820 KAR 1:036. Pulltab rules of play.

 

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

      STATUTORY AUTHORITY: KRS 238.515(2), (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 rules of play. This administrative regulation establishes standards for the play of pulltabs.

 

      Section 1. General Provisions. (1) All individuals involved in the sale of pulltabs shall be trained in the proper conduct of the game and control of funds.

      (2) The chairperson shall be in full charge of the licensed gaming occasion, supervise and direct all volunteers, and be responsible for assuring the proper receipt and recording of gaming funds.

      (3) More than one (1) charitable organization shall not conduct gaming at the same time and location as another charitable organization, except for licensed charity fundraising events.

      (4) Each organization’s gaming supplies shall be maintained in a location separate from another organization’s gaming supplies. This location shall also be locked and access shall be controlled.

      (5) Except for a charity fundraising event, a volunteer at any other charitable gaming occasion at which pulltabs are sold shall not purchase or play pulltabs at that occasion. At a charity fundraising event, a volunteer may purchase or play pulltabs on a day the volunteer did not work, and from a deal the volunteer did not sell.

      (6) If the charitable organization has house rules concerning its gaming occasion, the house rules shall:

      (a)1. Be posted in at least two (2) conspicuous locations at the gaming occasion and announced prior to the commencement of the gaming occasion; or

      2. Be listed on the program;

      (b) Not conflict with KRS Chapter 238 or 820 KAR Chapter 1;

      (c) Be followed; and

      (d) Include the organization's name and license number.

      (7) An organization shall perform an inventory and obtain permission of the office before destroying a bulk amount of gaming supplies. The gaming supplies shall be destroyed by burning in compliance with state and federal law, shredding, destroying, or defacing in some manner to prevent reuse of any pulltab, flare, prize board, seal card, bingo paper or any portion thereof.

      (8)(a) When an organization ceases to game, the organization shall:

      1. Perform a final inventory; and

      2.a. Return all unused product to a distributor;

      b. Donate the product to another organization with the permission of the office; or

      c. Destroy the product with the permission of the office.

      (b) Abandoned product shall be seized by the office and destroyed.

 

      Section 2. Playing. (1) The flare or seal card, including a progressive jackpot card relating to a carryover or progressive prize, or a prize board relating to a game with a cumulative prize, shall be posted by the licensed charitable organization in the vicinity of the deal and in full and complete view of the players while the deal is in play.

      (2) Pulltabs shall not be sold to the public from the original packing box or container. Pulltabs shall be removed from the original box or container and mixed together prior to sale.

      (3) If a deal of pulltabs is packed in more than one (1) box or container, an individual container shall not designate a winner or contain a disproportionate number of winning or losing tickets. Each package, box, or container shall be placed out for play at the same time unless the deal is designed by the manufacturer to be played in subsets. Those subsets may be placed out for play in succession.

      (4) Pulltabs which have been marked, defaced, altered, tampered with, received in packaging that is not tamper-resistant, or otherwise constructed in a manner which tends to deceive the public, or affect the chances of winning or losing, shall not be placed into play. The organization shall notify the Office of Charitable Gaming of the existence of these tickets in writing within fifteen (15) days.

      (5) Before placing a deal into play, the charitable organization shall verify that the serial number on the pulltabs within each deal matches the serial number on the flare or seal card accompanying the deal by conducting a random sampling of pulltabs within each deal. If the charitable organization determines that serial numbers on tickets within a deal do not match the serial number on the flare or seal card accompanying the deal, the organization shall not place the deal into play and shall notify that distributor. If the distributor does not correct the problem within thirty (30) days, the organization shall notify the office in writing.

      (6) Any licensed charitable organization which sells pulltabs from its office location or from a pulltab dispenser shall comply with 820 KAR Chapter 1 regarding the play, proper recordkeeping, and reporting of those sales. The sales shall be reported on the financial report.

      (7)(a) If a deal is not played to completion and there remain unsold winning pulltabs, the licensed charitable organization conducting the gaming shall sell the remaining pulltabs on the next appointed date for charitable gaming activities.

      (b) If no future date is anticipated, the licensed charitable organization shall consider the deal closed or completed, declare the winners, and post winning numbers for fifteen (15) days with information directing the method of claiming a prize at its office location. All unsold pulltabs shall be retained as required in subsection (15) of this section.

      (c) If no winning pulltabs remain in the deal, the licensed charitable organization shall consider the deal closed or completed, declare the winners, and shall retain unsold pulltabs as required in subsection (14) of this section.

      (d) A licensed charitable organization shall not complete play of a deal or a seal card it did not initiate.

      (8) A pulltab shall not be sold to the public at a price different than that printed by the manufacturer of the pulltab upon the flare or seal card which accompanies the deal.

      (9) Only authorized representatives of the charitable organization conducting the event at which pulltabs are sold shall verify the serial numbers and winner protections for all winning pulltabs redeemed.

      (10) If playing pulltabs that utilize a seal card, a charitable organization shall not award a prize to the holder of a winning pulltab unless the serial number on the ticket presented for redemption matches the serial number on the seal card. In a progressive pulltab game, the serial number on the tickets shall be checked in accordance with Section 6 of this administrative regulation.

