Chapter 3772-10 Internal Control Systems

3772-10-01 Definitions.

As used in this chapter, the following words have the following meaning:

(A) "Accounting department" means a casino operator licensee or casino operator applicant's internal department that is responsible for the management of the financial and accounting activities relating to electronic gaming machines being utilized on an approved gaming floor.

(B) "Asset number" means a unique number assigned to an electronic gaming machine by a casino operator licensee or casino operator applicant for the purpose of tracking the electronic gaming machine.

(C) "Bill validator" means an electronic device designed to interface with an electronic gaming machine for the purpose of accepting and validating any combination of United States currency, gaming tickets, coupons, or other instruments authorized by the commission for incrementing credits on an electronic gaming machine.

(D) "Bill validator canister" means a mechanical or electronic device designed to interface with an electronic gaming machine for the purpose of storing any combination of United States currency, gaming tickets, coupons, or other instruments authorized by the commission for recording credits on an electronic gaming machine.

(E) "Cash equivalents" means instruments with a value equal to United States currency or coin, including certified checks, cashier's checks, traveler's checks, money orders, gaming tickets, and coupons.

(F) "Cashier's booth" means an area from which a cashier conducts transactions associated with gaming cashiers or window cashiers.

(G) "Change person" means a person who exchanges coins, currency, and coupons with patrons.

(H) "Complimentary" means any lodging, service, or item that is provided directly or indirectly to an individual at no cost or at a reduced cost and that is not generally available to the public. This term shall include lodging provided to a person at a reduced price due to the anticipated or actual gaming activities of that person. Group rates, including convention and government rates, shall be deemed generally available to the public.

(I) "Count room" means a room secured by keys controlled by two separate casino operator licensee or casino operator applicant departments with limited access, where the contents, including currency, gaming tickets, and coupons, of bill validator canisters are counted by the count team.

(J) "Currency counters" means a device that counts currency and tickets.

(K) "Critical program storage media" and "CPSM" mean any media storage device that contains data, files, or programs and is determined by the commission to be capable of affecting the integrity of gaming.

(L) "Drop" means the total amount of money, tickets, and coupons removed from any slot, table or kiosk.

(M) "Drop team" means the group of employees of a casino operator licensee or casino operator applicant who participate in the transportation of the drop.

(N) "Imprest" means the basis on which the operating funds of cashiers are maintained. The opening and closing values shall be equal, and any difference shall result in a variance. The funds may be replenished as needed in exactly the value of the net of expenditures made from the funds for value received.

(O) "Incompatible functions" means functions or duties that place any person or department in a position to perpetuate and conceal errors, fraudulent or otherwise.

(P) "Main bank" means the location in the casino where acts that include the following are performed:

(1) Transactions for recording currency, coin, tokens, cash equivalents, and negotiable instruments;

(2) Preparation of bank deposits;

(3) Acceptance of currency from the count room; and

(4) Reconciliation of all cage transactions.

(Q) "Trolley" means a wheeled apparatus used for the secured transport of electronic gaming cash storage boxes and drop boxes.

(R) "Unclaimed winnings" means gaming winnings that are held by the casino operator licensee or casino operator applicant as a liability to a patron until that patron is paid.

(S) "Unredeemed ticket" means a ticket issued from a slot containing value in U.S. dollars that has not been presented for payment or accepted by a bill acceptor at a gaming machine and has not been marked as paid in the ticket file.

(T) "Weigh scale" means a scale that is used to weigh coins and tokens and that converts the weight to dollar values in the count process.

Effective: 04/01/2012
R.C. 119.032 review dates: 04/01/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03, 3772.033

3772-10-02 Requirement to submit internal control plans.

Each applicant for a casino operator license must submit written internal control plans for commission approval at least sixty days before the applicant's anticipated casino opening. No casino operator licensee may open to the public without the commission's approval of these plans and without the executive director or his/her designee's final approval of each conditional licensing item as directed by the commission. The required internal control plans shall at a minimum include the following:

(A) Internal controls for casino operations, as detailed under this chapter;

(B) Internal controls for table game and slot machine operations, as detailed under Chapter 3772-11 of the Administrative Code;

(C) Internal controls for compulsive and problem gambling, as detailed under Chapter 3772-12 of the Administrative Code;

(D) Internal controls for surveillance and standards, as detailed under Chapter 3772-19 of the Administrative Code;

(E) Internal controls for security, as detailed under Chapter 3772-20 of the Administrative Code; and

(F) Any other internal controls or plans required by the commission.

Effective: 04/01/2012
R.C. 119.032 review dates: 04/01/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03, 3772.033

3772-10-03 Casino operator's organization.

(A) Each casino operator's internal control system shall include organization charts depicting the segregation of functions and describing the duties for each position shown. Each casino operator may tailor organizational structures to meet its management needs or policies so long as it does not conflict with Chapter 3772. of the Revised Code and the rules adopted thereunder. Each casino operator's organization charts shall provide for the following:

(1) A system of personnel and chain of command that permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility;

(2) The segregation of incompatible functions, duties, and responsibilities so that no employee is in a position both to commit an error or perpetrate a fraud and to conceal the error or fraud in the normal course of the employee's duties;

(3) The performance of all functions, duties, and responsibilities in accordance with legitimate financial practices by trained personnel;

(4) The areas of responsibility that are not so extensive as to be impractical for one person to monitor; and

(5) Separate departments and supervisors for surveillance, security, accounting, internal auditing, slots, table games, and cage.

(B) Each casino operator's internal control system shall also include the following departments and supervisory positions, each of which are mandatory and shall cooperate with, yet perform independently of, other mandatory departments and supervisory positions of the operator:

(1) A surveillance department supervised by a director of surveillance located at the casino;

(2) An internal audit department supervised by a director of internal audit. The director of internal audit shall report directly to one of the following regarding matters of policy, purpose, responsibility, and authority, and the following shall also control the hiring, termination, and salary of the director's position:

(a) The independent audit committee of the operator's board of directors;

(b) The independent audit committee of the board of directors of any holding or intermediary company of the facility manager that has authority to direct the operations of the operator;

(c) The internal audit executives of any holding or intermediate company if the most senior executive in the reporting line reports directly to the independent audit committee of the board of directors of the holding or intermediary company; or

(d) Another entity as approved by the executive director or his/her designee;

(3) An information technology ("IT") department supervised by an IT director located at the casino;

(4) A slot machine department supervised by a slot director located at the casino;

(5) A tables games department supervised by a table games director located at the casino;

(6) A security department supervised by a director of security located at the casino;

(7) An accounting department supervised by a person who functions as the casino's controller located at the casino. The controller shall be responsible for all accounting functions, including the preparation and control of books, records, and data, the control of stored data, the control of unused forms, the accounting for and comparison of operational data and forms; and

(8) A cashier's cage department supervised by a person located at the casino who functions as the cage manager. The cage manager shall be responsible for the control and supervision of the cashier's cage, satellite cages, count room, and vault. The cashier's cage may be separated into independent operations or satellite cages to facilitate operations and accountability. The cashier's cage department shall be responsible for the following:

(a) The custody and accountability of coin, currency, negotiable instruments, documents, and records normally associated with the operation of a cage;

(b) Any other functions normally associated with the operation of a cage;

(c) The count room;

(d) The vault; and

(e) The control and supervision of gaming cashiers and change persons.

(9) A regulatory compliance department supervised by a regulatory compliance officer located at the casino. The regulatory compliance department shall be responsible for the casinos compliance with state and local law, including Chapter 3772. of the Revised Code and this chapter, as well as commission approved internal controls. The regulatory compliance officer shall report directly to one of the following regarding matters of policy, purpose, responsibility, and authority, and the following shall also control the hiring, termination, and salary of the compliance officers position:

(a) The casino operator's corporate chief compliance officer; or

(b) Another position or entity as approved by the executive director or his/her designee;

(C) The casino operator's personnel shall be trained in all policies, procedures, and internal controls relevant to each employee's individual function. The casino operator shall develop special instructional programs in addition to any on-the-job instruction sufficient to make each member of the department knowledgeable about the requirements and performance of all transactions relating to that employee's functions.

(D) In addition to the department supervisory positions listed in paragraph (B) of this rule, each casino operator shall also employ a casino general manager who shall be the primary individual responsible for the performance of the casino facility. All casino departments may be subject to direct control by the casino general manager except the internal audit department, the compliance department, and the surveillance department.

