose:

To prescribe the technical standards for the certification of online monitoring and control and validation systems.

Substance of proposed rule (Full text is posted at the following State website:www.gaming.ny.gov/):

The addition of Part 5317 of Subtitle T of Title 9 NYCRR will allow the New York State Gaming Commission (“Commission”) to prescribe the technical standards for the certification of online monitoring and control and validation systems.

Sections 5317.1 through 5317.40 establish the technical specifications for the testing and certification of online monitoring and control systems and validation systems including requiring interface elements, metering, battery backup, information buffering, offline ticketing support, front end controller and data collector, database access, tax reporting thresholds, fill slips, interrogation programs, defined communication protocols, notices of significant event, flash downloads, remote access and environmental and player safety safeguards.

Text of proposed rule and any required statements and analyses may be obtained from:

Kristen Buckley, New York State Gaming Commission, One Broadway Center, 6th Floor, Schenectady, NY 12305, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement

1. STATUTORY AUTHORITY: Racing, Pari-Mutuel Wagering and Breeding Law (“Racing Law”) section 104(19) grants authority to the Gaming Commission (“Commission”) to promulgate rules and regulations that it deems necessary to carry out its responsibilities. Racing Law section 1307(1) authorizes the Commission to adopt regulations that it deems necessary to protect the public interest in carrying out the provisions of Racing Law Article 13.

Racing Law section 1335(8) authorizes the Commission to regulate the testing of gaming devices and associated equipment.

Racing Law section 1335(8) authorizes the Commission to establish technical standards for the testing and certification of gaming devices and associated equipment.

2. LEGISLATIVE OBJECTIVES: The above referenced statutory provisions carry out the legislature’s stated goal “to tightly and strictly” regulate casinos “to guarantee public confidence and trust in the credibility and integrity of all casino gambling in the state and to prevent organized crime from any involvement in the casino industry” as set forth in Racing Law section 1300(10).

3. NEEDS AND BENEFITS: The proposed rules implement the above listed statutory directives regarding the technical specifications for the testing and certification of online monitoring and control systems and validation systems. The rules represent the best practices including requiring interface elements, metering, battery backup, information buffering, offline ticketing support, front end controller and data collector, database access, tax reporting thresholds, fill slips, interrogation programs, defined communication protocols, notices of significant event, flash downloads, remote access and environmental and player safety safeguards.

4. COSTS:

(a) Costs to the regulated parties for the implementation of and continuing compliance with these rules: The gaming facilities are required to have online monitoring and control systems and validation systems tested and certified by an independent testing laboratory. The total fee for an independent testing laboratory’s inspection and certification will be approximately $500,000 to $750,000 annually.

(b) Costs to the regulating agency, the State, and local governments for the implementation of and continued administration of the rule: The costs to the Commission for the implementation of and continued administration of the rule will be negligible given that all such costs are the responsibility of the gaming facility. These rules will not impose any additional costs on local governments.

(c) The information, including the source or sources of such information, and methodology upon which the cost analysis is based: The cost estimates are based on the Commission’s experience regulating racing and gaming activities within the State.

5. LOCAL GOVERNMENT MANDATES: There are no local government mandates associated with these rules.

6. PAPERWORK: These rules impose paperwork burdens on gaming facility licensees to submit reports to the Commission including net win/revenue report for each gaming device, drop comparison reports, metered versus actual jackpot comparison, theoretical hold versus actual hold comparison with variances, significant event log for each gaming device, and other reports as required by the Commission.

7. DUPLICATION: These rules do not duplicate, overlap or conflict with any existing State or federal requirements.

8. ALTERNATIVES: The Commission consulted stakeholders and reviewed other gambling jurisdiction best practices and regulation. Alternatives were discussed and considered with stakeholders and compared to other jurisdictions regulations. This included one comment on the information contained on a jackpot/fill slip.

9. FEDERAL STANDARDS: There are no federal standards applicable to the licensing of gaming facilities in New York; it is purely a matter of New York State law.

10. COMPLIANCE SCHEDULE: The Commission anticipates that the affected parties will be able to achieve compliance with these rules upon adoption.

Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

These rules establish the standards for monitoring and control systems validation and will not have any adverse impact on small businesses, local governments, jobs or rural areas.

These rules do not impact local governments or small businesses as it is not expected that any local government or small business will hold a gaming facility license.

These rules impose no adverse impact on rural areas. These rules apply uniformly throughout the state and solely apply to licensed gaming facilities.

These rules will have no adverse impact on job opportunities.

These rules will not adversely impact small businesses, local governments, jobs, or rural areas. Accordingly, a full Regulatory Flexibility Analysis, Rural Area Flexibility Analysis, and Job Impact Statement are not required and have not been prepared.