      (11) A charitable organization shall award prizes to winners of pulltabs only in accordance with the prize structure indicated on the flare or seal card accompanying the deal of tickets as designed by the manufacturer. If multiple prize structures are indicated on the flare or seal card, the charitable organization shall announce to the patrons and circle on the flare or seal card the prize structure to be awarded before placing the deal into play.

      (12) A holder of a winning pulltab shall have fifteen (15) days to redeem the winning ticket. If the prize is not claimed within fifteen (15) days, the prize shall be considered unclaimed and be retained as property of the organization.

      (13) Once redeemed, the holder of a winning pulltab shall be paid no later than five (5) days from the date of redemption.

      (14) All winning pulltabs shall have the winning symbol or number defaced or punched by an authorized representative of the charitable organization immediately after redemption.

      (15)(a) The charitable organization shall retain, for a period of twelve (12) months, to allow auditing by the staff of the office:

      1. All winning pulltabs with a prize value of fifty (50) dollars and above;

      2. The flare from all winning pulltabs with a prize value of fifty (50) dollars and above;

      3. All seal cards with a prize value of fifty (50) dollars and above;

      4. All prize boards in cumulative games with a prize value of fifty (50) dollars and above; and

      5. All unsold pulltabs.

      (b) These records may be maintained at the gaming location.

      (c) The pulltabs, flares, prize boards in cumulative games, and seal cards shall be disposed of by burning in compliance with state and federal law, shredding, destroying, or defacing in some manner to prevent reuse of any pulltab, flare, prize board, or seal card or any portion thereof.

      (16) The fair market value of bingo paper, a card-minding device, or each pulltab given away as a merchandise prize shall be the price that a patron would have paid for the same bingo paper, card-minding device, or pulltab at that gaming occasion.

      (17)(a) If bingo paper is awarded as a merchandise prize, whether as a door prize or game prize, the patron shall be given a voucher.

      (b) The voucher shall be completed with:

      1. The name, address, and phone number of the patron redeeming the voucher;

      2. The date on which it was awarded;

      3. The date on which it was redeemed;

      4. The amount of bingo paper given in exchange for the voucher; and

      5. The serial number of the bingo paper.

      (c) Once the voucher is completed, it shall be redeemed for the bingo paper.

      (d) The organization shall retain the voucher with its session records.

      (18)(a) If a card-minding device is awarded as a merchandise prize, whether as a door prize or game prize, the patron shall be given a voucher.

      (b) The voucher shall be completed with:

      1. The name, address, and phone number of the patron redeeming the voucher;

      2. The date on which it was awarded;

      3. The date on which it was redeemed; and

      4. The number of card-minding devices and the number of faces loaded on each device given in exchange for the voucher.

      (c) Once the voucher is completed, it shall be redeemed for the card-minding device.

      (d) The organization shall retain the voucher with its session records.

      (e) There shall be a specific button on the point of sale programmed for each type of voucher involving a card-minding device.

      (19) If a pulltab is awarded as a promotional item or a door prize, the amount and description of the pulltab given away shall be listed on the gaming occasion program.

      (20) If a pulltab is awarded as a bingo prize, the person in charge of bingo payouts shall purchase the pulltabs from the pulltab manager by transfer of cash from bingo payout to pulltab sales and it shall be recorded as a sale on the session records.

      (21) Vouchers shall be redeemed on the same day as awarded.

 

      Section 3. Jar Tickets. Jar tickets shall be played and prizes awarded as stated on the flare received with each deal.

 

      Section 4. Seal Card Games. (1) The organization shall post the seal card for the deal in play at the location of the seal game while the deal is in play.

      (2) If a deal with a seal card is not completed during a gaming occasion, the organization shall require the patrons with holders to sign the seal card and provide a means of contacting them when the winner is declared.

      (3)(a) The seal for the deal shall be broken or torn open in plain view of all persons present when:

      1. All tickets from a deal have been sold;

      2. All the winning tickets from a deal have been sold;

      3. All the lines on the sign-up card have been filled;

      4. The deal has been closed, because no future date is anticipated; or

      5. Instructed to by the game as designed by the manufacturer.

      (b) Each winning combination, the name of the game, and the serial number of the deal shall be announced and posted at the location of the game.

      (c) The date the seal tab was opened shall be recorded on the seal card.

 

      Section 5. "Last Sale" Pulltabs. "Last Sale" pulltabs shall only be sold by an organization at its office location and not during a bingo session.

 

      Section 6. Seal Card Games with Carry Over or Progressive Prizes. (1) The prize pool for a progressive pulltab game shall be established only through the play of deals of the same game which bear a manufacturer’s form number identical to the form number of any previously-played deals contributing to the prize pool.

      (2) Before placing a deal into play, the charitable organization shall verify that the serial number on the pulltabs within each deal match the serial number on the flare or seal card accompanying the deal by conducting a random sampling of pulltabs within each deal. The serial number on the tickets shall not be required to match the serial number on the progressive pulltab jackpot card if the deal is the second or subsequent deal played in the progressive game and one (1) progressive jackpot card is used for more than one (1) deal.

