SGC-37-16-00021-P Set Forth the Standards for the Gaming Devices

9/14/16 N.Y. St. Reg. SGC-37-16-00021-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-37-16-00021-P

Set Forth the Standards for the Gaming Devices

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

Proposed Action:

Addition of Part 5319 to Title 9 NYCRR.

Statutory authority:

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

Subject:

Set forth the standards for the gaming devices.

Purpose:

To prescribe the technical standards for the certification of gaming devices.

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

The addition of Part 5319 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 gaming devices. Section 5319.1 sets forth the requirement that an independent testing laboratory test gaming devices.

Section 5319.2 requires that gaming devices have electrical and mechanical safeguards, game integrity tests, microprocessors and an on/off switch. Section 5319.3 sets forth the game device wiring design. Section 5319.4 requires gaming devices to have an identification badge affixed to it. Sections 5319.5 and 5319.6 set forth specifications for tower lights and power surges. Sections 5319.7 through 5319.14 establish requirements for external and logic doors, currency compartments, program memory, contents and maintenance of critical memory, program storage devices and control programs. Sections 5319.15 through 5319.18 set forth specifications for multi-station games, printed circuit boards, patch wires, switches and jumpers. Sections 5319.19 and 5319.20 set forth the recommendations for display devices, video monitor and touch screens. Sections 5319.21 through 5319.24 set forth the bill validator specifications. Sections 5319.25 and 5319.26 establish protocols for credit redemption and printers. Sections 5319.27 through 5319.29 set forth voucher validation, issuance and redemption requirements. Sections 5319.30 and 5319.31 set forth the software requirements for the gaming device display. Sections 5319.32 through 5319.34 establish the specifications for multi-line games, game cycle and the game selection process. Sections 5319.35 through 5319.38 set forth the random number generator specifications and tests. Sections 5319.39 and 5319.40 establish live game and symbol probabilities. Sections 5319.41 through 5319.44 set forth the technical protocols for card, ball drawing and random number generator games. Sections 5319.45 through 5319.47 establish the software requirements for percentage payouts, odds and limitations on prize amounts. Sections 5319.48 through 5319.50 set forth the specifications for bonus games and mystery awards. Section 5319.51 defines the term multi-game and establishes requirements when it is in use. Sections 5319.52 and 5319.53 set forth the specification for electronic metering and tokenization. Sections 5319.54 through 5319.61 establish protocols for the following: communication, error conditions, program interruption and resumption, taxation reporting limits, demo mode and game history recall.

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 gaming devices. The rules represent the best practices including requiring electrical and mechanical safeguards, game integrity tests, external and logic doors, currency compartments, program memory, contents and maintenance of critical memory and program storage devices. The rules also specify technical standards for card, ball drawing and random number generator games, electronic metering and tokenization.

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 gaming devices 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: The rule is not expected to impose any significant paperwork or reporting requirements on the regulated entities.

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. These included clarification on the safety and electromagnetic compatibility testing requirements; the definition of a significant event and authorized person; the renaming of error messages on bill validators; the requirement for 64 bit secure encryption for offline voucher issuance; the definition for minimum and maximum payout; and the clarification of game history recall.

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 gaming devices 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.