820 KAR 1:032. Pulltab construction.

 

      RELATES TO: KRS 238.505(5), 238.545(1), (2)

      STATUTORY AUTHORITY: KRS 238.515(2), (4), (9), 238.545(1), (2)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.515(2) and (9) require the Office of Charitable Gaming to establish reasonable standards for the conduct of charitable gaming. KRS 238.545(2) requires the office to establish standards for pulltab construction, distribution and rules of play. This administrative regulation establishes standards for the construction and distribution of pulltabs.

 

      Section 1. Conformity of Pulltabs. (1) A licensed distributor of charitable gaming supplies and equipment shall distribute in Kentucky only those pulltabs conforming to the requirements of this administrative regulation.

      (2) A licensed charitable organization shall sell to the public only those pulltabs conforming to the requirements of this administrative regulation.

 

      Section 2. Pulltab Construction Standards. (1) Pulltabs shall be constructed so that the concealed numbers, symbols, or winner protection features cannot be viewed or determined from the outside of the pulltab using a high intensity lamp of up to and including 500 watts, with or without utilizing a focusing lens.

      (2) The deal shall be designed, printed, glued, cut and assembled in a manner to prevent determination of a winning or losing ticket without removing the tabs or otherwise uncovering the symbols or numbers as intended.

      (3) Each pulltab in a deal shall bear the same serial number. If a seal card is used with a pulltab deal, the seal card shall bear the same serial number as each pulltab. Only one (1) serial number shall be used in a deal. A serial number used in a deal of pulltabs shall not be repeated by the same manufacturer on that same manufacturer’s form number within a three (3) year period.

      (4) If the pulltab utilizes a window, the numbers or symbols on the pulltab shall be fully visible in the window and shall be placed so that no part of a symbol or number remains covered when the tab is removed. Displacement of the symbol to the left or right in a window may be used for increased game security. Additional security devices or methods, including a laminate underneath a window, may be used by a manufacturer.

      (5) It shall not be possible to distinguish winning pulltabs from losing pulltabs through variations in printing graphics or colors, including those involving different printing plates.

      (6) All winning pulltabs shall have at least one (1) winner protection feature. In addition, all winning pulltabs that entitle a player to an instant prize of greater than twenty (20) dollars shall include an additional form of winner protection. Numeral jar tickets with colored winning numerals shall not be required to have secondary winner protection.

      (7) All pulltabs shall be glued on the window edges and between each window. The glue shall be of sufficient strength and type to prevent the separation or delamination of the pulltab. For banded tickets, the glue shall be of sufficient strength and quality to prevent the separation of the band from the ticket.

      (8) The window slits on each break open ticket shall be perforated on at least three cut sides. The ties shall be of a sufficient thickness or strength to prevent unauthorized peering under the windows and so that unauthorized peering under the windows can be detected. It shall not be possible to isolate winning or potential winning tickets from variations to the size or the appearance of a cut edge of the pulltab comprising a particular game.

      (9) Except as provided in subsection (10) or (11) of this section, the minimum information that shall be printed on an unopened pulltab with an overall area of two and five-tenths (2.5) square inches or more shall be:

      (a) The name of the manufacturer, or its distinctive logo;

      (b) The name of the game;

      (c) The manufacturer's form number;

      (d) The price per individual pulltab;

      (e) The unique minimum five (5) digit game serial number, printed on the game information side of the pulltab; and

      (f) The number of winners and respective winning numbers or symbols, and specific prize amounts.

      (10) A pulltab with an overall area of at least one and six tenths (1.6) square inches unopened but less than two and five tenths (2.5) square inches unopened shall:

      (a) Have printed on it, at a minimum, the information listed in subsection 9(a), (b), (c), (d), and (e) of this section; and

      (b) Not be required to have the information listed in subsection (9)(f) of this section.

      (11) A pulltab with an overall area of less than one and six-tenths (1.6) square inches unopened shall:

      (a) Have printed on it, at a minimum, the information listed in subsection (9)(a) and (e) of this section; and

      (b) Not be required to have the information listed in subsection (9)(b), (c), (d), or (f) of this section.