(E) If a vacancy in any of the casino operator's mandatory department supervisory positions or in the casino general manager position required by this chapter occurs or if written notice is received that such a vacancy will occur in the future, the casino operator shall:

(1) Notify the executive director immediately in writing of the vacant position;

(2) Designate an appropriately licensed person or persons to assume the duties and responsibilities of the vacant position on a temporary basis;

(3) Fill the position on a permanent basis within sixty days after the effective date of the vacancy. An extension of the temporary appointment to the position may be granted at the discretion of the executive director or his/her designee and should not be unreasonably withheld; and

(4) Notify the executive director immediately in writing upon the filling of the vacancy.

Effective: 10/1/2016
Five Year Review (FYR) Dates: 04/01/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 4/1/12, 5/25/13

3772-10-04 Accounting records.

(A) Each casino operator licensee or applicant's internal control system shall include internal controls for preparing accounting records. Each casino operator licensee or applicant shall maintain complete, accurate, and legible records of all transactions pertaining to the revenues, expenses, assets, and liabilities of each casino.

(B) General accounting records shall be maintained on a double-entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles. Detailed, supporting, and subsidiary records sufficient to meet the requirements of paragraph (C) of this rule shall also be maintained in accordance with the requirements of this rule.

(C) The detailed, supporting, and subsidiary records shall include the following:

(1) Records pertaining to revenue, expenses, assets, and liabilities of all casino operator licensee activities;

(2) Records pertaining to the financial statements and all transactions impacting the financial statements of the casino operator licensee, including contracts or agreements with licensed manufacturers, suppliers, junket entities, vendors, contractors, consultants, management companies, attorneys and law firms, accountants and accounting firms, insurance companies, and financial institutions, including statements and reconciliations related to these contracts or agreements;

(3) Records that identify the handle, payout, actual win amounts and percentages, theoretical win amounts and percentages, and differences between theoretical and actual win amounts and percentages for each slot on a daily, week-to-date, month-to-date, and year-to-date basis;

(4) Records identifying table game revenue and expenses;

(5) Records documenting the costs of complimentaries;

(6) Records created in connection with the internal control system submitted to the commission under this rule;

(7) Records of all returned checks;

(8) Records supporting the daily and other periodic reconciliations of cash and account balances to general ledger accounts;

(9) Records supporting the reconciliation of accounting records to those of the independent auditors;

(10) Records supporting the preparation of any state and federal tax returns and reconciliation of all such records to general ledger accounts;

(11) Records required to comply with all federal financial recordkeeping requirements as specified in 31 C.F.R. parts 1000 to 1099; and

(12) Any other records that the commission, executive director or his or her designee requires to be maintained.

Effective: 04/01/2012
R.C. 119.032 review dates: 04/01/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03, 3772.033

3772-10-05 Forms, records, and documents.

(A) Each casino operator licensee's or applicant's internal control system shall include procedures for using and retaining forms, records, and documents. Those internal controls shall include requirements that:

(1) Unless otherwise specified in this rule, all forms, records, documents, and stored data required by this rule to be prepared, maintained, and controlled shall have the name of the casino facility and the title of the form, record, document, and, for stored data, the imprinted or preprinted date;

(2) Whenever forms or serial numbers are required to be accounted for under this rule and an exception is noted, the exception shall be reported in writing to the casino operator licensee's internal audit department and the commission within two days of identification of the exception or upon confirmation of the exception, whichever occurs earlier;

(3) The accounting department shall be responsible for the receipt, control, and issuance of all prenumbered forms. Serial numbers on manual forms shall be printed on the form by the manufacturer. Computerized forms shall be sequentially numbered by the computer system. Documentation of all serial numbers shall be maintained to account for the forms; and

(4) Whenever a prenumbered form is voided, the original and all copies shall be marked "void" and the person voiding the form shall record that person's signature on the voided form.

(B) Each casino operator licensee's or applicant's internal control system shall include procedures for making corrections to figures manually entered on a form.

(C) Each casino operator licensee's or applicant's internal control system shall include procedures for loading and unloading any locked manual form dispenser.

(D) Each casino operator licensee or applicant shall maintain all forms and procedures necessary to account for gaming and financial activities, including:

(1) Inventory ledgers for cards, dice and chips;

(2) Logs for cards, dice or chip destruction;

(3) Cage or vault counts;

(4) Safekeeping deposit or withdrawal forms;

(5) Key inventory log;

(6) Key access list;

(7) A tips and gratuity deposit form;

(8) Slot machine and redemption kiosk entry logs;

(9) A slot hand-paid jackpot form;

(10) Cage or bank variance slips;

(11) Ingress or egress logs for the count rooms, surveillance rooms, and cages;

(12) A main bank or vault accountability log;

(13) A returned check log;

(14) A sensitive key log;

(15) A signature authorization list including identification details for each employee listed;

(16) Security incident reports;

(17) Surveillance incident reports;

(18) Surveillance shift logs;

(19) Surveillance recording release logs;

(20) Table credit, inventory, count and fills slips;

(21) Visitor or vendor log;

(22) Any other information noted in this chapter; and

(23) Any other information that the casino operator licensee, or casino operator applicant or the commission deems necessary.

Effective: 12/22/2012
R.C. 119.032 review dates: 04/01/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03, 3772.033
Prior Effective Dates: 4/1/12

3772-10-06 Standard financial reports.

(A) Each casino operator's internal control system shall include controls for standard financial reports.

(B) A casino operator shall file the following financial reports with the commission:

(1) A balance sheet submitted monthly and annually;

(2) An income statement submitted monthly and annually;

(3) A cash flow statement submitted monthly and annually;

(4) A gross casino revenue supplemental daily report and supporting documentation submitted concurrent with the casino operator's daily submission to the department of taxation, as required by section 5753.04 of the Revised Code; and

(5) Any other report requested by the commission.

(C) Standard reporting forms and corresponding filing instructions may be prescribed by the commission to be used by a casino operator in filing the reports specified in paragraph (B) of this rule.

(D) The annual financial statements shall be prepared on a comparative basis for the current and prior calendar years and shall present financial position, results of operations, and cash flows in conformity with generally accepted accounting principles.

(E) The electronically transmitted reports or hard copy reports required to be filed pursuant to this rule shall be authorized by individuals designated by the casino operator . In addition, the casino operator shall submit a letter attesting to the completeness and accuracy of the reports. The letter shall be signed by the casino operator's chief financial officer or controller.

(F) The reports required to be filed pursuant to this rule shall be addressed as prescribed by the commission and received no later than the required filing date. The required filing dates shall be the following:

(1) Gross casino revenue supplemental daily reports, required by paragraph (B)(4) of this rule, shall be due as required by section 5753.04 of the Revised Code.

(2) Monthly reports shall be due on the last calendar day of the following month or the next business day if such day falls on a weekend or legal holiday;

(3) Annual reports shall be due on the last calendar day of the third month following the end of the casino operator's calendar year or ten days after form 10-K (adopted March 2010) is filed with the securities and exchange commission, whichever comes first.

(G) All significant adjustments resulting from the annual audit shall be recorded in the accounting records of the year to which the adjustment relates. If the adjustments were not reflected in any annual report and the commission concludes that the adjustments are significant, the casino operator may be required by the commission to file a revised annual report. The revised filing shall be due within thirty calendar days after written notification to the casino operator , unless the casino operator submits a written request for an extension before the required filing date and the extension is granted by the commission.

Effective: 10/1/2016
Five Year Review (FYR) Dates: 04/01/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03; 3772.033
Prior Effective Dates: 4/1/12

3772-10-07 Annual audit; other reports; suspicious transaction reporting.

(A) Each casino operator's internal control system shall include internal controls for annual and other audit reports.

(B) Each casino operator shall cause its annual financial statements to be audited by an independent certified public accountant or, when appropriate, an independent registered certified public accounting firm licensed to practice in this state. The audit shall be in accordance with generally accepted auditing standards and, when applicable, the standards of the accountancy board. The independent certified public accountant or, when appropriate, independent registered certified public accounting firm shall be approved by the commission before the audit engagement.

(C) Independent certified public accountants and independent registered certified public accounting firms performing annual audits or special reports shall not perform internal audit services for the same casino operator licensee.

(D) The annual financial statements audit shall be prepared on a comparative basis for the current and prior fiscal years and present financial position and results of operations in conformity with generally accepted accounting principles. The financial audit required by this rule shall include a footnote reconciling and explaining any differences between the financial statements included in any annual reports and the audited financial statements.