      (3) After a progressive pulltab game has been started, it shall remain in play continuously until the progressive jackpot prize is determined. If the game is begun at a bingo session, it shall be offered at each succeeding bingo session of the licensee. If the game is begun at the office location, it shall be offered on each succeeding day its office is open.

      (4) The seal card for each deal in a progressive game shall show, in addition to all other information required for flares and seal cards, the amount dedicated to the progressive jackpot prize pool.

      (5) Every seal card for each deal that has been played or is being played in the course of a progressive pulltab game, together with any progressive jackpot card, shall be displayed at all times while the game is in play, until the progressive jackpot prize is won.

      (6) The serial numbers for each deal contributing to a carryover or progressive jackpot prize shall be recorded in the gaming occasion records.

      (7) A progressive or carryover pulltab game shall be played in accord with the manufacturer's specifications for the determination of a winner.

      (8) As long as money remains in the jackpot prize pool, the organization shall continue to play the same games with the same form number.

      (9) If a game bearing the same manufacturer's form number is no longer available, the organization shall contact the office for instructions on how to proceed.

      (10)(a) If a progressive prize remains unpaid, a licensed charitable organization shall display, in full and complete view of the players and at all times either:

      1. The jackpot card being played and each seal card contributing to the jackpot prize pool; or

      2. A legible poster identifying by name, serial number, and form number each deal of pulltabs contributing an amount to the jackpot prize pool.

      (b) The poster or seal cards shall remain displayed during bingo sessions or other charitable gaming activities conducted by the organization until the expiration of fifteen (15) calendar days after the organization awards the prize.

      (c) If a progressive jackpot prize is not awarded, the organization shall continue to display the poster or seal cards during bingo sessions or other charitable gaming activities it conducts for at least fifteen (15) calendar days after the date the organization considers the game closed and retains the prize as its property.

      (d) If a progressive prize remains unpaid, a licensed charitable organization shall display, in full and complete view of the players and at all times, the current value of the jackpot.

      (11) An organization shall not award the jackpot prize in a progressive pulltab game unless the serial number and form number on the winning ticket match the serial number and form number on a seal card from a deal of tickets which contributed to the jackpot prize.

      (12) For jackpot prizes of $250 or over, the organization shall attach a copy of the valid state identification card which contains the name, address, date of birth, and state identification number of the winner to the jackpot prize card.

      (13) The jackpot prize in a progressive game may accrue in excess of $2,400 dollars. An individual jackpot prize shall not be paid in excess of $2,400. The amount of the current jackpot, the amount contributed, the payouts made, and the jackpot carried forward to the next session at each gaming occasion shall be recorded in the gaming occasion record.

      (14) Any advertisement regarding the progressive jackpot may state the total amount in the jackpot prize pool as long as it also includes the statement that the individual payout shall not exceed $2,400.

      (15) A licensed charitable organization shall report to the office concerning its play of seal card games with a progressive prize on the financial report.

      (16) The jackpot prize pool in a progressive game shall be considered an adjusted gross receipt that shall be deposited within two (2) business days of the gaming occasion.

 

      Section 7. Seal Card Games with Cumulative Prizes. (1) The prize pool for a cumulative pulltab game shall be established only through the play of deals of the same game which bear a manufacturer's form number identical to the form number of any previously played deals contributing to the prize pool.

      (2) Before placing a deal into play, the charitable organization shall verify that the serial number on the pulltabs within each deal match the serial number on the flare, prize board, or seal card accompanying the deal by conducting a random sampling of pulltabs within each deal.

      (3) After a cumulative pulltab game has been started, it shall remain in play continuously until the cumulative prize pool has been awarded. If that game is begun at a bingo session, it shall be offered at each succeeding bingo session of the licensee. If the game is begun at the office location, it shall be offered on each succeeding day their office is open.

      (4) Prizes shall be offered and awarded only in accord with the manufacturer’s predesignated prize structure for the game.

      (5) The seal card for each deal in a cumulative pulltab game shall show, in addition to all other information required for flares and seal cards, the amount dedicated to the cumulative prize pool.

      (6) Every seal card for each deal that has been played or is being played in the course of a cumulative pulltab game, together with any prize board, shall be displayed at all times while the game is in play, until the cumulative prize pool is awarded.

      (7) The serial numbers for each deal contributing to a cumulative prize pool shall be recorded in the gaming occasion records.

      (8) An organization shall not award the cumulative prize pool unless the serial number and form number on the winning ticket matches the serial number and form number on a seal card from a deal of tickets which contributed to the cumulative prize board.

      (9) A cumulative prize board shall not contain prizes totaling in excess of $2,400.

      (10) A licensed charitable organization shall report to the Office concerning its play of seal card games of cumulative games on the financial report. (32 Ky.R. 806; 1281; 1644; eff. 3-31-2006; 33 Ky.R. 3518; 34 Ky.R. 63; 259; eff. 8-31-07.)