 

      Section 3. Randomization. Winning pulltabs shall be distributed and mixed among all other pulltabs in a deal to eliminate any pattern between deals, or portions of deals. The pulltab deal shall be assembled so that the winning pulltabs cannot be distinguished. Winning tickets shall be randomly distributed throughout the deal. Banded tickets packaged in bags, rather than boxes, shall be subject to these requirements.

 

      Section 4. Packaging and Distribution. (1)(a) Each deal's package, box, or other container shall be sealed or taped at every entry point at the manufacturer’s factory with a tamper resistant seal or tape.

      (b) The seal or tape shall be visible under the shrink-wrap or from outside the container and shall be constructed to guarantee that, if the container is opened or otherwise tampered with, evidence of the opening or tampering will be easily detected.

      (c) The seal or tape shall include a warning to the purchaser that the deal may have been tampered with if the package, box, or other container is received by the purchaser with the seal or tape broken.

      (d) If the deal is packaged in a plastic bag, the entry point shall be completely sealed by the application of heat or adhesive. The warning may be imprinted in the plastic.

      (2) A deal's serial number shall be clearly and legibly placed on:

      (a) The outside of the deal's package, box, or other container; or

      (b) On the inside of the deal's package, box, or other container if it is clearly visible from the outside of the package, box, or other container.

      (3) Manufacturers shall print on or affix to the outside of the package or container of pulltabs or include inside the package or container, in bold print of sufficient size to be easily read, a message that states substantially the following: "tickets must be removed from this packaging container and thoroughly mixed prior to sale to the public."

      (4) Manufacturers shall include with every deal of pulltabs a bar code label that contains at a minimum the name of the manufacturer or its distinctive logo, the game form number, and the game serial number. The bar code label shall be visible from the outside of the package, box, or other container.

 

      Section 5. Flares and Seal Cards. (1) Every deal of pulltabs shall contain a flare or a seal card that has printed on it, by the manufacturer, the following information:

      (a) The name of the game;

      (b) The manufacturer's name or logo;

      (c) The manufacturer's form number;

      (d) The game serial number;

      (e) The ticket count;

      (f) The prize structure, including a description of the number of winning pulltabs by denomination, with their respective winning symbols or number combinations, and amounts dedicated to the prize pool in a seal card game with a cumulative prize, or a carryover or progressive prize; and

      (g) The cost per play.

      (2) Every deal of pulltabs shall contain instructions on how to play the game.

 

      Section 6. Cumulative Games, and Carryover or Progressive Games. (1) The amount dedicated to the cumulative prize pool, or the carryover or progressive jackpot, shall be predetermined by the manufacturer and built into the payout structure for the game. The dedicated amount shall be printed by the manufacturer on either the flare or seal card for each game or on each ticket in each game.

      (2) All games contributing to the cumulative prize pool, or the carryover or progressive jackpot, shall be of the same form number.

      (3) The flare or seal card for the carryover or progressive jackpot shall contain an area in which the current amount of the carryover or progressive jackpot can be posted.

      (4) If a carryover or progressive pulltab game uses a progressive jackpot prize card that is separate from the jackpot seal, the jackpot card shall contain prize space for the organization to record the serial numbers of all games contributing to the jackpot prize.

      (5) If a carryover or progressive pulltab game uses a jackpot prize card that is separate from the jackpot seal card, each deal of the game shall possess both a seal card and a jackpot prize card that has the serial number of the deal affixed to it by the manufacturer.

      (6) In a carryover or progressive pulltab game, the organization shall either start a new jackpot card with each deal or use the original jackpot card until won. The organization shall maintain each jackpot card used pursuant to 820 KAR 1:036, Section 2(15).

      (7) A progressive pulltab game shall not be designed by the manufacturer to give any player odds greater than a fifty (50) percent chance to win the progressive jackpot.

 

      Section 7. Event Games. (1) An event game shall not contain a "last sale" feature.

      (2) The number of winners and the prize amounts shall be built into the payout structure for the game by the manufacturer.