(E) The casino operator shall require the independent certified public accountant or independent registered certified public accounting firm auditing the casino operator's financial statements to render a report on the prospective financial statements, including a one-year forecast and three-year projection, expressing an opinion as to whether the prospective financial information is properly prepared on the basis of the assumptions and is presented in accordance with the relevant financial reporting framework, and any additional reports required by the commission.

(F) At any time a special audit of a casino operator may be required by the commission to be conducted by commission personnel, an independent certified public accountant, or an independent registered certified public accounting firm. The scope, procedures, and reporting requirements of any special audit shall be established by the commission.

(G) The casino operator shall file with the commission copies of the reports required by paragraph (E) of this rule in an amount determined by the commission and copies in an amount determined by the commission of any other reports on internal controls, administrative controls, or other matters relative to the casino operator's accounting or operating procedures rendered by the casino operator's independent certified public accountant or independent registered certified public accounting firm within one hundred twenty days following the end of the casino operator's fiscal year or upon receipt, whichever is earlier.

(H) The casino operator shall notify the commission of any report that is filed, or required to be filed, with the securities and exchange commission (SEC) or other securities regulatory agency. The reports shall include any S-1(adopted February 2008), 8-K(adopted September 2011) , 10-Q (adopted March 2010), 10-K (adopted March 2010), proxy or information statements, and registration statements.

(I) All of the audits and reports required by this rule that are performed by independent certified public accountants or independent registered certified public accounting firms shall be prepared at the sole expense of the casino operator licensee.

(J) Each casino operator's internal control system shall include internal controls to meet the requirements of 31 C.F.R. Parts 1000 to 1099.

(1) The casino operator shall file with the commission a copy of any suspicious activity report ( SAR) the casino operator is required to file under 31 C.F.R. 1021.320. Each SAR shall be filed with the commission concurrently with the federal filing; and

(2) A casino operator, director, officer, employee, or agent who reports a suspicious activity shall not notify any person involved in the suspicious activity that the suspicious activity has been reported.

(K) An annual audit of the casino operator's compliance with commission rules may be required by the commission to be conducted in accordance with generally accepted auditing standards and the standards for financial audits under government auditing standards. The audit report shall require the expression of an opinion on compliance. The audit shall be conducted by either commission staff or an independent certified public accountant firm selected by the commission.

Effective: 9/26/2015
Five Year Review (FYR) Dates: 06/30/2015 and 09/26/2020
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03, 3772.033
Prior Effective Dates: 4/1/12

3772-10-08 Procedures for monitoring and reviewing game operations.

(A) Each casino operator shall establish internal controls for monitoring and reviewing table game and electronic gaming equipment operations, which shall include:.

(1) Procedures for the preparation of a monthly forecast of expected results by table game type, including expected total game revenue and game hold;

(2) Procedures for preparation of a monthly forecast of expected results of electronic gaming equipment operations, including expected total electronic gaming equipment revenue and average hold; and

(3) Procedures for documenting, investigating, and resolving deviations of more than four percent between the forecasted amounts and the actual results. The procedures shall include, but are not limited to:

(a) Conducting and documenting the investigation; and

(b) Notification to the commission of the investigation results within twenty-one days following the end of the month.

(B) Each casino operator shall establish internal controls for monitoring and reviewing electronic gaming equipment operation for equipment which converts cash or cash equivalents into wagering instruments. These procedures shall include:

(1) Procedures for recording electronic gaming equipment meters. Electronic gaming equipment meters shall be recorded for each drop and immediately prior to being reset;

(2) Procedures for the review of recorded electronic gaming equipment meters, including the name of the department conducting the review and the parameters used to determine the reasonableness of the recorded meters;

(3) Procedures for the alteration of recorded electronic gaming equipment meters, including the positions authorized to perform the alteration and the documentation maintained to support the alteration;

(4) Procedures for the comparison of each electronic gaming equipment's recorded meters with the actual drop amount. The comparison shall be performed for each drop;

(5) Procedures for documenting, investigating, and resolving inconsistencies encountered while comparing each electronic gaming equipment's recorded meters with the actual drop amounts. The procedures shall include, but are not limited to:

(a) The variance threshold(s) that indicate an investigation is necessary. The commission shall be notified of variances requiring investigation within one week of the variance discovery;

(b) The procedures for conducting and documenting the investigation. The procedures should include a comparison of metered cash and voucher transactions with cash and vouchers from the drop; and

(c) Notification to the commission of the investigation results upon completion;

(6) Procedures for the monthly review of electronic gaming equipment performance. The review shall consist of a month-to-date, year-to-date, and life-to-date comparison of the theoretical payout percentage and the actual payout percentage for each electronic gaming device. The comparisons shall be done on a per paytable basis, unless otherwise approved by the commission; and

(7) Procedures for documenting, investigating, and resolving deviations of more than four percent while reviewing electronic gaming equipment performance. The procedures shall include, but are not limited to:

(a) Notification of the electronic gaming equipment requiring investigation to the commission within one week of the deviation discovery;

(b) The procedures for conducting and documenting the investigation; and

(c) Notification to the commission of the investigation results upon completion.

Replaces: 3772-10-08

Effective: 10/1/2016
Five Year Review (FYR) Dates: 10/01/2021
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/19/12

3772-10-09 Complimentaries.

(A) In addition to the limits on promotional credits in section 3772.23 of the Revised Code, each casino operator's internal control system shall include internal controls for the authorization, issuance, recording, and auditing of complimentaries, including cash and non-cash gifts. These internal controls shall include the delegation of authority to approve the issuance of complimentaries and the limits that apply to this authority , including limits based on proper separation of duties and limits based on relationships between the authorizer and recipient.

(B) For the purposes of this rule, "guest" shall mean any person who receives complimentaries as a result of that person's relationship with the patron receiving the primary complimentaries.

(C) All complimentaries shall be valued and recorded as follows:

(1) At full retail price normally charged by the casino operator if the complimentary is provided directly to the patrons in the normal course of the casino operator's business, including rooms, food, and beverages;

(2) At an amount based upon the actual cost to the casino operator of providing the service or item, if the complimentary is not offered for sale to the patrons in the normal course of the casino operator's business;

(3) At an amount based upon the actual cost to the casino operator of having a third party who is not affiliated with the casino operator provide service or item directly or indirectly to patrons by the third party; or

(4) If provided directly or indirectly to a patron on behalf of a casino operator by a third party who is affiliated with the casino operator, in accordance with the provisions of this rule as if the affiliated third party were the casino operator.

(D) The casino operator shall complete the following requirements when a patron and patron's guest are provided with complimentaries that are valued at six hundred dollars or more over a twenty-four hour gaming date as established in the casino operator's internal controls:

(1) Verify the patron's identity;

(2) Record the name and address of each patron;

(3) Record the unique identification number from the recipient's government-issued photo identification card;

(4) Record the category of service or item;

(5) Record the value of the services or items provided to each patron or that patron's guests as calculated in accordance with paragraph (C) of this rule; and

(6) Record the unique identifier of the employee authorizing the issuance of the services or items.

(E) Complimentaries that are cash gifts shall include the following:

(1) Payments made for the purpose of resolving complaints or disputes ;

(2) Travel payments ;

(3) Coupons and vouchers issued and redeemed as part of a promotion; and

(4) Any other cash gifts issued to patrons.

(F) All cash complimentaries shall be disbursed directly to the patron by a gaming cashier at the cage after receipt of appropriate documentation .

(G) The issuance of complimentary cash or non-cash gifts with a total value of ten- thousand dollars or more over a twenty-four hour gaming date must be authorized by a licensed key employee and cosigned by a second licensed key employee.

(H) Each casino operator shall submit to the commission a report listing the name of each person who has received total of ten- thousand dollars or more in complimentary cash and non-cash gifts within a rolling five-day period during the preceding month end. The report shall be filed by the last business day of the following month and shall include the total amount of complimentary cash or non-cash gifts provided to each person.

(I) The internal audit department shall review the requirements in paragraph (C) of this rule at least monthly.

(J) Each casino operator shall submit procedures for auditing complimentary transactions, which shall include:

(1) Control of inventory of pre-numbered forms;

(2) Accounting for all copies of multiple part forms issued;

(3) Signatures of individuals authorizing complimentaries are compared to signature cards on a test basis; and

(4) The establishment of sufficient categories.

Effective: 9/26/2015
Five Year Review (FYR) Dates: 06/30/2015 and 09/26/2020
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03, 3772.033
Prior Effective Dates: 4/1/12, 6/1/14

3772-10-10 Personal check cashing.

(A) Each casino operator's internal control system shall include internal controls for the acceptance of personal checks.

(B) Each personal check accepted by a casino operator for patron gaming shall meet the following requirements:

(1) Be drawn on a commercial bank, savings bank, saving and loan association, or credit union located in the United States and be payable on demand;

(2) Be drawn on an account listed in the name of the patron presenting the check or on an account for which the patron is a listed signatory;

(3) Be drawn for a specific amount;

(4) Be made payable to the casino operator ;

(5) Be currently dated; and

(6) Be verified and endorsed according to the casino operator's internal control procedures.

(C) The casino operator shall not accept checks from any patron who has outstanding liabilities for any dishonored checks.

(D) In lieu of accepting personal checks in paper form, a casino operator may accept and electronically convert personal checks using electronic check conversion. In order to conduct personal electronic check conversion transactions, the casino operator's internal control system shall include internal controls for processing such transactions.

Effective: 06/01/2014
R.C. 119.032 review dates: 03/14/2014 and 06/01/2019
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03, 3772.033
Prior Effective Dates: 04/01/2012

3772-10-11 Wire transfers.

Each casino operator licensee or casino operator applicant's internal control system shall include internal controls for the acceptance, verification, accounting for, and sending of wire transfers. The internal controls shall include the following:

(A) Requirements that a cage log record detailed information with regard to wire transfers accepted;

(B) Requirements that cage personnel verify the identity of the patron;

(C) Requirements detailing how a cage supervisor other than the cage employee who initially documented receipt of the wire transfer will verify receipt of the wire transfer and the identity of the patron using the wire transfer; and

(D) Requirements for returning residual balances of wire transfers if the patron does not use the balance within a set amount of time.

Effective: 04/01/2012
R.C. 119.032 review dates: 04/01/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03, 3772.033

3772-10-12 Cash equivalents.

Each casino operator licensee or casino operator applicant's internal control system shall include internal controls for the acceptance and verification of cash equivalents. The internal controls developed and implemented by the casino operator licensee or casino operator applicant shall include the following:

(A) A requirement that cage employees perform the specific verification procedures required by the issuer of each cash equivalent accepted. The casino operator licensee shall retain adequate documentation evidencing the verification of each cash equivalent;

(B) A requirement that cage employees examine each cash equivalent for counterfeiting, forgery or alteration;

(C) If a casino operator licensee or applicant elects to incorporate in its verification procedures a level of reliance on previously accepted cash equivalents, a description of the general parameters governing the reliance;

(D) The criteria for cage supervisor involvement in the verification process;

(E) The procedures for verifying any patron signature on the cash equivalent. The casino operator licensee shall retain adequate documentation evidencing how each signature was verified; and

(F) For cash equivalents equaling or exceeding five hundred dollars, verification of the validity of the cash equivalent with the financial institution upon which it is drawn. The gaming cashier shall document how the verification was performed in connection with the acceptance of each cash equivalent.

Effective: 04/01/2012
R.C. 119.032 review dates: 04/01/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03, 3772.033

3772-10-13 Patron deposits.

Each casino operator's internal control system shall include provisions for the receipt and withdrawal of patron deposits. The internal controls shall include the following:

(A) Requirements detailing the processes and forms that patron deposits can be accepted ;

(B) Requirements detailing the processes and forms that patron deposits be withdrawn by the patron ;

(C) Requirements that the patron receives a receipt for any patron deposit accepted reflecting the total amount deposited, the date of the deposit, and the signature of the cage employee accepting the patron deposit; and

(D) Requirements on logging patron deposits.

Effective: 10/1/2016
Five Year Review (FYR) Dates: 04/01/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03; 3772.033
Prior Effective Dates: 4/1/12

3772-10-14 Internal audit standards.

(A) Each casino operator licensee or applicant's internal control system shall include internal controls for internal audit standards.

(B) The casino operator licensee shall maintain a separate internal audit department whose primary function is to perform internal audit work that shall be independent with respect to the departments subject to audit. The casino operator licensee shall ensure that the standards, conventions, and rules governing audits in the United States are followed for all audits. The internal audit department shall be responsible for the following:

(1) The review and appraisal of the adherence of the casino operator licensee's systems of internal control to Chapter 3772. of the Revised Code and the rules adopted thereunder;

(2) Performing tests to ensure compliance with internal control procedures;

(3) The reporting to the casino operator licensee's management and the commission of instances of noncompliance with the internal control system;

(4) The reporting to the casino operator licensee's management and the commission of any weaknesses in the internal control system;

(5) The recommendation of procedures to eliminate any weaknesses in the internal control system; and

(6) Performing tests to ensure compliance with rule 3772-10-06 of the Administrative Code.

(C) The auditing department shall prepare documents to evidence all internal audit work performed as the work relates to the requirements in this rule, including all instances of noncompliance with internal control procedures:

(1) The internal audit department shall operate with audit programs that address the requirements of this rule;

(2) The internal audit department shall accurately document the work performed, the conclusions reached, and the resolution of all exceptions; and

(3) All audit reports shall be prepared, maintained, and provided to the commission on a schedule approved by the commission.

(D) Internal audit personnel shall perform audits of all major gaming areas of the casino operator licensee. The following shall be reviewed at least semi-annually:

(1) Wagering, including calculation and payout procedures;

(2) Net slot income;

(3) Table games income;

(4) Slot activity including jackpots, drop counts, cabinet access and the casino's compliance with its internal control procedures for slot machine accounting;

(5) Cage procedures;

(6) Information technology standards;

(7) Complimentaries;

(8) Control of keys;

(9) Purchasing functions and contractual agreements to determine that the purchases and agreements are not in excess of their fair market value; and

(10) Any other internal audits as required by the commission, audit committee of the board of directors, or any other entity designated by the commission.

(E) The audit reports shall include the following information:

(1) Audit objectives;

(2) Audit procedures and scope;

(3) Findings and conclusions; and

(4) Management's response.

(F) The internal audit department shall perform follow-up examinations to verify that corrective action has been taken regarding all instances of noncompliance cited by internal audit, the independent accountant, and the commission. The verification shall be performed within three months of the issuance of the audit report.

(G) Whenever possible, internal audit observations shall be performed on an unannounced basis.

(H) All exceptions disclosed during audits shall be investigated and resolved, with the results being documented and retained for five years.

(I) All internal audit findings shall be reported to management, who shall be required to respond to internal audit findings stating corrective measures to be taken to avoid recurrence of the audit exception. The management responses shall be included in the internal audit reports that are delivered to the casino operator licensee's management, the commission, audit committee of the board of directors, or other entity designated by the commission.

Effective: 04/01/2012
R.C. 119.032 review dates: 04/01/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03, 3772.033

3772-10-15 Information technology controls.

(A) The casino operator's information technology ("IT") department shall be responsible for the quality, reliability, accuracy, security, and integrity of all gaming-related computer systems, regardless of the system's location.

(B) IT department personnel shall be prohibited from having a signatory ability on gaming-related documents affecting gross casino revenue and initiating general or subsidiary ledger entries.

(C) Each casino operator's internal control system shall contain provisions for information technology, which include, but are not limited to:

(1) Procedures for the control and installation of gaming-related system software. A software control log evidencing all authorized changes to software shall be maintained and reviewed for accuracy and completion by a member of the IT department, as designated by the casino operator's internal controls;

(2) Procedures for the examination of gaming-related system software to detect changes, whether authorized or not. The examination shall occur at least monthly and shall be logged and reviewed for accuracy and completion by a member of the IT department, as designated by the casino operator's internal controls;

(3) A description of the secured area where the gaming-related system servers and core components are located, including the physical security measures implemented to prevent unauthorized access and loss of data integrity. Non-IT department personnel shall be prohibited from having unrestricted access to gaming-related system servers. Access to the secured area shall be logged. The log shall be reviewed for accuracy and completion by a member of the IT department, as designated in the casino operator's internal controls, at least monthly. At a minimum, the log shall include the following information:

(a) Date and time the secured area was entered;

(b) Date and time the secured area was exited;

(c) Reason for access;

(d) First and last name of individual entering the area; and

(e) License number of individual entering the area, if applicable;

(4) A description of the logical access and security measures implemented to segregate incompatible functions, prohibit unauthorized access, and prevent loss of data integrity. The measures shall include, but are not limited to:

(a) Creation and maintenance of gaming-related system user accounts.

Accounts shall be reviewed for appropriate access levels at least quarterly. The review shall be documented and checked for accuracy and completion by a member of the IT department, as designated in the casino operator's internal controls; and

(b) Gaming-related system user accounts must be authenticated prior to being given access. A description of the authentication mechanism (passwords, biometrics, etc.) and the associated security policies shall be included.