      (3) An event ticket prize shall not exceed the individual ticket prize limit for a pulltab game.

      (4) The prize for an event pulltab game shall not be considered a bingo prize.

 

      Section 8. Multipackaged Pulltab Deals. Every package shall be played for the deal to show the stated profit. Each package may contain individual winners if desired. If each package contains a winner, the game shall contain a method of verifying from which package the winner was sold.

 

      Section 9. Tracking by Manufacturer. Every manufacturer of pulltabs shall maintain records sufficient to track each deal of pulltabs, by serial number and form number, from the manufacturer to the next point of sale for thirty-six (36) months. The records shall be subject to inspection by office staff.

 

      Section 10. Tracking by Distributor. (1) Every distributor of pulltabs shall maintain records sufficient to track each deal of pulltabs, by serial number and form number, from purchase by the distributor to the next point of sale for thirty-six (36) months. The records shall be subject to inspection by office staff.

      (2) For sales in the Commonwealth of Kentucky, or to residents of Kentucky, the records required under this section shall be deemed sufficient if the distributor records the name of the purchaser and makes and retains a copy of the Kentucky charitable gaming license or exemption number of the purchaser at the next point of sale.

      (3) For sales outside the Commonwealth of Kentucky to nonresidents of Kentucky, the records required under this section shall be deemed sufficient if the distributor makes and retains a copy of a state charitable gaming license or a valid state identification card of the purchaser which contains the name, address, date of birth, and state identification number of the purchaser at the next point of sale.

 

      Section 11. Requirements of Distributor Invoice. (1) Distributors selling pulltabs to charitable organizations or other distributors shall provide the charitable organization or other distributor with an invoice that contains, at a minimum, the following information:

      (a) The purchaser’s name, address, and license number;

      (b) The address to which the shipment was delivered;

      (c) The date of sale or credit;

      (d) The conditions of the sale or credit;

      (e) The quantity of pulltabs sold including the number of the deals, the name of each deal, the tickets per deal, and the serial number and form number of the deal;

      (f) The total invoice amount;

      (g) The name of the person who ordered the supplies;

      (h) The name of the person making the delivery;

      (i) The date of delivery or date item was picked up for sale or credit;

      (j) The place or manner of delivery; and

      (k) The name and signature of the person taking delivery, if any.

      (2) A distributor may deliver pulltabs to an agreed place or to an identified person. An invoice not challenged within seven (7) days of delivery shall be deemed accurate. Any challenge to an invoice shall be made in writing to the distributor and a copy shall be sent to the office.

 

      Section 12. Defects. (1) If a defect in packaging or construction of a pulltab is discovered by an organization, the defect shall be reported to the distributor within fifteen (15) days. The distributor shall correct the defect, or replace the defective items, within a reasonable time, if possible.

      (2) If the office, in consultation with the manufacturer, determines that a defect actually exists, and the defect affects game security or otherwise threatens public confidence in the game, the office shall, with respect to pulltabs for use in Kentucky, require the manufacturer to:

      (a) Recall the pulltabs affected that have not been sold at retail to licensed organizations; or

      (b) Issue a total recall of all affected deals.

      (3) In choosing and directing a particular recall in accordance with subsection (2) of this section, the office shall be guided in each circumstance by any combination of the following factors:

      (a) The nature of the defect;

      (b) Whether the defect affected game security;

      (c) Whether the defect affected game playability;

      (d) Whether the defect was limited to a specific number of deals of a particular form number;

      (e) Whether the defect was easily detectable by a charitable organization;

      (f) Whether the defect was easily detectable by members of the general public;

      (g) Whether the defect threatens public confidence in the game; or

      (h) Whether the defect is capable of being used to adversely affect the fair play of the game.

      (4) In consultation with the manufacturer, the office shall determine a specific date for the recall to be completed and whether the manufacturer is required to reimburse the organization or distributor. (32 Ky.R. 800; 1640; eff. 3-31-2006; 33 Ky.R. 3516; 34 Ky.R. 60; 257; eff. 8-31-07.)