(5) Procedures for back-up and recovery of gaming-related system data. The back-up and recovery process shall be logged and reviewed for completion and accuracy by a member of the IT department, as designated in the casino operator's internal controls;

(6) Procedures for monitoring and reviewing gaming-related system security event logs for suspicious activity and abnormal operation. Completion of the procedures shall be logged. The log shall be reviewed for accuracy and completion by a member of the IT department, as designated in the casino operator's internal controls;

(7) Procedures for allowing remote access to gaming-related systems. The procedures shall include, but are not limited to:

(a) The process for establishing a unique gaming-related system user account for each vendor requesting remote access;

(b) A description of the dedicated and secure communication mechanism used to provide remote access, including applicable security and encryption parameters;

(c) Steps taken to activate remote access capability for each instance of remote access;

(d) Steps taken to deactivate remote access capability at the conclusion of each instance of remote access; and

(e) Logging of each instance of remote access. At a minimum, the log shall include the following information:

(i) Date and time remote access capability was activated;

(ii) Date and time remote access capability was deactivated;

(iii) System accessed, including manufacturer and version number;

(iv) First and last name of the individual or unique service request tracking number assigned by the licensed gaming-related vendor remotely accessing the system;

(v) First name, last name, and license number of the IT department member who activated the remote access capability;

(vi) First name, last name, and license number of the IT department member who deactivated the remote access capability; and

(vii) The reason for remote access, including a description of the actions taken during the remote access session.

(D) Licensed gaming-related vendors shall maintain a log of each remote access session established with a gaming-related system. At a minimum, the log shall include:

(1) Date and time the remote access session started;

(2) Date and time the remote access session ended;

(3) Name of the casino the session was established with;

(4) System accessed, including manufacturer and version number;

(5) First and last name of the individual or unique service request tracking number assigned by the licensed gaming-related vendor remotely accessing the system; and

(6) The reason for remote access, including a description of the actions taken during the remote access session.

Replaces: 3772-10-15

Effective: 10/1/2016
Five Year Review (FYR) Dates: 10/01/2021
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03; 3772.033
Prior Effective Dates: 4/1/12

3772-10-16 Security of the cashier's cages, main bank, and count rooms.

(A) Each casino operator's internal controls shall detail the location, access restrictions, processes, and security controls of all casino cashiering areas, including the main cashier's cage, satellite cages, main bank, and count rooms. The main cashier's cage, main bank, and count room shall be equipped with the following controls:

(1) A double-door entry and exit system (mantrap) that contains different locks on each door and will not permit a person to pass through the second door until the first door is securely locked. Access to each door of the mantrap shall be controlled by different independent casino departments. An emergency exit without a mantrap may be installed in these locations as approved by the executive director or executive director's designee;

(2) Automatically triggered alarms monitored by the surveillance department which sound when any door is opened unexpectedly;

(3) Manually triggered silent alarms accessible to each workstation monitored by the surveillance department; and

(4) A lighting system which allows for constant surveillance coverage of all areas.

(B) Any openings in a cashier's cage, main bank, or count room shall be limited to a size which only allows for the passing of cash, records, and documents.

(C) Each casino facility shall have a main cashier's cage adjacent to the gaming floor.

(D) Each casino facility shall have a main bank located in a secure area of the casino facility.

(E) Each casino facility shall have a count room located in a secure area of the casino facility. The following specific security controls shall be in place for the count room:

(1) The surveillance department shall monitor the entire count process including both video and audio coverage; and

(2) Tables used for the count shall be constructed of clear glass or similar transparent material so that all activity may be monitored by the surveillance department.

(F) Each casino facility may also have one or more satellite cages separate and apart from the main cashier's cage which may be used for performing some of the functions of the main cashier's cage.

(G) Unless otherwise approved by the commission, the casino cashiering areas, including the main cashier's cage, satellite cages, main bank, and count rooms, shall only be used for the processing of casino gaming and promotional transactions.

Replaces: 3772-10-16

Effective: 10/1/2016
Five Year Review (FYR) Dates: 10/01/2021
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/12/12

3772-10-17 Accounting controls for the cage, main bank, and redemption kiosks.

(A) Each casino operator's internal controls shall detail the procedures for operating the cages, main bank, and satellite cages. The procedures shall provide for the following:

(1) The organization, number and qualifications of staff;

(2) The beginning and ending times for each shift;

(3) Documentation to support any transfers between the cage, main bank, or satellite cages, and adequate security to provide safety of funds being moved;

(4) The recording of perpetual inventory and the reconciliation of physical inventory to that perpetual inventory upon the changing of shifts, and documentation to support such information;

(5) The documentation of imprest amounts being transferred upon the changing of shifts, and signatures of the incoming and outgoing cashiers or supervisors; and

(6) Adequate key control to assure the security of funds during a shift.

(B) Any variances in the cages, main bank, or redemption kiosks, shall be documented by the casino operator and a system shall exist to identify variances by each individual cashier or redemption kiosk. If a variance exceeds five hundred dollars, the variance shall be reported to the commission and investigated by the casino operator. The findings of the investigation shall be forwarded to the commission.

(C) The cage accountability shall be reconciled to the general ledger at least monthly.

(D) Redemption kiosks will be returned to an imprest amount and shall be reconciled on a schedule as established in the casino operator's internal controls.

(E) Procedures for redemption kiosk reconciliation, for all types of transactions offered, shall be described in the casino operator's internal controls and shall include, but are not limited to:

(1) Procedures for removal and counting of all currency and vouchers from the redemption kiosks;

(2) Procedures for performing and documenting fills and drops of redemption kiosks; and (3) Procedures for documenting the imprest amount per reconciliation period.

(F) A trial balance of gaming operation accounts receivable, including the name of the customer and current balance, shall be prepared at least monthly for active, inactive, settled or written-off accounts. The trial balance of gaming operation accounts receivable shall be reconciled to the general ledger each month. The reconciliation and any follow up performed shall be documented, maintained for inspection, and provided to the commission upon request.

(G) All cage and credit accounting procedures and any follow-up performed shall be documented, maintained for inspection, and provided to the commission upon request.

Effective: 10/1/2016
Five Year Review (FYR) Dates: 05/12/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/12/12

3772-10-18 Table drop boxes and electronic gaming equipment bill validator canisters: physical requirements and transportation.

(A) Each casino operator's internal controls shall detail the specific times and procedures that table drop boxes and electronic gaming equipment bill validator canisters shall be brought to or removed from table games and electronic gaming equipment machines. No drop box or bill validator canister shall be brought to or removed from a table game or electronic gaming equipment at other than the time specified in the casino operator's procedures, except with the commission's approval.

(B) Transportation of table game drop boxes shall be performed by a minimum of two licensed employees, one of whom shall be a member of the security department and the other a table games shift supervisor. The surveillance department shall monitor the process.

(C) Table game drop box removal shall be performed, at a minimum, once per day, except for any day where no casino gaming is conducted or otherwise offered or provided at the casino facility. However, the commission may require that table game drop boxes be removed more frequently. All locked table game drop boxes shall be removed, and a separate empty drop box shall be placed on each table in a continuous process. Upon removal from the tables, table game drop boxes shall be transported in a locked trolley directly to the count room and locked in a secure manner until the count takes place.

(D) When not in use, empty table game drop boxes shall be stored in a locked trolley in the count room or in a secure area as approved by the commission. The involvement of at least two licensed employees from independent departments shall be required to access stored empty table game drop boxes.

(E) Each table game drop box shall have:

(1) Permanently imprinted or impressed thereon, a number visible to the surveillance system that indicates the game, table number and day and shall correspond to a permanent number on the gaming table except as provided for emergency drops in paragraph (J) of this rule;

(2) An opening through which currency, coins, chips, forms, records and documents can be inserted into the drop box that shall automatically lock when the drop box is removed from the table;

(3) Two different keys securing the contents of the drop box (content keys) and a separate key to release the drop box from the table (release key). Procedures for the issuance, control and security over the keys shall be in accordance with this chapter and following these additional requirements:

(a) Only licensed employees authorized to remove table game drop boxes from the tables shall be allowed access to the table game drop box release key; however, the count team members may have access to the release keys during the soft count in order to reset the table game drop boxes; and

(b) Licensed employees authorized to remove the table game drop boxes shall be precluded from having simultaneous access to the table game drop box contents keys and release keys.

(F) Transportation of electronic gaming equipment bill validator canisters shall be performed by a member of the security department and at least one other licensed employee, as designated in the casino operator's internal controls. The surveillance department shall monitor the process.

(G) Electronic gaming equipment bill validator canisters shall be removed at least weekly on specified days and times established by the casino operator on a schedule filed with and approved by the commission. All bill validator canisters shall be replaced by separate empty bill validator canisters.Upon removal from electronic gaming equipment, bill validator canisters shall be transported in a locked trolley directly to the count room and locked in a secure manner until the count takes place.

(H) Each bill validator canister shall meet these requirements:

(1) Have an asset number permanently affixed on the outside of the box that shall be visible to the surveillance system and correspond to the asset number of the electronic gaming equipment to which it is attached, except as provided for in paragraphs (J) and (L) of this rule;

(2) Have a lock that secures the contents of the canister;

(3) Have an opening through which currency, coupons, and vouchers can be inserted;

(4) Have a mechanical device that prohibits the removal of currency, coupons, and vouchers from the slot opening whenever the canister is removed from the electronic gaming equipment; and

(5) Be fully enclosed, except for the openings as may be required for the operation of the canister.

(I) When not in use, empty bill validator canisters shall be stored in a locked trolley in the count room or in a secure area. The involvement of at least two licensed employees from independent departments shall be required to access stored empty bill validator canisters.

(J) Emergency bill validator canisters may be maintained without a permanent number or marking as required above, provided the word "emergency" is permanently imprinted or impressed thereon and, when put into use, are temporarily marked with the number of the table game or electronic gaming equipment to which the bill validator canister is attached.

(K) Licensed employees authorized to remove bill validator canisters shall be precluded from having simultaneous access to the bill validator canister contents keys and release keys.

(L) In lieu of an asset number, a casino operator may develop and maintain a system for assigning a unique identification number to its bill validator canisters. The system shall ensure that each bill validator canister can readily be identified, either manually or by computer when in use.

Effective: 10/1/2016
Five Year Review (FYR) Dates: 06/01/2019
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03; 3772.033
Prior Effective Dates: 5/12/12; 12/22/12; 12/21/13; 6/1/14

3772-10-19 Drop box count procedures.

(A) Each casino operator's internal controls shall detail the count procedures for drop box counts.

(B) The bill validator canister and table game drop box count shall be performed by a minimum of three licensed employees, and these employees shall be rotated on a routine basis such that the count team is not consistently the same licensed employees for more than four days per week.

(C) The count shall be conducted by a count team that is independent of the cashier's cage and of the transactions being reviewed and counted. The reporting lines shall be included in the casino operator's internal control submission. All persons present in the count room during the counting process, except representatives of the commission and licensed security personnel shall wear as outer garments, only a full-length, one-piece, pocket-less garment with openings only for the arms, feet, and neck. No count person shall:

(1) Carry into the count room a bag or other container unless it is transparent;

(2) Remove his or her hands from or return them to a position on or above the count table unless the backs and palms of his or her hands are first held straight out and exposed to the view of other members of the count team and the surveillance camera; and

(3) Be allowed to exit or enter the count room during the count except for emergencies or scheduled breaks. At no time during the count shall there be fewer than three licensed employees in the count room until the drop proceeds have been accepted into the cage or main bank/vault accountability.

(D) Before conducting the count, the casino operator shall ensure that:

(1) All counting machines are tested to assure accuracy. The test procedures employed shall be conducted by the count team who shall document the process performed. The test documentation shall be signed by all count team members and included in the final count paperwork that is forwarded to the accounting department; and

(2) The count team alerts the surveillance department that the count is about to begin.

(E) Any variances in the count room with the counting machine shall be reported to the commission immediately. Each variance shall be investigated by the casino operator and the investigation documentation and results shall be submitted to the commission in writing.

(F) All members of the count team shall attest in writing to their participation in the count and the results of their participation.

(G) All drop proceeds that were counted shall be turned over to a cage cashier who shall be independent of the count team. Before having access to the documentation of the funds counted by the soft count team, the cage cashier shall conduct a bulk count of the soft count drop and then compare the bulk count to the soft count documentation or a transfer sheet. All differences shall be reconciled before the cage cashier and count team leave the count room.

(H) The cage cashier shall attest in writing to accepting the funds and transporting the funds to the cashier's cage.

(I) The count sheet, with all supporting documents, shall be delivered to the accounting department by a count team member or a licensed person independent of the cashier's cage department. Alternatively, the count sheet and supporting documents may be adequately secured via a locked canister or other device to which only accounting personnel can gain access until retrieved by the accounting department.

Effective: 10/1/2016
Five Year Review (FYR) Dates: 12/21/2018
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/12/12; 12/21/13

3772-10-20 Unsecured currency, vouchers, tickets and coupons.

(A) Each casino operator's internal controls shall detail the procedures for processing unsecured currency, vouchers, tickets, or coupons found inside a bill changer but outside a bill validator canister. Those procedures shall mandate that an accounting department member or slot department member complete a form that includes the following:

(1) The asset number wherein the unsecured currency, voucher, ticket, or coupon was found;

(2) The date the unsecured currency, voucher, ticket, or coupon was found; and

(3) The total value of the unsecured currency, voucher, ticket, or coupon found.

(B) The accounting or slot department member who found the unsecured currency, voucher, ticket, or coupon shall sign the form prepared along with a security department member and transport the unsecured currency, voucher, ticket, or coupon to the cashier's cage.

(C) A cage supervisor or main bank cashier upon receipt of the unsecured items shall prepare an unsecured currency, voucher, ticket, or coupon report and date and sign the report.

(D) The unsecured items shall be included in main bank accountability and held for a count team member who shall check with the main bank for unsecured currency, vouchers, tickets, or coupons.

(E) Unsecured currency, vouchers, tickets, or coupons retrieved by the count team shall be included in the bill validator canister count report.

Effective: 9/26/2015
Five Year Review (FYR) Dates: 06/30/2015 and 09/26/2020
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/12/12

3772-10-21 Manual game payouts.

(A) "Manual payout" means any payout not paid directly from electronic gaming equipment or a table game and any taxable jackpot.

(B) Each casino operator's internal controls shall detail the procedures for paying manual payouts. The controls shall include the following:

(1) Procedures for verification and documentation of the manual payout by a licensed employee of the respective department, or requirements for detailed information on payout documents that are generated by slot management systems;

(2) Procedures for submission of a manual payout two-part form to the cage;

(3) Procedures for processing system overrides or adjustments;

(4) Procedures for completing and filing required tax forms;

(5) Procedures for checking the identity of patrons winning taxable payouts against the intercept database;

(6) Procedures to ensure that the patron signs a manual payout verification form acknowledging the amount to be paid and receives a copy of the signed form;

(7) Procedures to ensure that a supervisor verifies and signs off on manual payouts over ten thousand dollars;.

(8) Notification of the surveillance department for manual payouts over ten thousand dollars;

(9) Procedures for providing security escorts for patrons receiving manual payouts;

(10) Procedures for the daily review of all manual payouts from electronic gaming equipment. The review shall consist of a comparison of the electronic gaming equipment's recorded manual payout meter with the actual amount paid for each manual payout; and

(11) Procedures for documenting, investigating, and resolving inconsistencies encountered while reviewing manual payouts from electronic gaming equipment. The procedures shall include, but are not limited to:

(a) The variance threshold at which an investigation is necessary. The commission shall be notified of variances requiring investigation within one week of the variance discovery;

(b) The procedures for conducting and documenting the investigation; and

(c) Notification to the commission of the investigation results upon completion;

(C) A casino operator shall not offer games that offer annuity or merchandise payouts unless otherwise approved by the executive director or the executive director's designee.

Replaces: 3772-10-21

Effective: 10/1/2016
Five Year Review (FYR) Dates: 10/01/2021
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/12/12

3772-10-22 Tips and gratuities.

(A) Each casino operator's internal controls shall detail the procedures for handling tips and gratuities.

(B) No licensed employee who is acting in a supervisory capacity shall solicit or accept, and no licensed casino gaming employee shall solicit, any tip or gratuity from any player or patron of the casino where he or she is employed. The casino operator shall not permit any practices prohibited by this rule.

(C) All tips and gratuities allowed to be given to dealers shall be deposited in a transparent locked box reserved for such purpose.

(D) All tips or gratuities shall be accounted for and placed in a pool for distribution, pro rata among the dealers except that the commission may allow separate procedures for poker dealers not involved in house-banked games.

Effective: 9/26/2015
Five Year Review (FYR) Dates: 06/30/2015 and 09/26/2020
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/12/12

3772-10-23 Credit.

(A) A licensed casino operator may extend credit to a patron in a commercially reasonable manner considering the patron's finances and in accordance with this rule.

(B) If a casino operator chooses to extend credit to patrons, the casino operator's internal control standards shall detail the procedures for extending credit, including a description of the application process, the identification of employees involved, a requirement for prompt recording of the transactions that impact the patron's credit line, and placement of safeguards on credit extension.

(C) The casino operator's internal control standards shall detail the information contained in, the use of, and security for patron credit files. A credit file for each patron shall be prepared before the licensed casino operator's approval of a patron's credit limit and include, at a minimum, the following:

(1) The patron's name;

(2) The patron's address;

(3) The patron's telephone number;

(4) A copy of the patron's government issued identification;

(5) The patron's banking information;

(6) The patron's income information;

(7) The patron's credit limit, showing how it was established and how the casino operator considered other outstanding total indebtedness;

(8) The credit agreement;

(9) A listing of all transactions affecting a patron's outstanding indebtedness to the casino operator and its affiliates; and

(10) Any other information the commission deems necessary to ensure the reasonableness of the credit extension.

(D) Before extending credit to a patron, and in accordance with division (D)(10)(f) of section 3772.03 of the Revised Code, a licensed casino operator shall verify that the patron is not participating in the voluntary exclusion program.

(E) A licensed casino operator shall not extend credit to any patron who has not made a payment on the patron's outstanding credit within a period of thirty days.

(F) Except as otherwise provided in this rule, no licensed casino gaming employee, or any person acting on behalf of or under any arrangement with a licensed casino operator or other person licensed under Chapter 3772. of the Revised Code, shall, in connection with the conduct of casino gaming, extend credit to a patron.

(G) Procedures shall be established for the issuance, use, and payment of markers, including the following:

(1) A designation of employees who are authorized to issue markers;

(2) A designation of where markers can be issued;

(3) A description of the marker's documentation and signatures required to authorize the marker;

(4) Verification of the patron's identity and available credit before issuance of the marker;

(5) Controls on how the transaction will be recorded;

(6) Controls on the use of markers;

(7) Controls on how markers may be repaid; and

(8) Any other information deemed necessary by the commission.

Effective: 9/26/2015
Five Year Review (FYR) Dates: 06/30/2015 and 09/26/2020
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/19/12

3772-10-24 Signature requirements.

(A) Each casino operator licensee or applicant's internal controls shall detail the procedures for preparing and maintaining licensed employee signature cards. The signature cards shall contain the following:

(1) The employee's printed name;

(2) The employee's license number;

(3) The employee's handwritten signature and initials;

(4) The employee's title, department, and employee number;

(5) The department supervisor's signature authorizing the signature card; and

(6) The date of signature card; and

(7) The forms that the employee is authorized to sign.

(B) All signature cards shall be updated immediately upon a change in employee status,

(C) Changes in the signature card file shall be documented by preparation of a form bearing signatures of those authorizing the change to the signature card file.

(D) Unless otherwise authorized by the commission and included in the casino operator licensee or applicant's internal control submission, whenever a signature is required by agency 3772 of the Administrative Code, the signature shall:

(1) At a minimum be, the signer's first initial, last name, and commission license number;

(2) Be immediately adjacent to or above the legibly printed, or preprinted title of the signer; and

(3) Signify that the signer has prepared the forms, records, and documents and/or authorized, observed, and/or participated in a transaction to a sufficient extent to attest to the accuracy of the information recorded thereon, in conformity with the casino operator licensee or applicant's system of internal accounting control.

Effective: 12/21/2013
R.C. 119.032 review dates: 10/03/2013 and 12/21/2018
Promulgated Under: 119.03
Statutory Authority: R.C. 3772.03
Rule Amplifies: R.C. 3772.03
Prior Effective Dates: 5/12/2012

3772-10-25 Unclaimed winnings.

(A) Each casino operator licensee or applicant's internal controls shall detail how the casino facility will process unclaimed winnings. Those plans shall include that any money that is owed to a patron by a casino operator licensee as a result of a gaming transaction shall be subject to Chapter 169. of the Revised Code.

(B) All dormant unclaimed winnings shall be reported and remitted by the casino operator licensee to the state pursuant to Chapter 169. of the Revised Code. A casino operator licensee or applicant must explain in its internal control submission how the dormant gaming debt will be documented and how the annual report and remittance to the state will be made.

(C) Each casino operator licensee shall, on or before the twentieth day of each calendar month, report to the commission the total value of the unclaimed winnings owed to its patrons and the total amount of unclaimed winnings that went dormant during the preceding calendar month.

Effective: 05/19/2012
R.C. 119.032 review dates: 05/19/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03, 169.01, 169.02
Rule Amplifies: 3772.03, 169.01, 169.02

3772-10-26 Key controls.

(A) Each casino operator's internal controls shall establish procedures for securing and accurately tracking keys and locks. The key and lock inventory controls shall include procedures for:

(1) Establishing a key custodian who is responsible, along with the casino operator itself, for maintaining the casino operator's keys and locks;

(2) Maintenance of inventory ledgers by identified, authorized personnel for purposes of documenting:

(a) The identification of the key;

(b) Licensed employees who are authorized to use the key;

(c) The requisitioning of keys and locking devices from vendors;

(d) The receipt of blank key stock;

(e) The storage and issuance of keys and locking devices;

(f) Any loss, removal from service, and subsequent replacement of keys and locking devices;

(g) The destruction of keys and locking devices; and

(h) The results of physical inventories;

(3) The storage of duplicate keys and locking devices, including a physical description of any storage location and the identification of authorized personnel in control of such location;

(4) The destruction of keys and locking devices, including documentation detailing in whose presence any destruction shall occur; and

(5) Physical inventories of all keys and locking devices at least once every three months by a licensed employee who would not be acting in an incompatible function.

(B) The plan shall include procedures for securing sensitive keys. Sensitive keys include:

(1) Drop box content keys;

(2) Bill validator canister content keys;

(3) Drop box table slide release keys;

(4) Drop and bill validator canister reset keys;

(5) Drop trolley door keys;

(6) Slot machine access keys;

(7) Count room door key;

(8) Card and dice storage room keys (dual access required);

(9) Table game chip inventory cover key;

(10) Pit stand keys;

(11) Keys to areas housing a computer that controls table game progressive payout wager systems;

(12) The slot management system access key;

(13) The jackpot or slot re-impressment kiosk keys;

(14) The self-redemption or bill breaker kiosk keys;

(15) The change cart key;

(16) The key for each table game's drop box;

(17) The key for the table game drop box release;

(18) The keys for the bill validator and table drop storage cart;

(19) The key for each table game's chip bank cover;

(20) The key for each progressive game's controller;

(21) The keys for the reserve chip storage;

(22) The keys for the card and dice storage area;

(23) The keys for the secondary chip storage area;

(24) The access door key to any cage, slot bank, or redemption booth;

(25) The window key to any cage, slot bank, or redemption booth;

(26) The keys to the vault;

(27) The keys to the count room; and

(28) Any key not listed in this paragraph that controls access to any cash or chip storage area.

(C) If a sensitive key is lost or becomes missing, all locks that the key fits shall be changed immediately.

(D) Each casino operator's internal controls shall include the following information:

(1) The location of each sensitive key and key box;

(2) Each employee or contract job title who is authorized to access the sensitive key boxes;

(3) The procedure for issuing and controlling sensitive keys;

(4) The sensitive key names, location, and persons authorized to sign out each sensitive key;

(5) The location and custodian of each duplicate sensitive key; and

(6) Continuous surveillance coverage of each key box.

(E) If a casino operator chooses to use an automated key control system, the casino operator's internal control system shall include the following information:

(1) A description of the automated system and its configuration, including how access is controlled;

(2) The system's ability to provide scheduled and on-demand reports for a complete audit trail of all access, including the following:

(a) The identity of the key box;

(b) The identity of the keys;

(c) The date and time a key was removed;

(d) The date and time a key was returned;

(e) Any unauthorized attempts to access the key box;

(f) All entries, changes, or deletions in the system and the name of the employee performing the entry, change, or deletion; and

(g) The employee position that is in charge of any automated key control system;

(3) Each employee position that is authorized to enter, modify, and delete any keys;

(4) Each employee position that is authorized to access the system;

(5) Details about the alarms being used to signal for the following events:

(a) Overdue keys;

(b) Open key box doors;

(c) Unauthorized attempts to access; and

(d) Any other unusual activities;

(6) Any system override procedures; and

(7) A procedure for the notification of a commission gaming agent on duty if a partial or complete system failure occurs.

(F) All sensitive keys may only be issued after proper completion of a sensitive key log, which shall include:

(1) The date;

(2) The key number or ring number;

(3) The name of the individual or the automated key box issuing the key;

(4) The name of the individual receiving key;

(5) The time the key was signed out;

(6) The time the key was signed in;

(7) The name of the individual returning key; and

(8) The name of the individual or the automated key box receiving the returned key.

(G) The licensed employee who signs out a sensitive key shall maintain custody of the key until the key is returned to the sensitive key box. Keys shall not be passed to other individuals.

(H) An inventory log of duplicate keys shall be maintained documenting the current issuance, receipt and inventory of all duplicate sensitive keys. The duplicate key inventory log shall include the following information:

(1) The date and time;

(2) The key name that shall be identical to the key name on the sensitive key access list;

(3) The key number;

(4) The number of keys in the beginning inventory;

(5) The number of keys added or removed;

(6) The number of keys in the ending inventory;

(7) The reason for adding or removing keys;

(8) The signatures of the two licensed individuals accessing the key box; and

(9) The signature of the individual receiving the key.

Effective: 06/01/2014
R.C. 119.032 review dates: 03/14/2014 and 06/01/2019
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 05/12/2012

3772-10-27 Controlled demonstration.

(A) Each casino operator licensee shall train its licensed employees on its approved internal control plans and shall perform at least one controlled demonstration of its ability to follow its plans before the commission may allow the casino facility to open to the public. If the casino operator licensee does not pass the controlled demonstration, then the commission may require additional controlled demonstrations.

(B) The controlled demonstration shall:

(1) Be at a date, time and duration set by the executive director;

(2) Be invitation-only. The licensee shall submit its proposed invitation list for the executive director's approval at least two weeks in advance of the controlled demonstration;

(3) Use electronic gaming equipment, as defined in rule 3772-9-01 of the Administrative Code, that has been scientifically tested and technically evaluated by a certified independent testing laboratory, including, coin testing and other installation testing, and approved by the commission;

(4) Use cash or other actual consideration for live gambling;

(5) Involve at least one casino gaming employee shift change;

(6) Involve all aspects of the casino facility being open, including restaurants and retail;

(7) Involve dropping all or part of the gaming floor to ensure proper accounting and security procedures; and

(8) Meet any other requirements established by the commission.

(C) The casino operator licensee's share of the net win from the controlled demonstration shall go to a charity approved by the commission.

Effective: 05/12/2012
R.C. 119.032 review dates: 05/12/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03

3772-10-28 Amendments to internal control plans.

(A) No casino operator licensee or applicant may amend its internal control plans without commission approval. For amendments requiring immediate action, the executive director or executive director's designee may discretionarily grant temporary approval. Such temporary approval will be subject to final consideration at the next scheduled commission meeting.

(B) Any casino operator licensee or applicant may submit a written request to the commission for a waiver for one or more of the requirements in this chapter. The request shall be filed with the commission and shall include supporting documentation demonstrating how the proposed internal controls for which the waiver has been requested would meet the requirements of Chapter 3772. of the Revised Code and the rules adopted thereunder.

Effective: 12/22/2012
R.C. 119.032 review dates: 05/12/2017
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/12/12

3772-10-29 Slot machine tournaments.

(A) A casino operator shall not conduct any slot machine tournaments without the executive director or his/her designee's written approval.

(B) A casino operator shall submit written notice of intent to conduct a slot machine tournament to the commission at least thirty days before the proposed tournament, unless otherwise approved by the executive director or the executive director's designee. The notice must include the following:

(1) A description of how the tournament will be conducted and a copy of the tournament rules governing the play;

(2) The dates and times that the tournament will be conducted;

(3) Participant eligibility requirements including:

(a) Who is eligible to participate;

(b) The minimum and maximum number of participants;

(c) Number of sessions allowed per person;

(d) Time of each session;

(e) Beginning and ending time of the tournament; and

(f) Entry fees charged;

(4) The criteria used to determine the winners;

(5) A description of the prizes to be awarded; and

(6) The slot machine tournament configuration details on a commission-approved form.

(C) Slot machines used for a slot machine tournament must:

(1) Use tournament software approved by the commission;

(2) Be monitored by the casino operator's slot management system, or another monitoring method approved by the executive director or the executive director's designee; and

(3) Have the functionality of the bill validator, ticket printer, and electronic fund transfers disabled during the slot machine tournament so that the slot machine does not accept any cash or credits or make any payouts during tournament play.

(D) A casino operator shall maintain records related to the conduct of a slot machine tournament in accordance with paragraph (A) of rule 3772-10-05 of the Administrative Code.

(E) Entry fees shall accumulate to gross casino gaming revenue.

(F) Cash winnings paid in a tournament shall be deductible from gross casino gaming revenue, but any such deduction shall not exceed the total entry fees received for the tournament.

Effective: 10/1/2016
Five Year Review (FYR) Dates: 09/26/2020
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/25/13; 9/26/15

3772-10-30 Investigation and certification of contractors by casino operators.

(A) "Contractor" means any individual or entity that provides goods or services to a casino facility.

(B) Each casino operator's internal controls shall include procedures for the investigation and certification of contractors that will provide goods and/or services worth in excess of one hundred thousand dollars to a casino facility.

(C) Except as provided in paragraph (D) of this rule, no casino operator shall conduct business with a contractor that will provide goods and/or services worth in excess of one hundred thousand dollars to a casino facility in a twelve month rolling period unless the contractor first certifies all of the following:

(1) That the contractor's owners, officers, or directors have not been convicted of or pleaded guilty to any felony, any gambling offense or any theft offense;

(2) That the contractor's owners, officers, or directors have not been convicted of or pleaded guilty to any offense under section 2921.43 of the Revised Code;

(3) That the contractor's owners, officers, or directors are not on the state's involuntary exclusion list;

(4) That the contractor does not have an unresolved finding for recovery pursuant to section 9.24 of the Revised Code;

(5) That the contractor has met all tax or other monetary obligations to the federal government, to this state, and to any applicable local governments of this state;

(6) That the contractor has all approvals, licenses, or other qualifications needed to conduct business in this state and that all are current;

(7) That the contractor will immediately notify the casino operator if at any time during the term of the contract any information provided in the contractor's certification changes; and

(8) That the contractor agrees and acknowledges that the contract is subject to immediate termination if the contractor provided any false or misleading information in its certification or if there is a subsequent material change to the certification.

(D) This rule does not apply to the following individuals or entities:

(1) Any person licensed as a gaming-related vendor under Chapter 3772. of the Revised Code and the rules adopted thereunder;

(2) Licensed professional service firms, including attorneys, architects, engineers, and accountants;

(3) Regulated insurance companies;

(4) Employee benefit or retirement plan providers, including the plan administrator;

(5) Regulated banks, credit unions, or savings and loan associations;

(6) Regulated utilities;

(7) Federal, state, and local governments;

(8) Employee labor unions; and

(9) Any other regulated entity as requested in writing by a casino operator and approved by the executive director or executive director's designee.

(E) Certification documents shall be prepared and signed by an employee of the contractor who is directly authorized to sign on behalf of the contractor.

(F) Certification documents, including all of the statements required by this rule, shall be collected by the casino contractor at the following times:

(1) Before a contractor provides goods and/or services when it is known, or at the time in which it becomes known, that the goods and/or services to be provided to a casino facility will be worth in excess of one hundred thousand dollars in a rolling twelve month period;

(2) Whenever any of the certification statement responses required by this rule change; and

(3) Whenever directed by the executive director or executive director's designee.

(G) A casino operator shall include in its internal controls procedures for monitoring the certification statement responses from contractors to ensure accuracy and completeness.

(H) The casino operator shall notify the commission within five business days, if it receives notification pursuant to paragraph (C)(7) of this rule, terminates a contract pursuant to paragraph (C)(8) of this rule, or discovers that a contractor has provided false or misleading information in its certification.

(I) The casino operator shall maintain the certification documents required by this rule for five years and shall make all documents available to the commission upon request.

Replaces: 3772-4-10

Effective: 10/1/2016
Five Year Review (FYR) Dates: 10/01/2021
Promulgated Under: 119.03
Statutory Authority: 3772.03
Rule Amplifies: 3772.03
Prior Effective Dates: 5/19/12